Application of laws, regulations, and organizational rules in making decisions and taking action

It is generally believed that the word ethical equates to lawful, and that by being lawful an organization or activity is automatically ethical. This is not so. While many things that are unethical are also unlawful, ethics do not equate to law. Many unethical things are entirely lawful. Moreover sometimes the law can produce extremely unethical effects. Though most of the unlawful actions would also come under unethical action, certain situation may have enough strong justification for breaking the law or circumnavigating it. The important thing is the use of codes, rules, guidelines and other systems which help us identify actions and behaviors that can be considered unethical. These culturally designed and propagated codes of conduct or ethical systems generally provide lists of what things one should do and not do. They can vary from the Ten Commandments, to legal code of ethics or a company code of conduct. Most of these rules or set of principles are designed to create fairness and equity, respect for others, and systems of non-discrimination. They also balance power and protect the powerless. In some way these ethical codes act very much like the state laws, company rules and policies and local social custom that are enforced through external or internal means. Figure given below presents a model of rule or behavioral standard compliance which should apply to any behaviorally based or process based standard whether it be termed a norm, rule, guideline or ethical code.

Though however important it might seem that an organization should follow the laws, regulations and other norms while taking an ethical decision, it certainly comes down to a framework which enables a manager or an organization to take ethical decision. A Framework for Ethical Decision Making Recognize an Ethical Issue 1. 2. Could this decision or situation be damaging to someone or to some group? Does this decision involve a choice between a good and bad alternative, or perhaps between two "goods" or between two "bads"? Is this issue about more than what is legal or what is most efficient? If so, how?

Get the Facts 3. 4. 5. What are the relevant facts of the case? What facts are not known? Can I learn more about the situation? Do I know enough to make a decision? What individuals and groups have an important stake in the outcome? Are some concerns more important? Why? What are the options for acting? Have all the relevant persons and groups been consulted? Have I identified creative options?

Evaluate Alternative Actions 6. Evaluate the options by asking the following questions: Which option will produce the most good and do the least harm? (The Utilitarian Approach) Which option best respects the rights of all who have a stake? (The Rights Approach) Which option treats people equally or proportionately? (The Justice Approach) Which option best serves the community as a whole, not just some members? (The Common Good Approach) Which option leads me to act as the sort of person I want to be? (The Virtue Approach)

Make a Decision and Test It 7. 8. Considering all these approaches, which option best addresses the situation? If I told someone I respect-or told a television audience-which option I have chosen, what would they say?

Act and Reflect on the Outcome 9. How can my decision be implemented with the greatest care and attention to the concerns of all stakeholders? 10. How did my decision turn out and what have I learned from this specific situation?

This framework for thinking ethically is the product of dialogue and debate at the Markkula Center for Applied Ethics at Santa Clara University. Primary contributors include Manuel Velasquez, Dennis Moberg, Michael J. Meyer, Thomas Shanks, Margaret R. McLean, David DeCosse, Claire Andr, and Kirk O. Hanson. It was last revised in May 2009. If an organization culture encourages or rewards unethical behavior, its employees may not be expected to work

ethically. Similarly if an organization hires a particular set of people having specific values which are not considered as ethical the organization will also not be considered as ethical organization. Such a pattern often occurs in certain areas of marketing. For instance, sales people may be seen as unethical because they sometimes use aggressive selling tactics to get customers to buy things they do not need or want. If a companys primary objective is to make as much profit as possible, through whatever means, its culture may foster behavior that conflicts with stakeholders ethical values. For example, Boeing general counsel, Doug Bain, noted in an annual leadership meeting that Boeing operated with a culture of winning at any cost. He continued noting that fifteen company vice presidents have been removed for a variety of ethical lapses. Boeing is under investigation by the Justice Department and could face heavy fines. The

interests of diverse Boeing stakeholders (shareholders, suppliers, and employees) may have been ignored in their efforts to boost profits.

Example quoted from http://cengagesites.com/academic/assets/sites/3903_9781439052242_ch7.pdf On the other hand, if the organization values ethical behaviors, it will reward them. At Microsoft, for example, the mission is to help people and businesses throughout the world realize their potential. The company values passion for customers, for partners, and for technology. this strong corporate culture may help explain the companys reputation for corporate citizenship, which is reflected in its position on such lists as Fortunes Americas Most Admired Companies ranking number ten overall. Organizational Culture leads a great deal in the formulation of ethical standards of an organization. Societal norms are the rules of conduct that are generally deemed 'socially acceptable' or unacceptable. Dress codes are a simple example. Society communicates what is appropriate business attire and it varies from occupation and most certainly across societies. At a more complex level, gender roles are detailed in law and policy in many parts of the world but not in others, where tradition (a societal norm) is the rule. Industry standards are a narrower set of informal standards that define how a sub-set of society (an industry) chooses to behave. There can be an understanding within the airline industry, for example, not to compete on matters effecting public safety, or to share training materials related to ethics, as is the case within the defense industry. These standards are often not formalized - they are simply 'understood' and many are motivated by the recognition that safeguarding the reputation and integrity of the industry serves all its members. Organizational norms are closer and narrower than industry norms as they define how we do things here. These are the common understandings within the organization as to how things 'really work' independent of what the formal rules might. In every organization there are some disparities between what the rules say and how things work in reality. Often these differences play out as a more 'liberal' interpretation of the rules - as in the case of a 'good' employee being allowed to deviate from a policy that may be more strictly enforce with a 'problem' employee.

As a whole, the organizational culture provides an alternative, informal set of rules and the reasoned decision considers both sets of rules. Based on an article by Frank J Narvan