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Tutorial 1

Meaning of Ethics
(a) Ethics are individually defined - people have ethics, whereas organisations do not; (b) What constitutes ethical behaviour can vary from one person to another; (c) Ethics are relative, not absolute. This means that although what constitutes ethical behaviour is in the eye of the beholder, it usually conforms to generally accepted social norms.

The Formation of Individual Ethics


Family Influences Peer Influences Life Experiences Personal Values and Morals Situational Factors

Views of Ethics
Utilitarian Golden Rule Kantian Rights Enlightened Self-Interest

Kants View of Ethics Focuses on Personal Rights


The right of free consent The right of privacy The right of freedom of conscience The right of freedom The right of due process

Tutorial 2

Organisations social responsibility


Organisational Constituents Organisational Natural Environment Organisational General Social Welfare

Arguments

For

and

Against

Social

Responsibility

of

Organisations
Arguments For Social Responsibility 1. Businesses create problems and should therefore help to 2. Corporations are citizens in our society. 3. Businesses often have the resources necessary to solve 4. Social responsibility can enhance profits. Arguments Against Social Responsibility 1. The purpose of business is to generate profit for owners. 2. Involvement in social programmes gives businesses 3. There is a potential for conflict of interest. 4. Businesses lack the expertise to manage social programmes.

Four Main Methods of Addressing Government Pressures for More Social Responsibility for Organisations.
Personal Contacts Lobbying Political Action Committees (PACs) Favours

CHARACTERISTICS OF ETHICAL PROBLEMS IN MANAGEMENT


Most Ethical Decisions Have Extended Consequences Most Ethical Decisions Have Multiple Alternatives Most Ethical Decisions Have Mixed Outcomes Most Ethical Decisions Have Uncertain Consequences Most Ethical Decisions Have Personal

Implications

Tutorial 3

Five characteristic in the definition of law


Consistent The requirements to act or not to act have to be consistent to be considered as part of the law. That is, if two requirements contradict each other, both cannot be termed as a law, because obviously people cannot obey both. Universal The requirements to act or not to act also have to be universal, or applicable to everyone with similar characteristics, facing the same set of circumstances. Published The requirements to act or not to act have to be published and put in print so that they are accessible to everyone within the society. No doubt, not everyone has the time to read up on or understand everything that is published. However, trained professionals such as attorneys are available to interpret and explain the law. Hence, ignorance of the law is not a valid excuse. Accepted The requirements to act or not to act in a given way have to be obeyed. If most members of the society do not voluntarily obey the law, they would have to be compelled to do so. Enforced The requirements to act or not to act in a given way have to be enforced. Members of the society have to understand that they will be compelled to obey the law, if they do not choose to do so voluntarily. People have to recognise that, if they disobey the law, and if it is noted and can be proven, they will suffer some loss of convenience, time, money, freedom or life. There is an element of insistency about the law; there is also or should be, an element of inevitability; it defines what will happen if we do not follow the rules.

FORMATION OF THE LAW

Individual Processes Group Processes Social Processes Political Processes

ETHICAL CODES
Norms Norms are standards of behaviour; they are the ways in which the senior management of an organisation want staff members to act when confronted with a given situation. Beliefs Beliefs in an ethical code are standards of thought; they are the ways of thinking in which the senior management of an organisation want employees to adopt. This is not censorship. The intent is to encourage ways of thinking and patterns of attitudes that will lead towards the desired behaviour.

OMBUDSMAN POSITION
An ombudsman is a person within an organisation, often an older and respected manager, close to retirement, who has been relieved of operating responsibilities and assigned the task of counseling younger employees on career problems, organisational difficulties and ethical issues.

Measurement factors weighted for strength of business unit within industry


Product Quality Market Share Brand Reputation Share Growth

Tutorial 4

EMPLOYMENT AND WAGES


To motivate and satisfy employees, managers also need to:

provide them with on and off-the-job training; give them effective job-performance feedback; allow them to participate in decision-making affecting the structure and objectives of their jobs and how their performance on those jobs will be measured; provide opportunities for them to move to higher-paying positions with more responsibilities; and provide them with safe working conditions.

Effects of shutting down, relocation and downsizing of American plants and industries

Comparison Between Affirmation Action and Preferential Treatment


Affirmation Action Employment and promotion opportunities are open to all, regardless of gender, race, religion, age, and so forth. Preferential Treatment Preferential treatment (popularly referred to as setting quotas), the practice of hiring or promoting members of minority groups in preference to those from nonminority groups.

ABUSING EMPLOYEES
It is probably not uncommon for bosses to fly into a rage at their subordinates, berating them at meetings in front of other employees. Employees may even be threatened with the loss of their jobs for such failures as: (a) not agreeing to fudge financial statements; (b) refusing sexual advances; (c) not trying to get out of jury duty; or (d) refusing to commit perjury on behalf of a union or company.

Tutorial 5

WHISTLE-BLOWING
Whistle-blowing is: (a) internal if the accusation is made through the lines of supervision or other designated channels within the company; (b) external if it is reported to people or agencies outside the company, like civil authorities or the media.

THE MORALITY OF FIRING WHISTLEBLOWERS


A company would be justified in taking action against an employee who deliberately lied about a case, knowingly misrepresented it so that it looked more serious than it really was, or had clearly blown the whistle as an act of revenge on a fellow employee or supervisor or to protest a company policy he did not like, or was attempting to discredit a rival for promotion.

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