TEORI ETIKA

Teleology...
 an act is considered morally right or
acceptable if it produces some desired result,
i.e., pleasure, knowledge, career growth, a
self-interest, or utility
 assessing the moral worth of a behavior by
looking at its consequences (consequentialism)
 Two Teleological
Philosophies...
 Egoism: right or acceptable behavior in terms of
consequences for the individual
 maximize your self-interest, concerned with the
consequences, seeking alternative that contributes the
most to self-interests
 Utilitarianism: concern with consequences in
terms of seeking the greatest good for the greatest
number of people
 looking for the greatest benefit for all those affected by
a decision
 Utilitarianism:
 An action is right if and only if it achieves the
greatest good for the greatest number.

 Utilitarianism makes moral judgments based

on the consequences of actions, or
consequences of rules of actions
 Deontology:
(Greek: deon-duty; logos-science)
 An action is right if it is an action of a certain
kind; if it is your duty to perform. An action is
wrong if it is your duty not to perform.

 For example, always wrong to torture, rape,

enslave someone, no matter what the
consequences are.
 Deontology...
 focuses on the rights of the individual and on
the intentions associated with behavior not on
the consequences
 believe there are some things we should not
do regardless of the utility
An analytical approach to ethical problems
Step 1
Ask

Justice
Rights
Utility Are benefits
Are human
Do benefits and costs
rights
exceed costs? fairly
respected?
distributed?

Yes No Yes No Yes No

 Step 2

Compare results

If yes is the answer to all If no is the answer to all

three questions, it is three questions, it is
probably ethical probably unethical

If the answers are

mixed, it could be either
ethical or unethical
 Step 3

Assign priorities to

Utility Rights Justice

 ETIKA BISNIS &
PENERAPANNYA DI
PERUSAHAAN
 Business Ethics: What Does It
Really Mean?
Definitions
 Ethics involves a discipline that examines
good or bad practices within the context of a
moral duty
 Moral conduct is behavior that is right or
wrong
 Business ethics include practices and
behaviors that are good or bad
 Business Ethics: What Does It Really
Mean?
Business Ethics:Today vs. Earlier
Period
Society’s
Expectations
Expected and Actual Levels

of Business
of Business Ethics

Ethics

Ethical
Problem

Actual
Ethical Problem Business
Ethics

1950s Time Early 2000s

Why ethical problems occur in business
Nature of
Reason ethical Typical Attitude
problem approach
Personal gain Selfish interest Egoistical "I want it!"
and selfish versus others' mentality
interest interests
Competitive Firm's interest Bottom-line "We have to
pressures on versus others' mentality beat the
profits interests others at all
costs!"
Business goals Boss's interests Authoritarian "Do as I say,
versus personal versus mentality or else!"
values subordinates’
values
Cross-cultural Company's Ethnocentric "Foreigners
contradictions interests versus mentality have a funny
diverse cultural notion of
traditions and what's right
values and wrong."
 Ethics and the Law
 Law often represents an ethical minimum
 Ethics often represents a standard that exceeds
the legal minimum
Frequent Overlap

Ethics Law
 Why should business be ethical?

• Fulfill public expectation for business.

• Prevent harming others.
• Seek profitability.
• Improve business relations and employee productivity.
• Reduce penalties under U.S. Corporate Sentencing Guidelines.
• Protect business from others.
• Protect employees from their employers.
• Promote personal morality.
Factors Influencing Ethical Behavior

Have an
ethical day!

Leadership Strategy and Performance

Corporate Individual
Culture Characteristics
 Sources of Ethical Norms

Regions of
Fellow Workers Fellow Workers
Country

Family Profession
The Individual
Conscience
Friends Employer

The Law Religious

Society at Large
Beliefs
Developing Moral Judgment

6-22
 Age group Development stage and Basis of ethics
Stages of moral development
major ethics referent and
reasoning

ethical reasoning
Mature adulthood Stage 6 Universal principles:
Justice, fairness, universal
Principle-centered
reasoning
human rights
Mature adulthood Stage 5 Moral beliefs above Principle-centered
and beyond specific social reasoning
custom: Human rights, social
contract, broad constitutional
principles
Adulthood Stage 4 Society at large: Society-and-law
Customs, traditions, laws centered reasoning
Early adulthood, Stage 3 Social groups: Friends, Group-centered
adolescence school, coworkers, family reasoning

Adolescence, Stage 2 Reward seeking: Ego-centered

youth Self-interest, own needs, reasoning
reciprocity
Childhood Stage 1 Punishment avoidance: Ego-centered
Punishment avoidance, reasoning
obedience to power

Source: Adapted from Lawrence Kohlberg, The Philosophy of Moral Development (New York: Harper & Row, 1981).
 Elements of Moral Judgment

Amoral Managers Moral Managers

Moral Imagination
Moral Identification
Moral Evaluation
Tolerance of Moral
Disagreement and
Ambiguity
Integration of Managerial
and Moral Competence
A Senses of Moral
Obligation
 The components of ethical climates
Focus of ethical concern
Individual Company Society
person
Egoism Self- Company Economic
(self-centered interest interest efficiency
approach)
Ethical criteria

Benevolence Friendship Team Social

(concern-for- interest responsibility
others approach)
Principle Personal Company Laws and
(integrity morality rules and professional
approach) procedures codes

Source: Adapted from Bart Victor and John B. Cullen, “The Organizational Bases of Ethical Work Climates,”
Administrative Sciences Quarterly 33(1988), p. 104.
 How to Build in Ethics
 TOP MANAGEMENT COMMITMENT
 MISSION STATEMENT
 ETHICS CODE
 POLICIES/PROCEDURES
 TRAINING
 WHISTLE-BLOWER’S HOTLINE
 ETHICS OFFICER
 INDEPENDENT AUDIT
 DISCIPLINARY ACTION
 Codes of Conduct
 Must provide clear direction about ethical
behavior when temptation to behave
unethically is strongest.
 But, also must leave room for a manager to use
his or her judgment in situations requiring
cultural sensitivity.
 Intl. managers who are not prepared to grapple
with moral ambiguity and tension should pack
their bags and come home
 How to support ethical decision
making in the organization?
 culture, values & programs
 compliance & leadership
 recognition of the role of co-workers &
managers
 balancing stakeholder interests
 management of situational pressures
 rewards beyond short-term performance
 Creating an Ethical Corporate
Culture
 Core values are not specific enough to guide managers through
actual ethical dilemnas.
 Managers should be guided by precise statements that spell
out the behavior and operating practices that the company
demands.
 90% of all Fortune 500 companies have codes of conduct.
 70% have statements of vision and values.
 In Europe and the Far East, the percentages are lower but are
rising rapidly.
 Business Ethics: It Begins with
Leadership

As Leaders, we must do a better job at creating

and sustaining organizational cultures that
support ethical behavior….
 Guidelines for Ethical Leadership
 Treat corporte values and formal standards of
conduct as absolutes.
 Design and implement conditions of
engagement for suppliers afnd customers.
 Allow forwign business units to help
forlmulate ethical standards and interpret
ethical issues.
 In host countries, support efforts to decrease
institutional corruptions.
 Exercise moral imagination.
 Two approaches to ethics programs
and their effectiveness
Compliance-based programs
• Rooted in avoiding legal sanctions.

• Companies will establish rules and guidelines for employees to follow.

• Emphasizes threat of detection and punishment.

• Assumes employees are driven by self-interest.

• Research evidence shows that employees do care about moral

correctness of their actions.

Sources: Lynn Sharp Paine, “Managing for Organizational Integrity,” Harvard Business Review, March/April 1994, pp. 106-117
and Gary Weaver and Linda Klebe Trevino, “Compliance and Values Oriented Ethics Programs: Influences on
Employees’ Attitudes and Behavior,” Business Ethics Quarterly, 9(1999), pp. 315-335.
 Two approaches to ethics programs
and their effectiveness
Integrity-based ethics programs
• Combine a concern for the law with an emphasis on employee
responsibility for ethical conduct.

• Establish a climate of self-governance for employees based on

general principles as guidelines.

• Employees told to act with integrity and conduct business dealings

in an environment of honesty and fairness.

• Employees are thought of as social beings, concerned for the

well-being of others.

• Researchers found that these programs fostered lower

observed unethical conduct.
Sources: Lynn Sharp Paine, “Managing for Organizational Integrity,” Harvard Business Review, March/April 1994, pp. 106-117
and Gary Weaver and Linda Klebe Trevino, “Compliance and Values Oriented Ethics Programs: Influences on
Employees’ Attitudes and Behavior,” Business Ethics Quarterly, 9(1999), pp. 315-335.