Professional Documents
Culture Documents
Ethics involves notions of Right and wrong Fair and unfair Moral and immoral Business Ethics is the application of general
ethical principles and standards to the actions and decisions of business organizations and the conduct of their personnel Ethical principles in business are not materially different from ethical principles in general Business actions are judged by the general ethical standards of society Legal versus Ethical Behavior
are not (universalism vs. relativism) Cross-culture variability in ethical standards Determining what is ethical when local standards vary Managers have to figure out how to navigate the gray zone when cross-culture ethics differ Should adhere to higher standard(s) 3 Schools of Thought Ethical Universalism Ethical Relativism Integrative Social Contracts Theory
Ethical Universalism
Ethical Universalism The most important concepts of what is right
and wrong are universal and transcend culture, society, and religion
Results in a set of universal ethical standards
that apply to members of all societies, all companies, and all businesspeople
Sets limits and puts boundaries on ethical
behavior
Ethical Relativism
Ethical Relativism Differing religious beliefs, customs and
behavioral norms across countries and cultures give rise to multiple sets of standards concerning what is ethically right or wrong What is ethical or unethical depends on the prevailing local ethical standards and can vary from one nation to another There can be multiple sets of ethical standards There is no one-size-fits-all set of ethical norms
take precedence
ethical behavior both personally and on the part of their organizations Immoral Managers Are actively opposed to or have no regard for ethical standards in business behavior Amoral Managers Do not pay attention or are blind to business ethics or believe that business and ethics dont mix
Compliance approach
Put a compliance system in place to control ethical
behavior
Ethical culture approach
Use culture and peer pressure to control ethical
behavior
consequences
Time consuming and costly to rehab reputation May be shunned by customers
self-interest of shareholders
on:
Employees Local communities The environment Society at large Companies must demonstrate a social consciousness
responsible is unique
citizens A business is obligated to act as a responsible citizen and do its fair share to promote the general welfare Should act in the overall best interests of society as well as shareholders It generates internal benefits It reduces the risk of reputation-damaging incidents and can lead to increased buyer patronage
Culture - perspective
Should not be window dressing Communication Leading by example Should influence and be part of strategy