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Ethics - Chapter 3 Notes

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Lecture notes of 7 pages for the course MANA 201 at (In-class summary)

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3.1 Ethics

Ethics: Defined as the moral code of principles that sets standards of good and bad, or right and wrong,
in one’s conduct.

 The actions of organizations are ultimately driven by the people who run them.

 An individual’s moral code is influenced by a variety of sources including family, friends, local
culture, religion, educational institutions and individual experiences.


Ethical Behavior: Behavior that is accepted as “good” and “right” in the context of governing moral
code.

Values: The underlying beliefs and attitudes that help influence individual behavior.

- Terminal Values: Preferences about desired ends, goals one strives to achieve in life
(Family, happiness, financial success, etc.)
- Instrumental Values: Preferences regarding the means for accomplishing these ends
(Ambition, honesty, discipline, etc.)

Utilitarian View: Considers ethical behavior to be that which delivers the greatest good the greatest
number of people.

Individualism View: Based on the belief that one’s primary commitment should be to advance long-
term self-interests. Society will be best off if everyone acts in ways that maximize their own
utility/happiness.

(Supposed to promote honesty and integrity because if everyone acts badly, then it does not help
society as a whole)

Moral Rights View: Behavior is ethical when it respects and protects the fundamental rights of people.

- Right to life
- Freedom & Security
- Freedom of speech
- No inhumane behavior or punishment

The problem is there is no line between where one’s rights begin and end so as to not infringe on
other’s rights (using your freedom of speech at the workplace, but it makes someone else
uncomfortable)

Justice View: Maintains that behavior is ethical when people are treated impartially, according to legal
rules and standards. It defines the ethics of a decision based on whether it is “equitable” for everyone
affected.

- Procedural Justice: Concerns the degree to which policies and rules are fairly applied to all
individuals

, - Distributive Justice: Deals with the degree to which outcomes are allocated fairly across all
employees without respect to individual characteristics such as ethnicity, race, gender, etc.

- Interactional Justice: Concerns the degree to which people treat one another with dignity and
respect.

- Commutative Justice: Focuses on the fairness of exchanges or transactions. Things are fair if all
parties have access to relevant information and obtained some benefit.




 Ethical problems become more difficult when you overlay the complexities of different cultures
and value systems that exists throughout the world (a norm for one might not be accepted by another)

Cultural Relativism: The belief that there is no one right way to behave and that ethical behavior is
always determined by its cultural context.

Moral Absolution: The belief that if a behavior or practice is not ethical in one’s home environment, it is
not acceptable anywhere else. Moral absolutism holds that ethical standard are universal and should
apply absolutely across cultures and national boundaries.

Ethical Imperialism: An attempt to impose one culture’s ethical standards on others.




3.2 Ethics in the Workplace

Ethical Dilemma: Is a situation that requires a decision regarding possible courses of action that,
although offering the potential for personal or organizational benefit, or both, may be unethical.

(Action must be taken, but there is no clear “right” or “wrong”)

- Discrimination
- Sexual Harassment
- Conflicts of Interest
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