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8/9/2019 Griseri & Seppala CHAPTER 05.ppt
1/19
For use with Business Ethics and Corporate Social Responsibility
by Paul Griseri and Nina Seppala
1408004!" # $010 Cen%a%e &earnin%
THE BEHVAIOURAL
CONTEXT
Chapter 5
8/9/2019 Griseri & Seppala CHAPTER 05.ppt
2/19
For use with Business Ethics and Corporate Social Responsibility
by Paul Griseri and Nina Seppala
1408004!" # $010 Cen%a%e &earnin%
Learning objectives
I!enti"# an! e$p%ain the !i""erences in ter&s o"ethica% !ecision &a'ing in !i""erent
organi(ationa% "or&s) inc%*!ing +,Es) "a&i%#- o.ne!b*sinesses) not-"or-pro"it organi(ations an! partnerships/
Eva%*ate ho. ethics an! responsibi%it# inb*siness are a""ecte! b# organi(ationa%
str*ct*res an! c*%t*res/
Ana%#se the !i""erent "actors that can in"%*encethe .a#s that in!ivi!*a%s concept*a%i(e ethicsan! &a'e ethica% choices/
The behavioural context
8/9/2019 Griseri & Seppala CHAPTER 05.ppt
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8/9/2019 Griseri & Seppala CHAPTER 05.ppt
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For use with Business Ethics and Corporate Social Responsibility
by Paul Griseri and Nina Seppala
1408004!" # $010 Cen%a%e &earnin%
The behavioural context
THE BEVHAVIOURAL CO,0LEX A22ECTIN1
ETHICAL 3ECI+ION ,A4IN1
Ethica% !ecision &a'ing is a""ecte! b# both in!ivi!*a% an!
co%%ective "actors
Collective factors
,otives
4no.%e!ge
Va%*es
Be%ie"s
Individual factors
O.nership
2or&a% str*ct*re
1ro*p nor&s
Organi(ationa% c*%t*re
0o.er re%ationships
8/9/2019 Griseri & Seppala CHAPTER 05.ppt
5/19
For use with Business Ethics and Corporate Social Responsibility
by Paul Griseri and Nina Seppala
1408004!" # $010 Cen%a%e &earnin%
The behavioural context
THE BEVHAVIOURAL CO,0LEX A22ECTIN1
ETHICAL 3ECI+ION ,A4IN1
8/9/2019 Griseri & Seppala CHAPTER 05.ppt
6/19
For use with Business Ethics and Corporate Social Responsibility
by Paul Griseri and Nina Seppala
1408004!" # $010 Cen%a%e &earnin%
The behavioural context
O6NER+HI0 AN3 ,ANA1E,ENT
8/9/2019 Griseri & Seppala CHAPTER 05.ppt
7/19
For use with Business Ethics and Corporate Social Responsibility
by Paul Griseri and Nina Seppala
1408004!" # $010 Cen%a%e &earnin%
The behavioural context
O6NER+HI0 AN3 ,ANA1E,ENT
o Less than 57 e&p%o#ees/ ,icro-b*sinesses e&p%o# %ess than
85 e&p%o#ees/
o
Ai&ing at stab%e an! reasonab%e ret*rns/
o Lo.er pro"its) s&a%% reso*rce base) s&a%% range o" c*sto&ers)
tactica% p%anning) short %ines o" co&&*nication) 9*ic' !ecision
&a'ing/
o +&a%% b*siness o"ten re"%ect 'e# va%*es o" the o.ner:&anager/
o Ba%ance bet.een the ris's o" %i&ite! governance an! the
re%ative case .ith .hich s&a%%er "ir&s can operate ethica%%#/
8/9/2019 Griseri & Seppala CHAPTER 05.ppt
8/19
For use with Business Ethics and Corporate Social Responsibility
by Paul Griseri and Nina Seppala
1408004!" # $010 Cen%a%e &earnin%
The behavioural context
O6NER+HI0 AN3 ,ANA1E,ENT
o ;5-
8/9/2019 Griseri & Seppala CHAPTER 05.ppt
9/19
For use with Business Ethics and Corporate Social Responsibility
by Paul Griseri and Nina Seppala
1408004!" # $010 Cen%a%e &earnin%
The behavioural context
O6NER+HI0 AN3 ,ANA1E,ENT
o 2or-pro"it organisations) ranging "ro& j*st t.o in!ivi!*a%s to g%oba%
p%a#ers .ith tho*san!s o" e&p%o#ees an! !o(ens partners/
o
0artners are o"ten .itho*t %i&its on %iabi%ities/
o ,an# partnerships can be "o*n! in the pro"essiona% service "ie%!/
E/g/ %a. or acco*nting/
o O"ten governe! b# co!es o" con!*ct or co!es o" pro"essiona%
practice
o Interna% sa"eg*ar!s practices to ens*re ethica% behavio*r/
8/9/2019 Griseri & Seppala CHAPTER 05.ppt
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8/9/2019 Griseri & Seppala CHAPTER 05.ppt
11/19
For use with Business Ethics and Corporate Social Responsibility
by Paul Griseri and Nina Seppala
1408004!" # $010 Cen%a%e &earnin%
The behavioural context
O6NER+HI0 AN3 ,ANA1E,ENT
o The state is o"ten the biggest econo p%a#er in a co*ntr#/
o Ethica% iss*es inc%*!e corr*ption) ine9*it# o" p*b%ic service
!e%iveries) &is*se po.er an! the %a./
o O""icia%s &a# be te&pte! b# briber#/
o 0o%iticians o"ten "ai% to "oc*s on .hat is goo! "or the co*ntr#) b*t
rather "oc*s on iss*es that are goo! "or their p*b%ic i&age certain%#
pre-e%ection perio!/
8/9/2019 Griseri & Seppala CHAPTER 05.ppt
12/19
For use with Business Ethics and Corporate Social Responsibility
by Paul Griseri and Nina Seppala
1408004!" # $010 Cen%a%e &earnin%
The behavioural context
OR1ANIATIONAL +TRUCTURE
The hierarch# o" a*thorit#/
The hierarch# o" responsibi%it#/
The %ogica% !ivision o" operations into "*nctions/
The hierarch# o" stat*s/
The hierarch# o" capabi%it#/
The hierarch# o" pa# %eve%s/
The stan!ar! career trac' "or &ost pro"essiona% .or'ers/
8/9/2019 Griseri & Seppala CHAPTER 05.ppt
13/19
For use with Business Ethics and Corporate Social Responsibility
by Paul Griseri and Nina Seppala
1408004!" # $010 Cen%a%e &earnin%
The behavioural context
OR1ANIATIONAL +TRUCTURE
I&portant iss*es in organi(ationa% str*ct*re an! ethics
Ho. !oes str*ct*re !isengage e&p%o#ees "ro& their &ora%
instincts
A complex structure may be blurring the responsibility of the
organisation, with no employees considering ethics or taking
responsibility.
Ho. !oes str*ct*re "aci%itates:hin!ers ethica% an! responsib%e
behavio*r
The wider the span of control of the manager the less they cankeep detailed view of the employees.
Outsourcing practices may also be blurring the boundaries of
the organisations responsibilities
8/9/2019 Griseri & Seppala CHAPTER 05.ppt
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For use with Business Ethics and Corporate Social Responsibility
by Paul Griseri and Nina Seppala
1408004!" # $010 Cen%a%e &earnin%
The behavioural context
1ROU0 2ACTOR+ A22ECTIN1 ETHICAL
3ECI+ION ,A4IN1
Organi(ationa% c*%t*re D the .a# .e !o things aro*n! hereF
C*%t*re can var# consi!erab%#) .ith !i""erence !egrees o" 0o.er !istance>
In!ivi!*a%it#:co%%ectivis&> Uncertaint# avoi!ance> ,asc*%init#:"e&ininit#> Long-
ter&:short-ter& orientation/
Ethica% !ecision &a'ing an!
sense o" responsibi%it#
Th b h i l t t
8/9/2019 Griseri & Seppala CHAPTER 05.ppt
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For use with Business Ethics and Corporate Social Responsibility
by Paul Griseri and Nina Seppala
1408004!" # $010 Cen%a%e &earnin%
The behavioural context
1ROU0 2ACTOR+ A22ECTIN1 ETHICAL
3ECI+ION ,A4IN1
ETHIC+ IN 0RACTICE
otorola encourage direct reporting of ethical issues via
its !"thical line# $ a phone line that can be used
anonymously, where employees or others can report areas of
concern.
Th b h i l t t
8/9/2019 Griseri & Seppala CHAPTER 05.ppt
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For use with Business Ethics and Corporate Social Responsibility
by Paul Griseri and Nina Seppala
1408004!" # $010 Cen%a%e &earnin%
The behavioural context
IN3IVI3UAL 2ACTOR A22ECTIN1 ETHICAL
3ECI+ION+
VALUE+ AN3
ETHICAL
I3EOLO1IE+
0ERCE0TION AN3
CO1NITION
Th b h i l t t
8/9/2019 Griseri & Seppala CHAPTER 05.ppt
17/19
For use with Business Ethics and Corporate Social Responsibility
by Paul Griseri and Nina Seppala
1408004!" # $010 Cen%a%e &earnin%
The behavioural context
IN3IVI3UAL 2ACTOR A22ECTIN1 ETHICAL
3ECI+ION+
VALUE+ AN3ETHICAL
I3EOLO1IE+
%alues are close to our sense of identity
& so much that they can be difficult to
clearly analyse
Ethica% i!eo%ogiesF !escribe the .a# in .hich .e ho%!va%*es
Absolutist & little relativism but a lot of idealism
"xceptionist & little idealism or relativism
'ituationist & a lot of both relativism and idealism
'ub(ectivist & a lot of relativism, little idealism
8/9/2019 Griseri & Seppala CHAPTER 05.ppt
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The behavioural context
8/9/2019 Griseri & Seppala CHAPTER 05.ppt
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For use with Business Ethics and Corporate Social Responsibility
by Paul Griseri and Nina Seppala
1408004!" # $010 Cen%a%e &earnin%
The behavioural context
+U,,ARG
Organi(ationa% str*ct*re rare%# creates ethica% ris' o" itse%")
b*t ten!s to e$aggerate ones that are a%rea!# evi!ent/
+,Es) an! "a&i%# b*sinesses) o"ten operate to !i""erent o.ner-strategies/ These
ten! to &anage ethics in a &ore inti&ate an! potentia%%# &ore persona%%# "oc*se!
&anner/
Not-"or-pro"it organi(ations ten t o have potentia% .ea'ness in their governance/
Organi(ationa% c*%t*re) gro*p nor&s) an! organi(ationa% po.er can a%% crate
press*re to.ar!s gro*p con"or&it# in ethica% choice/
In!ivi!*a% conceive va%*es in !istinct .a#s) .hich ren!er ethica% !isc*ssion an!
!ebate &ore prob%e&atic than is genera%%# rea%i(e!/