Ethics Mini Project 2014

7/17/2019 Ethics Mini Project 2014

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MEM5336 MANAGEMENT FOR ENGINEERSMINI PROJECTS 2014/15

N S Senanayake

Business organizations face ethical questions every day concerning all aspects

of the business. Today, the “management of ethics” has become a very

important aspect in the general management of businesses in order tomaintain harmony within the organization and to ensure harmonious

existence in the society.

Selecting one or two organizations in Sri Lanka, investigate how they manage

ethics and social responsibility issues. Based on your finding compile a report

briefly describing the theoretical approaches and how they are practicedaccording your findings.



Content of this presentation

Defining ethics

Different approaches to ethics

Ethical decision making process

Strategies for managing ethics



Several ways we can look at ethics

Introduction to ethics



Ethics

Refers to well-founded standards of right and wrong that

prescribe what humans ought to do, usually in terms of rights,

obligations, benefits to society, fairness, or specific virtues.

These standards

impose reasonable obligations to refrain from wrong doings such as

stealing, murder, assault, slander, and fraud.

tell virtues of honesty, compassion, and loyalty

relate to rights, such as the right to life, the right to freedom from injury,

and the right to privacy. Such standards are adequate standards ofethics because they are supported by consistent and well-founded

reasons.



Ethics

Ethics also refers to the study and development of one's

ethical standards. As mentioned above, feelings, laws,

and social norms can deviate from what is ethical. So it

is necessary to constantly examine one's standards toensure that they are reasonable and well-founded.

Ethics also means the continuous effort of studying our

own moral beliefs and our moral conduct, and striving

to ensure that we, and the institutions we help to shape,live up to standards that are reasonable and solidly-

based.



Five approaches

Utilitarian ApproachRights Approach

Fairness or Justice Approach

Common Good Approach

Virtue Approach

Approaches to ethics



The Utilitarian Approach

Ethical action is the one that provides the most good or

does the least harm, or, to put it another way, produces

the greatest balance of good over harm.

The ethical corporate action, then, is the one thatproduces the greatest good and does the least harm

for all who are affected-customers, employees,

shareholders, the community, and the environment.



The Rights Approach

Ethical action is the one that best protects and respects themoral rights of those affected. This approach starts from thebelief that humans have a dignity based on their humannature as such or on their ability to choose freely what they

do with their lives. On the basis of such dignity, they have a right to be treated

as ends and not merely as means to other ends. The list ofmoral rights -including the rights to make one's own choicesabout what kind of life to lead, to be told the truth, not to

be injured, to a degree of privacy, and so on-is widelydebated; some now argue that non-humans have rights, too.Also, it is often said that rights imply duties-in particular, theduty to respect others' rights.



The Fairness or Justice Approach

Aristotle and other Greek philosophers have contributed theidea that all equals should be treated equally. Today weuse this idea to say that ethical actions treat all humanbeings equally-or if unequally, then fairly based on some

standard that is defensible. We pay people more based on their harder work or the

greater amount that they contribute to an organization, andsay that is fair. But there is a debate over CEO salaries thatare hundreds of times larger than the pay of others; many

ask whether the huge disparity is based on a defensiblestandard or whether it is the result of an imbalance ofpower and hence is unfair.



The Common Good Approach

The Greek philosophers have also contributed to the viewthat life in community is a good in itself and our actionsshould contribute to that life. This approach suggests that the

interlocking relationships of society are the basis of ethicalreasoning and that respect and compassion for all others-especially the vulnerable-are requirements of suchreasoning. This approach also calls attention to the commonconditions that are important to the welfare of everyone.

This may be a system of laws, effective police and firedepartments, health care, a public educational system, oreven public recreational areas.



The Virtue Approach

A very ancient approach to ethics is that ethical actions

ought to be consistent with certain ideal virtues that

provide for the full development of our humanity.

These virtues are dispositions and habits that enable usto act according to the highest potential of our

character and on behalf of values like truth and

beauty. Honesty, courage, compassion, generosity,

tolerance, love, fidelity, integrity, fairness, self-control,and prudence are all examples of virtues. Virtue ethics

asks of any



Having a method for ethical decision making is absolutely essential.

When practiced regularly, the method becomes so familiar that wework through it automatically without consulting the specific steps.

The more novel and difficult the ethical choice we face, the more we

need to rely on discussion and dialogue with others about the

dilemma. Only by careful exploration of the problem, aided by the

insights and different perspectives of others, can we make goodethical choices in such situations.

Ethics in decision making



The following framework for ethical decisionmaking is a useful method for exploring ethicaldilemma and identifying ethical courses ofaction.

Ethics in decision making



Recognize an Ethical Issue

Could this decision or situation be damaging to

someone or to some group? Does this decision

involve a choice between a good and bad

alternative, or perhaps between two "goods" orbetween two "bads"?

Is this issue about more than what is legal or what is

most efficient? If so, how?



Get the Facts

What are the relevant facts of the case? What

facts are not known? Can I learn more about the

situation? Do I know enough to make a decision?

What individuals and groups have an importantstake in the outcome? Are some concerns more

important? Why?

What are the options for acting? Have all therelevant persons and groups been consulted? Have I

identified creative options?



Evaluate alternative actions

Evaluate the options by asking the following questions:

Which option will produce the most good and do the leastharm? (The Utilitarian Approach)

Which option best respects the rights of all who have a

stake? (The Rights Approach) Which option treats people equally or proportionately?

(The Justice Approach)

Which option best serves the community

as a whole, not just some members?(The Common Good Approach)

Which option leads me to act as the sort of person I want tobe? (The Virtue Approach)



Make a Decision and Test It

Considering all these approaches, which option best

addresses the situation?

If I told someone I respect-which option I have

chosen, what would he/she say?



Act and Reflect on the Outcome

How can my decision be implemented with the

greatest care and attention to the concerns of all

stakeholders?

How did my decision turn out and what have Ilearned from this specific situation?



Organizational business ethics is the application

of the morality related choices as influenced

and guided by values, standards, rules,

principles, and strategies associated with

organizational activities and business situations.

Organizational/Business Ethics



The “Ethical Dilemma”

The „ethical dilemma‟ involves all associates in anorganization and a multitude of issues:

Individual morality and integrity.

Daily choices by every organizational participant. The use of power and authority.

Interpretations of rules and standards from one individual tothe next.

Anything from inconsequential to organizationally andsocially significant scenarios.

Social influences.



The “Ethical Dilemma”….

Laws don‟t cover everything.

Free market and regulated market mechanismsdon‟t describe how to respond to complex issues

that have far reaching ethical consequences.

Complex problems often require an intuitive orlearned understanding and concern for fairness,

justice, due process to people, groups, andcommunities.

Consequences.



Role of leaders

Code of Ethics Policy Guidelines

Standards of Ethical

Performance

Training Punishment/Consequences/

Discipline

Peer Reporting

Moral Development Appearance of the Act

Intensity of the Choice

Ethical Climate

Culture

Management and

Leadership

Objective Subjective

Develop Ethical Behavioral Influences:



Code of ethics

Businesses face ethical questions every day concerning the products

or services they sell and the way they deal with people inside and

outside the company. Many companies choose to operate according

to a code of ethics — a document that explains specifically how

employees should respond in different situations Instead of referring to a written guideline, you can ask yourself, “If I

take this action, will anyone suffer as a result?” For example, if a

salesperson knowingly sells an item that does not have a return

guarantee without informing the customer, the customer (and the

business) could suffer. You don‟t need a code of ethics to decide if it

is wrong.



Four strategies

Relying on employee valuesCompliance

Ethics exhortation

Managing values

Strategies for managing ethics



Relying on employee values

Assumes

Everyone is ethical and honorable

Expect ethical behavior and you will get it

Risks Not everyone is ethically strong

Not everyone shares the same ethical values

Not everyone is sophisticated enough to see andresolve ethical issues which may arise



Compliance

Features

Establish standards of minimum behavior, usually based on

law

Write detailed standards stating explicit rules Establish sever penalties for violating the minimum standards

Risks

May give the idea that company wants only minimum

standard of behavior May imply lower level employees are targeted

Give no guidance for most difficult value choices



Ethics exhortation

Features

Exhort employees to act ethically

Train employees to identify ethical dilemma and ask

good questions about possible ethical standards Risk

No help in identifying correct ethical standards

No guidance on complex ethical choicesMay imply employees are to pay short term costs

acting ethically



Managing value

Features

Define corporate values or aspirations and minimumethical standards

Require each level of the company to identify howvalues apply

Educate, model, reward to these values and standards

Maintain audit/discipline system for min. standard

Renew the values frequently Risks

More management effort



Ethics and Corporate Social Responsibility

Businesses exhibit corporate social responsibility

(CSR) through their values, their ethics, and the

contributions that they make to their communities. In

other words, CSR has to do with “What you do, howyou do it, and when and what you say.” A socially

responsible business provides goods and services in

line with society‟s values. Socially responsible

businesses are concerned about how they protectcustomers and treat employees and shareholders.



For example, a business may discover that it can

make a higher profit by closing a plant in one town

and opening a new plant one hundred miles away.

What should the people who run the business consider

as they decide whether or not to open the new plant?

What obligations do they have to their employees, to

their shareholders, or to the community where their

old plant is located? Will the new plant result in harm

or benefit to people in the community where it is

going to be built?



What you need to do?

Select a few institutions

Gather information related ethics (and socialresponsibility)

Through questionnaire Interviews with mangers and workers

Literature (annual reports, corporate plans, othercompany related publications)

Analyze collected information Give your judgment as to what extent the ethics are

properly managed



Questions

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Ethics Mini Project 2014

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