Theories in Business Ethics Part 3

San Beda Graduate School of Business

VALUES
The worth or priority we place on people, things, ideas, or principles. Self-chosen beliefs and ideals. Internal, subjective, based on how we see the world. Influenced by upbringing, society, and personal reflection.

A true value is
CHOSEN Consciously above other alternatives. Basis of judging what attitudes and behaviors are correct. We feel strongly for it, cherish it, speak about it, affirm it with conviction, defend it. We back-up belief in action, live it. We walk the talk.. We decide on the basis of the value and let it influence our lifestyle.

PRIZED

ACTED UPON

Value Development
A value is a principle or belief that we Prize and publicly affirm with conviction Choose from among alternatives Act on consistently Intrinsically valuable or desirable Perceived as good and desirable

Basic Human Value

1. Self Realization -based on our experiences in life.

2. Self Determination - something that we acquire or instilled to us by others.

Types of Values
Personal Values self-respect, health, privacy, peace of mind, security, independence. Family Values love, family ties, happiness, trust, obedience. Spiritual Values relationship with God, seeking His will and calling, charity

Types of Values
Work Values precision, excellence, power, competence, teamwork, urgency Career Values personal growth, advancement, status, recognition, prestige. Social Values love of country, moral fulfillment Cultural Values debt of gratitude, respect for authority

We make choices and decisions based on our values.

PRINCIPLES
Principles are natural laws or fundamental truths. They are universal and timeless. They produce predictable outcomes. They are external to ourselves. Operate with or without our understanding or acceptance. Self-evident and enabling when understood.

PRINCIPLES and VALUES

Our values need to be aligned with principles.

Value Dilemma
Have you experienced before that you were in a situation that you have to do something that was not consistent with your values? How did you feel? How did you handle the situation?

 Youre a plant manager in one of ABC Companys five plants. Youve worked for the company for 15 years, working your way up from the factory floor after the company sent you to college. Your boss just told you in complete confidence that the company will have to lay off 200 workers.

 Luckily, your job wont be affected. But a rumor is now circulating in the plant, and one of your workers (an old friend who now works for you) asks the question, Well, Pat, whats the word? Is the plant closing? Am I going to lose my job? The closing on our new house is scheduled for next week. I need to know!

 What should you say? What will you say?

Approaching Value Dilemmas

Avoid either-or thinking. Create third alternative. Where two choices are unavoidable, clarify core values of dictates of conscience. Identify nonnegotiable. Get clarity and conviction about your decision. Consult. Take time. Do not react. Accept responsibility for the consequences.

Approaching Value Dilemmas

Prepare yourself. Clarify priorities beforehand. Educate the conscience. Clarify the real issue. Face the facts. Identify the conflicting values involved. Explore options. Consider consequences.

Activity # 1 What do I Value Most

Value refers to the understanding of a certain good for an individual or society which is considered worthy of realization.

What we do belongs to what we are; and what we are is what becomes of us. Henry Van Dyke

Is lying sometimes the right thing for an honest person to do?

Is lying sometimes the right thing for an honest person to do?

Do you have children and do they believe in Santa Claus? Would you lie to save a life of a family member? What if it would win a war? Would you lie to save the company from bankruptcy and preserve jobs?

Is lying sometimes the right thing for an honest person to do?

Would you lie if you could preclude serious embarrassment of yourself? Would you lie to avoid hurting someones feelings? Would you lie to help a child struggling with his or her self-image?

Test of Honesty
Personal habits Your resume Your confession Stories of your high school days

Test of Honesty
Accounting reports Conversations during courtships Responses to your children or friends about sex Comments on job performance News on the economy

The Honesty to Fraud Continuum

HONESTY

Withholding Information
Little white lies Public Relation and Puffery Leading to believe/mislead Exaggeration and Understatement Evading or Stretching the truth Saying things that are not so FRAUD

If we want to be honest. . . . .
We must recognize that we all justify lying and deception under certain condition. We cannot correct unethical behavior if we are not even aware that we are engaging in it. We must understand the implications of lying. Remember that we can choose our actions and values, but we may not have control over its consequences.

If we want to be honest. . . . .
We must establish deliberate and conscious guidelines for when lying is justified and when it is not. If such lines are not clearly drawn then pressures rather than principles will dictate moral conduct. We must be aware of the consequences of lying.