WHY GOOD MANAGERS MAKE BAD ETHICAL DECISIONS?

By: Vinayak M Nagaonkar

What is Business Ethics?
Set of beliefs about right and wrong behaviour

Moral code
- Set of rules
- Establishes boundaries of generally accepted behaviour
-Different rules often have contradictions

Morality
- Social conventions about right and wrong
-Widely shared

Virtues - Habits that incline people to do what is acceptable
Vices - Habits of unacceptable behavior
Value system - Scheme of moral values


Why Business Ethics?
1. Growing distrust of corporate activity in financial dealings; environmental
protection; health and safety; and claims about questionable payments

2. Emphasis on improving the quality of life - health, leisure time, working conditions,
fresh air and water

3. Heavy penalties that the corporation and its managers are having to pay when
caught in unethical or illegal behavior

4. Growing power of special interest groups to impact corporate activity

5. Level of publicity generated by these forces
Why Good Managers Make Bad Ethical Decisions?
Ethical &
Legal
Situational Ethical Dilemmas
Ethical but
Illegal
Unethical
but Legal
Unethical &
Illegal
Why Good Managers Make Bad Ethical Decisions?
Factors influencing Unethical Decisions:

Commercial Bribery

Gift-giving and Gift-taking

Insider Information

Other Conflicts Of Interest

Employee moonlighting

Price-fixing in the industry
Determinants of Ethical/Unethical Decisions
Ethical
Behaviour
Personal
Ethics
Decision
Making
Processes
Leadership
Unrealistic
Performance
Goals
Organization
Culture
Decision Making The Ethical Way
Decision Making The Ethical Way
Ethical decision-making checklist.

Is my action legal?

Is it right?

Is it beneficial?

How would I feel if my family found out about this?

How would I feel if my decision were printed in the local newspaper?

Decision Making The Ethical Way
Suggestions for integrating ethical decision making into the firm.

Develop a code of ethics and follow it.

Establish procedures for reporting violations.

Involve employees in identifying ethical issues.

Monitor ethical performance.

Reward ethical behavior.

Publicize ethical efforts.

Thank You!!