Ethics in the Workplace

 Ethics are beliefs about what’s right or wrong and good or bad based on an
individual’s values and morals.
 Ethical behavior conforms to individual beliefs and social norms about what’s right
and good.
 Unethical behavior conforms to individual beliefs and social norms about what’s
wrong or bad.
 Business ethics refers to ethical or unethical behaviors by employees in the context of
their jobs.

Individual Values and Codes

Sources of personal codes of ethics
 Childhood responses to adult behavior.
 Influence of peers.
 Experiences in adulthood.

Business and Managerial Ethics

Managerial ethics are the standards of behavior that guide individual managers in
their work.
 Behavior Toward Employees, this category covers such matters as hiring and firing,
wages and working conditions, and privacy and respect.
 Behavior Toward the Organization, employee behavior toward employers involves
ethical issues in such areas as conflict of interest, confidentiality, and honesty.
 Ethical concerns
 Ambiguity (example : financial disclosure)
 Global variation in business practices (example : bribes)

Assesing Ethical Behavior

Simplified steps :
 Gather the relevant factual information.
 Analyze the facts to determine the most appropiate moral values.
 Make an ethical decision based on the rightness or wrongness of the proposed activity
or policy.
 Model of ethical decision making that can be applied in cases like:
 Utility. Does a particular act optimize the benefits to those who are affected by it?
 Rights. Does it respect the rights of all individuals involved?
 Justice. Is it fair?
 Caring. Is it consistent with people’s responsibilities to one another?

Company Practices and Business Ethics

 Adopting Written Codes. Many companies have written codes that formally
announce intent to do business ethically.
 Instituting Ethics Programs. Many examples suggest that ethical responses can be
learned through experience.

Social Responsibility
While ethics affect individual behavior in the workplace, social responsibily refers to
the overall way in which a business attempts to balance its commitments to relevant groups
and individuals in its social environment.