Chapter 16

CHAPTER 16
Ethics in Business Communication
© 2016 Cengage Learning ● All Rights Reserved

Intended Learning Outcomes
1. Discuss the importance of ethical communication in
business.
2. Understand the framework of Kohlberg’s theory of
moral development.
3. Contrast the differences between the utilitarian, moral
rights, and justice approaches to ethics.
4. Examine the influence of culture on ethical behavior
and apply universal and relative principles and
standards of ethical behavior in intercultural business
contexts.
5. Learn how an emphasis on corporate social responsibility
influences employees’ ethical values.
Guffey, Du-Babcock, and Loewy | Essentials of Business Communication, 3 rd Asia Edition Chapter 16, Slide 2
Intended Learning Outcomes
6. Consider how different ethical principles affect an
individual’s communication behavior.
7. Apply relevant knowledge of ethical frameworks when
communicating in business or professional contexts.
8. Explain the applicability of ethical theories to the field of
business and professional communication.
9. Analyze the decision-making processes in organizations
and the role of communication in decision making.
10. Learn about ethical dilemmas in business.
Importance of Ethical Communication
Stages of Ethical
Development:
Lawrence Kohlberg (1973)
Individual Ethical Utilitarian
Frameworks Approach
Moral Rights
Distributive
Approach
Ethical Justice
Procedural
Decisions Approach
Cultural
Universalism Compensatory
Approach
Cultural
Relativism
Cont.
1. Utilitarian Approach
Cont.
2. Moral Rights Approach
 Recognizes that human beings are
born with fundamental rights and
privileges.
 Stresses the importance of respecting
and protecting the fundamental rights
of all human beings.
 Recognizes that decisions made by people
can have both positive and negative
consequences.
 Focuses on examining the morality of a
given course of action independent of
any consequences.
 Tending to choose the action that is in
line with moral principles and leads to
positive consequences.
Cont.
3. Justice Approach
 Focuses on how the costs
and benefits of an action are
distributed and whether the
distribution is fair and
equitable.
 The three types of justice
approach are: distributive,
procedural, and
compensatory justice.
3.1 Distributive Justice
Approach
 Rewards and punishments
should be fairly distributed
based on how much
individuals contribute
toward or deviate from the
given organizational goals.
 Discrimination (e.g., race,
gender) is an example of
the lack of distributive
justice.
3.2 Procedural Justice
Approach
 The policies, rules, and
procedures relating to
decisions and behaviors
should be applied fairly
and consistently.
 The criterion is whether
the rules and processes
governing the distribution
of the rewards and
punishments are fair.
3.3 Compensatory
Justice Approach
 Involves compensating
someone for a past wrong
decision or action.
 Requires that the parties
hurt be compensated for
past injustice.
Cont.
When adopting the Justice Approach, the
decision maker should consider
• whether the procedures for distributing
costs and benefits are fair and clear;
• whether costs and benefits are fairly
distributed and how; and
• whether individuals who are unfairly
affected by this course of action are fairly
compensated.
Cont.
4. Cultural Universalism
Approach
 Represented by Immanuel
Kant’s categorical moral
imperatives.
 Implies that certain truths or a
set of rules should be applied
everywhere and that universal
values should transcend culture
in determining what is right and
wrong.
Cont.
5. Cultural Relativism
Approach
 Suggests that behavior in
foreign settings should be
guided by local laws and
customs.
 Argues that there is no single
right way and no universal
standards or rules can be used
to guide or evaluate the morality
of an act.
 What is right in one cultural
context may be wrong in
another.
Corporate Social Responsibility (CSR)
“The social obligation of a corporation to look after
the interests of its external stakeholders while
protecting its own corporate interests”
Corporate social responsibility refers to:
 Obligations of a corporation.
 How it acts in terms of its own corporate interests
and profits in relation to the interests of its external
stakeholders.
Cont.
Corporate social responsibility includes
concerns about:
 Environment
 Employment
 Community
 Consumer
 Philanthropy
Cont.
2000 2014…
CSR was a CSR is a
moral issue strategic / profit issue
“We want to “Ignoring CSR potentially

do the right damages shareholders.
thing.” Embracing it creates
value.”
$ 100 million donation to environmental charities
creating green roofs for schools in Hong Kong
supporting the green sport
ENVIRONMENT
EMPLOYMENT
COMMUNITY
CONSUMER
PHILANTHROPY
childcare facilities for its employees( 滙豐幼兒學
校)
Sports Club- arts, dance, games, and sports
classes
 E-training courses, overseas exchanges
ENVIRONMENT
EMPLOYMENT
COMMUNITY
CONSUMER
PHILANTHROPY
 supporting small local community projects
 community Volunteers (senior executives
and employees)
ENVIRONMENT
EMPLOYMENT
COMMUNITY
CONSUMER
PHILANTHROPY
“ Creating a strong business and building
a better world are not conflicting goals –
they are both essential ingredients for
long-term success .”
Ethically Based Communication Strategies
A. Utilitarian Communication Style
 Believes that the decision should
benefit the majority.
 Utilitarians compare alternative options
and are open and receptive to
exploring different viewpoints.
 Utilitarians do not have fixed or rigid
positions on the proposed alternatives.
Cont.
B. Moral Rights Communicating
Style
The advocates believe that decisions and
actions are either right or wrong.
People holding a moral rights perspective
focus on analyzing or explaining why a
decision or action is either right or wrong,
rather than the consequences of the
decision or action.
Important to ascertain the flexibility of
advocates’ moral position and use this
assessment to guide interactions
Cont.
C. Justice Communication Style

 Justice advocates are interested in how and
whether the costs and benefits of decisions
and actions are distributed equitably.
 Justice advocates may express different
ethical perspectives depending on whether
they are using the concept of distributive,
procedural, or compensatory justice.
Cont.
D. Universalist Communication
Style
 Ethical universalism believes
that ethical principles are
universal and should be applied
to all cultures.
 Universalists stress on
conveying universal values.
Cont.
E. Relativist Communication
Style
 Believes that ethical behavior is
influenced by the cultural
context.
 When in Rome, do as Romans
do.
 Relativists focus on the different
values between cultures.
Possible Ethical Communication Conflict
Utilitarian versus Moral Rights

Communication Conflicts
The utilitarian may not be interested in the

rights or wrongs of a decision, whereas the
moral rights adherent is not interested in
the pros and cons of the proposed actions.
Cont. Universalistic versus
Relativistic Communication
Conflicts
While universalists do not recognize that

certain rights and traditions of a culture
need to be respected, relativists do not
recognize that certain fundamental rights
are applicable to all cultures.
Cont.
Justice Communication Conflicts

 Communicators taking the justice approach have a
shared perspective and a basis for successful
communication.
 Communication conflicts can still arise among
individuals holding differing views about what
constitutes justice (e.g., distributive, procedural,
compensatory justice)
Ethics and Decision Models
Schermerhorn identifies three decision-

making models:
 Rational or classical
 Behavioral
 Retroactive
Cont.
A. Rational or Classical Model
 The decision maker selects the

best option among alternatives to
reach an optimal goal.
 It encourages ethical
communication by promoting
extensive information flow and
promotes an open process of
communication.
 This method is most costly and
time consuming.
Cont.
B. Behavioral Model
 The decision maker identifies one
alternative at a time and selects the
first satisfactory alternative identified.
 It is often adopted by managers who
are constrained by information, costs,
and time.
 This model may carry with it a greater
possibility of unethical decision making
and unequal communication.
Cont.
C.Retroactive Model
The decision maker chooses a
favorable alternative early in the
decision making process but carries it
through the sequential steps of the
rational decision making process with
other alternatives.
A favorable option is considered along
with other alternatives, but a change
of intention is lacking.
Dealing with Ethical Dilemmas
When encountering ethical dilemmas in dealing
with “borderline” or “gray” area situations,
individuals tend to rationalize their inappropriate
behavior.
Some examples of ethical dilemma include:

• Taking credit for others’ work
• Offering a client a worse product for your own profit
• Utilizing inside knowledge for your own profit
Cont.
The individual may believe that:
Their misconduct is not really illegal; or
The result is in everyone’s best interests.
oWhen dealing with ethical dilemmas, our decisions must

be morally acceptable and lawful at the same time.
oThe best course of action would be to abide by the law
and refuse any unethical requests.
END
© 2016 Cengage Learning ● All Rights Reserved

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CHAPTER 16

Ethics in Business Communication

© 2016 Cengage Learning ● All Rights Reserved

“We want to “Ignoring CSR potentially

C. Justice Communication Style

Utilitarian versus Moral Rights

The utilitarian may not be interested in the

While universalists do not recognize that

Justice Communication Conflicts

Schermerhorn identifies three decision-

 The decision maker selects the

Some examples of ethical dilemma include:

oWhen dealing with ethical dilemmas, our decisions must

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