Ethics and Social Responsibility

Summary

This video delves into workplace deviance and ethical decision-making. It explores how unethical behavior, from theft to personal aggression, can harm organizations, costing billions annually. The transcript highlights various forms of deviance, such as production and property deviance, and discusses the importance of ethical leadership. It introduces Kohlberg’s stages of moral development and ethical principles like utilitarianism and individual rights, emphasizing the role of managers in fostering an ethical work environment. The video also touches on corporate social responsibility and the differing stakeholder models, advocating for proactive and responsible business practices.

Takeaways

• 😀 Ethics define what is right or wrong for individuals or groups, and business ethics surveys show that unethical behavior is common in workplaces.
• 😀 22% of employees report being pressured to commit unethical acts, and 33% observe unethical behavior at work, with 36% facing retaliation for reporting it.
• 😀 Workplace deviance involves unethical behavior that violates organizational norms, and can cost companies up to $3.7 trillion annually.
• 😀 Workplace deviance can be categorized as production deviance, property deviance, political deviance, and personal aggression, each impacting either the organization or individuals.
• 😀 Ethical intensity of decisions is determined by six factors: magnitude of consequences, social consensus, probability of effect, temporal immediacy, proximity of effect, and concentration of effect.
• 😀 Most people base their ethical decisions on their level of moral development, ranging from selfish reasons to universal ethical principles, with the majority in the conventional stage.
• 😀 The six ethical principles—long-term self-interest, religious injunctions, government requirements, individual rights, personal virtue, and distributive justice—guide ethical decision-making in business.
• 😀 Ethical behavior in the workplace is encouraged through integrity tests, ethical codes, and compliance training to develop awareness and guide decision-making.
• 😀 Establishing an ethical climate requires top management to act ethically, communicate an ethics code, and create a reporting system to handle ethical violations.
• 😀 Social responsibility in business can be viewed from two models: the shareholder model, which prioritizes maximizing profits, and the stakeholder model, which considers the interests of various groups beyond shareholders.

Q & A

What is workplace deviance?

Workplace deviance refers to unethical behavior that violates organizational norms about right and wrong. It includes activities like theft, fraud, embezzlement, sabotage, and falsifying injuries or sickness for personal gain.

How much does workplace deviance cost companies annually?

Experts estimate that workplace deviance costs companies up to $3.7 trillion annually, which is roughly 5% of their revenues.

What are the types of workplace deviance?

Workplace deviance can be categorized into four types: production deviance (affecting work quality or quantity), property deviance (affecting company property), political deviance (hurting colleagues through favoritism or gossip), and personal aggression (e.g., harassment or violence).

What are the six factors that determine the ethical intensity of a decision?

The six factors are: magnitude of consequences (the harm or benefit of a decision), social consensus (agreement on whether behavior is right or wrong), probability of effect (the chance of harm), temporal immediacy (how soon consequences occur), proximity of effect (the social or psychological distance from those affected), and concentration of effect (how much an act affects the average person).

What is the relationship between Kohlberg's stages of moral development and workplace ethics?

Kohlberg's stages of moral development help explain how people make ethical decisions. At lower stages (preconventional), people make decisions based on personal consequences. At higher stages (post-conventional), they make decisions based on internal ethical principles, such as justice and societal well-being.

What are some ethical principles that guide business decision-making?

Some common ethical principles include: long-term self-interest (acting in the best interest of the organization), religious injunctions (avoiding harm and promoting kindness), government requirements (following the law), individual rights (respecting others' rights), personal virtue (being honest and transparent), and utilitarian benefits (creating the greatest good for the greatest number).

How can businesses hire honest employees?

Companies can use overt integrity tests (directly asking about theft and unethical behavior) or personality-based integrity tests (assessing traits like dependability and conscientiousness) to evaluate job applicants' honesty.

What is the importance of ethics codes in organizations?

An ethics code is essential to guide employees' behavior. To be effective, it must be communicated clearly and accompanied by practical ethical standards specific to the company's line of business. Managers must also sponsor ethics training to foster an ethical culture.

What is the role of top management in creating an ethical climate?

Top management must lead by example, actively participate in ethics programs, and promote ethical decision-making. They should also implement reporting systems, like confidential ethics hotlines, to allow employees to report violations.

What are the strategies for responding to social responsibility issues?

Companies can use four strategies to respond to social responsibility problems: reactive (doing less than expected), defensive (admitting responsibility but doing the minimum), accommodative (accepting responsibility and taking action), and proactive (anticipating problems and leading the industry in solutions).