OUMM3203 TABLE OF CONTENTS

TABLE OF CONTENTS
Course Guide i - iii

UNIT 1 PROFESSIONAL ETHICS

Introduction Learning Objectives CHAPTER 1: MORAL REASONING AND ETHICAL THEORY 1.1 Moral Reasoning and Ethical Theory 1.1.1 The Meaning of Ethics 1.1.2 The Meaning of Professional Ethics 1.1.3 The Formation of Individual Ethics 1.1.4 The Views of Ethics 1.2 1.3 1.3.1 1.3.2 1.3.3 1.3.4 1.3.5 1.4 Normative Philosophy and Ethical Relativism Ethical Theory Eternal Law Classical Teleological Ethical Theory: Utilitarianism Classical Deontological Ethical Theory: Universalism Distributive Justice Theory Personal Liberty Theory Conclusion on Normative Philosophy as the Basis for Moral Choice 1 1 2 2 2 3 3 4 7 7 7 8 9 10 11

12 13

Summary CHAPTER 2: MORAL AND SOCIAL RESPONSIBILITY 2.1 Conditions for Moral Accountability and Liability 2.1.1 Knowledge and Freedom 2.1.2 Ignorance 2.1.3 Coercion 2.2 2.3 2.4 2.5 2.6 The Natural Law Solution to the Cases The Utilitarian Solution to the Cases The Cultural Relativists Solution to the Cases Ethics in an Organisational Context Managing Ethical Behaviour

15 15 15 16 16 18 19 21 23 23

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2.7 2.8 2.8.1 2.8.2 2.8.3 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16

Social Responsibility and Organisations Historical Views of Social Responsibility The Entrepreneurial Era The Depression Era The Social Era Areas of Social Responsibility Arguments for and Against Social Responsibility Organisational Approaches to Social Responsibility The Government and Social Responsibility How Government Influences Organizations How Organisations Influence Government Managing Social Responsibility Evaluating Social Responsibility

23 23 24 24 25 25 27 27 29 30 30 31 32 33

Summary CHAPTER 3: THE NATURE OF ETHICS IN MODERN BUSINESS 3.1 Ethical Problems as Managerial Problems 3.2 3.2.1 3.2.2 3.2.3 3.2.4 3.2.5 3.3 3.4 3.5 3.5.1 3.5.2 3.5.3 3.5.4 3.5.5 3.5.6 Characteristics of Ethical Problems in Management Most Ethical Decisions Have Extended Consequences Most Ethical Decisions Have Multiple Alternatives Most Ethical Decisions Have Mixed Outcomes Most Ethical Decisions Have Uncertain Consequences Most Ethical Decisions Have Personal Implications Examples of Ethical Problems in Management Analysis of Ethical Problems in Management Ethics in Islam A Universal Message The Syariah Commerce and Business Teachings About Economic Practices The Obligations of Piety Conclusion

35 35 35 36 36 37 37 37 38 40 42 42 43 43 44 45 45

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Summary Tutorial Question Answers

46 47 49

UNIT 2 MANAGERIAL ETHICS, THE RULE OF LAW AND THE ORGANISATIONAL DESIGN
Introduction Learning Objectives CHAPTER 4: MANAGERIAL ETHICS AND THE RULE OF LAW 4.1 The Rule of Law 4.2 4.3 4.4 4.5 4.6 4.7 4.7.1 4.7.2 4.7.3 4.7.4 4.8 Law as a Guide to Moral Choice An Example of Moral Choice Law as Combined Moral Judgement Definition of Law Relationship between the Law and Moral Standards Formation of the Law Individual Processes Group Processes Social Processes Political Processes 57 57 58 58 58 59 61 61 63 65 65 68 69 70

Conclusions on the Rule of Law as the Basis for Moral Choice 70 72

Summary CHAPTER 5: MANAGERIAL ETHICS AND ORGANISATIONAL DESIGN 5.1 Ethical Codes 5.2 5.3 5.4 5.4.1 5.4.2 Ombudsman Position Structural Causes of Unethical Behaviour Development of New Planning Systems The General Electric Planning System The Boston Consulting Group Planning System (BCG)

73 73 75 76 77 77 79

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5.5 5.6

Impact of Planning Systems on Managerial Behaviour Impact of Control and Motivation Systems on Managerial Behaviour Solutions to the Structural Causes of Unethical Behaviour The Ethical Responsibilities of Senior Management

80

81 82 83 84 87 88

5.7 5.8

Summary Tutorial Question Answers

UNIT 3 MORAL ASPECTS OF ECONOMIC SYSTEMS

Introduction Learning Objectives CHAPTER 6: THE MORAL DIMENSIONS OF AN ECONOMIC SYSTEM 6.1 Employment and Wages 6.1.1 Is there a Moral Right to Employment? 6.1.2 Fair Hiring Practices 6.1.3 Affirmative Action and Preferential Treatment 6.1.4 Wages 6.1.5 Equal Pay for Equal Work 6.1.6 Equal Pay for Comparable Work 6.1.7 Who Gets What Share of the Return on Resources 6.2 6.3 6.3.1 Ranking and Rating 91 91 92 93 93 95 96 97 97 98 98 99

Ethical Implications for Performance Appraisal 99 A Few Key Ethical Dos and Donts of Performance Appraisal 100 101 103 103 104 105 106

Summary CHAPTER 7: EMPLOYEES PRIVACY 7.1 Respecting Employees Right to Privacy 7.2 7.3 Substance Abuse Abusing Employees

Summary

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CHAPTER 8:

LOYALTY TO A COMPANY 8.1 What Loyalty Means 8.2 8.2.1 8.2.2 8.3 8.4 Whistle-blowing Internal Whistle-blowing External Whistle-blowing The Morality of Firing Whistle-blowers What Loyalty Does Not Mean

107 107 108 109 110 111 111

Summary Tutorial Question Answers References

112 113 114 117

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