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Kishore Kandalai
Aspen University
Module 1 : Business Ethics
Abstract
The purpose of the abstract is to provide the reader with a brief overview of the overall paper
1) What is ethics, and what does it mean to “put business and ethics together”? What would
2) What are the three traditions of ethics, and how do they provide guidance to help inform
3) Why do your decisions matter, particularly as they relate to ethically charged issues?
Draw from both what the chapter suggests and your own ideas.
4) Before this class discussion in module 1, what was your sense of why organizational
5) What are the core factors identified in chapter 2 that indicate why bad things happen in
organizations? Which seem to be most prevalent in actual cases you have read about or
6) Which factors seem to be most important in diagnosing why bad things happen? What
role does the individual, and individual conscience, play in making sure good things
happen organizations?
Module 1 : Business Ethics
Module 1 Deliverables
Essay Question 1
What is ethics, and what does it mean to “put business and ethics together”? What would it
Ethics, also known as moral philosophy is a branch of philosophy that addresses questions about
morality—that is, concepts such as good and evil, right and wrong, virtue and vice, justice, etc.
Business ethics is the study of business situations, activities, and decisions where issues
of right and wrong are addresses. (Crane & Matten 2007), it is important clarified this concept
first, to get started whit some similar concepts later in this report.
Business ethicists ask, “What is right and wrong, good and bad, and harmful and
beneficial regarding decisions and actions in and around organizational activities?” ethical
“solutions” to business and organizational problems may have more than one right alternative,
and sometimes no right solution may seem available. Learning to think, reason, and act ethically
can enable to first be aware and recognize a potential ethical problem. Then evaluate values,
assumptions, and judgments regarding the problem before act. (Joseph W. Weiss 2003, p.7) there
are some situation where making a choice it is not just doing the right or the wrong thing, is also
thinking what are the best option for the employee or the company, however in some cases the
best option is not always are the correct thing to do, is in this situation when the ethics education
and training can help to understand what are the benefits of acting ethically.
“Doing the right thing” matters to employees, stakeholders, and the public. To
companies and employers, acting legally and ethically means saving billion of dollars each year
in lawsuit, settlements, and theft. Studies have shown that corporations also have paid significant
Module 1 : Business Ethics
financial penalties for acting unethically (Joseph W. Weiss 2003, p.9). Thus, acting ethically the
companies can avoid law and financial problems, in this way is easy to think acting ethically is
the best option for the companies to do, but in some cases close a good deal is more profitable
than pay for some compensation or dealing with lawsuit, for this reason companies prefer avoid
acting ethically because according to Friedman(1970) ‘there is one and only one social
responsibility of business, to increase its profits so long as it stay within the rules of game, which
is to say, engages in a open and free competition without deception and fraud’.
Other topic which need be discussed is the link between ethics and law, how this two
theories work together and if one can exist without the other. Law is essentially an
proscriptions. Nevertheless, the two are no equivalent. Perhaps the best way of thinking about
ethics and the law is in terms of two intersecting domains. (Crane & Matten 2007, p.5)
Business ethics can be said to begin where the law ends, business ethics is primarily
concerned with those issues not covered by law, or where there is no definite consensus on
whether something is right or wrong(Crane & Matten 2007, p.7). Sometimes the law does not
offer enough guidance for those issues that ethics cannot manage, is for that reason that the
employee needs to be conscious what kind of deal it is work in and if this situation is ruled by
Ethical behavior is dependent more upon the ethical or unethical behavior of the
individual who form that company that upon any formal company policy also superiors are
important role models for socialization into the organization, with employees undoubtedly
evaluating ethical decision based on the example set by, and hence expectations of, superiors.
(Klaas Woldring 1996, p.94). In the company some ethical decision are made following the
Module 1 : Business Ethics
behavior of the superior, it is this person making the right decisions and every decision is
ethically correct, the manager behavior can affect the employees behavior as well, this can lead
to the employees start to behaving in a less ethical manners and use the justification of everyone
else is doing it. As a result in the company the people behavior, ethical or unethical is more
Temptations to harm in a workplace arise far more often than many people like to admit.
Even if people do not personally face temptations, they live in a global economy where their
efforts often intersect with those of others who do. (Howard & Korver 2008, p 146). Thus, some
people act to overcome this environment where the big fish eat the small fish, in the global
economy often companies make their employees act this way and goes against their own ethical
believes making an unpleasant working environment, however the final decision about following
the company rules and doing things right or doing wrong always the choices are going to be
Essay Question 2
What are the three traditions of ethics, and how do they provide guidance to help inform
Actions: - The actions that people take and attempt to determine whether a given act is ethically
acceptable irrespective of the consequence it creates. In Moral Philosophy - the means or actions
Deontology maintains that there are certain standards of human decency and respect for the
worth of others that rule out treating them in certain ways (eg: lying to them, physically harming
them, or killing them) . Since actions are viewed as having inherently good or bad qualities, it is
important to understand how we make such determinations. The Criteria comes from various
Agents: - Ethics deal with more than right and wrong actions. It also addresses issues of
character the personal traits and qualities that define who we are as human’s agents. These traits
include habits, priorities, and idiosyncrasies. They can change overtime, usually through
conscious and considerable effort. This branch of ethics termed character ethics.
Ends:- Ethics is concerned with pursuing and achieving laudable ends. This includes the quest to
make something of one life’s, the search of personal success and happiness, as well as our
aspirations of our communities, such as prosperity, security and justice. This branch of ethical
Practical tools for analysis that have been developed from the three traditions of ethics.
Decision guides are frameworks for analyzing the moral dimensions of the given situation. They
help managers identify key issues, raise important questions, and provide a basis for making
This first decision guide is standards of conflict, which refers to the principles and rules
governing a particular community. These standards determine what the community considers
morally appropriate and inappropriate actions and help community articulate its moral values.
Companies should seek to understand and respect the standards of conduct in various
communities beyond the local ones in which they operate, including the firm itself, the industry
This decision guide is that firms have to “Walk the talk” and find ways of doing business that
enable them to embody the character traits to which they aspire, such as service, integrity, and
diversity.
Purposes and Consequences are central both the managers and to a firm’s core stakeholders.
Selecting a set of defensible and then taking actions that help achieve those goals are at the core
of ethical behavior. This decision guides underscores the moral importance of managers
selecting the right goals and using the resources of the organization to realize them.
Essay Question 3
Why do your decisions matter, particularly as they relate to ethically charged issues? Draw
from both what the chapter suggests and your own ideas ?
and the meetings of the organizational goals. Leadership, mentoring, effective communication,
proper planning, organization, control, possession of skills, and teamwork are all fundamentals
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of becoming an effective manager. In the process of striving for the most valuable ways to
become effective, a manager must obtain both, effectiveness along with efficiency. With all of
organizational resources and the meetings of the organizational goals (2006). In the process of
striving for the most valuable ways to become effective, a manager must obtain both,
effectiveness along with efficiency. If a manager has achieved the organizational goals
established, the manager has said to be effective. Both of these characteristics will coincide with
the success of utilization of all resources available. In becoming this type of manager, there are
many different attributes that will lead to the success of the company, as well as the person
One of the main attributes that will contribute to the managerial effectiveness is
leadership. Leadership is the ability of an individual to influence, motivate and enable others to
contribute toward the effectiveness and success of the organization and the organizational goals.
Leaders influence other by being an example and allowing others to create their own ideas to
accomplish a task. Individuals in leadership positions are always striving for a positive vision
and encouragement of other team players for the future success of the goals planned (Bleech,
1995).
When an individual is a leader, they must lead by example. One must guide or conduct
others by paving the way in the determination of success. Outstanding leaders display a high
degree of enthusiasm, persistence, determination, faith, and confidence in the obtainment of the
The enthusiasm of an effective leader will mainly be seen as the attractive desire that
people enjoy following. Enthusiasm is infectious and is seen within people that generally take
the initiative and assume responsibility, who are proactive and typically on the move for the
desirable achievement of their goals. Enthusiastic managerial leaders are those who possess high
energy levels to motivate others. Energy is not just the speed at which people work, but the
length at which people work. Along with enthusiasm, these leaders typically have optimism,
high levels of self-confidence self- esteem that are portrayed as an asset in which they serve
(Bleech, 1995).
There are three effective leadership styles in which a manager uses authority to lead
others. The first leadership style can be described as the autocratic leader that makes decisions
without the consulting of others. This may lead to low moral with this bad communications.
The democratic leader delegates the authority and evolves the employees in the overall decision
making. They are also called the participative management that focuses on sharing the
information at all organizational levels. The laissez-faire leaders take the roll of the consultant
and encourage the ideas of the employees. No single leadership style work around the clock and
defective leaders must adapt their leadership style to current business circumstances (Nodell,
1989).
For the effectiveness of a quality manager, he or she must be able to coach and mentor
the skills at which they possess to their employees. They focus on helping all members perform
at their best and involve taking the time to meet with their employees, while offering them
suggestions and encouragement. It requires the ability to observe, judge sensibility, and take the
appropriate action needed. In mentoring, they guide employees through the corporate maze and
act a role model. They usually possess deep knowledge of the business and can explain the
Module 1 : Business Ethics
office politics, and provide valuable advice about the succeeding to the employees within the
organization. This function benefits the employee to gain knowledge from the mentors, along
with proper knowledge and ideas. As the mentor gains new networking contacts they gain
personal satisfaction.
The second attribute to identifying a managerial effective leader are that of possession of
skills. These skills include interpersonal skills, technical skills, and conceptual skills.
The interpersonal skills have to deal with effective communication and activities. These
activities must encourage the employees to work together, including interaction with other
managers, to obtain a common goal. They must also develop the employees trust and loyalty.
Effective communication increases the managers and the organizations productivity, shapes the
impressions made on colleagues, supervisors, employees, customers, and investors. This skill
also allows them to show consideration for the different needs, backgrounds, and experiences of
people in the workforce. It also allows the manager to perceive the needs of these stakeholders
The next management skill needed is the technical skill. This is the ability and
knowledge to be able to perform the mechanics of a particular job. Some of the technical skills
necessary to manage an environment, such as the ability to gather information, organize, plan,
Lastly, the conceptual skill needed is the skill required to see the organization as a whole
and to understand how the various parts interrelate. This skill is extremely important to the upper
level managers and Chief Executive Officers, CEO's. A key managerial activity requiring
conceptual skills is decision making. In decision making, the manager must recognize the need
for a decision, identify, analyze, and define the problem or opportunity. One must generate,
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select, and implement the alternative needed. Finally, one must evaluate the results and conclude
management team, must understand the strategic planning process to obtain its long and short
term goals. One of the major failures of planning is the lack of focus and/or consistency of all or
part of the team. In strategic planning, one must develop a clear vision of realistic, credible, and
obtainable views of the goals. These can be accomplished in meetings, where employees feel
welcomed to suggest ideas and goals, which are based on the shared vision of the group.
and financial goals. Translate the vision into a meaningful mission statement and assess the
Depending on the company, some have to strategize over the competition. They must strive to
obtain a level of service, unique product feature, and image that distinguishes the company's
products better than that of the competitor. They must also aim to become a low cost leader by
producing or selling products more of an economically and efficiently. They must also try and
discipline and practice to create. From company to company teamwork is always talked about
but sometimes never fallen through with. In today's society teamwork is more important than
ever. Teamwork is defined as a joint action by a group of people, in which each person
subordinates his or her individual interest in options to the unity and efficiency of the group. As
the years have past companies have began to cut jobs. An estimated three thousand people are let
go from their job every day in the United States of America. This trend of downsizing is to cut
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cost and also cut the middle management out of the organization. Without this middle
management there are fewer and fewer employees between the executive and lower levels of
employment. With this being said, managers use to manage two to five employees, now
managing twenty to forty employees on average. With the increase of the number of employees
per manager, interaction, supervision and direct communication is reduced amongst the
In contrast, when companies collaborate different ideas amongst the employees they gain
information for decision making using the planning and technical skills. There is now an
increased amount of employees that have specific technical skill that can be brought to the table
While manager are building effective teams the must keep in consideration the trust
factor of each member. If the trust factor is not prevalent, then the establishment of an effective
team might be impossible. A few strategies that help the manager are communication amongst
team members, respect amongst team members, conductions of fair performance, predictability,
Teams operate in all different tasks and situations. Each member of the group or team
must depend on one another to get his or her job completed, with many individuals contributing
expertise to a specific task. This is seen in companies today with bringing more specialized
individuals aboard, rather than having a more generalized knowledge of employees from the past
is defined as the process of exchanging information with other individuals inside and out of the
company. With respect to communication within the company, it is here that manager want to
Module 1 : Business Ethics
share important information with other employees to achieve a task. Communication starts by
select individual initiating a message, verbal or nonverbal, to one or more persons that results in
common ground understanding of the message sent. For a manager to succeed they must uphold
the task of higher communication skills. To assist manager in improving their interpersonal
communications, there are new training techniques that are being developed and evaluated.
According to Certo, Communication is one strategy that managers can use to build trust within
Communicate often to team members- This is a fundamental strategy. Keeping team members
informed of organizational news, explaining why certain decisions have been made, and sharing
information about organizational operation are example how managers how should communicate
With this being said a manager and his or her employees must develop a communication
path amongst each other to achieve the essential goal for effectiveness.
interpersonal communication works, and its relationship against feedback and the importance of
portion of communication is broken down into three basic elements. First being the source, then
the signal, and finally the decoder. The original message shared with other originates from the
source or the encoder, who puts information together that can be received and understood by
another individual. The second basic element is the signal which is the encoded information that
the source transmits. The decoder, or destination, is the person with whom the information is
Module 1 : Business Ethics
shared with by the source. The decoder decodes, or interprets, the message to determine its
the decoder to the source from the message sent. The source can determine if the message was
sent successfully or unsuccessfully based on the feedback and if needed may repeat the message
until the appropriate is established. In achieving effective communication managers may use
these steps for a good communication process. First the manager must seek to clarify their ideas
before communicating, then examine the true purpose of each communication, consider the
setting whenever they communicate, and consult with other when planning communication.
Also the source should keep in mind the tone of voice or expression while communicating rather
than the basic content of the message, consider the other persons interest and needs, follow up
your communication, and communicate tomorrow as well as today. Lastly, be sure that the
sources actions support their communication and be a good listener to make sure that the signal
nonverbal communication may be vocal tones, expressions, gestures, gender and dress. The
managers that are aware of this nonverbal communication will influence their verbal
Controlling is the process that managers go through to control. According to Roberto Mockler,
Module 1 : Business Ethics
these standards and presumably to take any remedial action required to see that human and other
corporate resources are being used in the most effective and efficient way possible in achieving
One system that can be used is the controlling subsystem. The purpose of this system is
to assist the success of the overall management system through effective controlling. The first
step in this controlling process is the measuring of current organizational performance. The next
step is to comparing measured performance to standards. A standard that they are comparing
could be anything from profitability, market position, productivity, product leadership, personal
development, employee attitude, social responsibility, and standards reflecting the relative
balance between short and long term goals. The next step is to take corrective action through the
recognizing the problems and take the appropriate course of action. There are also three types of
management controls possible; precontrol, concurrent control, and feedback control. This type of
control is usually determined the work phase in, which the control is needed (Certo, 2006).
Precontrol is one that established before the work or duties are performed. The actions
performed in this type of control are usually sought out to deter or eliminate undesirable work
results. This can be done in the form of creating plans, procedures, rules, and strategies to be
acted upon to aim at eliminating unanticipated problems. This is the best and the most sought
The next type of control is called concurrent control. This control is used at the time that
the problem arises. This sometimes allows the management to make important decisions about
how to get back on track in a timely manner. This is not always caused by employee
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performance, but can be caused by unexpected equipment malfunction. This can also be defined
Feedback control is the last type of control that takes place after some unit of work has
been performed. Managers that use this type of control are usually attempting to take corrective
action by looking at the organizational history over a specific period of time. For control to be
successful, all individuals involved in the operation of the workforce must have knowledge of
The organization function is the process of arranging all available resources to carry out
certain short and long term goals. During this stage, managers ultimately think through the
activities the employees perform, consider all of the facilities and the equipment that is needed.
The managers give people the opportunity to work toward the organizational goals by
determining who has the authority to make decisions, perform or supervise activities and to
distribute resources. This is a particularly challenging stage because the equipment may have the
preferences and taste change, shifts in political and economic trends, and the competitor's actions
Levels of corporate hierarchy are easily described like a management pyramid. The
upper level of management, who has the most power and control, usually take overall
responsibility for the organization. They establish the structure of the organization by selecting
people to fill the upper-level positions. They also establish the short and long term plans while
implementing major policies. These top managers represent the company to the outside world at
official functions and fund-raisers. The middle managers are usually responsible for one region
or district of the company. They develop plans for implementing the broad goals set by the top
Module 1 : Business Ethics
managers and coordinate the work to the first line or supervisory managers. These middle
managers often serve as the team leaders whoa re expected to supervise and lead small groups of
employees in a variety of different job functions. The first line managers oversee the work being
done, of operating employees, and they put the plans developed at higher levels of management
sure that you have the right people in the correct management positions. Leaders are proactive,
creative, empowering, skillful, and optimistic persons that are full of teamwork, communication,
motivation, and have excellent planning skills. The leadership process is an aggressively
pursued course of action where effective leaders are sought out, hired, promoted, rewarded,
developed, and trained. Whether they come from the ranks of management or non-management,
whether from inside the company or out, whether they are experienced or not, you must have the
right leaders in order to excel in managerial effectiveness and efficiency. Companies are in
desperate need of quality management team-members that are full of qualities that stand out and
that will be part of the company for an extended period of time. "Management is efficiency in
climbing the ladder of success; leadership determines whether the ladder is leaning against the
Essay Question 4
What is a career? At what stage is your career? What are your plans for the next step?
Career is a term defined by the Oxford English Dictionary as an individual's "course or progress
through life (or a distinct portion of life)". It is usually considered to pertain to remunerative
The etymology of the term is somewhat ironic in that it comes from the Latin word carrier,
which means race (as in "rat race," a pejorative implying the opposite of a useful career).
A career is mostly seen as a course of successive situations that make up a person's occupation.
One can have a sporting career or a musical career without being a professional athlete or
musician, but most frequently "career" in the 20th century referenced the series of jobs or
positions by which one earned one's money. A person's worth is often measured by the career
success or failings.
successful experiences in one position, they generally develop abilities and attitude that
qualify them to hold more advanced management positions at the next higher level. In
for a next planned job and not simply taking a job with highest salary.
Career stages become applicable to such employees who are competent, competitive, aggressive
and career-minded. DONALD E. SUPER has suggested five stages (also called career
development cycle or career cycle) through which individuals go. These stages:
1. Exploration stage.
2. Establishment stage.
3. Mid-Career stage.
5. Decline stage.
Module 1 : Business Ethics
1. Exploration stage:
Almost all candidates who start working after college education start around mid-
twenties. Many a time they are not sure about future prospects but take up a job in anticipation of
raising higher up in the career graph later. From the point of view of the organization, this stage
is of no relevance because it happens prior to the employment. Some candidates who come from
better economic background can wait and select a career of their choice under expert guidance
2. Establishment stage:
This career stage begins with the candidates getting the first job. Getting hold of the right
job is not an easy task. Candidates are likely to commit mistake and learn from their mistakes.
Slowly and gradually they become responsible towards the job. Ambitious candidates will keep
looking for more lucrative and challenging jobs elsewhere. This may either result in migration to
another job or he will remain with the same job because of lack opportunity.
3. Mid-Career stage:
This career stage represent fastest and gainful leap for competent employees who are
hand, employees who are unhappy and frustrated with the job, there is market deterioration in
their performance. In order to show their utility to the organization, employees must remain
productive at this stage. “Climbers” must go on improving their own performance. Authority,
responsibility, rewards and incentives are highest at this stage. Employees tend to settle down in
This career stage is pleasant for the senior employees who like to survive on the past
glory. There is no desire to improve performance and improve past records. Such employees
enjoy playing the role of elder statesperson. They are expected to train younger employees and
5. Decline stage:
This career stage represents the completion of one career usually culminating into
retirement. After decades of hard work, such employees have to retire. Employees who were
climbers and achievers will find it hard to compromise with the reality. Others may think of
While Certo & Certo define career stages as four stages, Exploration, Establishment,
engineer, exploring the initial stage of my career and have jumped four companies exploring
career and experiencing different stages and different work cultures. Finally I have joined my
current employer and have been with this company for last 8 Years, Grown internally in the
organization from technical to managerial roles and to grow further in the organization ladder.
I am attending leadership training internally in the organization and also pursing the same
externally, one reason for this formal Management Program from Aspen University is also to
acquiring an MBA and required management skills to establish my career in the current
organization or elsewhere.
Module 1 : Business Ethics
Essay Question 5
Is your employer (or a company that you know about) a learning organization? Identify
the features that support your answer in scholarly detail. Remember that few organizations
Organizational learning and learning organizations have been the focus of a great deal of
evaluation within management literature since the 1990’s (Senge, 1990; Michaux, 2002).
The concept of the learning organization gained wide acceptance from the works of Peter Senge
who is most well-known for his body of work entailed The Fifth Discipline. Here, Senge (1990)
introduces the notion of systems thinking and defines a learning organization as one “where
people continually expand their capacity to create the results they truly desire, where new and
expansive patterns of thinking are nurtured, where collective aspiration is set free, and where
which would be adapting to changes in the current environment, Senge (1990) asserts that a true
learning organization is characterised by ‘generative learning’ which is learning that enhances its
capacity to innovate and create. Generative learning and the learning organization concept
proposed by Senge (1990) integrates both learning on an individual and organizational level and
gives rise to five disciplines or ‘golden rules’ for learning organizations (Smith, 2001):
“All Organization members are committed to gaining a deep and rich understanding of their
misconceptions
“Organization members routinely challenge the way business is done and the thought process
All organization members have a common view of the purpose of the organization and sincere
“Organization members work together; develop solutions to new problems together. Working as
teams rather than working individuals will help organizations gather collective force to achieve
organizational goals”.
“Every organization member understands his or her own job and how the job fits to provide a
My current employer is not a true “learning organization” while we strive to achieve the five
golden rules of the “learning organization it is a continuous process and has individual personal
dependencies
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Like, Personal Mastery – While organization tries providing all required training and other
resources to for individuals to learn and gain deep understanding of work. I also need
commitment from individuals. Our current employer is doesn’t meet the category
Challenging Mental models – We do challenge the current business processes and adapt new
Shared vision – While all organization members have a common view of the purpose of the
organization, There is a lack of commitment from certain set of individuals. Our current
Team Learning - We work together to develop solutions and to solve organizational issues.
Systems thinking – We all understand our job and how it fits into the overall deliverables to end
customer.
References
Certo, S. (2009). Modern Management: Concepts and Skills (11th edition).: Pearson/Prentice
Hall.
Bonoma, T, & Slevin, D. P. (1978). Executive survival manual. Boston: CBI Publishing
company.
Gulick, L., & Urwick, L. (1959). Papers on the science of administration in extension. Madison:
Madison.
Bleech, J.M., Mutchler, D.G. (1995). Let's Get Results, Not Excuses!: A No-Nonsense Approach
Organization Development Classics: The Practice and Theory of Change-The Best of the OD
Nodell, R.S., Wolff, E.R. (1989). Managerial Magic. Iowa: Kendall/Hunt Publishing Company.