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MODULE 5
ORGANISING MULTIPLE STRUCTURES
ORGANISATIONAL ETHICS
WHAT IS ETHICS?
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WHAT IS ETHICS?
Ethics refers to a system of morale principles- a sense of right and wrong, the goodness and balances of these actions. As applied to business firms, ethics is the right and the wrong or just and unjust actions of business persons. Business ethics is conceived as acting ethically as a manager, by doing the right thing. This is ethical management Management of ethics is acting effectively in situations that have an ethical dimensions, both internally and externally. Internally the firm drives ethics through values, policies, procedures etc. Externally, they meet the demands of human rights, environments and other matters with social responsibility, 7
Ethics
The principle of right or wrong that are acceptable by an individual or group. A system of principles governing morality and acceptable conduct To conduct the business operations ( procedures and processes) based on ethics and values
Business Ethics
SOURCES OF ETHICS?
Religion
Preach orderly social system, emphasise social responsibility and good conduct, respect for fellow human beings Culture play the role in setting values, behaviours and standards. They guide managers and organisations Laws of the nation guide the human behaviour in any society. Society expects the business to be law abiding, including health and safety laws.
Culture
Legal System
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The Individual
It concerns the values by which self interest and other motives are balanced with concern for fairness and common good It concerns th group conscience that every company has as it pursues its economic objectives
The Organisation
It concerns the pattern of social, political, and economic forces that drives individuals and businesses
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Integrity, honesty, truthfulness and accuracy Personal & professional responsibility Concern and respect for others Fairness to all concerned
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When ever you do something ask yourself If my father and mother come to know of what I am doing, will they be proud of me or will it put their head in shame
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purpose: If my purpose is accomplished, will it be in the best interest of my listeners? Do I have any hidden agendas that affect my purpose? Research Methods: Are my sources recent, reliable and unbiased? Have I explored all avenues in gathering information pertinent to my subject and purpose? Selection of material: Have I chosen information that will communicate my ideas fairly and accurately? Development of ideas: Have I relied too heavily 17 on emotional appeals? Is my logic and reasoning
of Language: Am I easily understood y my listeners? Is my language specific or have I relied on ambiguities and loaded words? Ethical Context: Have I considered my listeners values, feelings in designing my presentation? Self-analysis: Do I sincerely believe that what I have to Communicate is important and true? Have I done everything possible to prepare a message that is with in my ethical comfort zone?
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Context: Have I considered the other individuals values, feelings and attitudes from his/her cultural point of view? Misunderstandings: Have I anticipated and tried to correct any possible misunderstandings that might occur? Have I attempted to gain an understanding of the other partys culture and what their expectations might be? Language: Am I taking care not to use language and expressions that might be offensive to another culture? Am I aware of the non verbal aspects of my message and the ways they might change the 19 message in a different culture?
Am I being fair to all involved? How would I feel if the events were published on the front page of the newspaper?
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Have I represented the product or event using clear, straightforward language taking care not to make exaggerated claims? Is the language truthful? Graphics and print: Do the graphics used in advertising depict the product accurately ? Is any of the significant information in small print or is it placed in an unobtrusive spot? Omission: Have I omitted any key details that may affect the way the customer views the advertised product ? Is significant information unstated? Truth: Does the product or event live up to the 21 claims made in the advertising?
Would I be comfortable if my advertising techniques were scrutinized by a customer products magazine and the results printed for the public to read?
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EXAMPLE-ETHICAL BEHAVIOUR
Tylenol-Analgesic drug- of J &J In 1986, an individual succeeded in lacing the drug with cyanide Wide spread panic in US Speedy recall of drug from all outlets Company did not sell product till it developed more protective packaging, harder to tamper Quick and responsible action communicated positive, reassuring image of the company Company recovered the 70% market share of the drug
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Integrity
Integrity is the foundation on which TI is built. There is no other characteristic more essential to a TIers make up. It has to be present at all levels. Integrity is expected of managers and individuals when they make commitments. They are expected to stand by their commitments to the best of their ability. Keeping our commitments and fulfilling expectations we create with our promises both direct and implied- is an uncompromising standard
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TI employees receive a copy of TI ethics quick test on a business card size mini pamphlet to carry with them. This test consists of the following:
Is the action legal? Does it comply with our values? If you do it, will you feel bad? How will it look in the news paper? If you know it is wrong, dont do it? If you are not sure, ask Keep asking until you get an answer.
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SOME EXAMPLES
Uphold the profession's reputation for honesty, competence, and confidentiality. Give clients the most current and accurate information possible within the budget and time frames provided by the clients. Help clients understand the sources of information used and the degree of reliability which can be expected from those sources. Accept only those projects which are legal and are not detrimental to our profession. Respect client confidentiality. Recognize intellectual property rights. Respect licensing agreements and other contracts. Explain to clients what 26 their obligations might be with regard to intellectual property rights and licensing agreements.
SUPPORTIVE BEHAVIOUR
Descriptive rather than evaluative Non judgmental, willing to seek additional information, slow to question others standards and values Problem oriented Interested in seeking solutions to problems Candid Straight forward and honest Respectful Demonstrating mutual trust and respect Empathic Identifying others needs and values Provisional Accepting that one could be wrong, open to new ways of 27 doing things, tentative in ones views
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Confirm to local economic and development policies Pay fair taxes Reinvest profits in local economy Follow policies regarding local equity participation Provide truthful information for accurate taxation
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Follow local environmental-protection laws Actively protect environment Help develop local standards Assess environmental impact of the business activities Maintain standards to monitor environmental effects
Consumer Protection
Follow local consumer protection laws Ensure accurate and proper safety disclosures
Transfer Technology
Adapt technologies to local needs Enhance transfer of technology to developing nations Conduct local R & D when possible Grant fair licences to use technology
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Employment Practices
Follow relevant manpower policies and employment laws of the host nation Provide local workers stable employment and job secruity Promote equal employment opportunities Give priority to local national when possible Increase local employment opportunities Help create jobs in needed areas Respect local collective bargaining rights Protect employees with adequate health and safety standards Promote local nationals to management positions
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