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5 /1 9/2 017 M GM T314 ­  E th ic al D ecis io n M akin g a nd T ra in in g h ttp s://e dge.a pus.e du/a ccess/c onte nt/g ro up/b usin ess­c om mon/U niv ers al/M GM T/3 14/e lf/le sson­4 /e lf_ in dex.h tm l 1 /1 2 M GM T 3 14 | W EEK 4 E th ic a l D ecis io n M akin g a n d T ra in in g E th ic s i s a c o m ple x t o p ic a n d w hen m akin g e th ic al d ecis io ns, i n d iv id uals c an a p pro ac h e th ic s i n d if fe re n t w ays. T h is l e sso n w ill e xp la in t h e t h eo rie s a n d c o nce p ts b eh in d e th ic al d ecis io n m akin g , i n clu d in g t h e f a c to rs t h at a ffe ct t h is p ro ce ss a n d t h e o b sta c le s t h at m ay h in d er i n d iv id uals ’ a b ilit y t o p ra c tic e e th ic al d ecis io n m akin g . T o a ssis t p eo p le i n t h ese e ffo rts , e th ic s t r a in in g c an b e u se fu l. T h is l e sso n a ls o w ill d is c u ss e th ic s t r a in in g a n d t h e o p tio ns a va ila b le f o r p ro vid in g s u ch t r a in in g .

L E A RN IN G O BJE C TIV ES : E xp la in r e aso ns m an ag ers n eed t o b e a w are o f d iv e rs it y m an ag em en t a n d l e g al r e g ula tio ns r e la te d t o h ir in g , p ro m otio n, a n d f ir in g . 5 /1 9/2 017 M GM T314 ­  E th ic al D ecis io n M akin g a nd T ra in in g h ttp s://e dge.a pus.e du/a ccess/c onte nt/g ro up/b usin ess­c om mon/U niv ers al/M GM T/3 14/e lf/le sson­4 /e lf_ in dex.h tm l 2 /1 2 B elie fs a n d S en sit iv it ie s I m pac t E th ic s W hen i n d iv id uals p ra c tic e e th ic al b eh avio r, i n clu d in g e th ic al d ecis io n m akin g , t h eir a p pro ac h t o e th ic s i s i n flu e n ce d b y t h eir b elie fs a n d s e n sit iv it ie s . A p ers o n’s b elie fs a n d a b ilit y t o b e s e n sit iv e a re i m pac te d b y m an y t h in g s i n clu d in g t h eir a g e, e d ucatio n, a n d e xp erie n ce . B ELIE FS S EN SIT IV IT IE S T o u n d ers ta n d h o w a n e th ic ally s e n sit iv e m an ag er w ould b eh ave , c o nsid er p ay r a te s. A m an ag er w ho s tr iv e s t o b e e th ic ally s e n sit iv e w ould r e co g niz e t h at e m plo ye es n eed a s u ffic ie n t i n co m e a n d w ould p ay m ore t h an t h e m in im um w ag e t o d em onstr a te h is o r h er a p pre cia tio n f o r e m plo ye es a n d t h eir w ork .

E th ic al I n tu it io ns 5 /1 9/2 017 M GM T314 ­  E th ic al D ecis io n M akin g a nd T ra in in g h ttp s://e dge.a pus.e du/a ccess/c onte nt/g ro up/b usin ess­c om mon/U niv ers al/M GM T/3 14/e lf/le sson­4 /e lf_ in dex.h tm l 3 /1 2 E th ic s i s a ls o i n flu e n ce d b y i n tu it io n , w it h o ur i n tu it io n h elp in g u s d ecid e w hat w e t h in k a re b asic t r u th s r e g ard in g e th ic s. O ur i n tu it io n a ls o a ffe cts o ur a b ilit y t o r e ac t q uic kly t o a s it u atio n. E th ic al i n tu it io n v a rie s d ep en d in g o n w heth er a n i n d iv id ual a p pro ac h es i t f r o m a l ib era l o r c o nse rv a tiv e p ers p ectiv e . W HAT  IS  IN TU IT IO N? L IB ER AL IN TU IT IO N C O NSER VAT IV E IN TU IT IO N F ac to rs t h at I m pac t E th ic al D ecis io n M akin g i n O rg an iz a tio ns I n a n y o rg an iz a tio n, t h e a b ilit y t o m ake e th ic al d ecis io ns i s i m pac te d b y a n um ber o f f a c to rs , i n clu d in g t h e c o d e o f e th ic s, t h e o rg an iz a tio nal c lim ate /cu lt u re , t h e o rg an iz a tio n’s s iz e , a n d t y p es o f r e w ard s a n d s a n ctio ns g iv e n t o e m plo ye es. ‹   1 / 4   › 5 /1 9/2 017 M GM T314 ­  E th ic al D ecis io n M akin g a nd T ra in in g h ttp s://e dge.a pus.e du/a ccess/c onte nt/g ro up/b usin ess­c om mon/U niv ers al/M GM T/3 14/e lf/le sson­4 /e lf_ in dex.h tm l 4 /1 2 A s n o te d i n t h e l a st l e sso n, a c o d e o f e th ic s i s a w rit te n d ocu m en t t h at o utlin es a n o rg an iz a tio n’s m is sio n a n d v a lu e s, s u ch a s t h e e xp ecta tio n t h at e m plo ye es w ill g iv e t h e o rg an iz a tio n’s c u sto m ers t h e u tm ost r e sp ect. I t e xp la in s t h e e th ic al p rin cip le s t h at t h e o rg an iz a tio n p ro m ote s b ase d o n i t s m is sio n a n d v a lu e s. I t a ls o d eta ils t h e s ta n d ard s o f p ro fe ssio nal b eh avio r t h at e m plo ye es a re e xp ecte d t o m ain ta in , i n clu d in g h o w t h ey s h o uld a p pro ac h p ro b le m s. A c o d e o f e th ic s p ro vid es e th ic al g uid elin es f o r a n o rg an iz a tio n a n d h elp s s e t t h e e th ic al t o ne f o r t h e o rg an iz a tio n. O bsta c le s t o I n te n tio ns t o M ake E th ic al D ecis io ns E ve n w it h t h e b est i n te n tio ns a n d m otiv a tio n t o p ra c tic e g ood e th ic s a n d m ake e th ic al d ecis io ns, i n d iv id uals a n d o rg an iz a tio ns w ill f a c e o b sta c le s t h at m ake i t d if fic u lt t o a c h ie ve t h is g oal. T h e f o llo w in g a re e xa m ple s o f s o m e o f t h ese o b sta c le s: S EC O ND D O UBTS W EAKN ESS O F W IL L O R L A C K O F M ORAL C O URAG E B R EAKIN G  O LD  H ABIT S 5 /1 9/2 017 M GM T314 ­  E th ic al D ecis io n M akin g a nd T ra in in g h ttp s://e dge.a pus.e du/a ccess/c onte nt/g ro up/b usin ess­c om mon/U niv ers al/M GM T/3 14/e lf/le sson­4 /e lf_ in dex.h tm l 5 /1 2 S ix C om mon E th ic al T h eo rie s W hen m akin g e th ic al d ecis io ns, i n d iv id uals a n d o rg an iz a tio ns n eed a j u stif ic atio n f o r w hy t h e d ecis io n w as m ad e a c e rta in w ay. T h is i s a c h ie ve d b y b asin g t h e d ecis io n o n o ne o f t h e f o llo w in g s ix e th ic al t h eo rie s. E g ois m – D ecis io ns a re m ad e b ase d o n w heth er o r n o t t h e o utc o m e w ill b en efit t h e d ecis io n m ake r. A p ers o n a c ts t o c re ate t h e g re ate st g ood f o r h im se lf o r h ers e lf . I f a n a c tio n p ro m ote s t h e p ers o n’s i n te re sts , i t i s r e g ard ed a s r ig ht. I f i t d oes n o t, i t i s r e g ard ed a s w ro ng . ‹   1 / 6   › I m porta n ce o f E th ic s T ra in in g P ro g ra m s O ne w ay t o p ro m ote e th ic s a n d d eve lo p a n e th ic al o rg an iz a tio nal c u lt u re i s t o i m ple m en t a n e th ic s t r a in in g p ro g ra m . A cco rd in g t o t h e M erria m -W eb ste r D ic tio nary , t r a in in g i s s im ply t h e “ p ro ce ss b y w hic h s o m eo ne i s t a u g ht t h e s k ills t h at a re n eed ed f o r a n a rt, p ro fe ssio n, o r j o b .” W it h e th ic s t r a in in g , s u ch t r a in in g w ould f o cu s o n e th ic s— what i s i t a n d h o w d oes o ne p ra c tic e e th ic al b eh avio r? H ere a re w hat s o m e s c h o la rs h ave t o s a y: 5 /1 9/2 017 M GM T314 ­  E th ic al D ecis io n M akin g a nd T ra in in g h ttp s://e dge.a pus.e du/a ccess/c onte nt/g ro up/b usin ess­c om mon/U niv ers al/M GM T/3 14/e lf/le sson­4 /e lf_ in dex.h tm l 6 /1 2 M AD SEN  A N D S H AFR IT Z D O BEL T H O M PSO N T ra in in g R e cip ie n ts W hen t r a in in g p ro g ra m s a re i m ple m en te d , t h ey s h o uld b e p ro vid ed t o e ve ry e m plo ye e i n t h e o rg an iz a tio n. E th ic s d ecis io ns a re m ad e a t e ve ry l e ve l s o e ac h e m plo ye e, i n clu d in g t o p m an ag ers , s h o uld r e ce iv e t r a in in g . T ra in in g s h o uld b e p ro vid ed w hen e m plo ye es a re h ir e d a s p art o f t h eir o rie n ta tio n p ro ce ss. T h en , p erio d ic ally , r e fr e sh er t r a in in g s h o uld b e p ro vid ed t o r e m in d e m plo ye es t h ro ug ho ut t h e o rg an iz a tio n o f e xp ecta tio ns f o r t h em r e g ard in g e th ic s.

T h o m pso n ( 1 9 92) p oin te d o ut t h at s o m e e m plo ye es m ay b e i n su lt e d w hen a sk e d t o a tte n d e th ic s t r a in in g . T h ey m ay t h in k t h at t h ey a re e th ic al p eo p le a n d d o n o t n eed t o b e t r a in ed o n h o w t o p ra c tic e e th ic al b eh avio r. B ut, a c co rd in g t o T h o m pso n ( 1 9 92), j u st b ecau se a n i n d iv id ual p ers o nally p ra c tic e s e th ic al b eh avio r, i t d oes n o t a u to m atic ally f o llo w t h at h e o r s h e w ill h ave a g ood u n d ers ta n d in g o f w hat t h e o rg an iz a tio n e xp ects i n t h is r e g ard .

E th ic s t r a in in g i s n ece ssa ry , e ve n f o r e th ic al e m plo ye es, t o e n su re t h ey u n d ers ta n d e th ic s i n t h e c o nte xt o f t h e o rg an iz a tio n a n d h o w t o p ra c tic e e th ic al b eh avio r t h at m eets t h e o rg an iz a tio n’s e xp ecta tio ns.

W ork sh o p F o rm ats f o r E th ic s T ra in in g 5 /1 9/2 017 M GM T314 ­  E th ic al D ecis io n M akin g a nd T ra in in g h ttp s://e dge.a pus.e du/a ccess/c onte nt/g ro up/b usin ess­c om mon/U niv ers al/M GM T/3 14/e lf/le sson­4 /e lf_ in dex.h tm l 7 /1 2 O rg an iz a tio ns h ave a v a rie ty o f w ork sh o p f o rm at o p tio ns f o r w ays t o d eliv e r e th ic s t r a in in g . T h ey s h o uld r e vie w e ac h f o rm at a n d s e le ct t h e o ne(s ) t h at a re m ost s u it a b le f o r t h eir o rg an iz a tio n’s e th ic s t r a in in g n eed s. T h e f o llo w in g i s a n o ve rv ie w o f s e ve ra l o p tio ns: E TH IC AL C ULT U RE A SSESSM EN T C O DE O F C O NDUCT A N ALY SIS T Y PIC AL B EH AV IO RS E XPER IE N CE B U SIN ESS E TH IC S S C EN AR IO S F O R D IS C USSIO N F R AU D A N D T H EFT E XPLO RAT IO N E TH IC S P ER SO NALIT Y  M EASU RES B EN CHM AR K T O  A N  ID EAL E M PLO YEE L e sso n O ve rv ie w O rg an iz a tio ns n eed t o b e a w are o f t h e d if fe re n t p ers o nalit ie s t h at m ay a ffe ct e th ic al d ecis io ns. I n o rd er t o p ro m ote e th ic al b eh avio r e th ic s n eed s t o b e d is c u sse d a t a ll l e ve ls o f t h e o rg an iz a tio n.

T ra in in g i s e sse n tia l t o e n su re t h at e m plo ye es k n o w w hat i s a n d i s n ’t e th ic al a n d e m plo ye es c an h elp i m pro ve a n o rg an iz a tio n’s p erfo rm an ce b y a sse ssin g t h e c u rre n t e th ic al c lim ate . 5 /1 9/2 017 M GM T314 ­  E th ic al D ecis io n M akin g a nd T ra in in g h ttp s://e dge.a pus.e du/a ccess/c onte nt/g ro up/b usin ess­c om mon/U niv ers al/M GM T/3 14/e lf/le sson­4 /e lf_ in dex.h tm l 8 /1 2 K no w le d ge C heck T h eo d ore i s t h e m an ag er o f a f u rn it u re s to re . H e h as f o ur s a le sp eo p le w ork in g f o r h im , a n d t h ey w ork o n c o m mis sio n. W hen t h ey s e ll a p ie ce o f f u rn it u re , t h ey g et a p erc e n ta g e o f t h e p ro fit f o r t h at p artic u la r i t e m . T h e s to re h as s tr ic t w rit te n r u le s a b out h o w c o m mis sio ns a re t o b e d is tr ib ute d , a n d t h e a m oun ts t h at a re a llo tte d f o r e ac h t y p e o f f u rn it u re . L a te ly , o ne o f t h e s a le sp eo p le h as b een m akin g c o nsid era b ly l a rg er c o m mis s io ns t h an t h e o th er s a le sp eo p le . S he i s a c h ie vin g t h is b ecau se s h e h as s ta rte d z e ro in g i n o n c u sto m ers t h e m in ute t h ey w alk i n t h e d oor, e n su rin g t h at c u sto m ers d eal w it h h er a s o p pose d t o o ne o f t h e o th er s a le sp eo p le .

T h e o nly w ay t h e o th ers m an ag e t o g et a c u sto m er i s i f s h e i s b usy . T h e o th er s a le sp eo p le h ave c o m pla in ed t o T h eo d ore t h at t h is i s n o t f a ir a n d h e n eed s t o r e q uir e h er t o c h an g e h er w ork h ab it s .

T h eo d ore r e fu se s, i n sis tin g t h at w hat s h e i s d oin g d oes n o t v io la te t h e s to re ’s w rit te n r u le s r e g ard in g c o m mis sio ns. B y t a kin g t h is a p pro ac h t o t h e s it u atio n, w hat t y p e o f i n tu it io n i s T h eo d ore f o llo w in g ?

W hic h o f t h e f o llo w in g c o rre ctly l is ts f o ur o f t h e f a c to rs t h at i m pac t e th ic al d ecis io n m akin g i n o rg an iz a tio ns? L ib era l I n tu it io n C onsc ie n tio usn ess C onse rv a tiv e I n tu it io n D eo nto lo g y C od e o f e th ic s, o rg an iz a tio nal c lim ate /cu lt u re , c u lt u ra l r e la tiv is m , a n d r e w ard s a n d s a n ctio ns 5 /1 9/2 017 M GM T314 ­  E th ic al D ecis io n M akin g a nd T ra in in g h ttp s://e dge.a pus.e du/a ccess/c onte nt/g ro up/b usin ess­c om mon/U niv ers al/M GM T/3 14/e lf/le sson­4 /e lf_ in dex.h tm l 9 /1 2 C yn th ia i s t h e m an ag er f o r a n e n g in eerin g f ir m t h at h as b een a sk e d t o a d vis e a s ta te g ove rn m en t o n t h e b est w ay t o b uild a n ew h ig hw ay s y ste m . S he i s c o nsid erin g t h e f o llo w in g o p tio ns: T h e c h eap est o p tio n w ill f it t h e s ta te ’s b ud get b ut w ill r e su lt i n a h ig hw ay t h at w ill b e p ro ne t o t r a ffic j a m s a n d w ill l im it t r u ck t r a ffic , i m pac tin g i n te rs ta te c o m merc e .

T h e m ost e xp en siv e o p tio n w ill p ro vid e a h ig hw ay t h at w ill m ake i t e asy t o t r a ve l w it h o ut g ettin g i n a t r a ffic j a m , a n d i t w ill s u p port h eavy t r u ck t r a ffic . H ow eve r, t h e s ta te c an no t a ffo rd t h is o p tio n w it h o ut i n cu rrin g a g re at d eal o f d eb t t o p ay f o r i t .

T h e t h ir d o p tio n w ill e n ab le t r a ffic t o f lo w w ell a s l o ng a s n o a c cid en ts o r o th er t r a ffic p ro b le m s o ccu r. I t w ill s u p port t r u ck t r a ffic p ro vid ed i t i s n o t o ve r a w eig ht l im it . T h e s ta te c an a ffo rd t h is o p tio n p ro vid ed i t s b ud get i s r e vis e d t o t r a n sfe r m onie s f r o m n o nesse n tia l s e rv ic e s. C yn th ia r e co m men d s t h e t h ir d o p tio n b ecau se i t w ill p ro d uce t h e g re ate st g ood f o r t h e g re ate st n um ber o f p eo p le w ho t r a ve l t h e s ta te ’s h ig hw ays w hile b ein g a ffo rd ab le i n t h e s ta te ’s b ud get. B y m akin g t h is d ecis io n u sin g t h is j u stif ic atio n, w hic h o f t h e s ix e th ic al t h eo rie s i s C yn th ia u sin g t o g uid e h er d ecis io n m akin g p ro ce sse s? C od e o f e th ic s, o rg an iz a tio nal c lim ate /cu lt u re , o rg an iz a tio n s iz e , a n d r e w ard s a n d s a n ctio ns C od e o f e th ic s, o rg an iz a tio nal c lim ate /cu lt u re , o rg an iz a tio n s iz e , a n d i n tu it io n L ib era l i n tu it io n, c o nse rv a tiv e i n tu it io n, l o cu s o f c o ntr o l, a n d s e n sit iv it y C ult u ra l R e la tiv is m U tilit a ria n is m E g ois m S o cia l G ro up R e la tiv is m 5 /1 9/2 017 M GM T314 ­  E th ic al D ecis io n M akin g a nd T ra in in g h ttp s://e dge.a pus.e du/a ccess/c onte nt/g ro up/b usin ess­c om mon/U niv ers al/M GM T/3 14/e lf/le sson­4 /e lf_ in dex.h tm l 1 0/1 2 T h e e m plo ye es a t a l a w f ir m h ave b een i n str u cte d t h at t h ey a re t o a tte n d e th ic s t r a in in g . T h e f ir m ’s m an ag ers h ave d ecid ed t o u se a w ork sh o p f o rm at t h at w ill r e vie w h o w w ell e th ic s i s i n stille d i n t h e o rg an iz a tio n a n d h o w w ell e m plo ye es a re a b id in g b y w rit te n g uid elin es t h at t h e f ir m h as r e g ard in g e th ic s. T h e e m plo ye es w ill h ig hlig ht a n d p ra is e a re as o f s tr e n g th . T h ey a ls o w ill i d en tif y w eakn esse s a n d d eve lo p s tr a te g ie s f o r i m pro ve m en t i n t h ese a re as. W hat t y p e o f w ork sh o p w ill t h e e m plo ye es b e a tte n d in g ?

J u an it a i s c o nce rn ed . S he j u st c o nd ucte d a w ork sh o p f o cu se d o n e th ic s p ers o nalit y m easu re s. S he l e arn ed t h at o ne o f h er s u b ord in ate s b elie ve s t h at h is r a c e i s s u p erio r t o o th er g ro up s, a n d h e h ate s a n yo ne w ho i s n o t p art o f h is r a c e . J u an it a k n o w s t h at t h is m ean s h e p ra c tic e s a p ers o nalit y t y p e t h at m ake s h im m ore l ik e ly t o b e a b ully i n t h e w ork p la c e . N ow t h at s h e k n o w s t h is , s h e a n tic ip ate s h avin g p ro b le m s w it h t h is e m plo ye e i n t h e f u tu re . W hat p ers o nalit y t y p e i s t h is e m plo ye e? C od e o f c o nd uct a n aly sis T yp ic al b eh avio rs e xp erie n ce C re ate b usin ess e th ic s s c e n ario s f o r d is c u ssio n E th ic al c u lt u re a sse ssm en t O rg an iz a tio nal c it iz e n sh ip b eh avio r ( O CB) S o cia l d om in an ce o rie n ta tio n ( S D O ) M ac h ia ve llia n is m S o cia l G ro up R e la tiv is m 5 /1 9/2 017 M GM T314 ­  E th ic al D ecis io n M akin g a nd T ra in in g h ttp s://e dge.a pus.e du/a ccess/c onte nt/g ro up/b usin ess­c om mon/U niv ers al/M GM T/3 14/e lf/le sson­4 /e lf_ in dex.h tm l 1 1 /1 2 K ey T e rm s: B ELIE F C O DE O F E TH IC S C O NSC IE N TIO USN ESS C O NSER VAT IV E IN TU IT IO N C ULT U RAL R ELA T IV IS M D EO NTO LO GY E G OIS M I N DIV ID UALIS M /C O LLE C TIV IS M I N TU IT IO N L IB ER AL IN TU IT IO N L O CUS O F C O NTR O L M AC HIA V ELLIA N IS M O RG AN IZ AT IO NAL C IT IZ E N SH IP  B EH AV IO R ( O CB) O RG AN IZ AT IO NAL C ULT U RE S EN SIT IV IT Y S O CIA L D O M IN AN CE O RIE N TA T IO N ( S D O ) S O CIA L G RO UP R ELA T IV IS M T R AIN IN G U TIL IT A R IA N IS M V IR TU E E TH IC S 5 /1 9/2 017 M GM T314 ­  E th ic al D ecis io n M akin g a nd T ra in in g h ttp s://e dge.a pus.e du/a ccess/c onte nt/g ro up/b usin ess­c om mon/U niv ers al/M GM T/3 14/e lf/le sson­4 /e lf_ in dex.h tm l 1 2/1 2 S o urc e s:

D ob el, J . P atr ic k. 1 9 93. “ T h e R e alp olit ik o f E th ic s C od es: A n I m ple m en ta tio n A ppro ac h t o P u b lic E th ic s,” i n E th ic s a n d P u b lic A dm in is tr a tio n, e d . H . G eo rg e F re d eric kso n, N ew Y o rk : M .E . S harp e, I n c. M ad se n , P e te r a n d J a y M . S hafr it z . 1 9 92. E sse n tia ls o f G ove rn m en t E th ic s. N ew Y o rk : P e n g uin G ro up . M erria m -W eb ste r D ic tio nary . A cce sse d M ay 3 0. 2 016 , o n-lin e a t h ttp :/ /w ww.m erria m -w eb ste r.c o m /d ic tio nary / S ch erm erh o rn , J o hn R . J r ., J a m es G . H un t, a n d R ic h ard N . O sb orn . 2 005. O rg an iz a tio nal B eh avio r, N in th E d it io n. H ob oke n , N ew J e rs e y: J o hn W ile y a n d S o ns, I n c. T h o m pso n, D en nis F . 1 9 92. “ P ara d oxe s o f G ove rn m en t E th ic s.” P u b lic A dm in is tr a tio n R e vie w . 5 2, 2 54-2 59.