Chương 5 Ethics management: Understanding ethical issues and organizational culture môn Business ethics | Đại học kinh tế Quốc dân

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ETHICS MANAGEMENT
Ethics Management and Related Terms
➢Ethics management is the process of managing ethical
problems through management tools.
➢Ethical management describes individual managers’ ethical
behavior in their immediate sphere of managerial influence.
➢Ethics performance is the sum of right and wrong decisions
and behaviors in a specific entity and for a determined time period.
➢Moral excellence is an above-average ethics performance. 1 lOMoAR cPSD| 58511332
ETHICS MANAGEMENT
ETHICS MANAGEMENT PROCESS
➢Ethics management process: the management of ethical issues with the goal of achieving maximum ethics performance ➢Ethical opportunity: possibility to do good and to achieve positive ethics performance
➢Ethical issue: critical situation caused by a realized or potential, right or wrong decision or behavior
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➢Genuine ethical dilemmas are characterized by a high
motivation to do the right thing and a dilemma situation
highly difficult to judge morally.
•Actors want to do the right thing but have difficulties understanding what the right thing is.
•The required action is to assist in the ethical decision-making process to create clarity (Phase 1)
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ETHICS MANAGEMENT ETHICAL ISSUES lOMoAR cPSD| 58511332
ETHICS MANAGEMENT
➢No-problem problems exist when the moral judgment is
clear and actors are highly motivated to act upon it.
•In this case, it remains for ethics management to create an
organizational environment in which motivation and judgment can
easily be translated into ethical action (Phase 3). ETHICAL ISSUES lOMoAR cPSD| 58511332
ETHICS MANAGEMENT
➢Moral laxity problems are situations in which the ethical
judgment does not fail due to the complexity of the dilemma,
but due to a lack of motivation to deal with it.
❖In order to solve moral laxity problems, it is necessary to actively
identify and judge issues (Phase 1). ETHICAL ISSUES lOMoAR cPSD| 58511332
ETHICS MANAGEMENT
➢Compliance problems are issues where it is very clear, and
normatively defined, what the right thing is, but nevertheless
actors do not comply with those norms.
•The ethics management task lies first in understanding why employees
do not comply (Phase 2) and second in deploying the right ethics
management tools to ensure the right things are done (Phase 3). lOMoAR cPSD| 58511332
ETHICS MANAGEMENT
Tools of ethics for the management lOMoAR cPSD| 58511332 INTRODUCTION TO ORGANIZATIONAL CULTURE PHAM THI BICH NGOC Organisational culture
Organisational culture is the taken-for-granted
assumptions and behaviours that are shared within a
particular group and help to make sense of the organisational context. lOMoAR cPSD| 58511332
Cultural frames of reference lOMoAR cPSD| 58511332 Geographically based cultures
➢Different countries may have different cultures.
➢Such cultures may mean attitudes to work,
risktaking, authority, equality, ethics and behaviours
differ between countries/regions.
➢Subnational cultures may also differ within a country,
for example, Northern and Southern Italy. lOMoAR cPSD| 58511332 Geographically based cultures
Hofstede suggests that there are at least four key
dimensions upon which national cultures tend to differ:
• Power distance.
• Individualism-collectivism.
• Long-term orientation.
• Uncertainty avoidance. lOMoAR cPSD| 58511332 The organisational field
An organisational field is a community of
organisations that interact more frequently with one
another than with those outside the field and that
have developed a shared culture. Examples might include:
➢Justice – law firms, police forces, courts, prisons and probation services.
➢Accountancy – accountants, auditors and tax inspectors. lOMoAR cPSD| 58511332 Categorisation
➢The ways in which members of an organisational
field categorise (or label) themselves and their
activities has significant implications for what they do.
➢Over time, members of an organisational field tend
to converge on dominant categorisation schemes.
➢Example – the use of the ‘tablet’ as a category in the computing industry. lOMoAR cPSD| 58511332 Recipes
A recipe is a set of assumptions, norms and routines
held in common within an organisational field about
the appropriate purposes and strategies of field members.
For example, the shared understanding and
behaviours of health professionals – doctors, nurses,
pharmacists, ambulance service. lOMoAR cPSD| 58511332 Legitimacy
Legitimacy is concerned with meeting the
expectations within an organisational field in terms of
assumptions, behaviours and strategies.
Strategies can be shaped by the need for legitimacy in several ways: ➢ Regulation.
➢Normative expectations. ➢The recipe. lOMoAR cPSD| 58511332 Culture in four layers lOMoAR cPSD| 58511332 The paradigm
The paradigm is the set of assumptions held in common and
taken for granted in an organisation. The paradigm:
• is likely to be about basic but fundamental assumptions
about the organisation (e.g. policing is about ‘thief taking’).
• informs what people in the organisation do.
• influences how organisations respond to change. Organisational subcultures
There are often subcultures in organisations: lOMoAR cPSD| 58511332
• Differences between geographical divisions in a multinational company.
• Differences between functional groups such as finance, marketing and operations.
• Different nature of work in different functions – for example,
in an oil company differences between those functions
engaged in ‘upstream’ exploration and those concerned with ‘downstream’ retailing. Organisational identity
Organisational identity refers to what members believe and
understand about who they specifically are as an organisation. lOMoAR cPSD| 58511332
Managers and entrepreneurs often try to manipulate
organisational identity because it is important for recruiting and
guiding employees, interacting with customers and dealing
with regulators (e.g. Carslberg wanted to redefine itself as a
fast-moving consumer goods business rather than a brewer).