Ethical Values and Dilemmas

8/13/2019 Ethical Values and Dilemmas

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ETHICAL VALUES AND DILEMMAS DECISION MAKING

The first critical factor of influence in business ethics is orientation. How

company ethics program is designed? Which are important orientations? Etc.

There are 4 orientations in organizational and program de3sign factors that

are linked to ethics compliance management. They are

Compliance based

Value based

Protect top management base

External stakeholder base.

!n compliance based approach primary importance is gi"en to

meet legal re#uirements. This type of approach is predominant in

!ndian industries. This method aims at detecting$ pre"enting or

punishing "iolations. This leads to mediocrity..

!n "alue based orientation the employees has self governance

and hence committed. !t moti"ates employees and de"elopsshared ethical "alues. The program is effecti"e and is "alue

based.

!n protect the top management approach% the principle is that

corporate codes be designed to co"er up future or potential

problem. The blame may be shifted from top management to

lower le"el officers and workmen.

The fourth orientation is e&ternal stakeholders$ wherein the

organization tries to boost !bl"c "#age. !t is also made to satisfy

e&ternal stakeholders "iz customers$ suppliers and the community


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!n any gi"en situation the ethical dimensions influences business. They are

Maximization of goals' "isions$ priorities$ (oal orientation$ (oal

multiplicity

Motives) *nown$ Hidden$ +elfish$ +hared$ ,alue oriented$ -eligion

Methods used' That satisfies maority of people$ Essential$ !ncidental$

+pecial$ /cceptable to society

Manifestations) !mpact$ !nternal$ E&ternal$ Time frame

Decision Process in Competitive Process

/ good and fair competition is one of necessities of increasing trade

and wealth. !t also makes possible e#uitable distribution of goods and

ser"ices. !t is hence important that all economic and social institutions

should help to increase open markets$ trade and in"estments.

The competition leads to e&treme steps by competing companies and

sometimes to unethical practices. 0-at race 0leads1 to wrong thinking.

2ompetiti"e pressures on one side and financial targets of the company

on the other make a manager to 0somehow1 achie"e his targets. +ome

of the areas are

(athering and using competitor information.

-eduction in #uantities

owering #uality standards

2opy packing

2utting costs on safety aspects

se substandard material packing

(ather intelligence from competitor

5reaking laws in the nalme of profits

/ppoint or pay intelligence gatherers

+hifting blame when problem occurs

Take unethical decisions and call it 0(ut 6eeling1

5ribing$ cheating


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5ringing political influence

/"oidance of payment of ta&es and dues

7isrepresentation

7isleading ads

nhealthy work conditions$ employing minors

7onopoly and restricti"e Trade 8ractices.

Ethical Decision Making

Ethical decisions should be good$ practical and stand the moral test. !t is

necessary that companies and top managers ha"e close relations with

stakeholders. nderstand and share those ethical "alues that define the

parameters of business decisions and actions. Ethical decisions making steps

for a manager are

Stud!(round realities of business practices$ traditions$ industry

norms and cultural patterns.

"imits of Po#er nderstand guidelines from the top and "iews or the

commendations of officers at "arious le"els in the organization.

Man solutions 9e"elop many responsible$ independent solutions

taking into account obecti"es of the company and meeting "alues of

ma&imum number of stakeholders.

Check past cases 6ind similar dilemma cases in the past in the

company and other similar cases in other companies. How the problem

was sol"ed and outcomes be studied to help the present case.

$egotiate!:egotiate the optional choice that gi"es ma&imum good to

more stakeholders. :egotiation skills are necessary to see when to

negotiate$ how much and what to negotiate.

%bedience to authorit

Employees in any organization do what is rewarded and a"oid what is

punished. To gain attention employees are likely to adhere to total

adherence or obedience to authority. 5oss is always right$ attitude seats

in. &h not sa 'es( to everthing and get re#ards.


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5elief takes away accountability of the indi"idual as well as his

responsibilities. /n ethical culture is likely to breed un#uestioning

obedience. There are 3 focuses

Emploee )ocus*;rganization should consider all acts which looks at

betterment of the workers

Communit )ocus*. 6ocus on customers$ general public and outside

stakeholders.

Self +nterest focus* +imply look at himself< herself

,echnolog -evolution and Ethics

The last two decades has witnessed technological re"olution. They are

digital$ wireless and internet technologies. /ll these ha"e made a world a

global "illage. The impact has been all embracing and the fastest in theknown history of mankind. !t has been estimated that the pace is so fast that

a new knowledge is added e"ery = nd year. The impact of technology is felt

in the following areas

lobal ro#th

$o geographical limits.

$o time limits

$e# companies

$e# professions

Change of mindset

Conflict -esolution

Stud and /nalze

Cool do#n

Education

)orcing

+nfiltration

$egotiation

/ccommodation

Collaboration


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Ethical Values and Dilemmas