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Managing Business Ethics
Chapter 3 –LECTURE 4
Treviño & Nelson –5th Edition
+Chapter 3 Overview
■Ethical Awareness and Ethical Judgment
■Individual Differences, Ethical Judgment, and Ethical
Behavior
■Facilitators to and Barriers to Good Ethical Judgment
■Toward Ethical Action
■Gioia’s Personal Reflections on the Pinto Fires Case
+
+Eight Steps to Sound Ethical
Decision Making
1. Gather the facts
2. Define the ethical issues
3. Identify the affected parties
4. Identify the consequences
5. Identify the obligations
6. Consider your character and
integrity
7. Think creatively about potential
actions
8. Check your gut
+Practical Preventive Medicine
(When Asked to Make a Snap Decision)
■Pay attention to your gut
■Ask for time
■Find out about organizational policy
■Ask manager or peers for advice
■Use New York Times test (disclosure rule)
■“Never do anything you wouldn’t want to see
reported on the front page of the The
Gleaner/Observer/Star.
■You shouldn’t do anything you wouldn’t want to
see fairly reported on the front page.
+The Relationship between Ethical
Awareness, Judgment, and Action
Ethical
Judgment
Ethical
Awareness
Ethical
Action
+Influences on ethical awareness
■If peers agree
■If ethical language is used
■If potential for serious harm
+Variation in Employee Conduct
■10% Follow their own values and beliefs; believe that their
values are superior to those of others in the company
■40% Always try to follow company policies
