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CHAPTER 5
VALUES AND ETHICS
CHAPTER OUTLINE AND LECTURE NOTES
Values and ethics are foundation topics in human relations because our values and ethics
influence how we treat others, and how we are treated in return.
I. VALUES A PART OF UNDERSTANDING HUMAN RELATIONS
A value is the importance a person attaches to something. Values are also tied to the
enduring belief that one’s mode of conduct is better than another mode of conduct. Ethics
are moral choices a person makes. Morals are an individual’s or a society’s determination
of what is right and wrong.
A. How Values Are Learned
People are not born with a certain set of values, but rather they acquire them in the
process of growing up. Many values are learned by the age of four. They are acquired
through: (a) observing other or modeling, (b) communication of attitudes, (c) unstated
by implied attitudes, and (d) religion
B. Later Life Influences on Values
Although many core values are learned early in life, one’s values continue to be shaped
by events late in life through: (a) dissemination of information through the media, (b)
advertisements and other media messages, and (c) changes in technology, such as
people coming to value a digital lifestyle.
C. The Influence of Company Values
It is possible that the teaching and demands of an employer will help us acquire new
values, such as dedication to every client’s success. Two key company values are
kindness and compassion, and sustainability (of the environment). Another example of
a company value would be corporate spiritualism, which results when management is
equally concerned about nurturing employee well-being and profits.
Company values are passed along to organization members as part of socialization,
the process of coming to understand the values, norms, and customs essential for
adapting to the organization.
D. The Classification and Clarification of Values
A large number of values exist because values can be related to anything in which we
believe. Values can be classified by linking them to psychological needs. The
following
classification of values involves needs and is linked to both career and personal
life.
1. Humanists are driven by a need for self-awareness, personal growth, and a sense
of being individual and unique
2. Strategists highly value a sense of mastery and personal achievement
3. Pragmatists Strive for a corner in the world anchored by power, influence,
stability, and control
4. Adventurers have a powerful drive for excitement and adventure.
Another key value that influences both work and personal life is conscientiousness.
Conscientious workers strive to be industrious, well organized, self-controlling,
responsible, traditional, and virtuous.
Differences in values among people often stem from age, or generational
differences. See Figure 5-1 for a chart on the value stereotypes for several generations
of workers.
Huhman describes stereotypes Gen Y members may have to overcome, including
the following:
1. They are entitled.
2. They have a weak work ethic.
3. They are self-centered.
4. They are too casual in their speech.
The values that people develop early in life are directly related to the kind of
person they are and the quality of relations they form. In recognition of this fact,
value clarification exercises have been developed, including Human Relations
Application Exercise 5-1.
Have student visit the following website to complete a Career Values
Assessment at http://www.pepjob.com/jobseekers/tools/valuestest.htm
Students can also visit http://www.quintcareers.com/workplace_values.html to
complete A Quintessential Careers Quiz - Workplace Values Assessment: Do You
Know the Work Values You Most Want in a Job and an Employer—and Does Your
Current Employment Reflect Those Values?
E. The Mesh between Individual and Job Values
Under ideal circumstances, the values of employees mesh with those required on the
job. When this state of congruence occurs, job performance is likely to be high. When
the demands made by the organization or a superior clash with the basic values of the
individual, he or she suffers from person-role conflict. A starting point in finding a
good fit between individual and organizational values is to identify what type of work
would be the most meaningful to you.
II. THE IMPORTANCE OF BEING CONCERNED ABOUT BUSINESS ETHICS
People are motivated by both self-interest and moral commitments. Most people want
to maximize their personal gains, but are also motivated to do something morally right.
Reasons companies are concerned about their employees behaving ethically include:
1. Business executives want employees to behave ethically because a good
reputation can enhance business.
2. Unethical acts can be illegal, which can lead to financial loss and
imprisonment.
3. Extreme acts of unethical behavior can lead a company into bankruptcy.
4. High ethics increases the quality of work life.
Students can complete the Ethical Reasoning Inventory self-assessment quiz 5-1 for
an indication of how ethical they are.
A. Why Being Ethical Isn’t Easy
Being ethical is not always easy because ethical decisions are complex, people do
not always recognize the moral issues involved in a decision, and people have
their interest to remain uninformed. A major reason for unethical behavior in
business is that that unethical behavior is sometimes rewarded, such as any method
of obtaining sales.
B. The Extent of Ethical Problems
Ethical violations by executives and rank-and-file employees are widespread.
Among the findings of the Ethics Resource Center were that 41 percent of the 6,400
workers surveyed said that they have observed misconduct on the job, such as lying,
Certain ethical mistakes, including illegal actions, recur in the workplace. These
mistakes and violations include:
1. Illegally Copying Software. According to Apple Inc., the annual loss to piracy
is more than $11 billion.
and a moral issue because it is morally wrong and unfair.
4. Conflict of Interest. A conflict of interest occurs when one’s judgment or
others not to divulge confidential information unless the welfare of others is at
stake.
6. Misrepresentation of Employment History. Distortion, or lying, on a résumé,
job application form, or during an interview is unethical.
7. Ethical Violations with Computers and Information Technology.
Ethical dilemmas include issues such as the fairness of tracking websites
8. Causing Problems in Order to Take Credit for Fixing Them. Employees
sometimes quietly cause problems so they can later take credit for their
resolution.
9. Engaging in Unethical Behavior to Benefit the Company. Employees will be
tempted to engage in unethical acts in order to benefit the company. An
example would be “cooking” numbers to boost the prediction of financial
1. Trustworthiness
2. Respect
3. Responsibility
4. Fairness
5. Caring
6. Good Citizenship
B. Using a Guide to Ethical Decision Making
Such a guide for making contemplated decisions includes running the decision or
action through an ethics test or ethical screening. A typical guide follows:
• How morally correct was my decision?
• Was justice served by my decision?
• How comfortable would I be if the details of my decision or actions were
made public in the media?
• What would you tell a young family member to do?
C. Developing Strong Relationships with Work Associates
If you build strong relationships with work associates, you are likely to behave
more ethically toward them, and they toward you.
D. Using Corporate Ethics Programs
Examples of company programs and procedures for promoting ethical behavior
include committees that monitor ethical behavior, training programs in ethics, and
vehicles for reporting ethical violations.
1. Ethics Hotline. Should a person be faced with an ethical dilemma, he or she
2. Ethics Training Program. Training in ethics is helpful but cannot readily
overcome deviant behavior.
3. The Right Corporate Culture. A corporate ethics program works best when
placed in a corporate culture that promotes ethical behavior.
E. Following an Ethical Role Model in the Company
Four general categories of attitudes and behaviors are characterized by ethical role
models in organizations including:
F. Following an Applicable Code of Professional Conduct
Professional codes of conduct are prescribed for many occupational groups
including physicians, nurses, lawyers, psychologists, and real estate agents.
G, Blowing the Whistle on Highly Unethical and Illegal Conduct
A whistle blower is an employee who reports wrongdoing in the organization to
parties who can take action. Although whistleblowing might be ethical, it
represents a challenge to the whistle blower. Negative consequences such as being
blocked from further promotions often take place.
ANSWERS TO QUESTIONS FOR DISCUSSION AND REVIEW
5.1 Identify several of your values that you think will help you succeed. Why do you think
these values will help you?
5.2 A friend of yours is a vegan, and she receives an offer for what appears to be an ideal job
at the headquarters of a group of restaurants that includes steak houses. She is worried
about having a values clash if she accepts the position. What advice can you offer your
vegan friend?
5.3 Get together in a brainstorming group to identify what you think might be a few values
important to (a) Apple Inc., and (b) Nike. Support your reasoning.
a. Possible values of Apple are providing the world with advanced consumer advanced
5.4 To what extent have you found it true that some of the youngest members of the
workforce are hesitant to talk to people because they prefer to send text messages?
5.5 Give an example of an action in business that might be unethical but not illegal.
Examples might include offering discounts to customers who ask for them, but not to all
5.6 A work associate or an acquaintance says to you “Don’t worry about me. I am totally
honest.” How does such a statement influence your evaluation of the person’s ethical
behavior?
5.7 A 25-year-old is applying for a position as an assistant loan officer at a bank, and the
bank is ready to make an offer. The hiring manager then decides against the offer when
she discovers by Internet that the candidate spent one night in jail seven years ago after
being arrested as an Occupy Wall Street demonstrator. How ethical is the hiring
manager’s decision?
5.8 Give an example of an action by top management or an immediate superior that would
cause you to “blow the whistle”?
Students will vary in what they consider to be behavior so outrageous that whistle
blowing is warranted. How about the following?: Carrying a concealed weapon into the
5.9 The number of deaths and serious injuries caused by automobile and drivers of small
trucks sending and receiving text messages while driving continues to increase. What
ethical responsibility should smart-phone manufacturers and phone service providers
have for preventing or reducing these accidents?
Perhaps forced by law, these companies issue warning labels. Smartphone manuals do
tuck a small message in the user manuals about the safe use of smartphones.
5.10 Some hospitals prohibit doctors from accepting any gift but a free lunch from
pharmaceutical companies. Are these hospitals going overboard on ethics? Explain your
reasoning.
could remove questions about unethical behavior from some patients’ minds. The truth is,
if someone is really unethical, they find ways to circumvent rules and policies anyway.
COMMENTS ON EXERCISES AND CASES
Human Relations Self-Assessment Quiz 5-1: The Ethical Reasoning Inventory
The Ethical Reasoning Inventory provides a list of job-related and personal-life related ethical
challenges, so it is it does not require much hypothetical and abstract reasoning to respond to the
statements. A key message conveyed by the quiz is that ethical behavior relates to a wide variety
of day-by-day incidents, not just mammoth corporate scandals.
The statements vary in moral intensity, or impact of the potential ethical violation. For
example, statement 10 is “I see no harm in taking home a few office supplies” (low moral
intensity); statement number 15 is “To be successful in business, a person usually has to ignore
ethics” (high moral intensity). Also of note, some of the behaviors reflected in the statement
might be practiced by over 90 percent of the workforce, such as number 5, “I see no problem
with conducting a little personal business on company time.”
An interesting issue to explore is whether a person might score too high on this scale, and
therefore be so naïve that it would be difficult for him or her to succeed in business. The
interpretation section of the quiz mentions that a very high scorer might take a little ribbing from
coworkers for being too straight laced.
Applying Human Relations Exercise 5-1: Value Clarification
People of all ages enjoy value clarification. A point worthy of discussion is to discuss the link
between these values and the workplace. Many of these values can be met or satisfied through
career success. For example, the workplace encourages being neat and orderly, and if you
achieve career success it is possible to help people less fortunate than yourself. Taking the
questionnaire also points to the idea that everyday behaviors are driven by values, such as
“watching my favorite television shows.” If Americans watch an average of 1,000 hours of
television per year, it is because they value such activity. Another point to be inferred from the
questionnaire is that values lead to behavior. If “having good health” is an important value, the
person will emphasize proper exercise and diet in daily living.
The values in this questionnaire are personal rather than corporate values, such as treating
employees fairly and providing good customer service. When corporate leaders talk about
values, they usually refer to a handful of ideas relating to treatment of employees and customers.
Applying Human Relations Exercise 5-2: The Ethics of Whistle Blowing
In both scenarios, the one about selling the same ketchup under different labels, and the other
about cheating a company out of potential customers, the student might choose among several
alternatives. One would be to say nothing; two would be to confront the company officials or
individual contractor, about their ethical violations; three would be to blow the whistle.
Human Relations Class Activity: My Biggest Ethical Challenge and Its Resolution
A potential advantage of this class activity is that it personalizes ethical challenges. At the same
time the exercise illustrates the point that dozens of life activities present ethical challenges. The
Danielle example points out that individuals might be tempted to act unethically toward a large
institution—in this case the U.S. Treasury.
Human Relations Case Study 5-1: Am I Paid to Be My Manager’s TV Repair Technician?
5.11 What do you see as any potential ethical issues in Gus’s request that Karen attempt to fix
his TV set reception problem?
One ethical issue is that Gus is attempting to use a company resource (a paid employee)
for an off-the-job problem. Another ethical issue is that Gus is setting himself up for a
situation involving a conflict of interest. If Karen complies with Gus’s request, will he
then be positively biased toward her when he has to evaluate her job performance? If
5.12 What advice might you offer Karen for dealing with the problem?
Karen is running the small risk of having a poor relationship with Gus if she refuses the
5.13 How do Gus’s demands fit into the category of expecting Karen to exhibit strong
organizational citizenship behavior?
Sorry Gus, you are over-interpreting organizational citizenship behavior. The concept
refers to going beyond the call of duty with respect to job-related behaviors. Fixing a
Human Relations Role-Playing Exercise 5-1: Dealing with an Unusual Request from the Boss
This role play should help illustrate the tact and diplomacy often necessary to deal with a
to maintain a good working relationship with him.
Human Relations Case Study 5-2: The Subprime Auto Loan Unit
This case illustrates how sometimes behavior that seems unethical on the surface might be doing
some good for many people.
5.14 What ethical issues do you see in the unit of the bank in question making subprime and
deep subprime loans at a much higher rate than loans granted to consumers with better
credit ratings?
5.15 What recommendations can you make to Calvin so he would have less concern about
issuing subprime and deep subprime loans?
Calvin might offer the lowest possible rate to each customer that his or her credit rating
toward improving their credit ratings.
Human Relations Role-Playing Exercise 5-2: Thinking Through the Ethics of High-Cost Auto
Loans
It will be instructive to see if the role players simply have an open discussion about the loans,
without introducing any information about ethical decision making, such as using ethical
challenge of facing high-interest loans for a vehicle.
SUPPLEMENTAL CLASS ACTIVITY
This activity will help students to clarify some of their own values, to learn a method of
categorizing values, and to understand the role values play in ethical behavior. In preparation for
the activity, place four flip chart pages on the walls of the room with the words Humanists,
Strategists, Pragmatists, and Adventurers on them.
Step 1: Have students imagine they have passed on, and they are reading their obituary.
They should identify what they would like to be said about them in their obituary. The
obituary should include some information about the type of worker they were, or
A. Humanists
Driven by a need for self-awareness, personal growth, and a sense of being individual
and unique
B. Strategists
Highly value a sense of mastery and personal achievement
have students move around the room to enter their values on the corresponding flip
charts. (For example, the values they associate with humanists should be recorded on
the humanists’ flip chart.)
Step 4: After all groups have posted their values on the flip charts, have the groups go around a
second time and identify careers they feel would be a good fit for that category. (For
example, they could find fire fighter to be a good career match for adventurers.)
Step 5: Have students move around the flip charts a final time to predict possible ethical
dilemmas for those holding the values for each category. (For example, one ethical
