Managing Ethics Textbook

Managing Business Ethics

Overview

Authors: Linda Klebe Treviño & Katherine A. NelsonEdition: Seventh EditionObjective: To provide a pragmatic and comprehensive approach to business ethics that is relevant for real-life situations and challenges faced in the contemporary business landscape.

Book Structure

Introduction

• Purpose: Introduces the concept of ethics in business, emphasizing its fundamental role in guiding behavior and decisions in organizations.

• Key Topics:

  • The significance of studying business ethics, particularly in a time when businesses face increasing scrutiny from the public and regulators.

  • The critical importance of maintaining public trust and reputation as foundational aspects of long-term success and sustainability in business.

  • A discussion on the relevance of business ethics in today’s corporate culture, highlighting notable cases where lack of ethics led to public outcry and legal consequences.

Section I: Introduction

• Introduction to business ethics: Why it is imperative for professionals to understand the ethical dimensions of their actions and decisions in the workforce.

• Ethics as a key command: Discusses how ethical considerations overlap with legal obligations, and why mere compliance isn’t enough for true ethical behavior.

Section II: Ethics and the Individual

Deciding What’s Right: A Prescriptive Approach

• Focus on individual decision-making processes in ethical contexts and the principles that guide these decisions.

• Ethical Dilemmas: Defined as scenarios where an individual faces conflicting values, such as the tension between honesty and loyalty to an employer.

  • Example: Navigating the choice between reporting unethical behavior witnessed in the workplace and protecting a colleague.

Deciding What’s Right: A Psychological Approach

• Delves into psychological influences on ethical decisions, including stages of cognitive moral development and the phenomenon of moral disengagement.

  • Cognitive Moral Development: Variability in moral reasoning skills among individuals, shaped by experience, education, and personal reflection.

Addressing Common Ethical Problems

• Identifies prevalent ethical dilemmas individuals may encounter in various workplace settings, providing tools and strategies for managing such challenges effectively.

• Offers actionable strategies for voicing personal values, fostering a culture of open dialogue around ethics.

Section III: Managing Ethics in the Organization

Ethics as Organizational Culture

• Discusses the pivotal role of organizational culture in shaping ethical behavior and decision-making processes.

• Systems to Support Ethics: Examination of leadership roles and systems that uphold an ethical culture, including training programs and ethical guidelines.

Managing Ethics and Legal Compliance

• Lays out comprehensive frameworks for structuring ethics management within organizations.

• Discusses the significance of ethics offices, compliance systems, and continuous education for employees.

Managing for Ethical Conduct

• Addresses the behavioral aspects necessary for effective ethical management and the influence of organizational rewards and disciplinary actions on ethical behavior.

Section IV: Organizational Ethics and Social Responsibility

Corporate Social Responsibility (CSR)

• Explores the balance organizations must strike between profitability and social responsibility, advocating for an integrated approach.

• Discusses various types of responsibilities:

  • Economic: Profits that sustain the business.

  • Legal: Compliance with laws and regulations.

  • Ethical: Upholding principles beyond legal requirements.

  • Philanthropic: Contributions to well-being of the community.

Ethical Problems of Organizations

• Analyzes the ethical challenges inherent in organizational practices, such as stakeholder management, product safety concerns, and environmental sustainability.

Managing for Ethics and Social Responsibility in a Global Environment

• Discusses the added complexities and ethical dilemmas faced by businesses operating in a global market, including cultural differences and varying regulatory standards.

Conclusion

• Reinforces the ongoing need for ethical practices in all business endeavors.

• Calls for a commitment from educators, managers, and leaders alike to cultivate and promote ethical behavior across all levels of organizations.

Important Themes Throughout the Book

• Trust: Emphasizes trust as the cornerstone of business relationships and the significant consequences arising from loss of this trust.

• Values: Explores how individual and organizational values are crucial in steering ethical decision-making.

• Pragmatic Approach: Prioritizes realistic solutions and practical applications of ethical principles in everyday business contexts.

Discussion Questions

• How does individual character affect ethical decision-making and what measures can organizations take to foster ethical character?

• Should ethics be an integral component of educational curricula at all levels?

• In what ways do corporate cultures influence the ethical standards upheld within organizations?

Practical Tools Offered

• Provides decision-making frameworks and models designed to facilitate the evaluation of ethical dilemmas encountered in practice.

• Includes case studies that illustrate common ethical issues faced by professionals in various industries.

Conclusion

• A powerful call to action urging students and managers to take responsibility in promoting ethical behavior within their businesses and communities, underscoring that ethics is not just a policy but a practice.