Lesson 6: Ethical Behavior

• Personal Values represent basic convictions about what is right and wrong
• Ego strength measures the strength of a person's convictions
• people with high ego strength are likely to resist impulses to act unethically and instead follow their convictions
• Locus of control is the degree to which people believe they control their own fate.
• People with an internal locus of control believe they control their own destinies (they’re more likely to take responsibility for consequences and are consistent in their moral judgements and actions.)
• People with an external locus believe what happens to them is due to luck or chance. (they’re less likely to take personal responsibility for the consequences of their behavior.)
• Structural Variables

  • Formal rules and regulations
  • Goals
  • Performance review appraisal systems
  • Reward allocation procedures
• Organization’s culture

  • Consists of the shared organizational values
  • Reflect what the organization stands for and what it believes in as well as create an environment that influences employee behavior ethically or unethically.
• Value-based management in which the organization’s values guide employees in the way they do their jobs.
• Six characteristics determining issue intensity

  • Greatness of harm
  • Consensus of wrong
  • Probability of harm
  • Immediacy of consequences
  • Proximity to victim(s)
  • Concentration of effect
• Code of Ethics - a formal statement of an organization’s values and the ethical rules it expects employees to follow
• • Sets a realistic goal he weaves a dream with a deadline
• Has self-discipline - he strives to develop himself and change whatever can be changed in his character
• Is willing to share trade secret without fear - he believes in allowing others to grow
• • Is involved in social and civic concerns he does good things for others
• Has humility - he seeks the help of the Almighty through prayers.
• Business Ethics  Applied ethics that focuses on real-world situations and the context and environment in which transactions occur ….