Mgt 203 Ethical Environment Of Business

ETHICAL ENVIRONMENT of Management

By Jomar F. Rabajante International Society of Philosophers, UK Lifetime Open Member

The Field of Ethics (Moral Philosophy)

• Involves systematizing, defending and recommending concepts of right and wrong behavior. • Morals define personal character, while ethics stress a social system in which those morals are applied. www.wisegeek.com

Ethics, defined (Filipino)

• Some understood Ethics in its American sense, as what is “right” or “wrong” (esp. in business ethics) • The ultimate basis of the Filipino psyche for its judgments: concepts of “kasalanan” (sin) and “mabuting gawa” (virtuous action), which are of a religious extraction Sison, UA&P; Angeles, ADMU

Virtue Theories (good habits of character) • Cardinal virtues (Plato): wisdom, courage, temperance and justice • Emphasized moral education • Aristotle: most virtues fall at a mean between extremes • Theological virtues (Christian): faith, hope and charity/love • Other virtues: benevolence & self-respect • VS vices (e.g. cowardice, insensibility, injustice and vanity) www.iep.utm.edu

Sources of Morality/Ethics

Societal

Theories on Ethics

Theories on Ethics

Theories on Ethics

Sequential Perspectives on Ethics Analysis External Factors

Intrinsic Values

“Is it ethical?” Tests

Pagano, UIC at Chicago

“Is it ethical?” Tests

Immanuel Kant

“Is it ethical?” Tests

“Is it ethical?” Tests

“Is it ethical?” Tests

Transparency

The Global Compact (UN)

DUTY Tests

Rights Theory

www.iep.utm.edu

Moral Rights, Four Features

www.iep.utm.edu

Three Models of Management Morality/Ethics

Bakhsheshy, Univ. of Utah

Developing Moral Judgment

Common Management’s Ethical Dilemmas • Conflict of Interest (e.g. stakeholder VS shareholder concept) • Protests • Whistleblowing CORRUPTION! • Bribery • Bluffing and Deception • Deflating Human Rights • Right VS Right – situation contains shades of gray Choosing “the lesser of two evils”

Common Management’s Ethics Tools

• Codes of Ethics • Codes of Conduct • Policies and Procedures • Management Relations

Review… Ethical Environment of Management • Definition – Morality & Ethics • Filipino Ethics • Sources of Morality/Ethics • Theories on Ethics • Sequential Perspectives on Ethics Analysis • “Is it ethical” Tests • Three Models of Management Morality/Ethics • Common Management Ethical Dilemmas and Ethics Tools

Ethics VS Etiquette of • Expectations for social Complexity Etiquette behavior according to conventional norms within a society, social class, or group. • A rule of etiquette may reflect an underlying ethical code, or it may reflect a person's fashion or status. • Manners (no formal system for punishing transgressions, other than social disapproval)

Economic Class

Philippines - Republic Act No. 6713

Republic Act No. 6713

Norms of Conduct (RA 6713) • • • • • • • •

Commitment to public interest Professionalism Justness and sincerity Political neutrality Responsiveness to the public Nationalism and patriotism Commitment to democracy Simple living

Duties (RA 6713) • Act promptly on letters and requests • Submit annual performance reports • Process documents and papers expeditiously • Act immediately on the public’s personal transactions • Make documents accessible to the public

Prohibited Acts and Transactions (RA 6713) • Financial and material interest • Outside employment and other activities related thereto (This prohibition shall continue to apply for a period of one (1) year after resignation, retirement, or separation from public office...) • Disclosure and/or misuse of confidential information • Solicitation or acceptance of gifts (Nothing in this Act shall be construed to restrict or prohibit any educational, scientific, or cultural exchange programs subject to national security requirements.)

Statements and Disclosure (RA 6713) • Statements of Assets and Liabilities and Financial Disclosure • Identification and disclosure of relatives • Accessibility of documents

Divestment (RA 6713) • A public official or employee shall avoid conflicts of interest at all times. When a conflict of interest arises, he shall resign from his position in any private business enterprise within thirty (30) days from his assumption of office and/or divest himself of his shareholdings or interest within sixty (60) days from such assumption.