Lecture 1

The word ethics is derived from the greek word Ethikos meaning custom or character. The Concise Oxford Dictionary defines ethics as the treating of moral questions. Chambers Dictionary:
Ethics is the code of behaviour considered correct.

Ethics
Moral principles or beliefs about what is right or wrong Ethics guide managers in their dealings with stakeholders and others when the best course of action is unclear. Managers often experience an ethical dilemma in choosing between the conflicting interests of stakeholders.
3

Values & Attitudes

Values
Describe what managers try to achieve through work and how they think they should behave

Attitudes
Capture managers thoughts and feelings about their specific jobs and organizations.

Moods and Emotions

Encompass how managers actually feel when they are managing
4

Values are of two types

Terminal Values: A personal conviction about life long goals. Sense of accomplishment, self respect & equality

Instrumental Values: A personal conviction about desired mode of conduct or ways of behaving. Being hard working, capable & broad minded.

The terminal and instrumental values that are the guiding principles in an individuals life are the Value System of that particular individual.

An individuals value system if often related to their attitude. Hence to understand the values we must have a better understanding of attitudes.
7

Whats a value system?

Value system is a set of consistent ethical values.
Personal Value System

Communal /Cultural Value System

Corporate Value System

Attitudes
Attitudes in simpler terms is a collection of feelings & beliefs. Job Satisfaction is collection of feelings and beliefs that managers have about their current jobs.
Organizational Citizenship Behaviors are behaviors that are not required of organizational members but that help the firm in gaining a competitive advantage.
Managers with high satisfaction are more likely perform 9 these above and beyond the call of duty behaviors. Managers who are satisfied with their jobs are less likely

Attitudes & Belief with ref. to Ethics

An attitude is simply a predisposition to approach or avoid an idea, event, person or object. Attitudes can change through 3 major approaches
1. Cognitive 2. Behavioural 3. Social

Attitude can be considered as the sum of belief

10

 Belief in an Ethical Code are standards of thought. Beliefs are criteria of thought. They are the ways an individual expects people to think about given concept.

11

The OLD Ethic Favors

Work Savings Responsibility Competition Sex roles Sacrifice Equality - Inequality Wealth accumulation Absolution Risk assumption Efficiency/Productivity Thrift/Investment

The NEW Ethic Favors

Leisure Debt Rights Protection Unisex's Self-interest Equality Wealth redistribution Situational Risk aversion Quality of life Consumerism

12