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Chaper 13: Acting Ethically

After Completing this chapter, you should be able to:
1. Explain the meaning of integrity and ethics.
2. Describe situational ethics.
3. Understand what it means to act with integrity and have a personal
code of ethics.
4. Describe ethical standards that employees expect from employers.
5. Describe ethical standards that employers expect from employees.
6. Discuss unethical business practices.
Ethics and Integrity (Basti)
Work ethics is an invisible employee behavior, noticeable by its
Ethics can be either possessed or you do not have.
Ethics can be learned and chosen throughout one's life.
In the work place the senior management have a responsibility to set an
example that reflect the company expectations.

Learning Ethics
Employees, having strong ethics in personal and professional
life, need no explanation, unlike those employees for whom
work ethics is a growing problem.

By the time employees hit the workforce, can they be taught
things like ethics - or is it too late?
Training on workplace ethics is imperative.

Ethics help a lot in effective productivity as well as a great
balance of responsibilities in your life on personal &
professional front.

Common Workplace Ethics

Integrity and Loyalty

Training programs

Organizations should focus on training in ethics at the

A few members from the top level
management can lead the ethics training programs.

Performance feedback sessions should be corrective in nature.

Good Behavior should be acknowledged.

Role model- It must be the Seniors to impose a morally upright manner that
will set an example for employees to follow.

Ethics depends on situation. In spite of training sessions on ethics, enforcement
is ultimately left to the individual.
It is essential to communicate ethical values to employees as you are giving
them the authority to take appropriate ethical decision in any given situations.
Situational Ethics (JEM and JAS)
It is based on 1 principle only to the most loving thing - and so it is relevant
to everyone, everywhere and in any set of circumstances.
It is not being always right or always wrong it is situational so what may be
right in one situation, may be immoral in another situation.
Understanding Situation Ethics

Pragmatism- Situation ethics is good as it is always what works for
the best. No matter what the situation, going with what is the most
loving thing can only lead to more good than bad.

Relativism- Ethics is the only thing that is relevant to all situations
unlike laws which work for some things but not others. Situation
Ethics uses 1 principle so is easy to remember.

Positivism- Ethics is the most important criterion of all. Situation
Ethics recognises that ethics is the most important thing when
making a moral choice.

Personalism- Situation Ethics puts human beings and their concerns
are at the centre of morality unlike laws and rules which often seem
to be detrimental to a persons wellbeing.

Overall strengths (Frances)
1. That it provides a clear alternative to ethics that is consistent to the
well accepted manner of human being.
2. Situation ethics is flexible and practical. It takes in to account how
complex human life is and can make tough decisions when, from a
legalistic stance, all actions seem wrong.
3. It is easy to understand: you follow a single principle
4. You dont have to follow a conventional rule, if that goes against
your deepest sense of what love requires.
5. It is based on human standards, which, rationally as well as
emotionally, is a key feature of all moral systems.

Overall weaknesses (Raf)
1. It is subjective we dont always have the fact to make a sound
2. It is individualistic what is the most accepted standards to one, is
not to another
3. It is prepared to accept any actions as long as the outcome is
supposed to be acknowledged
4. People need laws and rules to spell out behaviour in order to keep us
all safe and singing from the same song sheet
5. People would mean to do the most accepted standards but our
personal preferences and wants will always get in the way.

Personal Code of ethics- refers to actions among individuals where individuals
can make free choices. They are guided by principles y which can be clearly
stated in which the individual is committed
Code of Personal Ethics- It involves:
Personal Excellence
Acts that foster Encouragement
Diversity Sensitivity

Why Have a code of Ethics?

It defines accepted/acceptable behaviors
Promotes high standards of Practice
Establishes a framework of professional behavior and
It may be use to create your occupational Identity
It will mark your occupational maturity

Privacy and confidentiality
Respect ones right to privacy
Act in the best interest of co-employee and employer
It avoids conflicts between personal and professional interest

Professional skills
Being a high velocity employee
Experience and productivity

Total Dedication
Ability to work night, weekends or any time when necessary.
Being flexible.
Ability to balance and respond effectively to changing
Multi tasking ability
Concentration and desire

Do not go for money, go for an idea.
Stay committed to your decisions, but stay flexible in your

Being accountable for the actions.
Stand for freedom of expression, doing what you believe in.

Creating an image that anybody could hardly imagine
Being unique

Six Pillars of Character

Ethical Standards (Dianne, Gan tsaka yung isang Freelancer)
Benefits of Ethics in the Workplace

Code of Conduct: It is a set of principles, values, standards, or rules of behavior
that guide the decisions, procedures and systems of an organization in a way
that (a) contributes to the welfare of its key stakeholders, and (b) respects the
rights of all constituents affected by its operations.

It includes some provisions about:

Written and official guidelines on how to behave in situations prone
to create ethical dilemmas.
Areas often addressed in written codes of standards:

Workforce Diversity
Bribes and Kickbacks
Conflicts of Interest
Political Contributions
Customer and Supplier Relations
Misappropriation of Corporate Assets

Relationships at Work
Management/owner toward client/customer
Management/owner toward employees
Employee toward Employer, Co-workers, Customers
Business Abuse (JAS)
Any action in the office or workplace that is Illegal, Unethical or
Irresponsible Act done against an Employee.

Examples of Business Abuse that Leads to Unethical Business Practices:
* Stealing
+ Merchandise
+ Money
* Shoplift *Kickback
* Conflict of Interest
* Unauthorized Discounts
+ Time
* Vandalism
* Falsify Records
* Break Confidentiality
* Ignore Safety Rules
* Misrepresent Merchandise
* Poor Client Service
* Irresponsible Behavior
* Addictions
Causes poor work environment (morale)
Lowers work productivity

3 Models of Management Ethics (Reese)
1. Immoral ManagementA style devoid of ethical principles and
active opposition to what is ethical.
2. Moral ManagementConforms to high standards of ethical
3. Amoral Management
Intentional - does not consider ethical factors
Unintentional - casual or careless about ethical
considerations in business



It is much easier and safer to get advice ahead of time rather than
trying to undo inappropriate actions. Such actions can involve
career-ending mistakes, or the possibility of suffering
administrative, civil or even criminal penalties.

Activity: Class Debate Male VS Female