Business Ethics: An Organizational Systems Approach to Designing Ethical Organizations / Edition 1

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Collin's Business Ethics: An Organization Systems Approach to Designing Ethical Organizations provides theoretical and practical information to help create organizations of high integrity and superior performance. The text offers ways to design organizations that reinforce ethical behavior and reduce risks. It's organized based on an "Optimal Ethics Systems Model" which includes ethical job candidates, decision making, training, officers and hotlines, leadership, work goals and performance appraisals, environmental management, and community outreach.

Early chapters present types of ethical issues organizations face, history of government regulation, the importance and extent of codes of ethics and conduct, an ethical decision-making framework, and the importance and extent of managing the natural environment and being a good corporate citizen - as well as new ideas and models.  In addition, Collins provides a much broader array of best practices in business ethics to immediately implement many of the management techniques. 

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Product Details

  • ISBN-13: 9780470639948
  • Publisher: Wiley
  • Publication date: 9/27/2011
  • Series: CourseSmart Series
  • Edition description: New Edition
  • Edition number: 1
  • Pages: 592
  • Sales rank: 189,155
  • Product dimensions: 7.40 (w) x 9.10 (h) x 0.50 (d)

Table of Contents

Part One: Background 1


Unethical Behaviors in Organizations and Human Nature 3

Daily Occurrence of Ethical Dilemmas 5

Unethical Behaviors at Work 6

Extent 6

Managers as Victims 7

Profession and Industry Issues 8

Operation Areas 10

Costs Associated with Unethical Behaviors 10

Legal Costs 11

Employee Theft 12

Monitoring Costs 13

Reputation Costs 13

Abusive Treatment Costs 13

Recruitment and Turnover Costs 14

Competitive Advantages of Ethical Organizations 14

Tips and Techniques 16

Best Practice in Use 17

Let’s Build a Building 18

Human Nature 18

Born with Prior Knowledge of Right and Wrong 19

Born Good 19

Born with Inherited Sin 19

Born Morally Neutral 20

Cognitive Development 20

Stages of Moral Development 21

Lies and Cheating 24

Why Do Good People Behave Unethically? 26

Unintended Unethical Behaviors 27

Choosing Between Competing Values 27

Intentional Unethical Behaviors 28

Failure to Report Unethical Behaviors 30

Summary 31

Key Words 31

Chapter Questions 31

In the Real World: Enron 31

Ancillary Materials 32

Notes 33


An Historical Perspective on Business Ethics 39

Economic Growth and Business Ethics in Precapitalist America 41

Christopher Columbus’s Arrival 41

Roanoke and Jamestown Settlements 42

Plymouth Settlement 42

Buildup to the Revolutionary War 43

Freedom, Rights, and the Ethics of Capitalism 44

Adam Smith’s Capitalism 45

Smith on Labor Issues 46

Economic Growth under Capitalism 47

The Industrial Revolution 47

New Laws: Antitrust, Charters, and Liabilities 48

Labor Issues 49

Slavery 49

Strikes and Labor Unions 50

Let’s Build a Building 52

Wages and Compensation 53

Best Practice in Use 56

Further Expansion of Stakeholder Rights 57

Federal Sentencing Guidelines 58

B Corporation 60

The Optimal Ethics Systems Model 62

Tips and Techniques 63

Summary 64

Key Words 65

Chapter Questions 65

In the Real World: Enron 65

Ancillary Materials 66

Notes 66

Part Two: Getting Everyone on Board 71


Hiring Ethical People 73

Importance of an Ethics Screen 74

The Six-Step Ethics Job Screen Process 75

Step 1: Ethics Screen Notice 76

Best Practice in Use 76

Step 2: Legal Ground Rules 77

Title VII of the Civil Rights Act 78

Disparate Impacts 78

Affi rmative Action 79

Other Legal Issues 80

Step 3: Behavioral Information 81

Resumes 81

Reference Checks 82

Tips and Techniques 83

Background Checks 84

Integrity Tests 85

Let’s Build a Building 86

Step 4: Personality Traits and Related Characteristics 87

Conscientiousness 88

Organizational Citizenship Behavior 89

Social Dominance Orientation and Bullying 91

Mental Disability Tests 92

Step 5: Interview Questions 93

Previous Ethical Dilemmas 93

Visual Lie Detection 94

Realistic Job Previews 94

Step 6: Post-Interview Tests 94

Drug Testing 95

Polygraphs 95

Summary 98

Key Words 98

Chapter Questions 99

In the Real World: Enron 99

Ancillary Materials 99

Notes 100


Codes of Ethics and Codes of Conduct 105

Difference between a Code of Ethics and a Code of Conduct 107

Purpose and Importance of Codes 107

Demonstrate Managerial Concern for Ethics 108

Convey a Particular Set of Values and Obligations 109

Meet Legal Requirements and Industry Trends 110

Positive Impact on Employee Behaviors 111

Code of Ethics Content 111

International Codes 112

Creating a Code of Ethics 115

Let’s Build a Building 117

Connecting Code of Ethics to Strategic Planning 117

Code of Conduct Content 120

Tips and Techniques 121

Code of Conduct Relevancy 121

Business Gratuities 122

Email 122

Best Practice in Use 123

Implementing an Effective Code Communication Strategy 124

Annual Code of Ethics Assessment 125

Summary 128

Key Words 129

Chapter Questions 129

In the Real World: Enron 129

Ancillary Materials 130

Notes 131


Ethical Decision Making 135

Ethical Behavior Model 136

Individual Characteristics (A) 139

Ethical Beliefs and Sensitivities (B) 140

Ethical Intuitions (C) 140

Theory of Planned Behavior (D) 142

Issue’s Moral Intensity (E) 143

Organization Characteristics (F) 144

Ethical Intentions (G) 144

Rational Ethical Decision Making (H) 145

Rotary International’s Four-Way Test 146

Raytheon’s Ethics Quick Test 146

Best Practice in Use 147

A Systematic Rational Ethical Decision-Making Framework 147

The Six Ethical Theories 149

Let’s Build a Building 150

Reaching a Moral Conclusion 158

Persuading Others 161

Tips and Techniques 162

Ten “Ethical Hazard Approaching” Signs 163

Summary 164

Key Words 164

Chapter Questions 164

In the Real World: Enron 164

Ancillary Materials 165

Notes 166


Ethics Training 169

Building Trust and an Ethical Culture 170

Extent of Ethics Training 171

Who to Train 172

Web-Based Ethics Training 172

The Workshop Facilitator 173

Framing the Training Workshop 174

Ethics Training Options 175

Ethical Culture Assessment 176

Code of Conduct Analysis 178

Code of Conduct Content 178

Applying the Code of Conduct to Specifi c Situations 179

Best Practice in Use 179

Outcome of Code of Conduct Violations 180

Typical Behaviors Experienced 180

Let’s Build a Building 181

Apply the Systematic Rational Ethical Decision-Making Framework 182

Tips and Techniques 182

Create Business Ethics Scenarios for Discussion 184

Fraud and Theft Exploration 185

Level of Moral Development Analysis 187

Ethics Personality Measures 187

Benchmark to an Ideal Employee 189

Work as a Calling 192

Assessing the Ethics Training Workshops 192

Summary 193

Key Words 194

Chapter Questions 194

In the Real World: Enron 194

Ancillary Materials 195

Notes 196


Respecting Employee Diversity 201

Four Dimensions of Diversity 202

Permanent Dimension 203

Evolving Dimension 204

Personality Dimension 204

Organizational Dimension 204

History of Ethnic and Religious Diversity and Discrimination 205

Population Diversity Growth 205

Discriminatory Employment Practices 206

Illegal (Undocumented) Immigrants 206

Self-Categorization 207

Workplace Discrimination 207

Gender Discrimination Issues 208

Race and Ethnicity Discrimination Issues 211

Religious Discrimination Issues 212

Age Discrimination Issues 212

Disability Discrimination Issues 213

Sexual Orientation Discrimination Issues 214

Harassment 215

Dating, Sexual Harassment, and Hostile Work Environment 215

Let’s Build a Building 216

Retaliation for Discrimination Claim 217

Competitive Advantages of Diversity Management 217

Best Operational Practices for Managing Diversity 218

Best Practice in Use 219

Implementing a Diversity Initiative 220

Diversity Training 221

Diversity Discussion Guidelines 222

Tips and Techniques 223

Diversity Training Exercises 223

Who Are You? 224

Dominant Group and Subordinate Group Awareness 224

The Dominant Group’s Status 225

Implicit Attitude Test (IAT) 226

Experiences Being Prejudged 227

Individual Uniqueness and Commonalities 227

Sexual Harassment 227

Communication Style 228

Summary 230

Key Words 230

Chapter Questions 230

Ancillary Materials 230

In the Real World: Enron 231

Notes 232

Part Three: Daily Internal Operations 237


Ethics Reporting Systems 239

Employee Silence on Ethical Misconduct 240

Extent of Employee Silence 241

Reasons for Employee Silence 242

Ethically Approachable Managers 245

Ethics & Compliance Offi cer 247

ECO Duties and Skills 247

Tips and Techniques 248

Managing an Internal Reporting System 249

Ombudsperson 250

Best Practice in Use 251

Chaplains 251

Let’s Build a Building 252

Assist Lines 252

Types of Inquiries 253

Effective Assist Lines 253

How an Assist Line Works 254

Whistle-blowing 255

When to Blow the Whistle 255

The False Claims Act 256

Reporting Tax Fraud 258

Whistle-blower Protection Laws 258

Sarbanes-Oxley Act of 2002 (SOX) 259

Negative Outcomes for Whistle-blowers 260

Summary 260

Key Words 261

Chapter Questions 261

In the Real World: Enron 261

Ancillary Materials 262

Notes 263


Managers as Ethical Leaders and Role Models 267

Managers as Ethical Role Models 269

Role Modeling 269

Stage of Moral Development and Ethical Role Models 270

Personal Integrity 271

Managerial Power and Leadership Styles 272

Exercise of Power 272

Authoritarian Leadership Style 272

Participatory Leadership Style 273

Ethical Leadership 274

Ethical Leadership Survey 275

Tips and Techniques 276

Virtue Ethics Survey 276

Servant Leadership 278

Best Practice in Use 279

Employee Feedback 279

A Great Place to Work 280

Let’s Build a Building 281

Organization and Work Goals 282

Holistic Organizational Goals 282

Stretch Goals 282

Goal Setting 283

Stress Management 284

Employee Performance Appraisals 285

Unethical Behaviors 286

Living Up to the Code of Ethics Performance Appraisals 287

Ideal Employee Attitudes and Behaviors Performance Appraisals 288

Collection and Evaluation Issues 289

Performance Appraisal Feedback 290

Disciplining Work Rule Violations 291

Major Infractions 291

Minor Infractions 292

Forgiveness 293

Summary 294

Key Words 294

Chapter Questions 294

In the Real World: Enron 295

Ancillary Materials 295

Notes 296


Engaging and Empowering Ethical Employees 301

Extent of Employee Engagement 303

Engaging Employees 304

Human Needs 304

Job Satisfaction 306

Organizational Justice 307

Unethical Bullies 308

Meaningful Work 309

Measuring Employee Engagement 310

Employee Empowerment 312

Best Practice in Use 312

Who to Empower? 312

Measuring a Manager’s Empowerment Behaviors 314

Let’s Build a Building 316

Empowering Through Teams 316

Empowering Effective Teams 316

Open Book Management 319

Tips and Techniques 320

Appreciative Inquiry 320

Daily Performance Refl ections 322

Empowering Through Group-Based Financial Incentives 322

Scanlon-Type Gainsharing Plans 322

Profit Sharing 324

Stock Option and Stock Purchase Plans 324

Employee Stock Option Plans (ESOPs) 325

Cooperatives 326

Summary 327

Key Words 327

Chapter Questions 327

In the Real World: Enron 327

Ancillary Materials 328

Notes 329

Part Four: Being a Good Citizen 333


Environmental Management 335

Environmental Trends and Climate Change 337

Environmental Trends 337

Climate Change 338

Climate Change Impacts 339

Environmental Organizations 340

Government and Market Responses 341

Government Regulation 341

International Agreements 342

Cap and Trade and Climate Exchanges 343

Other Efforts 344

Competitive Advantages of Being Eco-Friendly 345

Going Green Examples 346

Walmart 346

Green Business Parks 347

Going Green Actions 348

Tips and Techniques 349

Let’s Build a Building 351

Managing the Environmental Change Process 352

Green Mission Statement 354

Green Suppliers 355

Best Practice in Use 356

Environmental Management System (EMS) 357

Environmental Risk Assessment 358

The Natural Step (TNS) Framework and Cost Reductions 359

Product Packaging and Design 361

Green Buildings 361

Environmental Performance Indicators and Sustainability Reporting 363

Carbon Offsets and Green Philanthropy 364

Summary 364

Key Words 365

Chapter Questions 365

In the Real World: Enron 365

Ancillary Materials 366

Notes 367


Community Outreach and Respect 373

Extent of Social Responsibilities 374

Work-Life Balance 376

Business Case for Community Involvement 377

International Corporate Citizenship 379

Double Standards Problem 379

United Nations Global Compact Principles 380

Managing Stakeholders 382

Interpenetrating Systems Model 382

Multiple Stakeholder Demands 384

Stakeholder Dialogues 385

Philanthropy and Volunteerism 387

Let’s Build a Building 388

What to Give 388

Giving Money 389

Giving Products or Services 389

Tips and Techniques 390

Giving Skills 390

Giving Job Opportunities 391

Social Entrepreneurship 392

To Whom to Give 392

Reactive Giving 393

Outsource Giving 393

Strategic Philanthropy 394

Community Involvement Management Process 398

Community Involvement as Employee Training 399

Best Practice in Use 400

Networking 401

Community Reputation Assessment 402

Social Performance Reporting 403

Summary 404

Key Words 404

Chapter Questions 404

In the Real World: Enron 405

Ancillary Materials 405

Notes 406

Index I-1

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