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									Individual influence on Ethics:
       National and cultural beliefs
       Education and professional employment
       Psychological factors
       Personal integrity
       Moral imagination

Situational influences:
       Reward mechanism
       Authority
       Bureaucracy
       Work roles
       Org fields
       Org culture
       National cultural context

5 ethical principles
       ethical and cultural relativism
       utilitarianism consequentialist approach
       deontological-categorical imperative. Deontology is an
          approach to ethics that determines goodness or rightness
          from examining acts, or the intentions of the person doing
          the act, as it adheres to rules and duties. This is contrast
          to consequentialism, in which rightness is based on the
          consequences of an act, and not the act by itself. In
          deontology, an act may be considered right even if the act
          produces a bad consequence,[17] if it follows the rule that
          “one should do unto others as they would have done unto
          them”. (truth-telling)
       individual rights entitlemet
       justice-fair
The 5 fundamental ethical principles are:
       * Do no harm
       * Make Things Better
       * Respect Others
       * Be Fair
       * Be Loving

7 dimension of culture
      universalism vs. particularism / rule of laws or relationship
        based culture ( 5 LS change/bribe, insider info)

Utilitarianism and cost-benefit analysis
Decision is morally right if it produces the greatest good/pleasure
Philipp Morris Case
Czech Republic
Costs: Increased Health Care costs
Benefits: tax revenue from cigarettes sales, health care savings

Net gain if citizens smoke: 147 billion
Martins Bicevskis
Banking sector in 2008 “ 21 banks and 6 branch ofifices –
contributes 7.7% of Latvia’s GDP
Losses 2-3% of GDP (might be reasonable in case of Europe
Be prepared!always!!!

Drawbacks of utilitarianism
      Does not respect human rights
      Difficult to put monetary value to human life…
      Principles of justice and rights ignored

E.Kant Universalism/Deontological and Categorical Imperative
       Act with respect to others-individual human welfare
             o Lie is lie…to kill is wrong
       Imprecise and impractical
       Many stakeholders with varying degree of interest and
          limited resources
       Tax evasion(illegal) and tax avoidance (tax optimization)

Libertarian believes that the gov should be small as possible. The
gov has no right to tax (especially those who earn money..B.Gates)
Argument against: poor need money more, live in society, which
makes it possible to accumulate wealth

Latvian Constitution (8 parts, 7 – based on German)
No responsibilities

Communitarian approach
     Labor market is not mobile
     Retain labor

John Locke
Survival is possible without society
Role of gov- protect individuals

Justice:Fair, equal
4 typesof justice:
       compensatory – e.g. affirmative action
       retributive – punished for crime
       distributive – have all stakeholders receive
      procedural – fair decision, practices, procedures

Scandinavian mgmt. style – consensus
Trans cultural competence
New cross-cultural platform crafted by the intercultural interaction
of participants
       Target culture concerns should be considered
       Diversity needs to be built into the new platform rather
          than adapting an Anglo-American or European model to
          another culture such as Russia or China
       Cultural differences and perception of concepts (top line vs
          bottom line)
       Unity through diversity
       Cultural imperialism

      Create a trans-culturally competent ethical model
      Map out differences of values
      Create a European-Russian Think Tan

          Response to challenges
         The absence of an environment
         Absence of trust

Vehicle guidelines in Sweden
       Board members and mgmt. permitted any vehicle of choice
Obama and Buffet tax
       Utilitarian vs Libertarian
       Fairness principle – redistribution of profits
       Communism or Fair????
       Political or economic decision?
Kolberg’s 6 stages of morale development
       Preconventional morality
            o Obedience and Punishment – avoid punishment
            o Individualism and Exchange – only if it serves one’s
               own interest
       Conventional morality
            o Interpersonal relationship – “ good boy – good girl”
            o Maintaining social order – maintain law and order by
               following the rules
        Postconventional morality
            o Social contract and individual rights – law based on
               Individual rights and concepts
            o Universal principle

5 stages of organizational learning
       defensive- deny responsibilities, outcomes- defend against
         attacks to the reputation
       compliance – adopt a policy-based compliance approach as
         a cost of doing business – to mitigate the erosion of ec
         value because of ongoing reputation and litigation risk
       managerial – embed the societal issue in the core mgmt.
       strategic- (Toyota and green issues) – initgrate the societal
         issue into the core business strategies
       civil – broad industry participation
4 stages of issue maturity
       latent
       emerging
       consolidating

Too much cheap money in Europe
Greece- high level of wages as in Germany or France, whose
economy is much stronger
Too much liquidity
Min wages should be related to economic productivity of the country

CSR Report- put a grade

3 languages: computer, ethics, man (leadership)

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