Unethical Behaviors in the Workplace
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The document discusses unethical behaviors in organizations. It begins by defining ethics and unethical behavior. It then notes that many organizations electronically monitor employees. Some common unethical behaviors discussed include lying, stealing, and safety violations. Unethical behaviors can harm organizations through lower sales, increased risks of scandals, and lower productivity and employee morale. The document examines reasons why unethical behavior occurs, such as pressures from management. It provides a case study of Apple and discusses how the company worked to address unethical supplier practices. Finally, the document provides recommendations for preventing unethical behavior through clear policies, training, and open communication.
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Unethical Behaviors in the Workplace
- 1. Click to edit Master title Huu Tuan NGUYEN Student ID: 12628182 style Hong Lien NGUYEN, Student ID: 12524400 Cuiye WANG, Student ID: 12655538 Click to edit Master text styles Second level Third level Fourth level Fifth level
- 2. CONTENTS 1 What is unethical behaviours? 2 Challenges and the hidden costs 3 Unethical behaviors: Why does it occurs? 4 How to prevent? 5 Recommendations & Conclusion Thursday, June 7, 2012 Page: 2
- 3. WHAT IS ETHICS? Ethics The set of moral principles or values that defines right and wrong for a person or group. Ethical behavior: is good, right, just, honorable, and praiseworthy Unethical behavior: is wrong, WHAT IS NOT? Not just reprehensible, or fails to meet an feelings or conscience Not the same as religion obligation Not just following the law Judgment of behavior is based on what everybody does Not following Not technology or science what can a specific moral philosophy or ethical theory be done Thursday, June 7, 2012 Page: 3
- 4. Did you know? 82% using electronic monitoring system 76%: engaged in tracking Internet usage 52% email to be monitored and tracked 92% of all organizations electronically monitor and track their employees in some form or another (Firoz et al, 2006). 59% web purchase 50% employees, at least 30mins Thursday, June 7, 2012 Page: 4
- 5. CHALLENGES and THE HIDDEN COSTS Thursday, June 7, 2012 Page: 5
- 6. Common Unethical behaviors Thursday, June 7, 2012 Page: 6
- 7. CHALLENGES and THE HIDDEN COSTS Harm sales/ worsens the risks Worsens worsens employee stock price from scandal productivity fraud Long term: Earn abnormally X negative returns -P/E volatility - Decline in average return Market Value Added x 3 on capital Thursday, June 7, 2012 Page: 7
- 8. WHY DOES IT OCCUR? Model of factors influencing organizational cultures (Gomez 2004) Thursday, June 7, 2012 Page: 8
- 9. WHY DOES IT OCCUR? Thursday, June 7, 2012 Page: 9
- 10. Case Study Two-thirds of the 500 largest American corporations have been involved in one form of illegal behavior or another (Gellerman, 1986) Apple Inc. Thursday, June 7, 2012 Page: 10
- 11. Case Study Thursday, June 7, 2012 Page: 11
- 12. And its effects Apple: X -has trained over a million workers about their rights and methods for injury and disease prevention. - forced suppliers to reimburse more than $6.7 million in “recruitment fees”. FoxConn: - In crease salary (16 to 25 percent,) - Reduce to 49hours/week Thursday, June 7, 2012 Page: 12
- 13. HOW TO PREVENT? Punctuality Responsibility Integrity & loyalty Teamwork Positive attitude Thursday, June 7, 2012 Page: 13
- 14. RECOMMENDATIONS & CONCLUSION Seven-step checklist (Schermerhorn, 1989; Otten, 1986): Thursday, June 7, 2012 Page: 14
- 15. RECOMMENDATIONS & CONCLUSION Communication is key in the proper management of these infringements in today 's workplace! Thursday, June 7, 2012 Page: 15
- 16. Click to edit Master title Huu Tuan NGUYEN Student ID: 12628182 style Hong Lien NGUYEN, Student ID: 12524400 Cuiye WANG, Student ID: 12655538 Click to edit Master text styles Second level Third level Fourth level Fifth level
- 17. Thursday, June 7, 2012 Page: 17
Notas del editor
- Deliberate Deception Deliberate deception in the workplace includes taking credit for work done by someone else, calling in sick in order to go to the beach, sabotaging the work of another person and, in sales, misrepresenting the product or service to get the sale. There are other examples of deliberate deception, but these show how damaging deception can be by using a person's trust to undermine his rights and security. In a workplace environment, this results in conflict and retaliation. In a sales function, it can result in lawsuits from deceived customers. Violation of Conscience Your sales manager calls you into his office and threatens to fire you unless you sell 50 large toasters. You know the large toasters are inferior products and have been selling the small toasters to your customers, instead. To keep your job, you must violate your conscience and recommend that your customers buy the large toasters. Your boss is engaging in unethical behavior by forcing you to do something you know is wrong, and also risking the ire and potential loss of valuable customers to meet a product sales goal. He may be engaging in unethical conduct because top management has forced him by threatening his job, too. Coercion is also the basis for workplace sexual harassment and results in lawsuits. Unethical behavior often causes more unethical behavior. Failure to Honor Commitments Your boss promises you an extra day off if you rush out an important project by a certain date. You work late hours and finish the project before the deadline. Ready for your day off, you mention it to your boss who responds "No, we have too much work to do." Your boss engaged in unethical behavior that has virtually guaranteed your future distrust and unwillingness to extend yourself to assist in department emergencies. In addition, you are likely to complain to your co-workers, causing them to distrust the promises of the boss and be unwilling to cooperate with his requests. Unlawful Conduct Padding an expense account with non-business expenses, raiding the supply cabinet to take home pens and notebooks and passing around unregistered or counterfeit software are examples of unlawful conduct in the workplace. The person who steals from the company by padding her expense account or taking supplies for personal use risks losing her job. If a company decides to overlook such theft on the basis of maintaining employee morale by not firing a popular employee, other employees will also steal so they can feel they are getting the same deal as their co-worker. Passing around counterfeit software, if discovered by the manufacturer, can cost the company through lawsuits and fines. Disregard of Company Policy An employer is understandably concerned about avoiding lawsuits and angry customers because those things negatively affect profitability. Most employers clearly state company policies against deception, coercion and illegal activities. They also strive to convey an image of trustworthiness to their customers and employees. Corporate trustworthiness helps retain customers and valued employees, and the loss of either also negatively affects company profitability. To disregard company policy is unethical because it has the potential to harm the company and other employees.
- Two-thirds of the 500 largest American corporations have been involved in one form of illegal behavior or another (Gellerman, 1986). Apple audit uncovered 37 serious breaches of code of conduct at supplier facilities FoxConn aggreed to reduce to 49hours/pw, increase salary Others case studies: Wal-mart, Lehman Brothers, Murdoff… http://news.cnet.com/8301-13579_3-57344915-37/explosion-rocks-apple-suppliers-factory/
- Training on workplace ethics is imperative (Code of conduct, define ethics to be maintained in an organization…) Performance feedback sessions should be corrective in nature Good bahaviour should be acknowledged Role model (seniors behaving in a morally upright manner will set an example for employees to follow) HOW TO PREVENT? Unethical behaviors can plague a workplace, damage a company's credibility, causing the business to lose customers and ultimately shut down. However, business owners and their management teams can work with employees to prevent unethical behaviors. Training : Training on workplace ethics is imperative (Code of conduct, define ethics to be maintained in an organization…) Ethics training programs help in building strong teams and foster professionalism in the workplace, thus helping to promote a strong teamwork and productivity. Due to the prevalence of ethical culture in the organization, the quality of goods and services provided by the company is not compromised. Hence, ethics training helps in quality management. A company whose employees possess strong business values and ethics have a strong public image. This results in increased sales and profits, as people trust their products and services more than those of any other company. Welcome an Ethics Speaker Schedule an ethics trainer to visit your work site to discuss ethical behavior and explain why it is important in organizations, regardless of the size or industry. Ethics trainers use role-playing, motivational speaking, videos and handouts to illustrate the importance of ethics in the workplace. Create a Code of Conduct/Ethics A written code of conduct provides employees and managers with an overview of the type of conduct and behaviors the company expects . It outlines what behaviors are unacceptable and what measures are taken if an employee violates the code of conduct . Lead By Example Employees look to business owners and managers for direction on how they should conduct themselves. As a business owner, make ethics-based decisions and monitor the individuals you put into leadership roles at your company for the same values. Role Model If the senior managers themselves are involved in certain unethical behavior like showing inflated profits or misusing the corporate finances, the employees will follow suit. So the senior managers and the CEO should be morally upright , and set exemplary standards of ethical behavior in the workplace. Create Checks and Balances Rather than putting related responsibilities in the hands of one employee, create a system of checks and balances to minimize the opportunities for unethical behavior . For example, a sales associate rings up customer purchases, while an accountant balances the books to ensure that all payables are received and documented. Show Employees Appreciation Loyal employees feel that a company values the hard work they put into accomplishing tasks on a daily basis. A loyal employee is less likely to act unethically. Show appreciation to the employees for work well done on a regular basis to encourage loyalty. Rewarding Rewards are disbursed to employees for performing well . Examples of rewards include raises, promotions, recognition, and awards. When establishing a reward system, it is important for you to realize that some reward systems can encourage unethical behavior. To combat reward systems that encourage unethical behavior, ask yourself and your staff whether the goals are attainable without acting unethically. Reinforce Consequences Business owners must hold their employees accountable when they act unethically. Start by informing new employees of the rules during their orientation sessions. If an employee acts unethically, refer to the code of conduct and take the necessary measures to warn or terminate. Disciplining Disciplining employees is not an enjoyable part of a manager's job, but it is sometimes necessary to prevent unacceptable practices at work. The key to disciplining subordinate employees is to be consistent with company policy, be objective, and be fair. For example, suppose a new employee was accused of sexual harassment and suspended six months ago. Now suppose an employee who has worked for the company for 15 years is accused of sexually harassing a co-worker. The discipline procedure used for this employee should be consistent with the discipline used in the previous instance. Hire for Values When business owners hire employees, many seek to bring on individuals who have the education and experience that prove they are skilled workers, capable of handling the tasks at hand. Employers who want to prevent unethical behavior also look at candidates' values to ensure they mesh with the company's culture. RECOMMENDATIONS Seven-step checklist that organizations should use to help their employees in dealing with an ethical dilemma (Schermerhorn, 1989; Otten, 1986): (1) Recognize and clarify the dilemma. (2) Get all the possible facts. (3) List your options--all of them. (4) Test each option by asking: "Is it legal? Is it right? Is it beneficial?" (5) Make your decision. (6) Double check your decision by asking: "How would I feel if my family found out about this? How would I feel if my decision was printed in the local newspaper?" (7) Take action. CONCLUSION Even though ethical problems in organizations continue to greatly concern society, organizations, and individuals, the potential impact that organizational culture can have on ethical behavior has not really been explored (Hellreigel et al., 1989). Organizations have to ensure that their employees know how to deal with ethical issues in their everyday work lives. As a result, when the ethical climate is clear and positive , everyone will know what is expected of them when inevitable ethical dilemmas occur. This can give employees the confidence to be on the lookout for unethical behavior and act with the understanding that what they are doing is considered correct and will be supported by top management and the entire organization. Communication is key in the proper management of these infringements in today 's workplace ! http://www.nytimes.com/2012/01/26/business/ieconomy-apples-ipad-and-the-human-costs-for-workers-in-china.html?_r=2&hp http://www.zdnet.com/blog/hardware/apple-audit-uncovered-37-serious-breaches-of-code-of-conduct-at-supplier-facilities/11413 http://smallbusiness.chron.com/examples-unethical-behavior-workplace-10092.html
- Seven-step checklist that organizations should use to help their employees in dealing with an ethical dilemma (Schermerhorn, 1989; Otten, 1986): (1) Recognize and clarify the dilemma. (2) Get all the possible facts. (3) List your options--all of them. (4) Test each option by asking: "Is it legal? Is it right? Is it beneficial?" (5) Make your decision. (6) Double check your decision by asking: "How would I feel if my family found out about this? How would I feel if my decision was printed in the local newspaper?" (7) Take action.
- Even though ethical problems in organizations continue to greatly concern society, organizations, and individuals, the potential impact that organizational culture can have on ethical behavior has not really been explored (Hellreigel et al., 1989). Organizations have to ensure that their employees know how to deal with ethical issues in their everyday work lives. As a result, when the ethical climate is clear and positive, everyone will know what is expected of them when inevitable ethical dilemmas occur. This can give employees the confidence to be on the lookout for unethical behavior and act with the understanding that what they are doing is considered correct and will be supported by top management and the entire organization. Today, there is a tremendous loss of confidence in corporate conduct and there is an urgent need to work towards restoring it. Although ethics education seem to produce limited evidence of changing behaviors, the commitment of management to monitor annual ethics education for all employees will produce the desired favorable results. There should be clear communication to the employees of what are honorable and expected behaviors in the organization. They must maintain and stand firm on a clear cut policy that ethical methods are the only way of doing business.