This document discusses ethics and its role in quality management. It defines ethics as the study of human behavior within a moral context. Total quality cannot be achieved without ethical behavior, as ethical behavior builds trust, which is essential for total quality. Managers, employees, and organizations all have important roles to play in promoting ethics. Managers must set an example and help employees make ethical decisions. Organizations must create environments that promote and reward ethical conduct. While training and codes of conduct can encourage ethics, sometimes there is a disparity between beliefs and actual behavior, due to factors like self-interest. Overall, the document emphasizes that ethics is fundamental for achieving total quality.

1. Quality Management & Ethics
ETHICAL
MANAGEMENT

2. Major Topics
Ethics Defined
Trust and Total Quality
Values and Total Quality
Integrity and Total Quality
Responsibility and Total Quality
Manager’s Role in Ethics
Organization’s Role in Ethics
Handling Ethical Dilemmas
Ethics Training and Codes of Business Conduct
Models for Making Ethical Decisions
Beliefs versus Behavior: Why the Disparity?

3. Ethics Defined - 1
Ethics is the study of human behavior within a moral
context.
Morality refers to the values that are subscribed to
and fosters by society in general and by individuals
within the society
Ethics attempts to - apply reason in determining rules of
human behavior that translate morality into everyday
behavior.
Ethical Behavior – It is that which falls within the
limits prescribed by widely accepted moral values.

4. Ethics Defined - 2
Guidelines for Determining Ethical Behavior
Distinguish the concepts of legal and ethical:
 A person’s behavior can be well within the prescribed limits of
the law and still be unethical.
 Blanchard and Peale suggest the following 5 P’s which help
managers and employees make ethical choices in the work place.
 Purpose – Individuals see themselves as ethical people.
 Pride – Individuals apply internal guidelines & have self-
esteem.
 Patience – Individuals believe right will prevail in the long run.
 Persistence – Individuals are willing to stay with an ethical
course of action.
 Perspective – Individuals take the time to reflect and are guided
by their own internal barometer to take ethical decisions.

5. Ethics Defined - 3
Factors That Influence Ethical Behavior
 Managers in a total quality setting need to understand the factors
influencing a person’s behavior.
 L.K.Trevino suggests 3 personality measures that can influence a
person’s ethical behavior:
 Ego strength – Ability to undertake self-directed tasks.
 Machiavellianism – Extent to which a person will attempt to confuse
others.
 Locus of Control – The perspective of people concerning who or
what controls their behavior.

6. Trust and Total Quality
Total Quality approach
cannot be achieved
without ethical behavior.
 Ethical Behavior builds
trust and trust is an essential
ingredient of total quality.
In attempting to build trust
in the workplace,
managers should take the
initiative.
Fig 1. Elements of Total Quality that
depend on Trust

7. Values and Total Quality
Values are those deeply held beliefs that form the very
core of who we are.
 A persons conscience or internal barometer is based on his or
her values.
Ethical Behavior begins with Values.
 Values that lead to ethical behavior are as follows:
 Fairness
 Dependability
 Integrity
 Honesty
 Truthfulness

8. Integrity and Total Quality
Integrity as a personal and organizational characteristic
combines honesty and dependability.
When an individual or an organization has integrity,
ethical behavior automatically follows.
People with integrity can be counted on to
 Do the right thing
 Do things correctly
 Accomplish tasks thoroughly and completely
 Finish work on time
 Keep promises.

9. Responsibility and Total Quality
Part of ethical behavior is to accept
responsibility.
People generally want to blame others for
their own short comings and failures – In a
total Quality setting, people are responsible for their
actions and accountable for their performance.
Accepting responsibility helps build trust,
integrity, and all other elements of ethics.

10. Manager’s Role in Ethics
Managers have 3 main responsibilities:
- For setting an example of ethical behavior.
- For helping employees make ethical choices.
- Helping employees follow ethical behavior.
Following are 3 approaches for managers to
carry out their responsibilities:
 Best Ratio Approach: People are basically
good, hence create appropriate conditions.
 Black-and-White Approach: Right is right,
wrong is wrong, hence make ethical decisions
and carry them out.
 Full Potential Approach: People are
responsible for realizing their full potential,
hence decisions made should focus achieving
this potential.
Fig 2. Approaches to Ethics

11. Organization’s Role in Ethics
Organizations have a critical role to play in promoting
ethical behavior among their employees.
An Organizations tasks in ethics can be summarized as:
 Creating an internal environment that promotes, expects and
rewards ethical behavior.
 This can be achieved by establishing policies and practices
promoting the atmosphere.
 Setting an example of ethical behavior in all external dealings.
 Organizations should set an example for their employees.
 This motivates them to be ethical.

12. Handling Ethical Dilemmas
Managers response to ethical dilemma is very important.
Following are the guidelines, managers can use in such
situations.
Fig 3. Guidelines for handling ethical dilemmas

13. Ethics Training &
Codes of Business Conduct
Ethics Training:
 Ethical behavior and the rationale for it can be taught.
 In ethics training:
 Stimulate discussion
 Facilitate, don’t preach
 Integrate ethics training
 Highlight practical applications
 Few examples of the topics that are widely addressed in
corporate-sponsored ethics training programs are
 Drug and alcohol abuse, Employee theft, Quality control etc.
Code of Business Conduct:
 Written Codes of Business conduct encourage employees to do
the right thing.

14. Models for Making Ethical Decisions
Decision making models used for determining ethical behavior
can differ just as the values of organizations do.
Most widely used models are:
 Categorical Imperative Model – black-and-white model
 Full Disclosure Model – functional criterion
 Doctrine of Mean Model – Average between 2 extremes
 Golden Rule Model – Do unto others as you would have them do unto you
 Market-Ethic Model – Any legal action that promotes profitability-ethical
 Organizational Ethic Model – Loyalty to organization
 Equal Freedom Model – Organizations have freedom to behave
 Proportionality Ethic Model – World is so complex, decisions are not clear
 Professional Ethic Model – Principle of peer review

15. Beliefs vs. Behavior
Ethics in workplace manifests itself
through the application of values.
Most, but not all, people subscribe to
these values.
Several Reasons explain the disparity
like:
 Self-Interest/Self-Protection
 Conflicting Values
 Tangible/Intangible – Immediate Deferred
 Making Ethics Tangible and Immediate

16. Questions/Queries