BUS 418
\nBusiness Ethics
\nBelhaven University
\nUnit 5
\nApplying Principles to Employer-Employee
\nRelations
\n1
\nUnit 5 Topics
\n\uf06e Biblical foundations and principles for business ethics
\n\uf06e Challenges in living out principles
\n\uf06e Applying principles to employer-employee relationships.
\n\uf06e Set up an ethics program
\n2
\nUnit Objectives
\n\uf06e Describe biblical foundations and principles for business
\nethics.
\n\uf06e Discern challenges in living out principles.
\n\uf06e Apply principles to employer-employee relationships
\n\uf06e Discover how to set up an ethics program to prevent
\nethical problems
\n3
\nContext of Business Ethics – Organization
\nREVIEW
\nDrawing credits: This Drawing by L. Ruddell (drawing).
\nDefinitions REVIEW
\n\uf06e What is Ethics?
\n\uf071 Ethics means: Standards of what we should do;
\nwhat is right and wrong
\n\uf071 Two Key Ethics Questions: What and Where?
\n\uf06e What is your standard for right and wrong?
\n\uf06e Where does it come from?
\n\uf071 Alignment (see Ephesian 4:1)
\n(Ruddell, 2014)
\nDefinitions, cont. REVIEW
\n\uf06e Morals are standards we adopt from a particular
\ngroup at a particular time.
\n\uf071 Notice standards come from the group (and adopted
\nby the individual as their own)
\n\uf071 At a particular time so relative to the situation and
\nindividual preference
\n\uf06e Values are whatever you think is important.
\n(Ruddell, 2014)
\nHall and Management
\n\uf06e Theory X and Theory Y, from McGregor
\n\uf071 Two views about human nature:
\n\uf06e Theory X, which subsumes Taylor\u2019s scientific management,
\nassumes that people generally are lazy, dislike work, avoid
\nresponsibility and require external stimulus (usually
\ncompensation) to perform tasks adequately.
\n\uf06e Theory Y, on the other hand, incorporates the Mayo\/Herzberg
\nhuman-resource viewpoint and presumes that humans are
\ncreative, seek responsibility and can be self-directed.
\n\uf071 What about biblical view?
\nHill and Management, cont.
\n\uf06e Covenantal Management (Nehemiah 5:15 and
\nMatthew 20:26)
\n\uf06e Four components particularly characterize
\ncovenantal management, or \u201cTheory C\u201d:
\n\uf071 Dignity
\n\uf071 Reciprocity
\n\uf071 Servant leadership
\n\uf071 Gift recognition
\nHill and Management, cont.
\n\uf06e Covenantal Management, cont.
\n\uf071 Dignity: Regard workers not as inanimate objects or
\nvariable costs but as unique bearers of God\u2019s image who
\nhave the right to be treated honorably and fairly.
\n\uf071 Reciprocity: A relationship that acknowledges mutual
\nduties and accepts mutual accountability; two-way, rather
\nthan one-way, streets.
\nHill and Management, cont.
\n\uf06e Covenantal Management, cont.
\n\uf071 Servant leadership. Focus on mission and others
\nversus power and self-interest.
\n\uf071 Gift recognition. Develop people. Identify gifts and
\nfoster their development. See Romans 12:1-3 and
\nEphesians 4
\nLeadership Principles
\n\uf06e Review:
\n\uf071 Leviticus 19:9-17; consideration, productivity, honesty,
\njustice, good will
\n\uf071 1 Peter 5:1-4. All of the following describe leadership:
\n\uf06e Take care of the people under you
\n\uf06e Lead people willingly
\n\uf06e Don’t be domineering, but set the example.
\nLeadership Principles, cont.
\n\uf06e Ephesians 6:5-9. The key point here is:
\n\uf071 Leaders are to treat employees with respect and dignity
\nbecause the leader is under God’s authority and there is no
\npartiality with God (v. 9)
\n\uf06e Colossians 4:1, 6; justice and fairness, wise words
\n\uf06e Romans 12:1-3
\n\uf071 Have an accurate view of yourself!
\nWhat about Money?
\nMoney and Business Ethics;
\n1 Timothy 6:6-10, 17-19
\n\uf06e Employees and Employers
\n\uf06e Contentment and Wealth
\n\uf06e The Business Goal:
\n13
\nDo the right thing AND Make money!
\nThis Photo by Unknown Author is licensed under CC BY-ND
\nHill and Discrimination
\n\uf06e When going through the employee selection process,
\nethical managers must be certain that the decision to
\nreject any candidate is based only on that candidate’s
\ninability to meet the job qualifications.
\nWhy Set up an Ethics Program?
\n\uf06e Allows you to act proactively in your organization rather
\nthan just reacting to problems.
\n\uf06e There IS going to be an organizational culture at work;
\nas an ethical leader, you should influence it.
\n15
\n(Ruddell, 2014)
\nWhy Set up an Ethics Program? (cont.)
\n\uf06e Ethical leadership (strategy) involves not only
\naccomplishing the mission but also building an effective
\norganization.
\n\uf06e The goal of an ethics program is to reap the benefits
\nof having an ethical culture.
\n\uf06e Reduces risk (ethics program as compliance which
\nmeans keeping the law)
\n16
\n(Ruddell, 2014)
\nEthics and Organizational Culture
\n\uf06e Organizations can use formal and informal
\nsocialization to develop ethics in their organizations.
\n\uf071 Formal: Using specific events to communicate the mission
\nand organizational standards including (for example)
\norientation, planned meetings, organizational
\ncommunication.
\n\uf071 Informal: Communicating the mission and organizational
\nstandards in conversations, during interviews and during
\nsocial activities
\n17
\n(Ruddell, 2014)
\nEthics and Organizational Culture (cont.)
\n\uf06e However, what Key Leaders DO in informal
\nsituations is the most influential.
\n(see James 1:22-25)
\n18
\nManager as Ethical Implementer
\n\uf06e Unethical goals
\n\uf071 Implementing unethical
\noperational goal produces
\nfaulty reward systems
\n\uf071 Alignment needed
\nbetween strategic statements
\nand operations!
\n\uf071 Why lower-level managers
\nneed ethics training
\nThis Photo by Unknown Author is licensed under CC BY-SA
\nManager as Ethical Organizer
\n\uf06e Organization structure is
\nimportant and needs to
\nsupport ethical operations
\n(Batson & Neff, 2007)
\n\uf06e The absence of
\norganizational design can
\nresult in inefficient,
\nineffective or unethical
\ndecision making This Photo by Unknown Author is licensed under CC BY-SA
\nManager as Ethical Organizer, cont.
\n\uf06e Where to place the
\nbusiness ethics function
\nin organization:
\n\uf071 Place the ethics function
\nclose to board
\n\uf071 Make sure they are
\nindependent
\n\uf071 Coordinate with audit
\nfunction
\n21
\nThis Photo by Unknown Author is licensed under CC BY-SA
\nElements of Ethics Program
\n\uf06e Code of Conduct
\n\uf06e Steps for solving ethical problems
\n\uf06e Clear guidelines for how to report a problem, including
\ngroup to carry out investigation when required
\n\uf06e Ongoing communication about standards, issues and
\nprogram
\n\uf06e Ongoing mentoring at all levels
\n\uf06e Making ethics part of job review
\n22
\nSet Up a Code of Conduct
\n\uf06e Also called Ethics Statement or Core Values but should
\nbe distinct
\n\uf06e Involve key stakeholders
\n\uf06e Determine basic standards for right and wrong for your
\norganization and where they come from
\n\uf06e Determine ethical issues that each part of organization
\nfaces based on business
\n\uf06e See Koch industries example
\n23
\nSet Up a Code of Conduct (cont.)
\n\uf06e Determine ethical issues that each part of organization
\nfaces based on business
\n\uf06e Articulate how core values apply in each situation, giving
\nguidance on what you want personnel TO DO or NOT
\nTO DO in that situation
\n\uf06e That is your Code of Conduct
\n24
\nSet Up an Ethics Program
\n\uf06e An effective ethics programs
\nshould directly address all the
\nfollowing key areas:
\n\uf071 Recruitment
\n\uf071 Orientation
\n\uf071 On-going discussion with
\nemployees about ethics
\n\uf071 Key Leader ethical
\ndevelopment
\n25
\n(Ruddell, 2014)
\nThis Photo by Unknown Author is licensed under CC BY
\nSet Up an Ethics Program, cont.
\n\uf06e Recruitment
\n\uf071 Make sure you will have \u201ca common
\nground for doing business\u201d
\n\uf071 One of the best things you can do to
\ndetermine if a recruit will fit with your
\norganizational culture is ask them
\nabout their personal view of business
\nethics and how that influences their
\nwork
\n26
\n(Ruddell, 2014)
\nThis Photo by Unknown Author is licensed under CC BY
\nSet Up an Ethics Program, cont.
\n\uf06e Orientation. All of the following
\nare parts of an effective
\norientation;
\n\uf071 Have the CEO speak and emphasize
\nthe importance of ethics to the
\norganization
\n\uf071 Give ethical scenarios and solutions
\n\uf071 Take time to explain how ethics are a
\nproactive part of your organization
\n27
\n(Ruddell, 2014)
\nThis Photo by Unknown Author is licensed under CC BY
\nSet Up an Ethics Program, cont.
\n\uf06e On-going. All of the following are
\nways to promote organizational
\nethics on an on-going basis;
\n\uf06e Posters
\n\uf06e Special meetings
\n\uf06e Telling employees how to report
\nethical problems
\n28
\n(Ruddell, 2014)
\nThis Photo by Unknown Author is licensed under CC BY
\nSet Up an Ethics Program, cont.
\n\uf06e Key leaders
\n\uf071 It is always critical that ethics be
\nconsidered in the Assessment process
\n\uf071 Leaders need to be rewarded not
\njust on financial performance
\n\uf06e Can result in cutting corners for
\npersonal gain
\n\uf06e Creates unnecessary risk of conflict
\nof interest
\n\uf06e Enron example and \u201cMark-to-market
\naccounting\u201d
\nThis Photo by Unknown Author is licensed under CC BY
\n\uf06e Described biblical foundations and principles for
\nbusiness ethics
\n\uf06e Discerned challenges in living out principles
\n\uf06e Learned how to apply principles to employer-employee
\nrelationships
\n\uf06e Discovered how to set up an ethics program to prevent
\nethical problems
\n30
\nUnit Recap
\nWhat\u2019s next?
\n\uf06e Complete reading assignments
\n\uf06e Complete unit quiz
\n\uf06e Answer discussion questions
\n\uf06e Complete writing assignments
\n31
\nReferences
\nBatson. T., & Blake, J. N. (2007). Business ethics: Sunday ethics \u2013
\nMonday world. Triangle Publishing.
\nHill, A. (2017). Just business (3rd Edition). InterVarsity Press.
\nKoch Industries. (n.d.). Code of conduct. Retrieved June 6, 2021, from
\nhttps:\/\/codeofconduct.kochind.com\/en-US\/Front-cover
\nRuddell, L. (2014). Business ethics \u2013 Faith that works (2nd Edition.
\nWestBow Press.
\n32
\nImage References
\nhttps:\/\/3.bp.blogspot.com\/-NsaR4zsCoko\/UyjrJ iHzqI\/AAAAAAAACz4\/2wjHUMewcdg\/s1600\/Screen+Shot+201
\n4-03-18+at+8.55.18+PM.jpg
\nhttps:\/\/www.quoteinspector.com\/media\/money\/money-qi58-wo.jpg
\nhttps:\/\/www.tutorialspoint.com\/professional_ethics\/images\/profession_e
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