TEORI ETIKA. Teleology... an act is considered morally right or acceptable if it produces some desired result, i.e., pleasure, knowledge, career growth,

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1 TEORI ETIKA

2 Teleology... an act is considered morally right or acceptable if it produces some desired result, i.e., pleasure, knowledge, career growth, a self- interest, or utility an act is considered morally right or acceptable if it produces some desired result, i.e., pleasure, knowledge, career growth, a self- interest, or utility assessing the moral worth of a behavior by looking at its consequences (consequentialism) assessing the moral worth of a behavior by looking at its consequences (consequentialism)

3 Two Teleological Philosophies... Egoism: right or acceptable behavior in terms of consequences for the individual Egoism: right or acceptable behavior in terms of consequences for the individual maximize your self-interest, concerned with the consequences, seeking alternative that contributes the most to self-interests maximize your self-interest, concerned with the consequences, seeking alternative that contributes the most to self-interests Utilitarianism: concern with consequences in terms of seeking the greatest good for the greatest number of people Utilitarianism: concern with consequences in terms of seeking the greatest good for the greatest number of people looking for the greatest benefit for all those affected by a decision looking for the greatest benefit for all those affected by a decision

4 Utilitarianism: An action is right if and only if it achieves the greatest good for the greatest number. An action is right if and only if it achieves the greatest good for the greatest number. Utilitarianism makes moral judgments based on the consequences of actions, or consequences of rules of actions Utilitarianism makes moral judgments based on the consequences of actions, or consequences of rules of actions

5 Deontology: (Greek: deon-duty; logos-science) An action is right if it is an action of a certain kind; if it is your duty to perform. An action is wrong if it is your duty not to perform. An action is right if it is an action of a certain kind; if it is your duty to perform. An action is wrong if it is your duty not to perform. For example, always wrong to torture, rape, enslave someone, no matter what the consequences are. For example, always wrong to torture, rape, enslave someone, no matter what the consequences are.

6 Deontology... focuses on the rights of the individual and on the intentions associated with behavior not on the consequences focuses on the rights of the individual and on the intentions associated with behavior not on the consequences believe there are some things we should not do regardless of the utility believe there are some things we should not do regardless of the utility

7 An analytical approach to ethical problems Step 1 Ask NoYesNoYesNoYes Utility Do benefits exceed costs? Rights Are human rights respected? Justice Are benefits and costs fairly distributed?

8 Step 2 Compare results If yes is the answer to all three questions, it is probably ethical If the answers are mixed, it could be either ethical or unethical If no is the answer to all three questions, it is probably unethical

9 Step 3 Assign priorities to UtilityRightsJustice

10 ETIKA BISNIS & PENERAPANNYA DI PERUSAHAAN

11 Business Ethics: What Does It Really Mean? Definitions Ethics involves a discipline that examines good or bad practices within the context of a moral duty Ethics involves a discipline that examines good or bad practices within the context of a moral duty Moral conduct is behavior that is right or wrong Moral conduct is behavior that is right or wrong Business ethics include practices and behaviors that are good or bad Business ethics include practices and behaviors that are good or bad

12 Business Ethics: What Does It Really Mean? Expected and Actual Levels of Business Ethics Ethical Problem Society’s Expectations of Business Ethics Actual Business Ethics 1950sEarly 2000sTime Business Ethics:Today vs. Earlier Period

13 Why ethical problems occur in business

14 Ethics and the Law Law often represents an ethical minimum Law often represents an ethical minimum Ethics often represents a standard that exceeds the legal minimum Ethics often represents a standard that exceeds the legal minimum EthicsLaw Frequent Overlap

15 Why should business be ethical? Fulfill public expectation for business. Prevent harming others. Seek profitability. Improve business relations and employee productivity. Reduce penalties under U.S. Corporate Sentencing Guidelines. Protect business from others. Protect employees from their employers. Promote personal morality.

16 Factors Influencing Ethical Behavior Leadership Corporate Culture Strategy and Performance Individual Characteristics Have an ethical day!

17 Sources of Ethical Norms Fellow Workers Family Friends The Law Regions of Country Profession Employer Society at Large Fellow Workers Religious Beliefs The Individual Conscience

18 Developing Moral Judgment 6-22

19 Stages of moral development and ethical reasoning Source: Adapted from Lawrence Kohlberg, The Philosophy of Moral Development (New York: Harper & Row, 1981).

20 Elements of Moral Judgment Amoral ManagersMoral Managers Moral Imagination Moral Identification Moral Evaluation Tolerance of Moral Disagreement and Ambiguity Integration of Managerial and Moral Competence A Senses of Moral Obligation

21 The components of ethical climates Focus of ethical concern Ethical criteria Source: Adapted from Bart Victor and John B. Cullen, “The Organizational Bases of Ethical Work Climates,” Administrative Sciences Quarterly 33(1988), p. 104.

22 How to Build in Ethics TOP MANAGEMENT COMMITMENT TOP MANAGEMENT COMMITMENT MISSION STATEMENT MISSION STATEMENT ETHICS CODE ETHICS CODE POLICIES/PROCEDURES POLICIES/PROCEDURES TRAINING TRAINING WHISTLE-BLOWER’S HOTLINE WHISTLE-BLOWER’S HOTLINE ETHICS OFFICER ETHICS OFFICER INDEPENDENT AUDIT INDEPENDENT AUDIT DISCIPLINARY ACTION DISCIPLINARY ACTION

23 Codes of Conduct Must provide clear direction about ethical behavior when temptation to behave unethically is strongest. Must provide clear direction about ethical behavior when temptation to behave unethically is strongest. But, also must leave room for a manager to use his or her judgment in situations requiring cultural sensitivity. But, also must leave room for a manager to use his or her judgment in situations requiring cultural sensitivity. Intl. managers who are not prepared to grapple with moral ambiguity and tension should pack their bags and come home Intl. managers who are not prepared to grapple with moral ambiguity and tension should pack their bags and come home

24 How to support ethical decision making in the organization? culture, values & programs culture, values & programs compliance & leadership compliance & leadership recognition of the role of co-workers & managers recognition of the role of co-workers & managers balancing stakeholder interests balancing stakeholder interests management of situational pressures management of situational pressures rewards beyond short-term performance rewards beyond short-term performance

25 Creating an Ethical Corporate Culture Core values are not specific enough to guide managers through actual ethical dilemnas. Core values are not specific enough to guide managers through actual ethical dilemnas. Managers should be guided by precise statements that spell out the behavior and operating practices that the company demands. Managers should be guided by precise statements that spell out the behavior and operating practices that the company demands. 90% of all Fortune 500 companies have codes of conduct. 90% of all Fortune 500 companies have codes of conduct. 70% have statements of vision and values. 70% have statements of vision and values. In Europe and the Far East, the percentages are lower but are rising rapidly. In Europe and the Far East, the percentages are lower but are rising rapidly.

26 Business Ethics: It Begins with Leadership As Leaders, we must do a better job at creating and sustaining organizational cultures that support ethical behavior….

27 Guidelines for Ethical Leadership Treat corporte values and formal standards of conduct as absolutes. Treat corporte values and formal standards of conduct as absolutes. Design and implement conditions of engagement for suppliers afnd customers. Design and implement conditions of engagement for suppliers afnd customers. Allow forwign business units to help forlmulate ethical standards and interpret ethical issues. Allow forwign business units to help forlmulate ethical standards and interpret ethical issues. In host countries, support efforts to decrease institutional corruptions. In host countries, support efforts to decrease institutional corruptions. Exercise moral imagination. Exercise moral imagination.

28 Two approaches to ethics programs and their effectiveness Compliance-based programs Rooted in avoiding legal sanctions. Companies will establish rules and guidelines for employees to follow. Emphasizes threat of detection and punishment. Assumes employees are driven by self-interest. Research evidence shows that employees do care about moral correctness of their actions. Sources: Lynn Sharp Paine, “Managing for Organizational Integrity,” Harvard Business Review, March/April 1994, pp. 106-117 and Gary Weaver and Linda Klebe Trevino, “Compliance and Values Oriented Ethics Programs: Influences on Employees’ Attitudes and Behavior,” Business Ethics Quarterly, 9(1999), pp. 315-335.

29 Two approaches to ethics programs and their effectiveness Sources: Lynn Sharp Paine, “Managing for Organizational Integrity,” Harvard Business Review, March/April 1994, pp. 106-117 and Gary Weaver and Linda Klebe Trevino, “Compliance and Values Oriented Ethics Programs: Influences on Employees’ Attitudes and Behavior,” Business Ethics Quarterly, 9(1999), pp. 315-335. Integrity-based ethics programs Combine a concern for the law with an emphasis on employee responsibility for ethical conduct. Establish a climate of self-governance for employees based on general principles as guidelines. Employees told to act with integrity and conduct business dealings in an environment of honesty and fairness. Employees are thought of as social beings, concerned for the well-being of others. Researchers found that these programs fostered lower observed unethical conduct.