Common Ethical Problems

Chapter 3

How to Look at Ethical Issues

• What it is. A definition of the issue.

• Why it is an ethical problem.• Professional costs and possible

penalties for ethical or legal transgressions.

Human Resource Issues

• Discrimination

• Harassment, Sexual or Otherwise

Discrimination

• Occurs when something other than qualifications affects how an employee is treated.– Unequal/unfair treatment– Intentional or unintentional

Why is it an ethical problem?

• It’s at the core of “fairness” in the workplace.

Costs

• Legal– Title VII of Civil Rights Act of 1964– Age Discrimination Act of 1967– The Rehabilitation Act of 1973– The Pregnancy Discrimination Act of 1978– The Americans with Disabilities Act of 1990– The Uniformed Services Employment and

Reemployment Rights Act

Costs

• Media Coverage

• Morale of other employees

Other Considerations

• Valuing diversity means treating people equally while incorporating their diverse ideas.

• Discrimination means treating people unequally because they are, or appear to be, different.

Sexual Harassment

• Sexual harassment – unwelcome sexually oriented behavior that makes someone feel uncomfortable at work. – Quid pro quo– Hostile work environment

Why is it an Ethical Problem

It is discrimination!

Costs

• EEOC suit can be filed

• Lawsuit

Conflicts of Interest

– Bribes or kickbacks– Influence– Privileged information

Why is it an Ethical Problem

• Customer confidence issues revolve around fairness, honesty and respect for others. Customer relationships cannot survive without trust.

What is it?

• When your judgment or objectivity is compromised.

Why is it an Ethical Problem?

The basis of personal and corporate relationships is trust. Appearances of favorable to treatment to special friends erodes that trust.

Costs

• Investigation

• Suspension

• Termination

• Arrest and conviction

Customer Confidence Issues

• Confidentiality

• Product Safety

• Truth in Advertising

• Special Fiduciary Responsibilities

Why is it an Ethical Problem?

• Because it can affect your relationship with your customers. The issues under this topic again revolve around fairness and trust.

Use of Corporate Resources

• Use of corporate reputation

• Corporate financial resources

• Providing honest information

Why is it an Ethical Problem?

Your use of corporate resources represents fulfilling your end of the employer/employee contract.

Costs

• Termination

• Arrest and conviction

• Lawsuit

Blowing the Whistle

– Approach immediate manager first– Discuss with your family– Take to the next level– Contact company’s ethics or ombudsman– Consider going outside your chain of

command– Go outside the company– Leave the company

Linda K. Trevino and Katherine A. Linda K. Trevino and Katherine A. Nelson, Nelson, Managing Business Managing Business EthicsEthics, (Wiley, New Jersey) pp. , (Wiley, New Jersey) pp. 66-9466-94