Rules or Values in Ethical Development

Developing ethics within organizations is not an easy task. Many companies offer some rudimentary ethics classes in orientation with little to no follow up. As can be expected, these ethical values only last for so long before they are tested and compared against actual working conditions. To develop higher levels of ethical standards among employees it is necessary to ensure that they find a match between their own personal values and the ethical standards.

It is not easy to have employees internalize certain values and maintain ethical standards when other options are available. Connecting employees to their personal value systems and infusing ethical standards into the organization's culture can go a longer way in creating lasting beliefs. Internalized ethical standards rely on employee values, organizational values, and standards coming together with compatibility.

Identity based ethical decision-making combined with rule-making ethical decision-making has a longer positive ethical influence then rule oriented decision-making (Gu & Neesham, 2014). When employees can find a match between their personal value system and that of the employers they are more likely to adhere to those values. When ethics is based in the need to avoid rules then its shelf-life is limited.

Think of how rule and regulations may contain outward adherence based upon fear or self-interest but doesn't move beyond that. An over focus on rules and regulations as a deterrent may bring compliance but not necessarily belief thereby nearly ensuring that problems are repeated. Helping people find shared values that comply with organizational (i.e. societal) beliefs creates a more lasting impact.

After orientation employees look to their peers and other members of their social network to determine how to act in moral dilemmas. Once a company develops a strong ethical culture they create internal social criticism of unethical behavior which improves upon ethical maintenance (Sonenshein, 2005). Having ethical values embedded into the culture can make a huge impact.

People do this naturally in daily life. The values people hold are based upon their upbringing and social networks. Matching internalized values to ethical standards is only one part of the problem. The other part of the problem is ensuring that the social network also accepts those values. When issues arise the social network is likely to be a significant anchor to bounce options.

Strong ethical decisions require both an internalized value system and a social network that believes in and promotes those ethical values. Without these two aspects rules and regulations may create compliance but not a deeper sense of value incorporation. Those who internalize these values are likely to maintain them even when some force is not being used as deterrent.

Long lasting ethical values are based in promoting beliefs within the workplace both on a personal level and a social level to encourage higher levels of ethical performance. Fear of punishment only works for so long and this is one of the reasons why despite renewed focus on ethics there are plenty of scandals to go around. People will judge ethical dilemmas by their own value systems as well as the value systems of their social networks. Longevity in ethical values requires an an alignment of ethical models between self and society.

Gu, J. & Neesham, C. (2014) Moral identity as leverage point in teaching business ethics. Journal of Business Ethics, 124 (3).

Sonenshein, S. (2005). Business ethics and internal social criticism. Business Ethics Quarterly, 15 (3).

Are Today’s Business Graduates More Ethical?

Are business students becoming more ethical? College of business students are starting to see more value in ethics when compared to previous generations and this could have a positive influence on their future decision-making. According to a study by Hollier, et. al. (2013) the infusion of ethics classes in universities are helping students make ethical choices. This will naturally have an impact on the corporate world and the way in which decisions impact environments. 

Ethics is a concept of understanding the differences between right and wrong, a manner of character and the inclusive way in which a person makes decisions. When ethics are lacking people make choices that benefit them the most without considering the larger costs on society or the people who will be hurt by their choices. A lack of business ethics can have a huge impact on the functionality of business and in turn impact societal trust. 

Most colleges focus the far majority of their time teaching how to make money and very little on the ethical consideration of activities. Ethical decision making can have a direct impact on the image of the company and the trust built within society. Ethics classes can help future executives think through their choices and the possible outcomes to proper conclusions.

The classical longitudinal ethical dilemma in the study was:  

A salesman with a competitor has approached the Vice-President of Sales of a larger competitor with an offer to disclose specifics on a bid proposal which both companies have been asked to prepare. The successful bidder will have exclusive contracts with the client. The potential sales related to this client will exceed $2 million over a three year contract period. In return for disclosing his employer's bid data, the salesman wants the Vice-President of Sales to hire/employ him as a district sales manager. If you were the Vice-President of Sales what would you do? (Grant & Broom, 1988; Farling & Winston, 2001).

The past two decades have seen a positive improvement in ethical decision making among students. In 1988 31% of students would accept the offer, 17% in 2001, and 8% in 2011. The trend is clear-students are becoming more ethical. The authors argue that improved inclusion of ethics classes and public awareness of scandals have helped change the landscape for young students. The continued focus on helping students think through their options, providing them stronger frameworks for decision-making, and encouraging higher standards has a positive benefit that makes their way into the business world. 

Farling, M. & Winston, B. (2001). A replication study: attitudes toward ethics: a view of the college student. Teaching Business Ethics, 5,251-266.

Grant, E. W., Jr. & Broom, L. S. (1988). Attitudes towards ethics: a view of the college student. Journal of Business Ethics, 7, 617-619.

Hollier, G. et. al. (2013). College business students attitudes toward ethics. Journal of Business & Behavioral Sciences, 25 (1).