Ethics and Social Responsibility

Today, it’s not enough for companies to make a profit. We also expect managers to make a profit by doing the right things. Unfortunately, no matter what managers decide to do, someone or some group will be unhappy with the outcome. Managers don’t have the luxury of choosing theoretically optimal, win-win solutions that are obviously desirable to everyone involved. In practice, solutions to ethical and social responsibility problems aren’t optimal. Often, managers must be satisfied with a solution that just makes do or does the least harm.

Ethics is the set of moral principles or values that defines right and wrong for a person or group. Workplace deviance is unethical behavior that violates organizational norms about right and wrong. Ethical behavior follows accepted principles of right and wrong.

Company-related deviance can affect both tangible and intangible assets. One kind of workplace deviance, called production deviance, hurts the quality and quantity of work produced. Examples include leaving early, taking excessively long work breaks, intentionally working slower, or wasting resources. Property deviance is unethical behavior aimed at company property or products. Examples include sabotaging, stealing, or damaging equipment or products, and overcharging for services and then pocketing the difference.

Political deviance is using one’s influence to harm others in the company. Examples include making decisions based on favoritism rather than performance, spreading rumors about coworkers, or blaming others for mistakes they didn’t make. Personal aggression is hostile or aggressive behavior toward others. Examples include sexual harassment, verbal abuse, stealing from coworkers, or personally threatening coworkers.

Companies are putting more emphasis on ethical decision making. Eighty-one percent now provide ethics training. Sixty-seven percent include ethical conduct as a standard part of performance evaluations. And, seventy-four percent communicate internally about disciplinary actions that are taken when unethical behavior occurs.