1. Many factors that determine ethical/unethical behavior in some environment
2. Explain about issue intensity in this context
3. How to measure and manage ethical behavior
The stuff of crises, arrogance, greed, unacknowledged conflicts of interest, unethical behavior, lack of transparency, failed leadership, and insufficient accountability, fueled “an industry out of control” according to Charles Ferguson’s documentary Inside Job which chronicles the 2008 economic meltdown.
Unethical behavior is one of the factors that caused the economic meltdown. Unethical behavior is influenced by several things: his or her stage of moral development and other moderating variables including individual characteristics, the organization’s structural design, the organization’s culture, and the intensity of the ethical issue. People who lack a strong moral sense are much less likely to do the wrong things if they’re constrained by rules, policies, job descriptions, or strong cultural norms that disapprove of such behaviors. Conversely, intensely moral individuals can be corrupted by an organizational structure and culture that permits or encourages unethical practices. There are many factors to determine ethical and unethical behavior:
STAGE OF MORAL DEVELOPMENT
Preconvention level, a person’s choice between right or wrong is based on personal consequences from outside sources, such as physical punishment, re- ward, or exchange of favors.
Conventional level, ethical decisions rely on maintaining expected standards and living up to the expectations of others.
Principled level, individuals define moral values apart from the authority of the groups to which they belong or society in general.
Each person comes to an organization with a relatively entrenched set of personal values, which represent basic convictions about what is right and wrong. Although values and stage of moral development may seem similar, they’re not. Values are...