NAF Professional Ethics

NAF Professional Ethics

Lesson 4Workplace Ethics

NAF Professional Ethics

Lesson 4

Workplace Ethics

Student Resources

Resource / Description
Student Resource 4.1 / Notes: Organizational Culture
Student Resource 4.2 / Reading: Organizational Culture
Student Resource 4.3 / Analysis: Ethical Issues in the Workplace
Student Resource 4.4 / Reading: Ethical Issues in the Workplace
Student Resource 4.5 / Assignment: Ethics Board Game

Student Resource 4.1

Notes: Organizational Culture

Student Name: Date:

Directions: Use this resource to take notes on the presentation on organizational culture.

What is organizational culture? Copy the presentation definition. Then explain it in your own words.

Presentation Definition / My Explanation

What are two ways you can learn about an organization’s culture? Write them in the chart below and then add specific examples.

One way to find out about an organization’s culture is… / Examples:
Another way to find out about an organization’s culture is… / Examples:

How is organizational culture connected to ethics?

What is the difference between a weak organizational culture and a strong organizational culture?

Student Resource 4.2

Reading: Organizational Culture

Today you will learn about culture as it applies to organizations and what it means to have an ethical organizational culture.

In school, you have probably learned about the cultures of other countries or civilizations, but have you ever considered that an organization—a school, a business, a club—can have its own culture? It’s true: an organization has shared attitudes, perspectives, values, and beliefs, and the people who are part of that organization tend to form bonds based on those shared attributes.

Not convinced? Think about it this way: if you like to play guitar, you could play in a church choir…or in a death metal band. In both cases, you are part of a group of people who love music, but the feel of the groups is very different.

If you are a sports fan, you know organizational culture, because different teams have different images and attitudes. Ask a football fan to describe the difference between the New England Patriots and the Oakland Raiders, or ask a baseball fan how the New York Yankees are different from the Cleveland Indians. There is more to that story than win-loss records. Their logos, their team style, the behavior of the people associated with the team (including the fans)—these all create a certain culture for that organization.

One of the easiest ways to evaluate a workplace’s culture is to look at the dress code. How are people expected to dress while at work?

The photo on the left shows a more traditional or formal office environment, where business attire, such as a suit, is expected. Some office environments expect all employees to dress this way, while others expect employees at a certain level to do so (managers, for example, or executives).

The photo on the right shows a more casual work environment. This informality is becoming more common, particularly among technology companies, creative companies like advertising agencies, and start-up companies.

What can you guess about the cultures of these two companies, just based on dress code? It’s a good bet that the formal company values traditional office practices such as making appointments to speak with colleagues, keeping a separation between work and personal life, and using formal telephone and email manners. A more casual company might value spontaneity: colleagues are chatting as they get some coffee in the company kitchen, are suddenly inspired, and hold a meeting on the spot. What are some other characteristics of a more informal company culture?

How do the members of the organization behave? That tells you a lot about the organization.

In some cases, the behavior might be clearly and explicitly ethical (or unethical). Imagine if you are on your first day of a new job, and the person training you shows you how to “adjust” your sales numbers, saying, “Don’t worry—everybody does it.” That kind of unethical instruction on your first day gives you a definite sense of how that organization works.

Other behaviors are not clearly ethical or unethical: they just represent the organization’s beliefs or attitudes. An organization that focuses on families might have a policy that allows people to take time off to volunteer at their child’s school. This policy reflects the organization’s values but isn’t necessarily ethical or unethical.

Different countries have their own culture, as you already know. Often an organization that starts in one particular country continues to hold beliefs and attitudes from that culture, even if it expands to other countries. Japanese companies, for example, may emphasize manners and respect for authority more than companies that were founded in other countries. Within a country, if you are part of an organization with specific beliefs, such as a religious or political organization, those beliefs will affect the organizational culture.

Leadership matters, too. An organization might have ethical policies on paper, but an unethical leader can undermine those policies.

Some behaviors or business practices are clearly unethical. If you are a pharmacist and your colleague “borrows” pills to give to her friends, that is unethical. There is no organizational policy that would make that okay.

On the other hand, some things might be considered ethical in one organization and not ethical in another. When technology or video game companies are developing a new product, they often give the product to product reviewers for free. Some organizations refuse to take free products, because they worry that their reviewers will be easier in their reviews if they get something for free. Other organizations say that they can’t afford to buy all the products they review, and since they get all their products for free, the reviews are still fair.

If you are part of an organization, its ethics will start to rub off on you over time. Remember when we talked about being taught to “adjust” your sales number on your first day? If you work in that environment for a while, you will start to think it’s normal to change sales figures. If you then get a sales job at a different organization and “adjust” your numbers there, you might get in big trouble! Your ethics will have been affected by the organizational culture at your last job.

At some point in your life, you have probably been part of a group that had a strong organizational culture. Maybe it was a sports team with a tough coach. Maybe it was that class with the teacher who everyone was a little afraid of. Or you’ve heard other people talk about their experiences with strong organizational cultures, like a church group or the ROTC. Some college fraternities and sororities have strong organizational cultures. A strong culture is not necessarily a good thing or a bad thing. It just means that everyone who is part of the organization is clear on what it means to be a member, and people generally follow those guidelines.

Organizations with weak organizational cultures, on the other hand, may be vague about their expectations, or the organization may be broken into smaller groups that each have their own guidelines. One way to look at this may be to think about the social environment of your school. Most schools have many small groups of students that form their own cliques with their own particular rules and attitudes. If you were ever part of a group that started a new club, you have experienced weak organizational structure, since many new clubs are still figuring out their rules. A weaker organizational structure can allow for a wider range of ideas and opinions. If you are running a multinational corporation, for example, you may need to have a somewhat weak organizational structure, because the attitudes of different countries vary so widely. That doesn’t mean your organization has to be weak, but your expectations on certain things might need to be more flexible.

How would you apply what you have learned about organizational culture to your school? Here are some questions to help you determine the characteristics of your school’s culture:

•How do students dress, and what does that say about the culture at your school?

•Is the culture at your school strong or weak? Why do you think so?

•Which behaviors are accepted? What values do those behaviors imply? For example, if students feel it’s okay to cut class a lot, then learning is not a strong value. If students flock to the bulletin board that says who got a scholarship to college, then learning is valued.

•Who do you think has the most influence over the ethical standards at your school? Possibilities include the principal, teachers, students, some other group, or a combination. Explain your reasoning.

It can happen that a particular culture appeals to you and feels as if it aligns with your own interests and personality. And yet, the ethics that predominate in that culture might clash with your own system of values.

For example, maybe you are really interested in finance and are fascinated by the stock market. But at your summer internship with a finance firm, you feel alienated by the way everyone talks about making as much money as possible. They want the most expensive cars and clothes. You’re more interested in using a deep understanding of finance to help people get out of debt or buy their first house or open their own business. You can still have a satisfying career in finance, but you’ll need to work with people who share at least some of your own values if you want to enjoy your work.

These are the kinds of situations that will come up, in one way or another, as you go through school and enter the working world. Having a firm sense of your own ethics will help you stay true to yourself and have integrity. It will also help you recognize an organizational culture that is a good fit for you.

Student Resource 4.3

Analysis: Ethical Issues in the Workplace

Student Name: Date:

Directions: Use this chart to help you identify each issue in the reading “Ethical Issues in the Workplace.”

Issue / What It Is / Example / Dilemma
Confidentiality / An ethical obligation to keep customer or client information private
Influence / Your boss offers to pull strings to help you get into the college you want
Kickbacks / Congressman Schock
Partiality / Giving your sister-in-law your business
Proprietary information / Martha Stewart
Truth in advertising / Honesty without exaggerating about the product or service you are offering

Once you have completed the chart, choose one of the dilemmas and complete the decision-making process for it in your notebook. Be prepared to share your thoughts with the class.

Student Resource 4.4

Reading: Ethical Issues inthe Workplace

Confidentiality

How would you feel if a friend told everyone your secrets? What if you suddenly found your credit card number plastered all over the Internet? Both of these would be breaches of your confidentiality. Your trust in your friend, and your trust in your credit card company, would have been violated. You expect your personal information to be protected and kept private. Likewise, when you work for a company, you have an ethical obligation to protect your customers’and clients’ confidentiality by keeping their information private. The clients placed their trust in you and your company when they gave you their business. You must keep information concerning business transactions, customer funds and finances, company layoffs, and employee health and personal problems confidential. For example, let’s say that one of your company’s clients calls and asks you to fax a report. When you find the report, you discover that your boss, who is on vacation, has stamped “Confidential: Distribution Limited to the Following People:” on the cover, and this client’s name is not on the list. What would be the ethical thing to do?

Influence

You start a new job, and the top salesman offers to take you under his wing. After a few weeks, you realize that he is increasing his commission by adding in fake sales. He tells you that no one will even notice, and that everyone who gets a promotion does it. What do you do? This is an example of influence. Your relationship with your mentor—as well as the promise of greater profit and a promotion—might compromise your judgment and lead you to make an unethical decision. His unethical behavior might influence you to do the same, especially because he is in a position of authority.

Here is another example of using influence in an unethical way. You really want to go to a certain college, but you don’t have the grade point average and test scores to be admitted. Then, you find out that one of the people you work for is a major donor at the school. He says he can pull some strings to give your application a boost. Do you agree to let him? This is an example of unjust influence.If you choose to take his help, you will be acting unethically by promoting injustice: accepting an undeserved privilege, which is unfair to the other applicants to the college. Your relationship with this person might influence you to make a less-than-ethical decision.

Of course, influence can be positive as well. Suppose you started that new sales job, and the top salesman takes you under his wing…but instead of teaching you how to cheat, he teaches you how to create strong relationships with clients based on trust. He shows you ethical ways to increase your commission. That’s positive influence!

Kickbacks

Aaron Schock was one of the youngest people ever elected to the House of Representatives. He was charismatic, fun, and hugely popular. He loved posting pictures on Instagram of himself in action: surfing in Hawaii or dancing the tango in Argentina. He did a massive and luxurious makeover of his congressional office in the style of Downton Abbey. But who was paying for all of his adventures? Aaron Schock resigned from Congress in the midst of a scandal that he had been taking kickbacks from people. A kickback is a bribe offered to an employee in exchange for access to specific products, services, privileges, or influence. It is an example of corruption: the abuse of entrusted power for private gain.

This does not mean that all gifts are bad. In fact, gifts play an important part in relationshipbuilding in the business world. But it is best when giftgiving is tightly regulated. Some companies have policies regarding gifts from outside clients or suppliers, and in some workplaces there are formal arrangements between companies and suppliers about gifts.

If a gift is being offered just to you, it is probably unethical to accept it because it is not a true gift, but a kickback. The giver is looking for unfair influence or privileges in exchange. For example, you are in charge of ordering office supplies for your company. The sales representative for the company you order office paper from offers you—and only you—tickets to the Super Bowl as a token of appreciation. What do you think the kickback is? What should you do?

Partiality

Have you ever had a teacher who played favorites? How did it make you feel? Most likely, you felt that it was unfair. That teacher was demonstrating unjustified partiality. Partiality is when one person or group is favored over others. But not all partiality is unjustified. If you always disrupted class and never did your homework, and someone else was always prepared and on time, the teacher’s preference for that student would be justified. The same rules apply in the professional world. If you, as an employee, are partial to a person or a group at the exclusion of others—for reasons unrelated to the quality of service or performance—you are probably making an unethical decision. For example, you are a manager and need T-shirts made up. Your sister-in-law works for a company that does this type of work. She needs the business and you like the convenience. Do you give her the job? That could be another example of unjustified partiality (this example is also known as nepotism, which is unjustified partiality for relatives or friends). What if, instead of your sister-in-law’s company, it is a T-shirt company that uses only T-shirts made in the USA and you wish to support that?

Proprietary Information

Have you ever wondered what is in McDonald’s special sauce? Well, they never have to tell you. McDonald’s secret sauce is proprietary information, meaning they have exclusive ownership of it. Any information that would be valuable to a company’s competitors, such as information associated with the products, activities, or finances, is considered proprietary. As an employee, you should not share your company’s proprietary information with their competitors or use it for your own personal gain.

Martha Stewart was convicted of insider trading: she used her access to nonpublic information about the biotech company she had invested in to make a profit from trading the company’s stocks at the right time. She protected her personal investment by using information that should have been proprietary.

Sometimes there may be no actual conflict of interest as with Martha Stewart. If you don’t benefit from sharing the proprietary information, there is technically no conflict of interest. However, it still looks bad. Suppose you are working as a part-time barista for a local coffee shop with a very popular, secret blend of coffee, and a competing coffee shop wants to hire you on the side to help them develop their own new blend. What should you do? Remember, the secret coffee blend is an example of proprietary information that would be valuable to a company’s competitors. As an employee, you should not share your company’s proprietary information with their competitors or use it to advance your own interests.