Analysis of Human Nature and Unethical Behavior in Organizations

This report summarizes and analyzes Chapter 1 of a Business Ethics Seminar, focusing on 'Human Nature and Unethical Behaviour in Organizations.' The chapter explores the daily occurrence of ethical dilemmas, the competitive advantages of ethical organizations, and the challenges of managing morally imperfect people. It delves into how good people can behave unethically, the costs of unethical behaviors, and the dual nature of human beings. The report highlights key concepts such as the impact of ethical decisions, the financial benefits of ethical practices, and the importance of trust within an organization. It also touches upon research findings related to employee preferences and consumer behavior concerning ethical standards. Furthermore, it examines the various types of organizations and operational areas that face ethical problems and concludes with a reflection on human nature and its role in shaping ethical conduct.

Seminar in Business Eth
Chapter 1 | Human Nature & Unethical Behaviour in Organisation
Essentials of Business Ethics
Creating an Organization of High Integrity and Superior Performance Dr. Nezar Samy

By the end of this chapter, we will be abl
the competitive advantages of creating and maintaining an ethical organizationExplain
some common types of unethical behaviors that occur in all types of organizations—for-profits, non-profits,
educational institutions, and governmentDescribe
that unethical behaviors can occur in all organizational operationsAppreciate
that unethical behaviors can be very costly to organizationsUnderstand
human nature in terms of people being pleasure- seekers who can choose to do good or badDiscuss

Chapter Outline
Daily Occurrence of Ethical Dilemmas
Competitive Advantages of Ethical Organizations
Managing Morally Imperfect People
Navigate Different Sorts of Ethical Problems in a Typical Organization
How Good People Can Behave Unethically
The Costs of Unethical Behaviors
The Human Nature
Summary

Daily Occurrence
of Ethical
Dilemmas

Daily
Occurrence of
Ethical
Dilemmas
New hires don’t only bring unique job
skills, they also bring ethics.
Ethics is the set of principles a person
uses to determine whether an action is
good or bad.
Every decision and action a person
makes the rest of the day has an impact
on other people.
Each decision and action is subject to
ethical analysis.

Daily Occurrence of Ethical Dilemmas
Action
Motivation Consequence
An ideal ethical situation is one in which a person has good motives and the act results in good consequences.
The most unethical situation is one where a person has bad motives and the act results in bad consequences.
<Action Sequence>
Good Good
Bad Bad
Good Bad
Bad Good

Daily
Occurrence
of Ethical
Dilemmas
“Without having been trained in philosophy, few
managers realize that almost every business
decision has ethical ramifications.”
*Merger Opportunity - 1985

Daily
Occurrence
of Ethical
Dilemmas
• *Merger Opportunity - 1985

Competitive
Advantages of
Ethical
Organizations

Competitive Advantages
of Ethical Organizations
• Ethical organizations consist of ethical
employees empowered to operate within a
culture of trust.
• Research findings (and common sense)
strongly suggest that, in the long term, ethical
organizations financially outperform unethical
organizations.
• An ethical organization attracts high-quality
employees, customers, suppliers, investors and
leads to higher levels of satisfaction and loyalty
across all stakeholders.
• A stellar ethical reputation is priceless
marketing and leads to higher levels of
customer satisfaction and loyalty.

Competitive
Advantages of
Ethical
Organizations
Operate within a
culture of trust.
Financially
outperform
unethical
organizations.
Attracts high-quality
employees,
customers,
suppliers, investors.
Leads to higher
levels of satisfaction
and loyalty across all
stakeholders.
Priceless marketing

Competitive
Advantages of Ethical
Organizations– Some
research findings
“A survey of MBA students
found that 94% of them
would accept an average of
14% lower pay to work for
an organization with a
reputation for high ethical
standards.”
Research findings
from 2007
94% of Americans
Choosing an ethical
work environment
33% of Employees left
unethical work
environment
70% of Americans
Boycotting unethical
brands
72% of Americans
Higher payrate for
products & services
offered by ethical org.