Chapter 7

Managing for Ethical Conduct

Contents: (Please note: the Instructor Guide for every chapter will follow this structure.) 1. Chapter Outline 2. Teaching Notes 3. In-Class Exercises 4. Homework Assignments 5. Additional Resources

Chapter Outline

I. Introduction

II. In Business, Ethics Is about Behavior

A. Practical Advice for Managers: Ethical Behavior

III. Our Multiple Ethical Selves

A. The Kenneth Lay Example B. The Dennis Levine Example C. Practical Advice for Managers’ Multiple Ethical Selves

IV. Rewards and Discipline

A. People Do What is Rewarded and Avoid Doing What is Punished B. People Will Go the Extra Mile to Achieve Goals Set by Managers C. How Goals Combined with Rewards Can Encourage Unethical Behavior D. Practical Advice for Managers: Goals, Rewards, and Discipline E. Recognize the Power of Indirect Rewards and Punishments F. Can Managers Really Reward Ethical Behavior? G. What about the Role of Discipline? H. Practical Advice for Managers: Discipline

V. “Everyone’s Doing It”

A. People Follow Group Norms B. Rationalizing Unethical Behavior C. Practical Advice for Managers: Group Norms

VI. People Fulfill Assigned Roles

A. The Zimbardo Prison Experiment B. Roles at Work C. Conflicting Roles can Lead to Unethical Behavior D. Roles Can Also Support Ethical Behavior E. Practical Advice for Managers: Roles

VII. People Do What They are Told

A. The Milgram Experiments B. Obedience to Authority at Work C. Practical Advice for Managers: Obedience to Authority

VIII. Responsibility Is Diffused in Organizations

A. “Don’t Worry – We’re Taking Care of Everything” B. Diffusing Responsibility in Groups C. Diffusing Responsibility by Dividing Responsibility D.