1、123Outlines Three typesthe malignancies Organizational DishonestyvAn organization that regularly teaches,encourages,condones or allows the use of dishonest tactics in its external dealings(that is,reward customers,clients,stockholders,suppliers,distributors,regulators and so on)will experience a set
2、 of internal consequences.v“The businessman who straddles a fine line between what is right and what is expedient should remember that it takes years to build a good business reputation,but one false move can destroy that reputation overnight.”Edson.W.SpencerFormer Chairman of Honeywell Inc.Organiza
3、tional Dishonesty1 of respondents stated that their perception of the ethicality of a particular companys business practices has had a direct effect on their decisions to purchase goods or services from that firmsReputation Degradation of the respondents asserted that their perceptions of the honest
4、y of a corporations behavior had also influenced their decisions about whether to buy that companys stockReputation DegradationvCompanies that are perceived to be corrupt will find it much more difficult,if not impossible,to shed themselves of that stigma.vDishonesty is a trait that,when discovered
5、in one branch of a company,is immediately perceived to be underlying the behaviors across other domains.Reputation DegradationReputation Degradationv Research suggests that a disreputable company attempting to recover lost trust needs to demonstrate newfound integrity consistently on numerous occasi
6、ons to stand even a chance of convincing wary others that it has changed for the better.v To speed its rehabilitation,a company may need to replace top management quickly in an effort to convince others of its sincerity and eagerness to attack the root cause of the dishonesty.2Organizational Dishone
7、sty Mismatch with employee valuesvCorporate expenditures on illness and absenteeism amount to far more than the costs of“get well”cards and Mylar balloons.Mismatch with employee valuesvTraditional studies on the relationship between job satisfaction and productivity suggested only a weak connection
8、between the two.vSubsequent research has qualified this finding.The correlation rather weak only for workers with low skill levels.For employees who are highly skilled,those who were satisfied with their jobs outperformed those who were not by a margin of Mismatch with employee valuesv When moral em
9、ployees are required to engage in immoral behaviors,the productivity of the most competent and proficient workers will suffer most.v This outcome should be extremely troubling to many organizations for two reasons.Mismatch with employee valuesvResearch has shown that workers who do not share the val
10、ues of their organizations tend to be less satisfied with their jobs,less committed to their organizations and significantly more likely to quit.vMoreover,policies that promote dishonest business practices are likely to drive the most productive workers into the offices of more honest competitors.Or
11、ganizational Dishonesty2v In a recent survey,of respondents said that their perceptions of a companys integrity would influence their decision about accepting a job there.Match with employee valuesvIf workers are cheating customers and others outside the company,why shouldnt they also be bilking the
12、ir employer?v“I was constantly on guard to what I was supposed to tell them，”says the former employee.“I felt dishonest.”Later,the employee found herself regularly cheating on her travel expenses.Match with employee values Match with employee values as widespread as consumer fraudTheft of company as
13、sets has more than U.S.companies lose roughly dollars a year to internal fraudNearly of all business losses in the U.S.were the result of internal larcenyExpense account abuse has nearly Fraud through collusion between employees and third parties is (Mis)match with employee values(Mis)match with emp
14、loyee valuesv In response to this growing problem,many organizations have overlooked any role that their own dishonest policies and practices might have played.v They have focused on the symptoms of the problem,implementing a host of specific preemptive and reactive measures.v The unintended consequ
15、ences of such countermeasures can sometimes be nearly as deleterious as the problems they are aimed at solving in the first place.Organizational Dishonesty3 Increased Surveillancev Mental health problems.High levels of tension Severe anxiety and depressionv Physical disorders.Carpal tunnel syndromeP
16、sychological&Physical vWorkers perceive theorganization doesnt trust them.Increased SurveillanceAtmosphere of antagonism between employees and management.vWorkers feel insulted that their integrity is being questioned.More likely to quit or retaliate with a variety of counterproductive behaviors.Inc
17、reased SurveillancevPeople who feel that their sense of freedom is being threatened will often try to reassert some control over their environment Increased SurveillancevAnother potential consequence of surveillance equipment is that many employees might come to believe that the systems are warrante
18、d even when theyre not.Honest and dishonest workers alike might assume that the monitoring must reflect both the corrupt dispositions of fellow employees and the large rewards of cheating.Increased SurveillancevSurveillance technology can also undermine employee behavior in subtler ways.Spur supervi
19、sors to find more effective(and more expensive)control systemsvManagement can also begin to overestimate the power of surveillance systems.Increased SurveillanceLead to greater expenditures to purchase even more sophisticated systemsvAfter these systems are in place,management may come to see them a
20、s more effective and more vital than they truly areexplain why internal controls continue to rise in popularity in corporate America despite the dramatic increases in supervisors workloads when new systems are first establishedIncreased Surveillance The Consequences of Organizational Dishonesty(Text
21、 2)Ethical Dilemmas in Businessv Unethical Behavior ruins reputations,harms employee morale,and increases regulatory costs not to mention damages societys trust in business.Yet corporate scandals are a recurring reality.v Compliance programs take a legalistic approach to ethics that focuses on indiv
22、idual accountability but recurring scandals show that we could do better.Ethical Dilemmas in Businessv Organizational ethics matter significantly to most employees and mangers,and that people want to work for employers whose values and principles are aligned with their own.v A link between ethical l
23、eadership and task performance,organizational citizenship,and other productive work behaviors.Ethical Dilemmas in BusinessSubsequent survey with employees atva.a national government departmentvb.a nationwide retailervc.a nonprofitvd.a country-level police forceve.a construction companyas qualified t
24、he finding Ethical tone of an organization is the cumulative outcome of how its members address daily ethical dilemmas as they go about their work Ethical Dilemmas in Business Ethical Dilemmas in BusinessPeople want to fit in at work but its not just a fit with the requirement of the job or even a f
25、it with the organizations culture that matters.Every organization has a range of stakeholders affected by its decisions,including employees,suppliers,clients,senior managers,the local community,wider society,and even the environment.Ethical Dilemmas in Businesswhether or not people challenge unethic
26、al behavior depends on the nature of the infraction,the setting within which it takes place,the seniority and roles of those involved,and the potential risks of challenging the behavior.What if the ethical solution to a problem is not the expedient solution often because there arent enough hours,dol
27、lars,or people to make the ethical solution happen.Ethical Dilemmas in BusinessvLeaders must design workplace contexts that encourage good behavior.Keeping prosocial values top of mind for employees as they make decisions will reduce the likelihood of transgressions while making workers happier and
28、more productive.Ethical Dilemmas in Business Ethical Dilemmas in BusinessHIRINGEVALUATIONCOMPENSATIONPutting Ethical Design into Practice HIRINGHighlighting values in the interview revels their importance to the organization.EVALUATIONEthics can also be woven into the design of performance evaluatio
29、ns to highlight their importance to an organization as well as to reward and encourage good behavior.COMPENSATIONMaking use of executive scorecard to tie compensation to the core values,highlighting how well core ethical values align with business success.Referencev Nicholas Epley,Amit Kumar,“How to design an ethical organization”Harvard Business Review June Issue 2019:92-98
