Stages of moral
development are stages through which individuals evolve, ranging from the lowest stage
(obedience and punishment orientation) to the highest stage (universal ethical principles). These
personal phases of moral development focus on the ethical reasoning
used to justify choices in decision situations. The higher stage of moral development is used by some as an
indicator of moral intelligence—the mental capacity to determine
how universal ethical principles that cut across the globe should be applied to personal
values, goals, and actions.
Ethical misconduct in the workplace continues to be demonstrated by
some individuals from the top through the lowest levels of the organization. The creation
of a strong ethical culture by leaders makes a major difference in the frequency and severity of ethical misconduct. Severity
of misconduct is illustrated through the six factors that comprise ethical intensity—the
degree of moral importance given to an issue. Numerous principles and rules have been suggested to provide an ethical justification for a
person’s and organization’s decisions and actions. We highlighted three self-serving
principles, three balancing interests principles, and three concern-for-others
principles. The complexity of applying these principles and rules is often played out in
decision-making situations in which the parties assess their relative concern for the affected
individuals, the benefits and costs of alternative courses of action, and determination of who has what rights. The parties’ satisfaction with how these thorny
ethical issues are resolved depends somewhat on the presence of procedural justice—the
perceived fairness of the rules and guidelines used to make decisions—and
interactional justice.
Diversity must be accompanied by an ethical foundation to be
meaningful. The implementation of diversity initiatives is typically anchored in
one or more of the balancing interests principles and concern-for-others principles. Positive
diversity is very much influenced by the presence of an ethical culture. We reviewed a
profile of organizational characteristics that foster an effective diversity environment. We
reviewed the four broad categories of generation diversity and how each of these
generations tends to view the ethical standards of those in their own generation and those in
other generations. Harassment and sexual harassment, in particular, was discussed as
an ongoing challenge in organizations. The legal, ethical, preventive, and corrective
dimensions of sexual harassment were reviewed.
Stakeholder responsibility holds that leaders and other employees
have obligations to identifiable groups that are affected by or can affect the
achievement of an organization’s goals. Various stakeholder groups use various ethical principles as
a basis for justifying stakeholder responsibility. Each stakeholder group
typically has somewhat different expectations of the organization. Leaders of
organizations are increasingly challenged by stakeholder pressures,
each with its own configuration of ethical justifications, to
make decisions and pursue goals consistent with its own interests. Sustainable
development was presented as a domain with ethical underpinnings and one in which stakeholders
may find common grounds for action. Leading for-profit organizations are
increasingly embracing the need to accept and assess responsibility to multiple
stakeholders—not just their shareholders. However, shareholders continue to be the dominant stakeholder
group for top executives. Effective means of accepting
responsibility to stakeholders include indicators of (1) disclosure, (2) communication and
engagement, (3) proactive management, and (4) creating long-term shareholder value.
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