Lecture on Workplace Deviance and Ethics

Introduction to Workplace Deviance

• Definition: Unethical behavior violating organizational norms about right and wrong.
• Statistics:
  • 22% of employees pressured to commit unethical acts.
  • 33% observed unethical behavior.
  • 59% of observed unethical behavior reported.
  • 36% of those reporting faced retaliation.
• Financial Impact: Costs companies up to $3.7 trillion annually, about 5% of revenues.

Categories of Workplace Deviance

1. Production Deviance

   • Hurts work quantity/quality.
   • Examples: Leaving early, long breaks, working slower.

2. Property Deviance

   • Targets company property/products.
   • Examples: Sabotage, theft, damaging equipment.
   • Employee Shrinkage: Accounts for 43% of US retail theft, costing $18 billion annually.

3. Political Deviance

   • Uses influence to harm others.
   • Examples: Favoritism, rumors, blame-shifting.

4. Personal Aggression

   • Hostile behavior towards others.
   • Examples: Harassment, verbal abuse, workplace violence.

Ethical Decision-Making

• Ethical Intensity Factors:
  1. Magnitude of Consequences
  2. Social Consensus
  3. Probability of Effect
  4. Temporal Immediacy
  5. Proximity of Effect
  6. Concentration of Effect
• Kohlberg's Moral Development Stages:
  1. Preconventional: Selfish reasons.
  2. Conventional: Societal expectations.
  3. Postconventional: Internal ethical principles.

Ethical Principles

• Long-Term Self-Interest: Actions should benefit long-term.
• Religious Injunctions: Actions should not harm community.
• Government Requirements: Follow the law as the minimum standard.
• Individual Rights: Don’t infringe on agreed-upon rights.
• Personal Virtue: Actions should be honest and truthful.
• Distributive Justice: Protects the least fortunate.
• Utilitarian Benefits: Maximum good for society.

Enhancing Ethical Decision-Making

• Hiring Honest Employees: Use integrity tests.
• Code of Ethics: Must be communicated and practical.
• Ethics Training: Increases awareness, credibility, and provides decision-making models.

Creating an Ethical Climate

• Managers must act ethically and be committed.
• Establish a reporting system for ethics violations.
• Consistent punishment for violations.

Social Responsibility

• Shareholder vs. Stakeholder Model:

  • Shareholder Model: Focus on maximizing profits.
  • Stakeholder Model: Balance interests of multiple stakeholders.

• Corporate Responsibilities:

  1. Economic: Profit-making.
  2. Legal: Obeying laws.
  3. Ethical: Beyond economic and legal.
  4. Discretionary: Voluntary societal roles.

• Response Strategies: Reactive, Defensive, Accommodative, Proactive.

  • Reactive: Do less than expected.
  • Defensive: Admit but do minimum.
  • Accommodative: Accept responsibility and act.
  • Proactive: Anticipate and lead industry efforts.

• Conclusion: Ethical and social responsibilities are integral for organizational success and sustainability.