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Organizational Behavior

Cavanagh, Moberg, and Velasquez argue that organizational governance should have an ethical base.23 They suggest that from the CEO to the lowest employee, a person’s behavior must satisfy the following criteria to be considered ethical. First, the behavior must result in optimizing the satisfaction of people both inside and outside the organization to produce the greatest good for the greatest number of people. Second, the behavior must respect the rights of all affected parties, including the human rights of free consent, free speech, freedom of conscience, privacy, and due process. Third, the behavior must respect the rules of justice by treating people equitably and fairly, as opposed to arbitrarily.
There may be times when a behavior is unable to fulfill these criteria but can still be considered ethical in the given situation. This special case must satisfy the criterion of overwhelming factors, in which the special nature of the situation results in (1) conflicts among criteria (e.g., a behavior results in some good and some bad being done), (2) conflicts within criteria (e.g., a behavior uses questionable means to achieve a positive end), or (3) incapacity to employ the criteria (e.g., a person’s behavior is based on inaccurate or incomplete information).
Choosing to be ethical often involves considerable personal sacrifice, and, at all corporate levels, it involves avoiding common rationalizations. CEOs and employees alike may justify unethical actions by suggesting that (1) the behavior is not really illegal and so could be moral; (2) the action appears to be in the firm’s best interests; (3) the action is unlikely ever to be detected; and (4) it appears that the action demonstrates loyalty to the boss, the firm, or short-term stockholder interests. Whereas these rationalizations may appear compelling at the moment of action, each deserves close scrutiny if the firm’s organizational governance system

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