Immoral behavior: signs, causes, types, differences in different countries. Unethical behavior in the investment industry

Unethical behavior means the implementation of a different value system than the prevailing one in society. For example, in a society where the human person is the most important value, it would be unethical to give preference to profit: for example, to dismiss an employee who has been working at the company for a long time, since his work can be performed more efficiently by an automatic machine or a computer. On the contrary, in a group where the leading value is material well-being, such behavior is the only possible and completely ethical.

It is generally accepted to refer to options for unethical behavior: ?

bribes,

extortion?

expensive gifts, ?

payment to the accomplice of a share of illegally obtained money, ?

conflict based on clash of interests, ?

violation of laws?

fraud, ?

disclosure of company secrets, ?

use of information received in confidential conversations from members of "one's own group", ?

illegal payments to political organizations in order to pass a beneficial piece of legislation, ?

falsification of documents

fictitious transactions and operations, ?

inaccurate financial statements, ?

tax evasion?

infliction of moral damage, damage to business reputation, ?

artificial price increase, ?

collusion about prices and/or quantity of products sold, ?

violation of the environment, social standards, ?

misuse of foreign trademarks, false certificates, ?

low quality products, especially in matters of its safety.

More on UNETHICAL BUSINESS CONDUCT.:

Behavior Strategies and Business Conflict Management
CHAPTER 2. BUSINESS CONVERSATION AS THE MAIN FORM OF BUSINESS COMMUNICATION
Business partnership as one of the forms of business activity of entrepreneurs
Shelamova G.M. Culture of business communication in employment: textbook. allowance. - 2nd ied, stor. M. : Publishing Center "Academy". - 04 p. - (Business culture)., 2009

Moral behavior is a set of actions, actions of people that meet the norms of morality, consciousness, order, formed in society, or to which it is directed.

In the process of entrepreneurial and managerial activities, there are cases of deviation from social norms, that is, unethical behavior, it can be due to various factors:

1. competitive struggle;

2. the desire for large profits;

3. inept stimulation of managers for ethical behavior;

4. underestimation of ethical standards in society;

5. an attempt to achieve the goal and realize the mission of the organization at any cost;

6. unethical behavior of partners;

7. conflict, stressful situations In the organisation;

8. poor selection and inept application leadership styles;

9. complex system development and decision-making in the organization.

To provide ethical behavior modern management proposes the following measures:

The introduction of ethical standards that reflect a system of common values, social preferences, rules of conduct for employees of the organization;

Creation of ethics committees;

The use of incentive mechanisms that counteract unethical behavior and actions;

Implementation of social audits to ascertain the impact social factors to the organization;

Organization of training of ethical behavior of managers and all staff:

Constantly informing employees about cases of highly ethical behavior;

Holding meetings, conferences, symposiums, etc. on issues of ethical behavior.

The established norms of morality are the result of a long process of establishing relationships between people. Without observing these norms, political, economic, cultural relations are impossible, because it is impossible to exist without respecting each other, without imposing certain restrictions on oneself.

Faced with the problem of ethical choice, managers, as a rule, rely on a normative point of view, that is, certain norms and values, in accordance with which decisions are made.

In normative ethics, there are several approaches to the description of value systems and, accordingly, the adoption of ethical difficult decisions that can be applied in management practice: utilitarian approach, individualistic approach, moral and legal approach, the concept of justice.

utilitarian approach. The basic principles of the utilitarian approach are based on the fact that moral behavior brings the greatest benefit the greatest number of people. The decision maker must consider the impact of each of his options on all interested parties and choose the option that brings pleasure to the greatest number of people.

Individualistic approach. Assumes that a person's actions that benefit her in the long run are morally acceptable. Home driving force considered self-control, and all outside forces, it is limited, must be suppressed. Each person chooses for himself the most profitable solution in the long run, on the basis of which he judges the quality of his decisions. Individualism is reduced to behavior that is beneficial to other people, that is, a person’s actions begin to correspond to the norms desired by society. One of the peculiarities of this approach is that it presupposes (if necessary) the actions of the individual aimed at acquiring personal short-term benefits, which at once do not correspond to social norms.

Moral-legal approach. The moral-legal approach claims that a person is initially endowed with fundamental rights and freedoms that cannot be violated or limited by the decisions of other people. The following moral rights can be taken into account in the decision-making process:

1. The right to freedom of consent.

2. The right to privacy.

3. The right to freedom of conscience.

4. The right to proper treatment.

5. Right to life and security.

Justice concept. There is distributive justice (equal - equal), procedural justice (compliance with the rules), compensatory justice (compensation for damages).

In the global economy, there are seven main mechanisms by which norms can be put into practice. These include:

1) ethical codes;

2) ethics committees;

3) training;

4) social audits;

5) legal committees;

6) services that consider claims of citizens on ethical issues;

7) changes in the corporate structure.

The most commonly used mechanism is the code of ethics. It is developed by a specially created body - a committee, commission, and the like. About 90% of foreign companies implemented ethical principles with the help of such codes. They can be developed for the company as a whole and contain ethical rules common to all.

In the global economy, many companies are now creating departments or hiring individuals to develop codes of ethics: measures are being taken to familiarize managers with the provisions of these codes; a system of incentives for managers is also being created, provided that they take into account ethical issues when making decisions and that their official behavior complies with the ethical standards recorded in the codes.

When monitoring the official actions of company employees, lie detector tests, drug tests, etc. are used.

More productive, according to the managers of many firms and their owners, is the way of hiring graduates educational institutions, where there was a large and extensive program of training in the basics of ethics. In this case, ethical standards are laid down in the consciousness (and subconsciousness) of the future employee as part of the worldview complex and, one might even say, as unshakable axioms, are not subject to appeal. Then the cumbersome and expensive system of developing company codes, training employees in ethical standards for monitoring compliance with ethical requirements is largely unnecessary.

To reveal the essence of the problem means to carry out its meaningful analysis and understand the system of main contradictions. Identification of the essence of problems requires knowledge of the functional and aggregate structure and values of the parameters of the control object during its normal functioning. “When we formulate problems or discuss them, we always thereby form a certain program and plan of our actions.” We always evaluate and select problems, characterizing some of them as very important and significant, and others as unimportant. In this way we determine and predetermine our future actions.

One of the problems of journalism is the "yellow press" that spoils the reputation of the profession as a whole, but for all this it is one of the most widely read. Then thoughts involuntarily arise that it is not the press that is to blame, but the reader, who himself is ready to pay money for such information, “for each viewer there is an actor, but for the consumer there is a product.” "People have the right to know", but the form in which they find out also has great importance. The problem here is that if you simply state the facts, then the journalist is not visible, but if you embellish the events so much, then there may be nothing left of the fact, but only a distorted fantasy of the journalist. Indeed, the work of a journalist is an act of indirect communication with readers, radio listeners, and TV viewers. This is a communicative act.

Information is an intermediary between a journalist and the audience, it is a tool used by journalists of all ranks. The very essence of journalism lies in the search, collection, processing, interpretation and dissemination of information.

Some actions of journalists violate not only the Code of Professional Ethics, but also laws, so the Komsomolskaya Pravda newspaper published an article entitled “The secret diary of Mikhail Kozakov: I gave my wife Anya everything I earned! And she can't be trusted!" which included excerpts from personal diary artist (Appendix B). This publication violates the twenty-third article of the constitution Russian Federation- "one. Everyone has the right to privacy privacy, personal and family secrets, protection of one's honor and good name. 2. Everyone has the right to privacy of correspondence, telephone conversations, postal, telegraphic and other communications. This right may be restricted only on the basis of judgment", also article twenty-four point one - "The collection, storage, use and dissemination of information about the private life of a person without his consent is not allowed." We conducted a survey (Appendix D, survey No. 1) in which we asked the question “how do you think it is possible to call the behavior of a journalist (s) who published excerpts from the diary of People's Artist of the RSFSR Mikhail Mikhailovich Kozakomva unethical?” 50% of respondents considered the behavior of journalists unethical and illegal, 28.57% considered it unethical, but not breaking the law, and 21.43% of respondents considered the behavior of journalists acceptable.

There are journalists who are happy to try on the role of the arbiter of human destiny, so the journalist Alexander Nikonov, in the program "clinch", radio station "Echo of Moscow", said that "- superfluous people must be killed" An extra person, in his opinion, is one who cannot take care of himself on his own, cannot support himself. The word euthanasia is used to cover up - nevertheless, decency must be observed: murder is bad, and euthanasia is humane. Nikonov lives with the certainty that such things as love and pity do not exist. Or rather, they were just made up. It is impossible to rationally explain pity and love, which means that they do not deserve the right to exist, just like disabled children. Save the sick children of their mother. After all, they are driven by the maternal instinct, and this is unconscious, at the level of instincts, so to speak. So we need to help them realize that they are mistaken. From his point of view, then they will only say thank you.

We conducted a survey (Appendix D, survey No. 2) in which we asked the question “Do you think it is possible to call Alexander Nikonov’s statement “about the use of euthanasia for disabled children immediately after birth” ethical?” and 18.92% considered it ethical, 51.35% considered Nikonov's statement unethical, and 29.73% considered the behavior unethical, but taking place, since every person has the right to express his point of view.

Some journalists do not disdain even to bury living and healthy people in their articles. The news about the death of Jackie Chan became one of the most read on the Internet (Appendix D) On March 28, 2011, in in social networks and Internet news reported that the famous actor Jackie Chan had died. Fans began to express their condolences on Facebook, but it turned out that the actor was alive. Jackie Chan death rumor heart attack was launched through the Twitter microblogging service 10 days before the Actor's 57th birthday.

We conducted a survey (Appendix D, Survey #3) in which we asked the question, "Do you think it was ethical to spread unverified information about the death of Jackie Chan on the Internet?" most of the respondents 85.71% believe that it is not ethical, but there were people who had the opposite opinion, they turned out to be 14.29%. We were also interested in how the artist's fans think who could spread such rumors (Appendix D poll No. 4), according to the survey, it turned out that the majority of respondents 39.28% believe that this could be done by people who wanted to make money on the dissemination of this information or simply to draw attention to themselves, 25% of the respondents considered that these were the artist’s enemies and ill-wishers, and 17.86% each scored the following answers: This is just a thoughtless joke, this could have been done by the artist’s PR people to attract attention to him.

The conducted surveys helped us to find out the attitude of people to this type of information. Most of the respondents, relying on their moral principles, believe that in general, in these situations, journalists acted unethically in relation to the heroes of their articles. But if we imagine that all journalists would act as prescribed in the code of journalists, would this profession be so interesting then? And wouldn't a situation of information hunger arise then? It is wrong to break the boundaries of decency, it is well known, but in our world of double standards there can be no other kind of journalism.

“Ethical behavior is essential for long-term business success,” says Yu.Yu. Petrunin. Business ethics: textbook. allowance / Ed. Yu.Yu. Petrunina, V.K. Borisova - M.: Delo, 2010. - 280s. This statement is true in business relations both at the macro level and at the micro level. The macro level, or macro perspective, takes into account the importance of ethics on the scale of an economic system. Unethical behavior distorts and deforms the market system, which leads to inefficient allocation of resources. The micro level, or micro perspective, looks at the importance of ethics to a single company. In the long run, unethical behavior leads to poor performance. Let's start with a discussion of the macro perspective.

macro perspective

An increasing number of countries rely on the market system as a mechanism for the distribution of goods and services. These countries believe that although the market system is imperfect, it is more efficient and effective tool distribution of national resources than any command system (for example, a command system is economic system in which national resources are distributed by the central government.

In order for the market system to work effectively, several conditions must be met:

- the right to own and manage private property;
- freedom of choice in the acquisition and sale of goods and services;
- Availability of accurate information about goods and services.

Ownership of private property is necessary for an exchange to take place. Freedom of choice in exchange allows competitive forces to regulate the market. Accurate information enables buyers to find the goods and services they need on the market, so they can enjoy freedom of choice. Private property is essential to exchange. The possession of private property involves the protection of this property from exchange without the consent of its owner. For the market system to work, we must have the right private property and our property rights must be respected.

The freedom of choice in the exchange means that you can buy any product you want, as long as you have the money to pay for the purchase. With each purchase, the buyer "votes" with his money. Resources are allocated in favor of goods and services that are in demand among consumers. For example, if you are satisfied with the purchased item, then the distribution was successful. If the acquisition disappointed you, then the market is not working satisfactorily. You received incorrect information and "voted" for a bad product with your purchase.

Problems arise when either buyers or sellers are not free to exchange, or when information about a product or service is incorrect. In such cases, the market system cannot function properly, so people are forced to buy products and services that give them less satisfaction than they could get by purchasing other goods and services. Since the market system allocates resources on the basis of sales volume, the production of those goods and services that provide less satisfaction expands under this distortion, and those that provide more satisfaction contract. Thus, with this allocation of resources, in the case of unethical behavior, overall customer satisfaction is less than what could be achieved with another allocation.

The Consequences of Unethical Behavior in a Macro Perspective

Corrupt practices. Bribery limits freedom of choice by changing the conditions of decision making. A bribe is used to make one of the choices more attractive to the decision maker. The temptation generated by a bribe is that the decision maker can increase his personal benefit associated with the choice through additional unearned income. Although this person ends up benefiting from self-interested decision-making, the choice itself is usually less attractive and overall less satisfying overall. Otherwise, why would you give bribes? Thus, bribes lead to a reallocation of resources in favor of less desirable solutions. Since the bribe giver will certainly reimburse himself for the money spent on the bribe, the final cost of the one chosen by the decision maker alternative is often higher.

Coercive acts that prevent a seller from doing business with certain customers, or from buying goods from certain sellers, or from purchasing certain products or services by buyers. This tends to lead to higher prices and possibly to a reduction in the range and quality of products and/or services available on the market compared to what would be the case with more intense competition. An increase in prices reduces the demand for goods or services. Consequently, fewer resources go into the production of goods or services than would go into unenforced competition. It is possible that customer satisfaction with products and/or services will also decline due to a drop in efficiency.

Misleading. Misleading information creates a false impression, and as a result, buyers choose products and services that bring them less satisfaction than they would if they made their purchases based on accurate information. In addition, false information may result in deliveries being made at times other than those promised. Due to such failures, production cycles are disrupted and, consequently, production costs increase. People have to pay more and buy less than they could with just-in-time deliveries. False promises to deliver goods to consumers can also increase costs. Information that does not correspond to reality leads to the unjustified expenditure of funds that could be spent on other purposes. Delivering products and services other than what was promised also distorts the system. In this case, resources are directed to the delivered products and services, and not to those goods and services that are in real demand.

Theft. Theft significantly increases the cost of providing products and/or services. The damage caused by theft must be made up for by increased income, which drives up prices. Artificially high prices due to theft reduce demand, and the result is a misallocation of resources. In extreme cases, theft can cause the stolen products or services to simply disappear from the market.

Unfair discrimination. Finally, as a result of unfair discrimination, consumers often purchase products or services from less competent professionals or value products and services of those firms against which discrimination is carried out. We are once again witnessing the misallocation of resources. Unfair discrimination generally results in a lower level of satisfaction than would be the case with fair discrimination.

Restrictions on freedom of action in the form of bribery, coercion, misrepresentation and unfair discrimination can generate inaccurate or false information. The latter, in turn, causes suboptimal shifts in prices, sales of goods and provision of services. Theft can lead to the collapse of the market and, at best, to an artificial increase in prices. The choice of goods and services that consumers make does not reflect the free choice of buyers and sellers and leads to a misallocation of the resources available in the country. Restrictions on freedom, misinformation and theft are associated with unethical behaviour. Thus, from a macro perspective, ethical behavior is a sine qua non for the efficient functioning of a market system.

Micro Perspective: Ethics and Trust

Ethics, viewed from the perspective of a single company, is closely related to trust. To establish trust, behavior must be ethical. While ethical behavior alone is not enough to gain trust, it is nonetheless necessary. The volume of literature on the importance of trust in business relationships is constantly growing. If trust is important, and ethical behavior is essential to earning trust, then ethics is just as important as trust. Ethical behavior is an essential component of building and maintaining trust.

Bernard Barber argues that there are two types of trust: "trust as an expectation of technically competent performance and trust as an expectation of fiduciary responsibility". Business conversation/ Under the editorship of N.M. Gromova - M.: Economist, 2005. - 134p. People who are hired are expected to be competent. If these people deal with outside contractors, they also represent the interests of the enterprise. For example, business relationships are established by relying on a word, a handshake, or relying on the honesty and decency of the other party. Trust in the context of business increases its efficiency, reduces costs and makes life more enjoyable.

In business practice, two norms are widely accepted.

1. Obligations must be fulfilled in all situations; a business man cannot help but keep his word.
2. A person (or company) is obliged to produce a good product and guarantee the quality of his product.

One can agree with Fritzsche, who believes that "trust is made up of three fundamental elements: predictability, reliability and faith." Ethics and culture of management: educational and practical. Benefit / Under. ed.V.K. Belolipetsky, L.G. Pavlov - M .: March, 2008. - 384 p. Predictability tends to eliminate surprises that are usually not welcome in the business environment. Reliability provides a guarantee that a person will act as expected of him. Faith in this case means confidence that a person will continue to be predictable and reliable. The need for trust arises when you face this or that risk. Trust in a person or company develops based on experience gained over time.

Trust in relationships with suppliers. Exchange relationships are based on the confidence of both parties that each of them will fulfill its obligations and thereby minimize surprises. Mutual trust promotes cooperation.

Trust in relationships with clients. The contact between the supplier and the customer is realized through the sales staff and the sales department. Customers trust sellers who deliver goods and services of acceptable quality within the promised time frame. Maintaining trust requires honesty and competence (in learning about new and existing products and services).

Trust in relationships with employees. The atmosphere of trust ensures better information exchange, greater predictability, greater reliability and mutual understanding of employees; contributes to openness and willingness to listen and accept criticism without prejudice, to reduce staff turnover, as well as to reduce tension between employees. J.Mishra and M.Morrissey name the following trust-building factors: open exchange of information; empowering workers with greater participation in decision-making; exchange of key information; genuine exchange of opinions and feelings. Botavina R.N. Ethics of business relations / R.N. Botavina. - M.: Finance and statistics, 2009. - 208 p.

These findings are consistent with a study conducted at GM facilities that identified five factors that appear to be indicators of employee trust. These factors are: the perception of open and honest communication at the top and bottom levels of the organizational ladder; fair and correct treatment of groups of employees; commonality of goals and values shared by ordinary employees and managers; lack of close, petty supervision as a sign of personal trust in employees; feedback between managers and ordinary employees on the performance of employees and their responsibilities.

Confidence - important element the process of empowering employees with power, or subjectivity. J. Conger and R. Kanungo define this process as “intensification of feelings self-importance members of the organization." Alekhina I. Image and etiquette in business. - M., 2008 This process goes through the identification of conditions that contribute to impotence, and the elimination of these conditions by formal organizational procedures and informal methods of providing meaningful information. A sense of self-importance is a person's confidence that he has sufficient authority to influence something. Management methods and strategies that enhance employees' sense of self-worth include participation in management, setting goals, developing a feedback system, and enriching production tasks.

Send your good work in the knowledge base is simple. Use the form below

Students, graduate students, young scientists who use the knowledge base in their studies and work will be very grateful to you.

Immoral behavior: signs, causes, types, differences in different countries. Unethical behavior in the investment industry

More on UNETHICAL BUSINESS CONDUCT.:

Send your good work in the knowledge base is simple. Use the form below

Similar Documents