Management 11e John Schermerhorn

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Management 11e John Schermerhorn

• Chapter 3
• Ethics and Social Responsibility

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Planning Ahead Chapter 3 Study Questions

1. What is ethical behavior?
2. How do ethical dilemmas complicate the workplace?
3. How can high ethical standards be maintained?
4. What is social responsibility and governance?

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Study Question 1 What is ethical behavior?

• Ethics
• Code of moral principles.
• Set standards of good or bad or right or
  wrong in ones conduct.
• Ethical behavior
• What is accepted as good and right in the context
  of the governing moral code.

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Study Question 1 What is ethical behavior?

• Law, values, and ethical behavior
• Values - underlying beliefs and attitudes that
  help determine individual behavior
• Terminal values - preferences about desired ends
• Instrumental values preferences regarding the
  means to desired ends
• Legal behavior is not necessarily ethical
  behavior.
• Personal values help determine individual
  ethical behavior.

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Study Question 1 What is ethical behavior?

• Alternative ethical views
• Utilitarian
• Delivers the greatest good to the most people
• Individualism
• Advances long-term self-interests
• Moral rights
• Maintains fundamental rights of all human beings
• Justice view of ethics
• fair and impartial treatment of people according
  to legal rules and standards
• Procedural justice policies and rules fairly
  applied
• Distributive justice equal treatment for all
  people
• Interactional justice people treated with
  dignity and respect
• Commutative justice fairness to all involved

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Four views of ethical behavior
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Study Question 1 What is ethical behavior?

• Cultural issues in ethical behavior
• Cultural relativism
• Ethical behavior is always determined by cultural
  context.
• Universalism
• Behavior unacceptable in ones home environment
  should not be acceptable anywhere else.
• Ethical imperialism
• Imposing ones ethical standards on others.

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The extremes of cultural relativism and ethical
imperialism in international business ethics.
Source Developed from Thomas Donaldson, Values
in Tension Ethics Away from Home, Harvard
Business Review, vol. 74 (September-October
1996), pp. 48-62.
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Study Question 1 What is ethical behavior?

• Sources of information on ethical behavior
• Institute for Global Ethics at www.globalethics.or
  g and on Facebook at http//www.facebook.com/pages
  /Rockland-ME/Institute-for-Global-Ethics/515857837
  48?refts
• Ethics Resource Center at www.ethics.org

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Study Question 2 How do ethical dilemmas
complicate the workplace?

• An ethical dilemma
• occurs when choices, although having potential
  for personal and/or organizational benefit, may
  be considered unethical.
• Ethical dilemmas include

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Checklist for ethical dilemmas
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Study Question 2 How do ethical dilemmas
complicate the workplace?

• Influences on Ethical Decision Making
• Ethical framework
• Provides personal rules or strategies for ethical
  decision making
• Includes personal values
• Honesty
• Fairness
• Integrity
• Self-respect

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Kohlbergs stages of individual moral development
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Study Question 2 How do ethical dilemmas
complicate the workplace?

• Situational Context and Ethics Intensity
• Will the situation pose an important ethic
  challenge?
• Magnitude of the situation
• Risk of immediate harm
• Proximity and concentration of harm
• Social consensus
• Organizational Culture Influence
• What is considered ethical behavior within the
  organizational context?
• What are the expectations of management?
• What are the expectations of co-workers?
• Is there a code of ethics?

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Study Question 2 How do ethical dilemmas
complicate the workplace?
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Study Question 2 How do ethical dilemmas
complicate the workplace?

• External environment

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Study Question 2 How do ethical dilemmas
complicate the workplace?

• Ethical behavior can be rationalized by
  convincing yourself that

Management 11e Management 11e/ Chapter 3
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Study Question 3 How can high ethical standards
be maintained?

• Ethics training
• Structured programs that help participants to
  understand ethical aspects of decision making.
• Helps people incorporate high ethical standards
  into daily life.
• Helps people deal with ethical issues under
  pressure.
• Codes of Ethical Conduct
• Formal statement of an organizations values and
  ethical principles regarding how to behave in
  situations susceptible to the creation of ethical
  dilemmas

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Study Question 3 How can high ethical standards
be maintained?

• Moral Management
• Managers behave in one of three ways

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How can high ethical standards be maintained?
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Study Question 3 How can high ethical standards
be maintained?

• Areas often covered by codes of ethics

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Study Question 3 How can high ethical standards
be maintained?

• Whistleblowers
• Expose misdeeds of others to
• Preserve ethical standards
• Protect against wasteful, harmful, or illegal
  acts
• Laws protecting whistleblowers vary
• Barriers to whistleblowing include
• Strict chain of command
• Strong work group identities
• Ambiguous priorities
• Organizational methods for overcoming
  whistleblowing barriers
• Ethics staff units who serve as ethics advocates
• Moral quality circles

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Study Question 3 How can high ethical standards
be maintained?

• Social entrepreneurship
• a unique form of entrepreneurship that seeks
  novel ways to solve pressing social problems at
  home and abroad
• Housing and job training for homeless
• Bringing technology to poor families
• Improving literacy among disadvantaged youth
• Offering small loans to start minority-owned
  businesses
• Corporate social responsibility and governance
• Looks at ethical issues on the organization
  level.
• Obligates organizations to act in ways that
  serve both its own interests and the interests
  of society at large

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Study Question 4 What is social responsibility
and corporate governance?

• Stakeholder Management
• Stakeholders
• persons, groups, and other organizations
  directly affected by the behavior of the
  organization and holding a stake in its
  performance.
• Perspectives on social responsibility
• Classical view
• Managements only responsibility is to maximize
  profits.
• Socioeconomic view
• Management must be concerned for the broader
  social welfare, not just profits.

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Study Question 4 What is social responsibility
and corporate governance?

• Typical organizational stakeholders

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Study Question 4 What is social responsibility
and governance?
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Criteria for evaluating corporate social
performance.
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Study Question 4 What is social responsibility
and corporate governance?

• Strategies for pursuing social responsibility

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Four strategies of corporate social
responsibilityfrom obstructionist to proactive
behavior.
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Study Question 4 What is social responsibility
and governance?

• Corporate governance
• The oversight of the top management of an
  organization by a board of directors.
• Corporate governance involves
• Hiring, firing, and compensating the CEO.
• Assessing strategy.
• Verifying financial records.
• How government influences organizations
• Common areas of government regulation of business
  affairs
• Occupational safety and health
• Fair labor practices
• Consumer protection
• Environmental protection

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Chapter 3 Case

• Patagonia Turning a profit without losing your
  soul