This document discusses managerial ethics and corporate social responsibility. It examines issues of ethics, defines key terms like morals and ethics, and assesses an organization's role in the social community. It discusses ethical behavior and dilemmas managers may face. It also covers maintaining high ethical standards through training, codes of ethics, and leadership. Finally, it addresses corporate social responsibility and the obligations organizations have to stakeholders and society.
This document discusses managerial ethics and corporate social responsibility. It examines issues of ethics, defines key terms like morals and ethics, and assesses an organization's role in the social community. It discusses ethical behavior and dilemmas managers may face. It also covers maintaining high ethical standards through training, codes of ethics, and leadership. Finally, it addresses corporate social responsibility and the obligations organizations have to stakeholders and society.
This document discusses managerial ethics and corporate social responsibility. It examines issues of ethics, defines key terms like morals and ethics, and assesses an organization's role in the social community. It discusses ethical behavior and dilemmas managers may face. It also covers maintaining high ethical standards through training, codes of ethics, and leadership. Finally, it addresses corporate social responsibility and the obligations organizations have to stakeholders and society.
This document discusses managerial ethics and corporate social responsibility. It examines issues of ethics, defines key terms like morals and ethics, and assesses an organization's role in the social community. It discusses ethical behavior and dilemmas managers may face. It also covers maintaining high ethical standards through training, codes of ethics, and leadership. Finally, it addresses corporate social responsibility and the obligations organizations have to stakeholders and society.
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Managing with Ethics and
Social Responsibility We Will
Examine the issues of managerial
ethics and corporate social responsibility;
Define the terms....look at the ways of
thinking about ethical behavior; and
Asses the role of the organization as a
member of the broader social community.
What is Ethical Behavior?
MORALS Doctrine of Conduct relating to, dealing with, or capable of making the distinction between right and wrong in conduct or character.
ETHICS
The system or Code of Morals of a
particular person, religion, group, or profession. 2
Being Ethical is:
Conforming to Moral Standards; conforming to the standards of conduct of a given group or profession.
Ethical Behavior is:
Doing what is accepted as "good" and
"right" as opposed to "bad" and "wrong" in the context of the governing Moral Code. Ethical Behavior=Legal Behavior +"something else" 3
Context of the Governing
Moral Code
Refers to the group,
organization, or broader societal venue within which the prevailing norms and values underlying a governing moral code are established. 4
Laws, Values, and Ethical
Behavior Any behavior considered Ethical should also be legal in a just and fair society. However Legal behavior is not necessarily ethical behavior. 5
Four Views of Ethical
Behavior
Utilitarian View Where moral behavior is that which delivers the greatest good to the greatest number of people.
Individualism View
Where moral behavior is that
which is best for long-term selfinterest. 6
Moral-Rights View Where moral behavior is that which respects fundamental rights shared by all human beings.
Justice View Where moral behavior is that which is impartial, fair, and equitable in treating people. (Procedural and Distributive Justice) 7
Managerial Ethics
Principles that guide the
actions and decisions of
managers, and determine if they are good or bad, or right or wrong.
Ethical Dilemmas An ethical dilemma occurs when
someone must decide whether or
not to pursue a course of action that, although offering the potential of personal or organizational benefit or both, may be considered potentially unethical.
Most ethical dilemmas involve
conflicts with superiors, customers,
and subordinates. 9
Most Common Unethical
Requests From the Boss
Supporting Incorrect Viewpoints
Signing False Documents Overlooking Bosss Wrongdoing Doing Business with Bosss Friend
10
Rationalizations for Unethical Behavior
Convincing yourself that the behavior
is not really illegal.
Convincing yourself that the behavior
is in everyone's best interest.
Convincing yourself that nobody
will ever know what youve done.
Convincing yourself that the
organization will protect you.
11
Factors Affecting Managerial
Ethics
The Manager as a Person
Family influences Religious values Personal standards, and needs
The Employing Organization
Policies, codes of conduct Behavior of supervisors Behavior of peers 12
Factors Affecting Managerial
Ethics
The External Environment
Government regulations Norms and values of society Ethical climate of the industry
13
Maintaining High Ethical
Standards
ETHICAL TRAINING It is not about teaching people right from wrong...we assume they know that, and, It is not about giving people the moral courage to do what is right...they should be able to do that anyhow.
Ethical Training is about dealing with dilemmas 14
A Checklist for Making
Ethical Decisions Recognize the ethical dilemma Get the facts Identify your options Test each option Is it legal? beneficial?
Is it right?
Is it
Decide which option to follow
your decision by Double-check asking:"How will I feel if my family finds out about my decision? Take action
15
Whistleblower Protection Laws vary from state to state, and federal laws protect mainly government workers.
Where legal protection exists
whistleblowers face a number of
barriers that can make it hard for them to expose unethical behavior in the workplace. 16
Top Management Support
Top management set the Ethical Tone
for the
organization as a whole.
Top managers have the power to
shape an organization's policies and
set its moral tone as well.
Top managers can and should serve
as models of appropriate ethical
behavior for the entire workforce.
17
Top Management Support
Supervisors must be
careful not to unwittingly
encourage unethical behavior by exerting too much pressure for the accomplishment of difficult goals. 18
Formal Code of Ethics
Written and official guidelines on how to behave in situations prone to create ethical dilemmas. Areas often addressed in written codes of ethics:
Workforce Diversity Bribes and Kickbacks Conflicts of Interest Political Contributions Customer and Supplier Relations Misappropriation of Corporate Assets
19
Corporate Social Responsibility
An obligation of the organization
to act in ways that serve both its
own interests and the interests of its many external publics.
These publics are considered
STAKEHOLDERS, the persons and
groups who are affected in one way or another by the behavior of an organization. 20
Classical View Holds that managements only responsibility is running a business to maximize profits.
Socio-Economic View Holds that any organization must be concerned about the broader social welfare. 22
The Classical View
Against Social Responsibility
Reduced business profits
Higher business costs Dilution of business purpose Too much social power for
businesses Lack of business accountability to the public 23
The Socio-Economic View
For Social Responsibility
Long-run profits for businesses.
Public expectations support business social responsibility.
Better public image for businesses.
Businesses may avoid more regulation. Businesses have the resources. Businesses have the ethical obligation. The public wants it. 24
Evaluation of Corporate Social Performance There are many action domains in which social responsibility can be pursued by business firms and other types of organizations. They include: Concerns for Ecology and Environmental Quality. Truth-in-Lending and Consumer Protection 25
Evaluation of Corporate Social Performance Aid-to-Education and Service to Community Employment Practices Affecting Minorities Progressive Labor Relations Employee Assistance General Corporate Philanthropy 26
Criteria for Evaluating
Corporate Social Performance
Economic Responsibility
Is fulfilled when it earns a profit
through the provision of goods and services desired by the public.
Legal Responsibility
Is fulfilled when an organization
operates within the law and according to the requirements of various external regulations. 27
Ethical Responsibility Is met when its actions voluntarily conform not only to legal expectations, but also to the broader values and moral expectations of society.
Discretionary Responsibility Is met when the organization voluntarily moves beyond basic economic, legal, and ethical expectations to provide leadership in advancing the well-being of individuals, communities, and society as a whole. 28
A Continuum of Social Responsibility Strategies
Obstruction
Fight social demands
Defensive
Do the minimum legally required
Accommodation
Do the minimum ethically required
Proactive
Take leadership in social initiatives
29
Government Regulation of Business
Health and Safety
Fair Labor Practices Consumer Protection Environmental Protection FAA EPA OSHA ICC FDA EEOC OFCCP NLRB SEC (To name a few) 30
