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Management 11e John Schermerhorn

Management 11e John Schermerhorn

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Management 11e John Schermerhorn

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  1. Management11e John Schermerhorn Chapter 3 Ethics and Social Responsibility

  2. Planning Ahead — Chapter 3 Study Questions • What is ethical behavior? • How do ethical dilemmas complicate the workplace? • How can high ethical standards be maintained? • What is social responsibility and governance?

  3. Study Question 1: What is ethical behavior? • Ethics • Code of moral principles. • Set standards of “good” or “bad” or “right” or “wrong” in one’s conduct. • Ethical behavior • What is accepted as good and right in the context of the governing moral code.

  4. Study Question 1: What is ethical behavior? • Law, values, and ethical behavior: • Legal behavior is not necessarily ethical behavior. • Personal values help determine individual ethical behavior.

  5. 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

  6. 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

  7. Study Question 1: What is ethical behavior? • 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

  8. Four views of ethical behavior Management 11e/ Chapter 3

  9. 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 one’s home environment should not be acceptable anywhere else. • Ethical imperialism • Imposing one’s ethical standards on others. Management 11e/ Chapter 3

  10. 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. Management 11e/ Chapter 3

  11. Study Question 1: What is ethical behavior? • Sources of information on ethical behavior: • Institute for Global Ethics at www.globalethics.org and on Facebook at http://www.facebook.com/pages/Rockland-ME/Institute-for-Global-Ethics/51585783748?ref=ts • Ethics Resource Center at www.ethics.org Management 11e/ Chapter 3

  12. 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. Management 11e/ Chapter 3

  13. Study Question 2: How do ethical dilemmas complicate the workplace? • Ethical dilemmas include: Management 11e/ Chapter 3

  14. Checklist for ethical dilemmas Management 11e/ Chapter 3

  15. 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 Management 11e/ Chapter 3

  16. Kohlberg’s stages of individual moral development Management 11e/ Chapter 3

  17. 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 Management 11e/ Chapter 3

  18. Study Question 2: How do ethical dilemmas complicate the workplace? • 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? Management 11e/ Chapter 3

  19. Study Question 2: How do ethical dilemmas complicate the workplace? • External environment Management 11e/ Chapter 3

  20. 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

  21. 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. Management 11e/ Chapter 3

  22. Study Question 3: How can high ethical standards be maintained? • Codes of Ethical Conduct • Formal statement of an organization’s values and ethical principles regarding how to behave in situations susceptible to the creation of ethical dilemmas Management 11e/ Chapter 3

  23. Study Question 3: How can high ethical standards be maintained? • Moral Management • Managers behave in one of three ways Management 11e/ Chapter 3

  24. How can high ethical standards be maintained?

  25. Study Question 3: How can high ethical standards be maintained? • Areas often covered by codes of ethics: Management 11e/ Chapter 3

  26. 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 Management 11e/ Chapter 3

  27. Study Question 3: How can high ethical standards be maintained? • Barriers to whistleblowing include: • Strict chain of command • Strong work group identities • Ambiguous priorities Management 11e/ Chapter 3

  28. Study Question 3: How can high ethical standards be maintained? • Organizational methods for overcoming whistleblowing barriers: • Ethics staff units who serve as ethics advocates • Moral quality circles Management 11e/ Chapter 3

  29. 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 Management 11e/ Chapter 3

  30. Study Question 4: What is social responsibility and corporate governance? • 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. Management 11e/ Chapter 3

  31. 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. Management 11e/ Chapter 3

  32. Study Question 4: What is social responsibility and corporate governance? • Typical organizational stakeholders Management 11e/ Chapter 3

  33. Study Question 4: What is social responsibility and corporate governance? • Perspectives on social responsibility: • Classical view • Management’s only responsibility is to maximize profits. • Socioeconomic view • Management must be concerned for the broader social welfare, not just profits. Management 11e/ Chapter 3

  34. Study Question 4: What is social responsibility and governance? Management 11e/ Chapter 3

  35. Criteria for evaluating corporate social performance. Management 11e/ Chapter 3

  36. Study Question 4: What is social responsibility and corporate governance? • Strategies for pursuing social responsibility: Management 11e/ Chapter 3

  37. Four strategies of corporate social responsibility—from obstructionist to proactive behavior. Management 11e/ Chapter 3

  38. 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. Management 11e/ Chapter 3

  39. Study Question 4: What is social responsibility and governance? • How government influences organizations: • Common areas of government regulation of business affairs: • Occupational safety and health • Fair labor practices • Consumer protection • Environmental protection Management 11e/ Chapter 3

  40. Chapter 3 Case • Patagonia: Turning a profit without losing your soul Management 11e/ Chapter 3

  41. For activities and assessments, please visit… • www.wiley.com/college/schermerhorn