BMGT – Principles of Management

1. BMGT – Principles of Management hapter Managerial Ethics & Corporate Social Responsibility 1

2. BMGT – Principles of Management Ethics • The code of moral principles and values that govern the behaviors of a person or group with respect to what is right or wrong. 2

3. Three Domains of Human Action Domain of Certified Law (Legal Standard) Domain of Free Choice (Personal Standard) Domain of Ethics (Social Standard) Amount of Explicit Control High Low

4. BMGT – Principles of Management Ethical Dilemma • A situation that arises when all alternative choices or behaviors have been deemed undesirable • Potentially negative ethical consequences, making it difficult to distinguish right from wrong. 4

5. BMGT – Principles of Management Criteria For Ethical Decision Making • Most ethical dilemmas involve • A conflict between needs of the part & whole • The individual versus the organization • The organization versus society as a whole Students For Responsible Business 5

6. BMGT – Principles of Management Four Considerations InEthical Decision Making • Utilitarian Approach • Individualism Approach • Moral-Rights Approach • Justice Approach 6

7. BMGT – Principles of Management Utilitarian Approach • Moral behavior produces the greatest good for the greatest number • Critics fear a “Big Brother” approach and ask if the common good is squeezing the life out of the individual 7

8. BMGT – Principles of Management Individualism Approach • Acts are moral when they promote the individual's best long-term interests, which ultimately leads to the greater good • Individual self-direction paramount • Individualism is believed to lead to honesty & integrity since that works best in the long run 8

9. BMGT – Principles of Management Moral-Rights Approach • Moral decisions are those that best maintain the rights of those people affected by them. • An ethical decision is one that avoids interfering with the fundamental rights of others 9

10. “Moral Rights” The right of free consent The right to privacy The right of freedom of conscience The right of free speech The right to due process The right to life & safety

11. BMGT – Principles of Management Justice Approach • Moral Decisions must be based on standards of equity, fairness, and impartiality • Three types of Justice Approaches: • Distributive Justice • Procedural Justice • Compensatory Justice 11

12. BMGT – Principles of Management Distributive Justice • Treatment of people should not be based on arbitrary characteristics • People should be treated differently in proportion to the differences among them 12

13. BMGT – Principles of Management Procedural Justice • Rules should be clearly stated • Rules should be consistently and impartially enforced 13

14. BMGT – Principles of Management Compensatory Justice • Individuals should not be held responsible for matters they have no control over • Individuals should be compensated for the cost of their injuries by the party responsible 14

15. BMGT – Principles of Management Factors Affecting Ethical Choices • The Manager • Levels or stages of moral development • Pre-conventional • Conventional • Post-conventional • The Organization Moral Development 15

16. BMGT – Principles of Management Social Responsibility • Organization’s obligation to make choices and take actions that will contribute to the welfare and interests of society and organization • Distinguishing right from wrong • Being a good corporate citizen • Many social responsibilities issues are ambiguous with respect to right and wrong 16

17. BMGT – Principles of Management Total Corporate Responsibility Discretionary Responsibility Ethical Responsibility Legal Responsibility Economic Responsibility 17

18. High Degree of Social Responsibility Low Corporate Responses toSocial Demands Proactive Take social initiatives. Accommodation Accept ethical responsibility. Defense Do only what is legally required. Obstruction Fight all the way.

19. Managing Company EthicsYou Need Levi Strauss Leadership Code of Ethics Ethical Structure Whistle Blowers