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1Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.
Chapter 2Managerial Ethics
2Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.
Society’s Expectations from Organizations and Managers Managers regularly make decisions
about issues with a social dimension In competitive environment,
organizations cannot afford to be seen as socially irresponsible
3Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.
Demonstrating Social Responsibility Social responsibility Social obligation Social responsiveness
4Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.
Relationship Between Social Responsibility and Economic Performance Research studies show positive
relationship General public perception that
companies who behave in a socially responsible way have better business performance
5Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.
Managers Becoming More Socially Responsible It is the collective behaviour and actions
of managers that make a company socially responsible
Managers who make the right decisions are described as being or behaving ethically
6Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.
Managerial Ethics
Ethics Rules and principles that define right
and wrong conduct Three Views of Ethics
Utilitarian view - ethical decisions are made on the basis of their outcomes or consequences
(continued)
7Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.
Managerial Ethics (continued)
Three Views of Ethics (continued) Rights view - respects and protects
individual liberties and privileges Theory of justice view - managers
impose and enforce rules fairly and impartially
8Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.
Values Basic convictions about what is right
and wrong Influence ethical behaviour Values are developed in early years
Organizational Factors That Affect Ethical And Unethical Behaviour
ModeratorsEthical/Unethical
Behaviour
OrganizationalCulture
StructuralVariables
Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.
03 Pearson Education Canada Inc.9 9
10Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.
Managers Improving Ethical Behaviour Hire individuals with high ethical
standards Establish codes of ethics and
decision rules Lead by example
(continued)
11Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.
Managers Improving Ethical Behaviour (continued) Delineate job goals and performance
review mechanisms Provide ethics training Conduct social audits Provide support to individuals facing
ethical dilemmas