management 11e john schermerhorn chapter 3 ethics and social responsibility
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Management 11e John Schermerhorn
Chapter 3Chapter 3
Ethics and Ethics and Social ResponsibilitySocial 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 one’s 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?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.
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Study Question 1: What is ethical behavior?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
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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
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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
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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 one’s home
environment should not be acceptable anywhere else.
Ethical imperialism Imposing one’s ethical standards on others.
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The extremes of cultural relativism and ethical imperialism in international business ethics.
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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.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
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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.
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Study Question 2: How do ethical dilemmas complicate the workplace?
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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Kohlberg’s 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
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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?
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Study Question 2: How do ethical dilemmas complicate the workplace? 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:
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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.
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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
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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
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Study Question 3: How can high ethical standards be maintained?
Barriers to whistleblowing include: Strict chain of command Strong work group identities Ambiguous priorities
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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
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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
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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.
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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.
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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 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.
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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 responsibility—from 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.
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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
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Chapter 3 Case
Patagonia: Turning a profit without losing your soul
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