Management 12e richard draft chapter 05

Chapter Managing Ethics and Social Responsibility © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Managerial Ethics  Ethics – code of moral principles and values that govern the behaviors of right or wrong  Standards about good/bad  Ethical issues can be complex  People in organizations have divergent views about right/wrong © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 5.1 Three Domains of Human Action © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Ethical Management Today  Ethical lapses during the last decade have been pervasive  Corporations and people have become associated with greed, deceit, irresponsibility, and lack of moral conscience  Managers carry a big responsibility for setting an ethical climate  Ethical crises have brought ethical management to the forefront © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Ethical Management Today  Ethical managers Display honesty and integrity Communicate and enforce ethical standards through their behavior Are fair in their decisions and the distribution of rewards Show kindness and concern for others © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 5.2 Four Types of Ethical Manager Behavior © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part The Business Case for Ethics and Social Responsibility  Ethics and social responsibility are important  business issues  The connection between ethics and financial  performance has been widely debated  Customers would switch brands to do  business with a company that is ethical and  socially responsible © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Ethical Dilemmas You are the moral agent–what would you do? Your company requires a terrorist watch list that screens all new customers and takes approximately 24 hours from the time an order is placed You can close a lucrative deal with a potential long-term customer overnight, even though that means the required watch list screening will have to be done after the fact © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Criteria for Ethical Decision Making  Utilitarian approach – moral behavior produces the greatest good for the greatest number  Individualism approach – acts are moral if they promote the individual’s long-term interest  Moral-rights approach – humans have fundamental rights and liberties that cannot be taken away by an individual’s decision © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Criteria for Ethical Decision Making (cont’d)  Justice approach – moral decisions must be based on standards of equity, fairness, and impartiality Distributive justice Procedural justice Compensatory justice  Practical approach – bases decisions on prevailing standards, society, and all stakeholders © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 10 A Manager’s Ethical Choices  Individuals bring their own personality and traits to organizations  Personal needs, family influence, and religious background shape individuals  Personality characteristics such as ego, confidence, and independence may enable managers to make ethical choices © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 11 5.3 Three Levels of Personal Moral Development © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 12 What Is Corporate Social Responsibility (CSR)?  Distinguishing right from wrong; doing right  Good corporate citizenship  Make choices that contribute to society and stakeholders  Stakeholders – any group within or outside  Stakeholder mapping identifies needs, importance and power of stakeholders © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 13 5.4 Major Stakeholders Relevant to Gap Inc © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 14 The Green Movement  Going GREEN is a new business imperative Change in social attitudes New governmental policies Climate change  Information technology immediately spreads the negative decisions of corporations  More organizations are embracing sustainability © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 15 The Ethic of Sustainability Sustainability – economic development that generates wealth and meets the needs of current generation while preserving the environment for the needs of future generations © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 16 Evaluating Corporate Social Responsibility  Legal Responsibility appropriate business behavior  Discretionary Responsibility voluntary contributions to society  Organizational Virtuousness a positive human impact, moral goodness © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 17 5.5 Criteria of Corporate Social Performance © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 18 5.6 Building an Ethical Organization © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 19 Managing Company Ethics and Social Responsibility  Code of ethics – a formal statement of the company’s values regarding ethics and social issues  Ethical structures – systems, positions, and programs like ethics training  Whistle-blowing – employee disclosure of illegal, immoral, or illegitimate practices © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 20 ... ethical management to the forefront © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Ethical Management. .. scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Ethical Management Today  Ethical lapses during the last decade have been pervasive  Corporations and