Introduction to management 13th schemerhorn bachrach chapter 03

John R. Schermerhorn, Jr Daniel G. Bachrach Introduction to  Management 13th edition Chapter 3 Ethical Behavior and  Social Responsibility Planning Ahead — Key Takeaways  Define ethics and describe the foundations of ethical behavior  Discuss ethical dilemmas and issues in the workplace  Describe approaches to maintaining high ethical standards  Discuss social responsibility and corporate governance Copyright ©2015 John Wiley & Sons, Inc Chapter 3 Outline Ethics • Laws and values as influences on ethical behavior • Alternative views of ethics • Cultural issues in ethical behavior Ethics in the workplace • Ethical dilemmas • Influences on ethical decision making • Rationalizations for unethical behavior Copyright ©2015 John Wiley & Sons, Inc Chapter 3 Outline Maintaining High Ethical Standards • Moral management • Ethics training • Codes of ethical conduct • Whistleblower protection Social Responsibility • Social responsibility, sustainability, and the triple bottom line • Perspectives on corporate social responsibility • Evaluating corporate social performance • Corporate governance Copyright ©2015 John Wiley & Sons, Inc Ethics Ethics  Moral code of 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 Copyright ©2015 John Wiley & Sons, Inc Ethics Laws and values as influences on ethical behavior:  Legal behavior is not necessarily ethical behavior  Personal values help determine individual ethical behavior Copyright ©2015 John Wiley & Sons, Inc Ethics Laws and values as influences on ethical behavior:  Values - underlying beliefs and attitudes that help influence individual behavior Terminal values - preferences about desired ends Instrumental values – preferences regarding the means to desired ends Copyright ©2015 John Wiley & Sons, Inc Figure 3.1: Four views of ethical behavior Copyright ©2015 John Wiley & Sons, Inc Ethics Four alternative ethical views  Utilitarian   Individualism   Advances long-term self-interests Moral rights   Delivers the greatest good to the most people Respects and protects the fundamental rights of all people Justice  Fair and impartial treatment of people according to legal rules and standards Procedural justice – policies and rules fairly applied Distributive justice – fair distribution of outcomes Interactional justice – people treated with dignity and respect Commutative justice – fairness to all involved Copyright ©2015 John Wiley & Sons, Inc Ethics Cultural issues in ethical behavior:  Cultural relativism   Moral absolutism   Ethical behavior is always determined by cultural context Behavior unacceptable in one’s home environment should not be acceptable anywhere else Ethical imperialism  Imposing one’s ethical standards on others Copyright ©2015 John Wiley & Sons, Inc Ethics in the Workplace Rationalizations for unethical behavior  People often rationalize ethical transgressions with after-the-fact justifications: Copyright ©2015 John Wiley & Sons, Inc Maintaining High Ethical Standards • Moral Management Managers behave in one of three  ways Copyright ©2015 John Wiley & Sons, Inc Maintaining High Ethical Standards   Ethics training:  Structured programs that help participants to understand ethical aspects of decision making  Helps people incorporate high ethical standards into daily life Codes of Ethical Conduct  Formal statement of an organization’s values and ethical principles that set expectations for behavior Copyright ©2015 John Wiley & Sons, Inc Maintaining High Ethical Standards  Areas often covered by codes of ethics: Copyright ©2015 John Wiley & Sons, Inc Maintaining High Ethical Standards  Whistleblowers  Expose misdeeds of others to:  Preserve ethical standards Protect against wasteful, harmful, or illegal acts   Laws protecting whistleblowers vary Copyright ©2015 John Wiley & Sons, Inc Maintaining High Ethical Standards  Barriers to whistleblowing include:  Strict chain of command  Strong work group identities  Ambiguous priorities Copyright ©2015 John Wiley & Sons, Inc Social Responsibility • Stakeholder Management Stakeholders: persons, groups, and other organizations directly affected by the behavior of the organization and holding a stake in its performance – Stakeholder power: the capacity of the stakeholder to positively or negatively affect the operations of the organization – Demand legitimacy: the validity and legitimacy of a stakeholder’s interest in the organization – Issue urgency: the extent to which a stakeholder’s concerns need immediate attention – Copyright ©2015 John Wiley & Sons, Inc Figure 3.4: The Many Stakeholders of Organizations Copyright ©2015 John Wiley & Sons, Inc Social Responsibility  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 Copyright ©2015 John Wiley & Sons, Inc Social Responsibility  Stewardship   Sustainability:   Taking personal responsibility to always respect and protect the interests of society at large acting in ways that support a high quality of life for present and future generations  Alternative energy  Recycling  Waste avoidance Triple bottom line  evaluates organizational performance on economic, social, and environmental criteria  P’s of organizational performance – profit, people, and planet Copyright ©2015 John Wiley & Sons, Inc Social Responsibility  Perspectives  Classical view   Management’s only responsibility is to maximize profits Socioeconomic view   on social responsibility: Management must be concerned for the broader social welfare, not just profits Shared value view  Approaches business decisions with the understanding that economic and social progress are interconnected  Virtuous circle-socially responsible behavior improves financial performance which leads to more responsible behavior Copyright ©2015 John Wiley & Sons, Inc Social Responsibility Copyright ©2015 John Wiley & Sons, Inc Four strategies of corporate social responsibility—from obstructionist to proactive behavior Copyright ©2015 John Wiley & Sons, Inc Social Responsibility  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 How government influences organizations:  Businesses required by law to have boards of directors that are elected by stockholders Copyright ©2015 John Wiley & Sons, Inc Figure 3.6: Ethics Self-governance in Leadership and the Managerial Role Copyright ©2015 John Wiley & Sons, Inc ... obstructionist to proactive behavior Copyright ©2015 John Wiley & Sons, Inc Social Responsibility  Corporate governance:    The oversight of the top management of an organization by a board of directors... Responsibility  Perspectives  Classical view   Management s only responsibility is to maximize profits Socioeconomic view   on social responsibility: Management must be concerned for the broader... records How government influences organizations:  Businesses required by law to have boards of directors that are elected by stockholders Copyright ©2015 John Wiley & Sons, Inc