Management meeting and exceeding customer expectation 8th ch03

Management Ethics and Social Responsibility Chapter MANAGEMENT Meeting and Exceeding Customer Expectations EIGHTH EDITION Prepared by Deborah Baker Texas Christian University Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved learning objectives Describe the two broad categories of ethical theories Explain what individuals need in order to act ethically Describe the organizational influences on ethical conduct Discuss three primary ways in which business can promote ethical conduct Chapter Describe the relationship between law and ethics Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved learning objectives (continued) Explain the concept of an ethical dilemma Discuss the guidelines for acting ethically Explain the three approaches by business to social responsibility Explain the responsibilities businesses have to stakeholders 10.Describe the government’s role in promoting socially responsible conduct by businesses Chapter 11.Discuss the ways in which businesses can promote socially responsible conduct Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 11 Managing Ethically Chapter Business Business Ethics Ethics The rules or standards governing the conduct of persons or members of organizations in the field of commerce Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 11 Balancing Demands  Many conflicting demands have been made on those who manage institutions  Consequences of management decisions Chapter affect more people and environments than ever before Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 22 Individuals and Ethical Conduct Chapter Morality Morality Core values and beliefs that act as a guide when individuals formulate courses of action Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 22 An Individual’s Code of Ethics Religious Religious beliefs beliefs and and training training Educational Educational background background Political Political and and economic economic philosophy philosophy Chapter Socialization Socialization Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 33 Organizational Influences Offer unusually high rewards Encouraging Encouraging Unethical Unethical Behavior Behavior Threaten unusually severe punishments Chapter Emphasize results Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 44 Importance of Organizational Controls Unifying Ethics Code of Ethics Compliance Programs Chapter Commitment of Top Management Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 44 Commitment of Top Management Establish Establish aa code code of of ethics ethics Training Training and and oversight, oversight, reward reward ethical ethical behavior behavior Chapter Discouraging Discouraging Unethical Unethical Behavior Behavior Punish Punish wrongdoers wrongdoers Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 10 Codes of Ethics 44 Characteristics Characteristics  Visible guidelines for behavior  Unchallengeable basis for firing an unethical employee  Protect all personnel from market pressures  Remind employees to look beyond the Chapter bottom line Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 11 44 Compliance Programs Chapter Ethics Ethics Training Training Compliance Compliance Training Training alerts alerts people people to to policies, policies, regulations, regulations, and and laws laws Cognitive Cognitive Thinking Thinking develops develops skills skills to to allow allow people people to to think think through through “moral “moral mazes” mazes” Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 12 Chapter 55 Legal Constraints Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 13 66 Ethical Dilemmas Suggestions Suggestionsfor forEthical EthicalDilemmas Dilemmas  When in doubt, don’t  Don’t try to find out “how far is too far”  Superiors who push you to things Chapter better, faster, cheaper will turn on you when you when you cross the line between right and wrong Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 14 Guidelines for Acting Ethically Chapter 77     Consider other people’s well-being     Obey moral rules Think as a member of the business community Obey, but not depend solely on, the law Think of yourself and your company as part of society Think objectively Ask “What sort of person would such a thing?” Respect the customs of others, but not at the expense of your own ethics Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 15 77 Guidelines for Acting Ethically Is it legal? The The Ethical Ethical Test Test Is it balanced? Chapter How will it make me feel about myself? Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 16 77 Dimensions of Reputation Emotional EmotionalAppeal Appeal Products Products and and Services Services Financial FinancialPerformance Performance Vision Vision and and Leadership Leadership Chapter Workplace WorkplaceEnvironment Environment Social SocialResponsibility Responsibility Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 17 88 Approaches to Social Responsibility Resistance Resistance Approach Approach Reactive Reactive Approach Approach Chapter Proactive Proactive Approach Approach Businesses actively fight to eliminate, delay, or fend off demands being made of them Businesses wait for demands to be made and then react to them, choosing a response by evaluating alternatives Businesses continually look to the needs of constituents and try to find ways to meet those needs Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 18 Chapter 99 Responsibilities to Stakeholders Owners Ownersand and Stockholders Stockholders Employees Employees Customers Customers Suppliers Suppliers Communities Communities Society Society Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 19 10 10 Government Regulation: Pros and Cons Social Social Responsibility Responsibility to toPrevent PreventPollution Pollution Chapter     Redesigning of processes and products Recycling and repackaging for reduced waste Anticipating needs Facing problems up front Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 20 11 11Managing for Social Responsibility Making MakingOrganizations OrganizationsProactive Proactive  Top-level commitment and support  Corporate policies that integrate environmental issues  Effective interfaces between corporate and business-unit staff  High degree of employee awareness and training Chapter  Strong auditing programs  Establishment of responsibility for dealing with environmental problems Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 21 ... reserved 11 Balancing Demands  Many conflicting demands have been made on those who manage institutions  Consequences of management decisions Chapter affect more people and environments than ever... Code of Ethics Religious Religious beliefs beliefs and and training training Educational Educational background background Political Political and and economic economic philosophy philosophy Chapter... Reputation Emotional EmotionalAppeal Appeal Products Products and and Services Services Financial FinancialPerformance Performance Vision Vision and and Leadership Leadership Chapter Workplace WorkplaceEnvironment