Lecture Management (2nd edition) – Chapter 6: Ethics and social responsibility

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Lecture Management (2nd edition) – Chapter 6: Ethics and social responsibility

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This chapter’s objectives are to: Explain ethics as they relate to the five domains of individuals, organizations, stakeholders, government, and the global community demonstrate processes and practices for managing organizational ethics describe how businesses approach social responsibility summarize management’s role in building responsible businesses based on ethical decision making.

MANAGEMENT SECOND EDITION Chapter Ethics and Social Responsibility Learning Objectives § § § § Explain ethics as they relate to the five domains of individuals,  organizations, stakeholders, government, and the global  community Demonstrate processes and practices for managing organizational  ethics Describe how businesses approach social responsibility Summarizemanagementsroleinbuildingresponsiblebusinesses basedonethicaldecisionmaking Copyrightâ2017JohnWiley&Sons,Inc WhatAreEthics?(p.144) Đ Ethics ã ã Themoralprinciples,values,andbeliefsthat govern group or individual behavior according  to what is right or wrong and what contributes  to the balanced good of all stakeholders Ethical dilemma – a situation in which no  choice is entirely right Copyright ©2017 John Wiley & Sons, Inc Copyright ©2017 John Wiley & Sons, Inc What Are Ethics? (cont.) Domains of ethical decision making Figure6.1 Copyrightâ2017JohnWiley&Sons,Inc Copyrightâ2017JohnWiley&Sons,Inc WhatAreEthics?(cont.) Đ Individuals(p.145) ã LawrenceKohlbergsstagesofmoraldevelopment Đ § § Progression from interests in self to interest in others (p. 146) Preconventional – moral decisions are based primarily on self­protection or  self­interest Conventional – moral decisions are based primarily on social norms • § Societal norms – expectations about how people (and organizations) should  behave Postconventionalmoraldecisionsarebasedprimarilyonwhatindividual believesisgoodforsocietyasawhole Copyrightâ2017JohnWiley&Sons,Inc Copyrightâ2017JohnWiley&Sons,Inc WhatAreEthics?(cont.) Đ Kohlbergsstagesofmoraldevelopment Figure6.2 Copyrightâ2017JohnWiley&Sons,Inc Copyrightâ2017JohnWiley&Sons,Inc WhatAreEthics?(cont.) Đ Organizationsưpostureoftheorganizationtowardthelocal andglobalcommunities(p.146) Figure6.3 Copyrightâ2017JohnWiley&Sons,Inc Copyrightâ2017JohnWiley&Sons,Inc WhatAreEthics?(cont.) Đ Valueưbasedmanagementưcompanyscultureimpacts employeebehaviorinwaysthatare consistentwiththe organizationsmission andvalues(p.147) Figure6.4 Copyrightâ2017JohnWiley&Sons,Inc Copyrightâ2017JohnWiley&Sons,Inc WhatAreEthics?(cont.) Đ Stakeholders(p.148) ã Internalandexternalconstituentswithadirectinterest intheorganizationsbehavior Đ Experiencetheeffectsofcompanysmanagementdecisions Figure6.5 Copyrightâ2017JohnWiley&Sons,Inc Copyrightâ2017JohnWiley&Sons,Inc WhatAreEthics?(cont.) Đ Externalityacost(negative)orbenefit(positive)thatoccursbeyondthe directexchangebetweenanorganizationanditsstakeholders(p.148) Escalationanincreaseinanorganizationsbehaviorasadirectresponseto acompetitorsbehavior(p.149) CRITICAL THINKING Đ Copyrightâ2017JohnWiley&Sons,Inc Copyrightâ2017JohnWiley&Sons,Inc WhatAreEthics?(cont.) Đ Globe(p.150) ã Globalưlevelofethicsprinciples,values,and beliefsthatarewidelyconsidereduniversal Đ UnitedNationsưTheGlobalCompact ã Intendedtoguidedecisionmakingintheareasofhuman rights,labor,theenvironment,andantiưcorruption Copyrightâ2017JohnWiley&Sons,Inc Copyrightâ2017JohnWiley&Sons,Inc MakingEthicalDecisions(p.151) § Principles of ethics (p. 152) • • • • Legal principle – decisions that follow both the  letter and spirit of the law Individual rights principle – decisions that do not  infringe upon the rights of other people Virtuousprincipledecisionsofwhichyouwould bepubliclyproud Longưtermprincipledecisionsthatsupportthe longưterminterestsofyourselfandyour organization Copyrightâ2017JohnWiley&Sons,Inc Copyrightâ2017JohnWiley&Sons,Inc MakingEthicalDecisions(cont.) Đ Principles of ethics (cont.) • • • Community principle – decisions that contribute to  the strength and well­being of the community (p.  152) Utilitarian principle – decisions that provide the  greatest good to the greatest number (or the least  harm to the fewest number) Distributedjusticeprincipledecisionsthatdonot harmthosewhoalreadyaredisadvantaged Copyrightâ2017JohnWiley&Sons,Inc Copyrightâ2017JohnWiley&Sons,Inc MakingEthicalDecisions(cont.) Đ Codesofconductưorganizationspublishedguidelinesofits expectationsaboutethicalbehavior(p.153) ã Typically address conduct in eight areas § § § § § § § § Fiduciary Dignity Property Transparency Reliability Fairness Citizenship Responsiveness Copyright ©2017 John Wiley & Sons, Inc Copyright ©2017 John Wiley & Sons, Inc MakingEthicalDecisions(cont.) Đ Principleưbasedmanagement(p.153) ã ã ã Organizationproactivelyconnectsvaluesand beliefstobehaviorexpectations Allstakeholdersarecontinuouslymadeawareof standardsforbehavior Stakeholdersbecomeavitalcomponenttodecision making Copyrightâ2017JohnWiley&Sons,Inc Copyrightâ2017JohnWiley&Sons,Inc SocialResponsibility(p.154) Đ Socialresponsibility(p.155) ã Đ Proactivebehaviorsforthebenefitofsociety Corporatesocialresponsibility(CSR) ã Programsthatcoordinatethecompanyseffortsto addresssocietalandcommunitychallengesasthey emerge Copyrightâ2017JohnWiley&Sons,Inc Copyrightâ2017JohnWiley&Sons,Inc SocialResponsibility(cont.) § Approaches to social responsibility (p. 155) • Proactive approach – organization goes beyond industry  norms to solve and prevent problems § § Begin by consulting the articles of incorporation May change the legal structure to support socially responsible  activities • • B Lab – non­profit organization that certifies socially responsible  companies Accommodative approach – organization accepts  responsibility and takes action in response to societal  pressures (p. 156) Copyright ©2017 John Wiley & Sons, Inc Copyright ©2017 John Wiley & Sons, Inc SocialResponsibility(cont.) Đ Approachestosocialresponsibility(cont.) ã ã Defensiveapproachorganizationaccepts responsibility,butdoesonlytheminimumrequired (p.156) Reactiveapproachorganizationdenies responsibilityforsocialproblemsandresponds onlywhenlegallyrequired Copyrightâ2017JohnWiley&Sons,Inc Copyrightâ2017JohnWiley&Sons,Inc HowDoesSocialResponsibilityPay? (p.157) Đ Socialentrepreneursưpeoplewhostartabusinessforthedual purposeofprofitsandsocietalbenefits ã Consumers and investors becoming more active in supporting  and investing in socially responsible companies • Social investing – e.g., Calvert Social Investment Fund screens  companies on financial performance and:   Environment Human rights Workplace Indigenous peoples’ rights Community relations Productsafetyandimpact Governancebusinessethics Copyrightâ2017JohnWiley&Sons,Inc Copyrightâ2017JohnWiley&Sons,Inc ManagingSocialResponsibilityToday (p.158) Đ Managersmustmakeprincipleưbased decisionsinformedbyindustryandsocietal standards ã ã Internalizinganexternalitymanagement proactivelyaddressesanegativeexternalityforthe benefitofitsstakeholders Buildinganethicalculture Đ Đ Applyaframeworkforethicaldecisionmaking Ethicstraining Copyrightâ2017JohnWiley&Sons,Inc Copyrightâ2017JohnWiley&Sons,Inc ManagingSocialResponsibilityToday (cont.) Đ Ethicaldecisionmakingframework(p.158) ã Duties(p.159) § § • • • Perfect duties – clearly articulated moral obligations  Imperfect duties – moral obligations that can be interpreted in  different ways Rights –behaviors that can be expected from others, based on  their duties Standardsofexcellenceorganizationshighestexpectations ofbehavior Commitmentsselfưdefinedprinciplesuniquetoan individualororganization Copyrightâ2017JohnWiley&Sons,Inc Copyrightâ2017JohnWiley&Sons,Inc ManagingSocialResponsibilityToday (cont.) Đ Ethicaldecisionmakingframework(cont.) ã Applyingtheframework(p.159) Đ Đ Đ Understandingthesituation Connectingbehaviorstostandards Impartialanalysis ã • • Visibility – the “newspaper test” Generality – would all organizational members be comfortable  with action taken Legacy – would decision maker be comfortable being  remembered for the action taken Copyright ©2017 John Wiley & Sons, Inc Copyright ©2017 John Wiley & Sons, Inc ManagingSocialResponsibilityToday (cont.) Đ Ethicstraining(p.159) ã Intendedtopreventunethicalbehaviorfromoccurring Figure6.6 Copyrightâ2017JohnWiley&Sons,Inc Copyrightâ2017JohnWiley&Sons,Inc ManagingSocialResponsibilityToday (cont.) Đ Ethicstraining(cont.) ã Audiencefortraining Đ Trainingcharacteristicstraineescurrentmoralprofile ã Đ § § Audience’s assertiveness, cognitive ability, perspective on ethical  behavior (p. 159) Needs assessment – determine audience’s need for ethics training (p.  160) Training transfer – steps to assure that what is learned about ethics will  be used on the job Evaluation – determine the effect of training on trainees’: Reaction to the training Workplacebehavior Knowledge/skillstests Organizationalperformance Copyrightâ2017JohnWiley&Sons,Inc Copyrightâ2017JohnWiley&Sons,Inc ManagingSocialResponsibilityToday (cont.) Đ Đ In the interests of  self or others?  (p. 161) Tragedy of the commons Figure 6.7 Copyright ©2017 John Wiley & Sons, Inc Copyright ©2017 John Wiley & Sons, Inc ... purpose of profits? ?and? ?societal benefits • Consumers? ?and? ?investors becoming more active in supporting  and? ?investing in socially responsible companies • Social? ?investing? ?–? ?e.g., Calvert? ?Social? ?Investment Fund screens ... Reactiveapproachorganizationdenies responsibilityforsocialproblemsandresponds onlywhenlegallyrequired Copyrightâ2017JohnWiley&Sons,Inc Copyrightâ2017JohnWiley&Sons,Inc HowDoesSocialResponsibilityPay? (p.157) Đ Socialentrepreneursưpeoplewhostartabusinessforthedual... Copyright ©2017 John Wiley & Sons, Inc SocialResponsibility(p.154) Đ Socialresponsibility(p.155) ã Đ Proactivebehaviorsforthebenefitofsociety Corporatesocialresponsibility(CSR) ã Programsthatcoordinatethecompanyseffortsto

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Mục lục

  • Slide 1

  • Learning Objectives

  • What Are Ethics? (p. 144)

  • What Are Ethics? (cont.)

  • What Are Ethics? (cont.)

  • What Are Ethics? (cont.)

  • What Are Ethics? (cont.)

  • What Are Ethics? (cont.)

  • What Are Ethics? (cont.)

  • What Are Ethics? (cont.)

  • What Are Ethics? (cont.)

  • What Are Ethics? (cont.)

  • Making Ethical Decisions (p. 151)

  • Making Ethical Decisions (cont.)

  • Making Ethical Decisions (cont.)

  • Making Ethical Decisions (cont.)

  • Social Responsibility (p. 154)

  • Social Responsibility (cont.)

  • Social Responsibility (cont.)

  • How Does Social Responsibility Pay? (p. 157)

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