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Chapter 4
Ethics and Social Responsibility
MGMT
Chuck Williams
Designed & Prepared by
B-books, Ltd.
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Ethical and Unethical
Workplace Behavior
Ethics
The set of moral principles or values
that defines right and wrong for a
person or group.
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U.S. Sentencing
Commission Guidelines
Companies can be prosecuted and
punished
even if management didn’t know about
the unethical behavior.
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Who, What, and Why?
• Nearly all businesses are covered
• Punishes a number of offenses
• Encourages businesses to be proactive
2.1
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Influences on Ethical Decision
Making
Ethical Intensity of Decision
Ethical
Answers
Depend
on…
Moral Development of Manager
Ethical Principles Used
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Ethical Intensity Depends on…
Magnitude of consequences
Social consensus
Probability of effect
Temporal immediacy
Proximity of effect
Concentration of effect
3.1
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Moral Development
Kohlberg’s Stages of Moral Development
Preconventional
Conventional
Postconventional
Selfish
Societal
Expectations
Internalized
Principles
3.2
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Principles of
Ethical Decision Making
Long-term self-interest
Personal virtue
Religious injunctions
Government requirements
Utilitarian benefits
Individual rights
Distributive justice
3.3
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Practical Steps to
Ethical Decision Making
Select and hire ethical employees
Establish a Code of Ethics
Train employees to make ethical decisions
Create an ethical climate
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A Basic Model of
Ethical Decision Making
1. Identify the problem
2. Identify the constituents
3. Diagnose the situation
4. Analyze your options
5. Make your choice
6. Act
4.3
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Ethical Climate
Establishing an Ethical Climate
Managers establish an ethical climate when they…
1. act ethically.
2. are active in company ethics programs.
3. report potential ethics violations.
4. punish those who violate the code of ethics.
4.4
Web Link
http://www.whistleblowers.org
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To Whom Are Organizations
Socially Responsible?
Shareholder
Model
Maximize Profits
Stakeholder
Model
Satisfy Interests
of Multiple Stakeholders
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