Download Managing Ethics and Social Responsibility

Managing Ethics and
Social Responsibility
Week 7
Lecture Outline
• Managing Ethics
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What is Managerial Ethics?
Ethical Dilemmas
Criteria for Ethical Decision Making
Three Levels of Personal Moral Development
• Social Responsibility
• What is Corporate Social Responsibility?
• Evaluating Corporate Social Responsibility
• Sustainability
Copyright ©2013 by South-Western, a division of Cengage Learning. All rights reserved.
What is Managerial Ethics?
• Ethics - code of moral principles and values
that govern the behaviors of right or wrong
– Standards about good/bad
• People in organizations have divergent views
about right/wrong- complex
Copyright ©2013 by South-Western, a division of Cengage Learning. All rights reserved.
Three Domains of Human Action
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Ethical Management Today
• 55% of survey respondents think that cheating in
business is more common than 10 years ago
• More businesses are being associated with greed,
deceit, and irresponsibility
• Managers are responsible for setting an ethical
climate and act as models
• Executive compensation has become a hot issue
related to ethical management
• What about Ghana?
Copyright ©2013 by South-Western, a division of Cengage Learning. All rights reserved.
Discussion Question
• Do you believe it is ethical for organizational
managers to try to get access to and scrutinize
Facebook pages of employees or job
applicants?
Copyright ©2013 by South-Western, a division of Cengage Learning. All rights reserved.
Examples of Unethical and
Illegal Organizational Behavior
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Ethical Dilemmas
What potential ethical dilemmas do anticipate to
encounter in the work place after graduation?
What ethical dilemmas do you face as students?
Copyright ©2013 by South-Western, a division of Cengage Learning. All rights reserved.
Criteria for Ethical Decision Making
• Utilitarian Approach
– Example
• Individualism Approach : egoism
– Example
• Moral-Rights Approach : the right of free speech, the right to due
process, and the right to life and safety, no one shall be subjected to torture or
to cruel, inhuman or degrading treatment or punishment.
– Example
• Justice Approach: Distributive & procedural
– Example
Copyright ©2013 by South-Western, a division of Cengage Learning. All rights reserved.
Virtue Ethics and
Practical Approaches
• Virtue ethics approach: moral behavior stems
from personal virtues
• Practical approach: prevailing standards of the
profession, larger society and stakeholder interests
Copyright ©2013 by South-Western, a division of Cengage Learning. All rights reserved.
Factors that shape managers’ ethical
decision making
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Personality
Personal needs
Family influence
Religion
Organizational values
Organizational culture
Copyright ©2013 by South-Western, a division of Cengage Learning. All rights reserved.
Three Levels of Personal Moral
Development
Copyright ©2013 by South-Western, a division of Cengage Learning. All rights reserved.
What is Corporate Social
Responsibility?
• Distinguishing right from wrong; doing right
• Good corporate citizenship
• Make choices that contribute to society as well as
the organization
• Organizational Stakeholders –?
Copyright ©2013 by South-Western, a division of Cengage Learning. All rights reserved.
Major Stakeholders Relevant to
Monsanto Company
Copyright ©2013 by South-Western, a division of Cengage Learning. All rights reserved.
Sustainability
Sustainability – economic development
that generates wealth and meets the needs
of current population while preserving the
environment for the needs of future
generations
Copyright ©2013 by South-Western, a division of Cengage Learning. All rights reserved.
Evaluating Corporate Social
Responsibility
Copyright ©2013 by South-Western, a division of Cengage Learning. All rights reserved.
Managing Company Ethics and Social
Responsibility
Code of Ethics
Ethical Structures
Whistle-blowing
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Building an Ethical Organization
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The Business Case for Ethics and
Social Responsibility
• Ethics and social responsibility is an
important business issue
• Stakeholders are pushing more
initiatives and issues
• The connection between ethics and
financial performance has been
widely debated
• What do you THINK?
Copyright ©2013 by South-Western, a division of Cengage Learning. All rights reserved.
Some questions to consider
• Identify important stakeholders for an organization and
discuss how managers balance the interests of various
stakeholders.
• A noted business executive said, “A company’s first obligation
is to be profitable. Unprofitable enterprises can’t afford to be
socially responsible.” Discuss why you agree or disagree with
this statement.
– THANK YOU, Any Questions?
Copyright ©2013 by South-Western, a division of Cengage Learning. All rights reserved.