Download Managing in Turbulent Times

Survey
yes no Was this document useful for you?
   Thank you for your participation!

* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project

Document related concepts

Moral responsibility wikipedia , lookup

Ethical intuitionism wikipedia , lookup

Sumac Kawsay wikipedia , lookup

Thomas Hill Green wikipedia , lookup

Emotivism wikipedia , lookup

Business ethics wikipedia , lookup

Organizational technoethics wikipedia , lookup

Transcript
Ethics and Social Responsibility
CHAPTER 5
Learning Objectives




2
Define ethics and explain how ethical behavior
relates to behavior governed by law and free
choice.
Explain the utilitarian, individualism, moralrights, and justice approaches for evaluating
ethical behavior.
Describe how both individual and organizational
factors shape ethical decision making.
Define corporate social responsibility and how
to evaluate it along economic, legal, ethical,
and discretionary criteria.
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved.
Learning Objectives (contd.)



3
Describe four organizational approaches to
environmental responsibility, and explain the
philosophy of sustainability.
Discuss how ethical organizations are created
through ethical leadership and organizational
structures and systems.
Identify important stakeholders for an
organization and discuss how managers
balance the interests of various stakeholders.
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved.
Ethics

The code of moral principles and
values that govern the behaviors of a
person or group with respect to what
is right or wrong.
4
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved.
Three Domains of Human Action
Exhibit 5.1
Domain of Codified Law
Domain of Ethics
Domain of Free Choice
(Legal Standard)
(Social Standard)
(Personal Standard)
Amount of
Explicit Control
High
5
Low
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved.
Ethical Dilemma
6

A situation that arises when all
alternative choices or behaviors have
been deemed undesirable because...

Of potentially negative ethical
consequences, making it difficult to
distinguish right from wrong
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved.
Criteria For
Ethical Decision Making
Most ethical dilemmas involve
Conflict between needs of the part &
whole
-
Individual versus the organization
Organization versus society as a whole
Managers benefit from a normative
strategy to guide their decision
making - norms and values
7
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved.
Ethical Decision Making Approaches
8

Utilitarian Approach

Individualism Approach

Moral-Rights Approach

Justice Approach
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved.
Utilitarian Approach
9
●
Moral behavior produces the greatest
good for the greatest number
●
Example – recent trend among
companies to monitor employee use
of the Internet
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved.
Individualism Approach
10
●
Acts are moral when they promote the
individual's best long-term interests, which
ultimately leads to the greater good
●
Individual self-direction paramount
●
Individualism is believed to lead to honesty
& integrity since that works best in the long
run
●
However, top executives from WorldCom,
Enron, Tyco demonstrate flaws of approach
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved.
Moral-Rights Approach
11

Moral decisions are those that best
maintain the rights of those people
affected by them.

An ethical decision is one that avoids
interfering with the fundamental rights
of others.
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved.
Six Moral Rights
1. The right of free consent
2. The right to privacy
3. The right of freedom of conscience
4. The right of free speech
5. The right to due process
6. The right to life and safety
12
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved.
Justice Approach
Moral Decisions must be based on
standards of equity, fairness,
impartiality
Three types of Justice Approaches:
 Distributive Justice
 Procedural Justice
 Compensatory Justice

13
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved.
Distributive Justice
14

Different treatment of people should not
be based on arbitrary characteristics

In case of substantive differences,
people should be treated differently in
proportion to the differences among
them
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved.
Procedural Justice
15

Rules should be clearly stated

Rules should be consistently and
impartially enforced
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved.
Compensatory Justice
16
●
Individuals should be compensated for the
cost of their injuries by the party
responsible
●
Individuals should not be held responsible
for matters they have no control over
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved.
Factors Affecting Ethical Choices


The Manager
Levels or stages of moral
development
•
•
•

17
Pre-conventional
Conventional
Post-conventional
The Organization
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved.
Levels of Personal Moral Development
Exhibit 5.2
18
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved.
The Organization
19

Rarely can ethical or unethical corporate
actions be attributed solely to the
personal values of a single manager

Values adopted within the organization
are highly important

Most people believe their duty is to fulfill
obligations and expectations of others
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved.
Corporate Social Responsibility
20

Organization’s obligation to make
decisions and take actions that will
enhance the welfare and interests
of society and organization

Being a good corporate citizen

Difficulty in understanding – issues
can be ambiguous with respect to
right and wrong
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved.
Organizational Stakeholders

Any group within or outside the
organization that has a stake in the
organization’s performance

Each stakeholder
–
–

21
Has a different criterion of responsiveness
Has a different interest in the company
Monsanto
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved.
Environmental Responsibility Commitment
Adapted from Exhibit 5.6
The Shades of
Corporate Green
Activist
Approach
Stakeholder
Approach
Market Approach
Legal Approach
22
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved.
Total Corporate Social Responsibility
Total Corporate Social Responsibility
Exhibit 5.7
23
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved.
The Ethical Organization
The Three Pillars of an Ethical Organization
Exhibit 5.9
24
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved.