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Chapter 7 Prepared by Deborah Baker Texas Christian University Chapter 7-1 PERSONAL and ORGANIZATIONAL ETHICS BUSINESS & SOCIETY Ethics and Stakeholder Management Carroll & Buchholtz 6e Business and Society: Ethics and Stakeholder Management, 6e • Carroll & Buchholtz Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 7 Learning Outcomes 1. Understand the different levels at which business ethics may be addressed. 2. Differentiate between consequence-based and duty-based principles of ethics. 3. Enumerate and discuss principles of personal ethical decision making and ethical tests for screening ethical decisions. 4. Identify the factors affecting an organization’s moral climate and provide examples. 5. Describe and explain actions, strategies, or “best practices” to improve an organization’s ethical climate. Chapter 7-2 Chapter 7 Outline Levels at Which Ethics May Be Addressed Personal and Managerial Ethics Managing Organizational Ethics From Moral Decisions to Moral Organizations Summary Chapter 7-3 Principles Approach to Ethics Major Principles of Ethics Utilitarianism Rights Justice Chapter 7-4 Caring Virtue ethics Servant Leadership Golden Rule Ethical Tests Approach Test of Common Sense Test of One’s Best Self Test of Making Something Public Test of Ventilation Test of the Purified Idea Gag Test Chapter 7-5 Improving the Ethical Climate Ethics Programs and Officers Effective Communication Ethics Audits Board of Director’s Oversight Realistic Objectives Ethical DecisionMaking Processes Top Management Leadership Moral Management Ethics Training Corporate Transparency Codes of Conduct Chapter 7-6 Chapter 7-27 Discipline of Violators Whistle-Blowing Mechanisms Ethical Decision-Making Process Chapter 7-7 Selected Key Terms categorical imperative codes of conduct codes of ethics compensatory justice corporate transparency deontological theorites/principles distributive justice Chapter 7-8 ethical due process ethical tests ethical audits ethics officer ethics programs Golden Rule legal rights moral rights Selected Key Terms (continued) moral rights opacity principle of caring principle of justice principle of rights principle of utilitarianism procedural justice rights servant leadership Chapter 7-9 teleological theories/principles transparency utilitarianism virtue ethics