Download Notes - Business with Morphet

UNIT 2: CONTEXT
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Chapter 3: Ethics & Social Responsibility
What is Ethics?
 Ethics
 Code of moral principles.
 Set standards of “good” and “bad” as opposed to “right” and
“wrong.”
 Ethical behavior
 What is accepted as good and right in the context of the
governing moral code.
What is Ethics?
 Law, values, and ethical behavior:
 Legal behavior is not necessarily ethical behavior.
 Most ethical problems in the workplace arise when people are
asked to do, or find themselves about to do, something that
violates their personal beliefs.
 Personal values help determine individual ethical behavior.
 Terminal values (preferences about desired end states/ goals you
strive to achieve in life—self-respect, happiness, family security)
 Instrumental values (preferences regarding means to desired
ends—honesty, courage, imagination, self-discipline)
Alternative Views of Ethics:
 Moral rights examples—free speech, privacy, religion,
health & safety
 Justice view examples—legal rules and standards such
as wearing a seatbelt in a car, or not on a cell phone
while driving
Cultural Issues in Ethical Behaviour:
 Examples: Sweatshop
 Cultural relativism: You would be okay if your company used
sweatshops in countries that it is deemed acceptable (even if you
don’t believe in this type of work)= cost savings
 Ethical Imperialism: Because you are against sweatshops, you would
never run sweatshops, even if it is acceptable in that country = extra
costs
Business & Ethics
 An ethical dilemma occurs when choices, although
having potential for personal and/or organizational
benefit, may be considered unethical.
 Ethical dilemmas include:
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Discrimination
Sexual harassment
Conflicts of interest
Customer confidence
Organizational resources
Business & Ethics
 Ethical behavior can be rationalized by convincing
yourself that:
 Behavior is not really illegal.
 Behavior is really in everyone’s best interests.
 Nobody will ever find out.
 The organization will “protect” you.
Maintaining High Ethical Standards
in the Workplace:
 Ethics training:
 Structured programs that help participants to understand
ethical aspects of decision making.
 Whistleblowers
 People who expose misdeeds of others
 Ethical role models:
 Top managers serve as ethical role models.
 All managers can influence the ethical behavior of people who
work for and with them.
Maintaining High Ethical Standards
in the Workplace:
 Codes of ethics:
 Formal statement of an organization’s values and ethical
principles regarding how to behave in situations
susceptible to the creation of ethical dilemmas.
 Areas often covered by codes of ethics:
 Bribes and kickbacks
 Political contributions
 Honesty of books or records
 Customer/supplier relationships
 Confidentiality of corporate information
What is Corporate Social Responsibility?
 Corporate social responsibility:
 Looks at ethical issues on the
organization level.
 Obligates organizations to act in
ways that serve both its own
interests and the interests of
society at large.
 Organizational Stakeholders
 Those persons, groups, and other
organizations directly affected by
the behavior of the organization
and holding a stake in its
performance.
Perspectives on Corporate
Social Responsibility:
 Classical view—
 Management’s only responsibility is to maximize profits.
 Socioeconomic view—
 Management must be concerned for the broader social
welfare, not just profits.
Perspectives on Corporate
Social Responsibility:
Arguments against social
responsibility:
 Reduced business profits
 Higher business costs
 Dilution of business
purpose
 Too much social power for
business
 Lack of public
accountability
Arguments in favor of
social responsibility:
 Adds long-run profits
 Improved public image
 Avoids more government
regulation
 Businesses have resources
and ethical obligation
What is a Social Entrepreneur?
 Someone who recognized that certain groups in their
communities area experiencing difficulties and they seek
new ways to solve the problems.
 They undertake tasks for the benefit of society rather than
for personal profit.
 They search out things that are not working for those who
need them.
 They see to solve the problem first by changing the system,
then by spreading the solution, and lastly by working to
persuade entire societies to take up the challenge to
change.