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Chapter 6
Ethics and Corporate Social
Responsibility
Hellriegel, Jackson, and Slocum
MANAGEMENT: A Competency-Based Approach
South-Western College Publishing
Copyright © 2002
6.1
Learning Objectives
After reading this chapter, you should be able to:
 State the importance of ethics for employees and organizations
 Describe four forces that influence the ethical behavior of individuals
and corporate social responsibility
 Describe three approaches that people use when making ethical
judgments
 Explain how the concerns of stakeholders influence managers’ ethical
decisions
 Describe how individuals and organizations can contribute to improving
ethical conduct at work
Hellriegel, Jackson, and Slocum
MANAGEMENT: A Competency-Based Approach
South-Western College Publishing
Copyright © 2002
6.2
Forces That Shape Ethical Conduct
Societal
Norms
and Culture
Laws and
Regulations
Organizational
Practices and
Culture
Individual
Perspective
Hellriegel, Jackson, and Slocum
MANAGEMENT: A Competency-Based Approach
South-Western College Publishing
Copyright © 2002
Ethical Conduct:
•Individuals
•Organizations
Adapted from Figure 6.1
6.3
Ethical Models
Justice
Utilitarian
IDEAL
Outcome
Moral Rights
Hellriegel, Jackson, and Slocum
MANAGEMENT: A Competency-Based Approach
South-Western College Publishing
Copyright © 2002
6.4
Stakeholders of the Organization
Customers
Owners
Employees
Unions
Suppliers
Government
Strategic
partners
Hellriegel, Jackson, and Slocum
MANAGEMENT: A Competency-Based Approach
South-Western College Publishing
Copyright © 2002
Local
Community
Society in
General
Adapted from Figure 6.2
6.5
Stakeholders’ Concerns
Stakeholder Group

Owners and Investors
Hellriegel, Jackson, and Slocum
MANAGEMENT: A Competency-Based Approach
South-Western College Publishing
Copyright © 2002
Examples of Concerns

Financial Soundness

Consistency in meeting shareholder
expectations

Sustained profitability

Average return on assets over fiveyear period

Timely and accurate disclosure of
financial information
6.6
Stakeholders’ Concerns (cont.)
Stakeholder Group

Customers
Hellriegel, Jackson, and Slocum
MANAGEMENT: A Competency-Based Approach
South-Western College Publishing
Copyright © 2002
Examples of Concerns

Product/service quality, innovativeness,
and availability

Responsible management of defective
or harmful products/services

Safety records for products/services

Pricing policies and practices

Honest, accurate, and responsible
advertising
6.7
Stakeholders’ Concerns (cont.)
Stakeholder Group

Employees
Hellriegel, Jackson, and Slocum
MANAGEMENT: A Competency-Based Approach
South-Western College Publishing
Copyright © 2002
Examples of Concerns

Nondiscriminatory, merit-based hiring
and promotion

Diversity of the workforce

Wage and salary levels and equitable
distribution

Availability of training and
development

Workplace safety and privacy
6.8
Stakeholders’ Concerns (cont.)
Stakeholder Group

Society
Hellriegel, Jackson, and Slocum
MANAGEMENT: A Competency-Based Approach
South-Western College Publishing
Copyright © 2002
Examples of Concerns

Environmental issues
•
Environmental sensitivity in packaging
and product design
•
Recycling efforts and use of recycled
materials
•
Pollution prevention
•
Global application of environmental
standards
6.9
Stakeholders’ Concerns (cont.)
Stakeholder Group

Society
Hellriegel, Jackson, and Slocum
MANAGEMENT: A Competency-Based Approach
South-Western College Publishing
Copyright © 2002
Examples of Concerns

Community involvement
•
Percentage of profits designated for
cash contributions
•
Innovation and creativity in
philanthropic efforts
•
Product donations
•
Availability of facilities and other assets
for community use
•
Support for employee volunteer efforts