Chapter 14: ethics, social responsibility, and sustainability What is Ethical Behaviour? • • • Ethics: – Code of moral principles – Ethical behaviour: – Law, values, and ethical behaviour: – _________________________________________________________________ BRAINSTORM: CAN YOU THIN OF AN EXAMPLE? – Personal values help determine individual ethical behaviour – Values span broad beliefs: • ____________________________________________________________ – ______________________________________________________ – ______________________________________________________ ______________________________________________________ Alternate Views of Ethics 1. Utilitarian view of ethics: – 2. Individualism view of ethics: – 3. Moral-rights view of ethics: – 4. Justice view of ethics: – Fair and impartial treatment of people according to legal rules and standards • • • Ethics in the Workplace • • An ethical dilemma occurs when certain choices may be considered unethical, despite possible potential for personal and/or organizational benefit Ethical dilemmas include: – – – – – Ethical Decision Making • Checklist for dealing with ethical dilemmas: 1. 2. Get the facts 3. 4. Test each option: Is it legal? Is it right? Is it beneficial? 5. Decide which option to follow 6. Double-check decision by asking “spotlight” questions: • • 7. How do we convince ourselves that unethical behaviour is okay? • Unethical behaviour can be rationalized by convincing yourself that: – – – – HAVE YOU EVER FOUND YOURSELF FALLING INTO THIS TRAP? Maintaining High Ethical Standards • Whistleblowers: – Expose the misdeeds of others in order to: • • – THINK – PAIR – SHARE: WOULD YOU EVER EXPOSE SOMEONE ELSE? WHY/WHY NOT? or WHAT WOULD SOMEONE HAVE TO DO FOR YOU TO STEP IN AND SAY SOMETHING? Social Entrepreneurship • A unique form of entrepreneurship that seeks novel ways to solve pressing social problems at home and abroad • Examples include: – – – – Social Responsibility • Corporate social responsibility: – Obligates organizations to act in ways that serve both its own interests and the interests of society at large Stakeholder Issues and Analysis • Organizational stakeholders: – __________________________________________________________________ __________________________________________________________________ Perspectives on social responsibility • • Classical view: – Socioeconomic view: – Management must be concerned for the broader social welfare, not just profits – Examples: – – – Evaluating Corporate Social Performance • Social Responsibility Audit: _____________________________________________ – Asks: is the organization’s… 1. 2. Legal responsibility met? Does it obey the law? 3. 4. Discretionary responsibility met? Does it contribute to the broader community? • Strategies for pursuing social responsibility: – Obstructionist: _____________________________________________ – Defensive: _________________________________________________ – Accommodative: meets economic, legal, and ethical responsibilities – Proactive: __________________________________________________