Ethical Behaviour
Ethical Behaviour and Social Responsibility
Planning ahead—study questions:
1. What is ethical behaviour?
2. How do ethical dilemmas complicate the
workplace?
3. What types of things might corporations
do to show that they have a social
conscience?
4. Is it a corporation’s responsibility to be
socially aware or should they be a
strictly profit-driven entity?
What is Ethical Behaviour?
Ethics
• Code of moral principles.
• Set standards of good and
bad and right and wrong.
Ethical behaviour
• What is accepted as good
and right in the context of
the governing moral code.
Law, Values, and Ethical Behaviour
• Ethical behaviour should also be legal in a
just and fair society.
• Legal behaviour is not necessarily ethical
behaviour.
• Personal values help determine individual
ethical behaviour.
Ford Motor Company Case Study
•
Read the case study on Ford Motor Company
and answer the following questions:
1. From a corporate perspective, what are some
of the pros and cons of Ford’s decision to not
recall vehicles? What was their logic?
2. From a social perspective, what are some of
the pros and cons of Ford’s decision to not
recall vehicles?
• From a corporate perspective, what are some
of the pros and cons of Ford’s decision to not
recall vehicles? What was their logic?
• PROS: More cost effective (on paper), no
recall = minimal negative publicity, build/sell
more Pinto’s, money saved can be invested
elsewhere (production facilities, new
technologies, etc.)
• CONS: Greed vs. human life, horrible image
for Ford, questionable quality of vehicles,
lawsuits and legal fees, low employee morale
•
•
•
From a social perspective, what are some of
the pros and cons of Ford’s decision to not
recall vehicles?
Pros: reduced layoffs of employees working
on the Pinto, survivors made a lot of money
from lawsuits, cars were less costly, this case
provided a good example of corporate
corruption to society, providing jobs
Cons: caused deaths and injuries, unethical –
what else are corporations hiding from
society?
Views on Ethical Behaviour
Utilitarian view of ethics:
 greatest good to the greatest
number of people.
Individualism view of ethics:
 primary commitment is to
one’s long-term selfinterests.
Views on Ethical Behaviour
Moral-rights view of ethics
 respects the fundamental
rights of all people.
Justice view of ethics
 fair and impartial
treatment of people
according to rules and
standards.
Cultural Issues in Ethical Behaviour
Cultural relativism:
• Ethical behaviour is
always determined by
cultural context.
Ethical imperialism:
• Behaviour that is
unacceptable in one’s
home environment should
not be acceptable
anywhere else.
Figure 3.2 The extremes of cultural relativism and
ethical imperialism in international business ethics.
Source: Developed from Thomas Donaldson, “Values in Tension: Ethics Away from Home,”
Harvard Business Review, vol. 74 (September-October 1996), pp. 48-62.
Management Fundamentals - Chapter 3
11
How Companies Can Respect Values
Respect for human dignity
 Create culture that values employees,
customers, and suppliers.
 Keep a safe workplace.
 Produce safe products and services.
Respect for basic rights
 Protect rights of employees, customers, and
communities.
 Avoid anything that threatening safety, health,
education, and living standards.
How Companies Can Respect Values
Be good citizens
 Support social
institutions, including
economic and
educational systems.
 Work with local
government and
institutions to protect
environment.
Ethical Dilemmas
• Ethical Situations