File - Richview Business Department

advertisement
Study Question 1: What is ethical behavior?
 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.
Management Fundamentals - Chapter 3
1
Study Question 1: What is ethical behavior?
 Law, values, and ethical behavior:
– Legal behavior is not necessarily ethical
behavior.
– Personal values help determine individual
ethical behavior.
• Terminal values
• Instrumental values
Management Fundamentals - Chapter 3
2
Study Question 1: What is ethical behavior?
 Utilitarian view of ethics — greatest good to
the greatest number of people.
 Individualism view of ethics — primary
commitment is to one’s long-term self-interests.
 Moral-rights view of ethics — respects and
protects the fundamental rights of all people.
 Justice view of ethics — fair and impartial
treatment of people according to legal rules and
standards.
Management Fundamentals - Chapter 3
3
Figure 3.1 Four views of ethical
behavior.
Management Fundamentals - Chapter 3
4
Study Question 1: What is ethical behavior?
 Cultural issues in ethical behavior:
– Cultural relativism
• Ethical behavior is always determined by cultural
context.
– Cultural universalism
• Behavior that is unacceptable in one’s home
environment should not be acceptable anywhere
else.
Management Fundamentals - Chapter 3
5
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
6
Study Question 1: What is ethical behavior?
How international businesses can respect core or universal 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.
Be good citizens
• Support social institutions, including economic and educational
systems.
• Work with local government and institutions to protect environment.
Management Fundamentals - Chapter 3
7
Study Question 2: How do ethical dilemmas
complicate the workplace?
 An ethical dilemma occurs when choices,
although having potential for personal and/or
organizational benefit, may be considered
unethical.
 Ethical dilemmas include:
–
–
–
–
–
Discrimination
Sexual harassment
Conflicts of interest
Customer confidence
Organizational resources
Management Fundamentals - Chapter 3
8
Study Question 2: How do ethical dilemmas
complicate the workplace?
 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.
Management Fundamentals - Chapter 3
9
Study Question 2: How do ethical dilemmas
complicate the workplace?
 Factors influencing ethical behavior include:
– The person
• Family influences, religious values, personal standards, and
personal needs.
– The organization
• Supervisory behavior, peer group norms and behavior, and
policy statements and written rules.
– The environment
• Government laws and regulations, societal norms and
values, and competitive climate in an industry.
Management Fundamentals - Chapter 3
10
Figure 3.3 Factors influencing ethical managerial
behavior—the person, organization, and environment.
Management Fundamentals - Chapter 3
11
Study Question 3: How can high ethical
standards be maintained?
Checklist for dealing with ethical dilemmas
Step 1. Recognize the ethical dilemma
Step 2: Get the facts
Step 3. Identify your options
Step 4. Test each option: Is it legal? Is it right? Is it beneficial?
Step 5. Decide which option to follow
Step 6. Double-check decision by asking the “spotlight” questions:
“How would I feel if my family found out about my decision?” “How
would I feel about this if my decision were printed in the local
newspaper?”
Step 7. Take action.
Management Fundamentals - Chapter 3
12
Study Question 3: How can high ethical
standards be maintained?
 Ethics training:
– Structured programs that help
participants to understand ethical
aspects of decision making.
– Helps people incorporate high ethical
standards into daily life.
– Helps people deal with ethical issues
under pressure.
Management Fundamentals - Chapter 3
13
Study Question 3: How can high ethical
standards be maintained?
 Whistleblowers
– Expose misdeeds of others to:
• Preserve ethical standards
• Protect against wasteful, harmful, or illegal acts
Jeffrey Wigand on 60 minutes
http://www.youtube.com/watch?v=hkTk4HKf9XI
 Laws protecting whistleblowers vary
Management Fundamentals - Chapter 3
14
Study Question 3: How can high ethical
standards be maintained?
 Barriers to whistleblowing include:
– Strict chain of command
– Strong work group identities
– Ambiguous priorities
 Organizational methods for overcoming
whistleblowing barriers:
– Ethics staff units who serve as ethics
advocates
– Moral quality circles
Management Fundamentals - Chapter 3
15
Study Question 3: How can high ethical
standards be maintained?
 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.
– Excessive pressure can foster unethical behavior.
– Managers should be realistic in setting performance
goals for others.
Management Fundamentals - Chapter 3
16
Study Question 3: How can high ethical
standards be maintained?
 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
Management Fundamentals - Chapter 3
17
Study Question 4: 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.
Management Fundamentals - Chapter 3
18
Study Question 4: What is corporate social
responsibility?
 Organizational stakeholders
– Those persons, groups, and other organizations directly
affected by the behavior of the organization and holding a
stake in its performance.
 Typical organizational stakeholders
–
–
–
–
–
–
–
Employees
Customers
Suppliers
Owners
Competitors
Regulators
Interest groups
Management Fundamentals - Chapter 3
19
Figure 3.4 Multiple stakeholders in
the environment of an organization.
Management Fundamentals - Chapter 3
20
Study Question 4: What is corporate social
responsibility?
 Beliefs that guide socially responsible
business practices:
– People do their best with a balance of work and
–
–
–
–
family life.
Organizations perform best in healthy
communities.
Organizations gain by respecting the natural
environment.
Organizations must be managed and led for longterm success.
Organizations must protect their reputations.
Management Fundamentals - Chapter 3
21
Study Question 4: What is corporate social
responsibility?
 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.
Management Fundamentals - Chapter 3
22
Study Question 4: What is 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
Management Fundamentals - Chapter 3
23
Study Question 4: What is corporate social
responsibility?
 Criteria for evaluating corporate social
performance:
– Is the organization’s …
• Economic responsibility met?
• Legal responsibility met?
• Ethical responsibility met?
• Discretionary responsibility met?
Management Fundamentals - Chapter 3
24
Study Question 4: What is corporate social
responsibility?
 Strategies for pursuing social
responsibility:
– Obstructionist — meets economic
responsibilities.
– Defensive — meets economic and legal
responsibilities.
– Accommodative — meets economic, legal,
and ethical responsibilities.
– Proactive — meets economic, legal,
ethical, and
discretionary responsibilities. 25
Management Fundamentals - Chapter 3
Study Question 5: How do organizations and
governments work together in society?
 How government influences organizations:
– Common areas of government regulation of
business affairs:
• Occupational safety and health
• Fair labor practices
• Consumer protection
• Environmental protection
Management Fundamentals - Chapter 3
26
Study Question 5: How do organizations and
governments work together in society?
 How organizations influence governments:
– Personal contacts and networks
– Public relations campaigns
– Lobbying
– Political action committees
– Sometimes by illegal acts, such as bribery or illegal
financial contributions to political campaigns
Management Fundamentals - Chapter 3
27
Study Question 5: How do organizations and
governments work together in society?
 Corporate governance:
– The oversight of the top management of an
organization by a board of directors.
 Corporate governance involves:
– Hiring, firing, and compensating the CEO.
– Assessing strategy.
– Verifying financial records.
Management Fundamentals - Chapter 3
28
Download