Ethical Behaviour &
CSR
MODUL 3
Ethics in the Workplace
• Ethics, beliefs about what is right and wrong or good and bad
in actions that affect others
• Ethical Behavior, behavior conforming to generally accepted
social norms concerning beneficial and harmful actions
• Unethical Behavior, behavior that does not conform to
generally accepted social norms concerning beneficial and
harmful actions
• Business Ethics, ethical or unethical behaviors by employees in
the context of their jobs
Individual Values and Morals
• Each person’s individual values and morals help
determine their personal code of ethics.
• Values and morals are determined by a combination of
factors (past experience, friends and family, educational
background, etc).
Business and Managerial Ethics
• Managerial Ethics standards of behavior that guide
individual managers in their work
• Behavior Toward Employees (no discrimination, no bullying,
ability-based hiring, etc)
• Behavior Toward the Organization (no conflict of interest,
confidentiality, honesty, etc)
• Behavior Toward Other Economic Agents (no ethical ambiguity
with customers, competitors, stockholders, suppliers, dealers, and
unions)
Assessing Ethical
Behavior
• 4 moral reasoning for ethical
consideration
• Utility. Does a particular act optimize
the benefits to those who are
affected by it? (That is, do all
relevant parties receive “fair”
benefits?)
• Rights. Does it respect the rights of all
individuals involved?
• Justice. Is it consistent with what’s
fair?
• Caring. Is it consistent with people’s
responsibilities to each other?
Moral Reasoning: Rights
Excerpt From Universal Declaration of Human Rights
United Nations
• Article 1—All human beings are born free and equal in dignity and right
• Article 18—Everyone has the right to freedom of thought, conscience, and
religion
• Article 19—Everyone has the right to freedom of opinion and expression
• Article 23—Everyone has the right to work, to free choice of employment,
to just and favorable conditions of work
• Article 26—Everyone has the right to education
Moral Reasoning: Justice
• Justice View
Procedural
Justice
• Rules are
applied fairly
Distributive
Justice
• People are
treated the
same
regardless of
personal
characteristics
Interactional
Justice
• People are
treated with
dignity and
respect
Commutative
Justice
• Transactions
are fair and
everyone has
access to the
same
information
Ethics & Culture
• Cultural Relativism
• Suggest that there is no one right way to behave; cultural
context determines ethical behavior
Ethical Dilemma
• Ethical Dilemma
• A situation that, although offering potential
benefits, is unethical.
• One of the most common ethical dilemmas
occurs when a company’s culture conflicts with
an employee’s
personal ethics.
Ethical Dilemma
Situation:
A 12-year-old boy is working in a garment factory
in Bangladesh. He is the sole income earner for his
family. He often works 12-hour days and was
once burned quite badly by a hot iron. One day
he is told he can’t work. His employer was given
an ultimatum by the fi rm’s major American
customer—”no child workers if you want to keep
our contracts.” The boy
says: “I don’t
understand. I could do my job very well. My
family needs the money.”
Ethical Dilemma
• 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
Ask the “Spotlight Questions”: To double check your
decision.
“How would I feel if my family found out about my
decision?”
“How would I feel if the local newspaper printed my
decision?”
Step 7
Take action
Common Examples of Unethical Behavior at
Work
o Discrimination Denying people a promotion or job because of
their race, religion, gender, age, or another reason that is not jobrelevant;
o Sexual harassment  Making a co-worker feel uncomfortable
because of inappropriate comments or actions regarding
sexuality, or by requesting sexual favors in return for favorable job
treatment;
o Conflicts of interest  Taking bribes, kickbacks, or extraordinary
gifts in return for making decisions favorable to another person;
o Customer confidence  Giving someone privileged information
regarding the activities of a customer
o Organizational resources  Using official stationery or a business email account to communicate personal opinions or to make
requests from community organizations
Rationalizing Unethical Behavior
Four reasons:
1. “What I’m doing is not really illegal.”
2. “My behavior is in everyone’s best
interests.”
3. “Nobody will ever know about it.”
4. “The organization will stand behind me.”
Maintaining ethical conduct
• Adopting Written Codes
• Instituting Ethics Programs
• Training in ethical decision making
• Protecting whistleblowers
• Acting as positive role models
Social Responsibility
• Social responsibility is the attempt of a business to
balance its commitments to groups and individuals in its
environment (stakeholders), including customers, other
businesses, employees, investors, and local communities
• Organizational Stakeholders are those groups, individuals,
and organizations that are directly affected by the
practices of an organization and who therefore have a
stake in its performance
Social Responsibility
Major corporate
stakeholders
Corporate Social Responsibility (CSR)
• Triple Bottom Line—how well an organization performs
when measured not only on financial criteria, but also on
social and environmental ones.
– Is the decision economically sound?
– Is the decision socially responsible?
– Is the decision environmentally sound?
–Three Ps
– Profit, People, Planet
Common Areas to Concern
• Responsibility Toward the Environment
• Air pollution
• Water pollution
• Land pollution (toxic water disposal, recycling)
Common Areas to Concern
• Responsibility Toward Customers
• Consumer rights
• Fair pricing
• Ethics in advertising
Common Areas to Concern
• Responsibility Toward Employees
• Legal and Social Commitments
• Ethical Commitments: the Special Case of WhistleBlowers
Common Areas to Concern
• Responsibility Toward Investors
• No insider trading
• Misrepresentation of Finances
CSR vs Performance
Socioeconomic View
• Responsibility Increases
long-run profits
• Improves public image
• Helps avoid government
regulation
• Businesses have
resources and ethical
obligations to act
responsibly
Classical View
• Reduces business
profits Creates higher
business costs
• Dilutes business
purpose
• Gives too much social
power to business
Approaches to CSR
Approaches to CSR
• Obstructionist Stance, approach to social responsibility that involves
doing as little as possible and may involve attempts to deny or
cover up violations
• Defensive Stance, approach to social responsibility by which a
company meets only minimum legal requirements in its
commitments to groups and individuals in its social environment
• Accommodative Stance, approach to social responsibility by which
a company, if specifically asked to do so, exceeds legal minimums
in its commitments to groups and individuals in its social environment
• Proactive Stance, approach to social responsibility by which a
company actively seeks opportunities to contribute to the wellbeing of groups and individuals in its social environment
Approaches to CSR
Where were (would) we stand?
Managing Social Responsibility
• Formal organizational dimensions:
• Legal Compliance the extent to which the organization conforms
to local, state, federal, and international laws;
• Ethical Compliance the extent to which the members of the
organization follow basic ethical (and legal) standards of
behavior;
• Philanthropic Giving the awarding of funds or gifts to charities or
other worthy causes
Managing Social Responsibility
• Informal organizational dimensions:
• Organizational leadership, ethical leadership often sets the tone
for the entire organization;
• Culture, organizational culture can go a long way toward
defining the social responsibility stance an organization and its
members will adopt;
• Whistle-blowing, How an organization responds to whistle
blowing often illustrates its stance on social responsibility;
Assignment
• Supplementary Materials: “Ethical Breakdown”
• Instructions:
• Silahkan dibaca artikel “Ethical breakdown”, lalu jawab pertanyaanpertanyaan berikut:
1.
2.
3.
Apa intisari yang dapat anda pelajari dari artikel tersebut?
Perilaku etis di tempat kerja bisa jadi tak selalu berhubungan dengan moral
individu. Adakalanya, lingkungan membuat orang baik berperilaku tidak
baik. Apa saja hal, menurut penulis artikel tersebut, yang kadang secara tak
sengaja malah memprovokasi munculnya perbuatan tidak etis?
Bagaimana caranya mengatasi hal-hal tersebut agar perilaku tidak etis di
tempat kerja bisa dihindarkan? Jelaskan
• Ketikkan jawaban anda di Ms. Word, lalu kumpulkan via Google Class
room mengikuti jadwal yang telah ditentukan
Thank You !