Section 3.1: Stockholders are only one group of stakeholders. Who are the stakeholders important to me inside the organization?
Section 3.2: Who are stakeholders important to me outside the organization?
Section 3.3: What does the successful manager need to know about ethics and value?
Section 3.4: Is being socially responsible really necessary?
Section 3.5: What trends in workplace diversity should managers be aware of?
toxic organizations stakeholders internal stakeholders owners board of directors board of trustees/regents inside directors outside directors external stakeholders task environment customers competitors suppliers distributors strategic allies employee organizations unions professional organizations financial institutions government regulators special interest groups mass media general environment economic forces technological forces socio-cultural forces demographic forces political-legal forces international forces ethical dilemma ethics ethical behavior
 Manager’s Toolbox – p. 71
 Practical Action - p. 88
Business more than any other occupation, is a continual dealing with the future; it is a continual calculation, an instinctive exercise in foresight.
Henry R. Luce values value system utilitarian approach individual approach moral-rights approach justice approach
Sarbanes-Oxley Act
Laurence Kohlberg preconventional moral development conventional moral development postconventional moral development code of ethics whistleblower social responsibility corporate social responsibility
Archie B. Carroll
Milton Friedman
Paul Samuelson
Jeb Emerson blended value sustainability philanthropy diversity personality internal dimensions of diversity external dimensions of diversity organizational dimensions of diversity glass ceiling
Americans with Disabilities Act underemployed ethnocentrism
AT THE
LIBRARY
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Post Project Homework :
Read pages 81 to the top of page 83 in your text. Then answer these questions:
1. How are ethics and values the same? different?
2. What two value systems often conflict in organizations?
3. Why can it often be difficult to determine the “greatest good” when using the utilitarian approach?
4. What is the flaw with the individual approach to ethics?
5. In what situations is applying the moral-rights approach difficult?
6. Give an example of how the justice approach is used at Council Rock North.
7. What is a “golden parachute”?
Section 3.3 Homework:
Below are some decisions a manager may face that have ethical implications. Analyze each situation and identify which of the four approaches you use in deciding each ethical dilemma.
1. Your accountant advises you to pay your part-time workers in cash to avoid paperwork.
2. At the annual industry convention you notice your general manager making sexual advances to his assistant. The woman looks uncomfortable and leaves the room.
3. An information technology manager at a major competitor offers to do consulting work for you after hours.
4. A report on your desk shows that your major product may cause skin cancer.
5. In negotiations with a major supplier in another country, you are approached by the supplier’s representative. If you reimburse the representative for his travel expenses to visit your U.S. facilities, he will approve the contract on favorable terms.
6. Your business is facing bankruptcy because of a recession. To obtain financing to cover expenses for the next few weeks, you will have to shade the truth when talking with your banker.
Section 3.4 Homework
Most companies now publish codes of ethics to provide ethical guidelines for employees. Many of the larger companies publish these codes on their web sites, but they may be hard to find. The Center for the Study of
Ethics in the Professions (CSEP) has collected over 850 codes of ethics and put them on their website. You can access the website at http://ethics.iit.edu; then click on the link for the Codes of Ethics . Their collection includes codes of ethics for professional societies, corporations, government, and academic institutions.
Earlier versions of codes of ethics of some organizations are available so you can study the development of codes.
1.
Locate the code of ethics for an educational institution, a media organization, and a business organization.
What do the three codes have in common? In what ways do they differ?
2. Find a company for which a previous code is available (such as IBM.) Review the key sections. How has the code changed?
Section 3.5 Homework
1. Define these terms: Primary dimensions of diversity; secondary dimensions of diversity; illiterate; salient
2. Why is the United States the only developed economy to have enough young people?
3. What factors keep minorities from breaking through the glass ceiling?
4. Gay and lesbian workers report more discrimination from males than females. Why do you think this is so?
5. Why is underemployment a concern for the business manager?
6. Why is an illiterate workforce a problem for managers?
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Part A - Questions for Review
1.
List three internal stakeholders.
2.
List the six components of the general environment.
3.
List six of the eleven groups representing the task environment.
4.
What are demographic forces? List at least two.
5.
Contrast ethics and values.
6.
Summarize the reasoning for and against social responsibility.
7.
List the internal and external dimensions of diversity.
8.
Summarize some of the effects of the glass ceiling.
9.
Based on what you have uncovered in this chapter, does "being good" pay off financially for businesses? Describe why or why not?
10.
Based on trends in workforce diversity covered in this chapter, what trends and challenges do you predict for companies in the next decade?
Part B
– Vocabulary Review
Americans with Disabilities Act
Code of Ethics
Competitors
Demographics forces distributor diversity economic forces ethnocentrism external stakeholders general environment glass ceiling internal dimensions of diversity internal stakeholders international forces justice approach moral-rights approach socio-cultural forces stakeholders strategic allies supplier task environment technological forces underemployed utilitarian approach ethical behavior ethics owners philanthropy value system values external dimensions of diversity political-legal forces
1.
_____________________ are the people whose interests are affected by an organization's activities.
2.
_____________________ _______________________ consists of employees, owners and the board of directors whereas _____________________ _____________________ are the people or groups in the organization's external environment that are affected by it.
3.
The _____________________ _______________________ consists of groups that interact with your organization on a day-to-day basis.
4.
The _____________________ _______________________ consists of forces that are beyond your organization's control.
5.
_______________________ are the standards of right and wrong that influence behavior.
6.
A(n) _____________________ _______________________ is a situation in which you have to decide between whether to pursue a course of action that may benefit you or your organization but could actually be illegal.
7.
Behavior that is accepted as "right" as opposed to "wrong" is _____________________ behavior.
8.
A _____________________ _______________________ is the pattern of values within an organization and
9.
_____________________ are the relatively permanent and deeply held underlying beliefs and attitudes that help determine a person's behavior.
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10.
There are four approaches to deciding ethical dilemmas _____________________, _______________________,
_____________________, and _______________________.
11.
A_____________________ of _______________________ consists of formal written sets of ethical standards guiding an organization's actions.
12.
_____________________ _______________________ is a manager's duty to take action that will benefit the interests of society as well as the organization.
13.
_____________________ is donating money to worthwhile recipients.
14.
_____________________ represents that ways people are unalike and alike.
15.
There are two dimensions of diversity: _____________________ dimensions are human difference throughout each stage of our lives and _______________________ dimensions include an element of choice.
Part C – Multiple Choice
1. All of the following are part of the task environment except: a. distributors b. suppliers c. customers d. demographics
2. Which of the following is an extern dimension of diversity? a. gender c. age b. income d. race
3. All of the following make up the four parts of a system except: a. subsystems c. outputs b. inputs d. feedback
4. Approximately how many individuals are working in jobs for which they are overqualified? a. 20% c. 50% b. 33% d. 66%
5. Which of the following is true regarding diversity? a. Fewer women are entering the workforce b. More able-bodied people are leaving the workforce c. Some organizations regard diversity as being less and less important d. More people of color are entering the workforce
6. Which of the following is a barrier to diversity? a. lack of support for family demands c. fear of discrimination d. unsupportive social atmosphere b. lack of support for educations needs
7. Which is true regarding statistics on ethical behavior?
a. Social responsibility has little long-term effects. b. A company is more attractive to potential employees when it has a reputation for social responsibility. c. Eighty-eight percent of respondents said that they were no more likely to apply to an ethical company. d. All of the above are true
8. What is the glass ceiling? a. A cap on CEO salaries. b. The invisible layer preventing women from being promoted. c. The layer preventing minorities from being hired. d. None of the above
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9. Managers operate in two environments. Name one. a. external b. general c. task d. ethical
10. There are four approaches to deciding ethical dilemmas. Which of the following is NOT one of these approaches? a. individual b. utilitarian c. justice d. total quality
11. What do suppliers do? a. Compete for customers and resources b. Helps other organizations sell its goods and services to customers c. Join forces to achieve advantages d. Provide supplies to other organizations
Part D – True and False
1.
______ There are three approaches to solving ethical dilemmas.
2.
______ External stakeholders exist in the task and general environments.
3.
______ Owners are external stakeholders.
4.
______ Boards of directors are part of the general environment.
5.
______ Organizations can promote ethics in three ways.
6.
______ Some business leaders argue against social responsibility.
7.
______ "Being good" pays off financially.
8.
______ Personal habits are internal dimensions of diversity.
9.
______ Gays and lesbians make up approximately 6% of the U.S. population.
10.
______ Most managers have achieved postconventional moral development.
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