CHAPTER THREE:
SOCIAL RESPONSIBILITY AND ETHICS
Chapter Three explores the concept of social responsibility,
examines three perspectives, and considers four strategies for
approaching social issues. In addition, the chapter offers
recommendations for developing a socially responsible position.
When you have finished studying this chapter, you should be able
to:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
discuss the stakeholder view of the firm and the impact of
the globalization of business on social responsibility and
ethics.
describe the concept of corporate social responsibility and
the primary premises upon which it is based.
distinguish among the three perspectives of corporate social
responsibility.
identify and evaluate different strategies for responding to
social issues.
discuss the ten commandments of social responsibility.
explain what values are, how they form the basis of an
individual's ethical behavior, and how they may vary in a
global business environment.
Describe how advances in information technology have created
new ethical challenges.
identify and discuss the differences in the utility, human
rights, and justice approaches to ethical dilemmas.
explain the methods used by an organization to encourage
ethical business behavior.
describe the different approaches used in ethics training
programs.
discuss what is meant by whistleblowing in monitoring
ethical behavior.
OUTLINE
Following is an outline of Chapter Three.
51
Look at each topic and
52
Chapter 3: Social Responsibility and Ethics
ask yourself what you remember about it.
following the topic.
Then read the material
I.
Organizational Stakeholders in a Global Environment.
Stakeholders are all those who are affected by or can affect
the activities of the firm.
II.
Social Responsibility
A.
The Premises of the Social Responsibility Debate. The
two premises of the social responsibility debate are
social contract and moral agent.
B.
The Three Perspectives of Social Responsibility.
1.
2.
3.
Economic Responsibility. The only social
responsibility of the business is to maximize
profits within the "rules of the game."
Public Responsibility. Business should act in
ways that are consistent with public policy.
Social Responsiveness. Modern corporations should
be proactive in seeking ways that improve the
welfare of society.
C.
The Four Faces of Social Responsibility. There are
four possible combinations of legal and responsible
behaviors: illegal/irresponsible, illegal/responsible,
legal/irresponsible, and legal/responsible.
D.
Social Responsibility Strategies.
1.
2.
3.
Reaction. An organization that assumes a reaction
stance is one that does not act socially
responsible.
Defense. This refers to responding to social
challenges only to defend a current position.
Accommodation. Corporations with this strategy
adapt their behaviors to comply with public policy
and regulation and attempt to be responsive to
what the public expects.
Chapter 3: Social Responsibility and Ethics
4.
E.
53
Proaction. Organizations that take a proaction
strategy are those that believe in the notion of
social responsiveness. They proactively try to
improve the welfare of society.
Social Responsibility In the New Millennium. There are
"ten commandments" of social responsibility that
corporations and managers should keep in mind.
III. Ethics
A.
Understanding Business Ethics.
1.
2.
3.
B.
Managerial Guidelines for Ethical Dilemmas.
1.
2.
3.
C.
Foundations of Ethics. Ethical behavior in
business, although it reflects social and cultural
factors, is highly individualistic, shaped by the
values and experiences of the individual.
Business Ethics. Business ethics is the
application of the general ethical rules to
business behavior.
Pressures to Perform. In the past few years,
there has been increasing pressure from the public
and the press for businesses to operate at a
higher ethical standard.
Utility Approach. The utility approach to solving
ethical dilemmas emphasizes the overall amount of
good that can be produced by an action or a
decision.
Human Rights Approach. This approach states that
human beings have certain moral rights that should
be respected in all decisions.
Justice Approach. This approach judges decisions
based on an equitable, fair, and impartial
distribution of benefits and costs among
individuals and groups.
Fostering Improved Business Ethics.
1.
2.
Codes of Ethics. A code of ethics describes the
general value system, the ethical principles, and
specific ethical rules that a company attempts to
apply.
Ethics Training Programs. Many organizations now
provide ethics training programs for employees.
These have been shown to help employees in dealing
with situations that involve ethics.
54
Chapter 3: Social Responsibility and Ethics
D.
Whistleblowing. Whistleblowing occurs when an insider
reports alleged organizational misconduct to the
public, and a whistleblower is someone who exposes
wrongdoing by the organization in order to keep ethical
standards and remain legal.
MULTIPLE CHOICE
After you have read Chapter Three in the text, complete the
statements or answer the questions below. Be sure to choose the
one best answer, even though more than one might seem to be
correct. MOST IMPORTANT!!! If you were wrong, think about why
you were wrong!
1.
All those who are affected by or can affect the operations
of the organization are known as:
A.
B.
C.
D.
2.
Greater involvement in the international arena:
A.
B.
C.
D.
3.
has made it easier to identify the stakeholders of an
organization.
has increased the number of primary stakeholders and
not the number of secondary stakeholders.
has resulted in the stakeholder base becoming more
diverse.
has made it necessary for organizations to convert
stakeholders in other countries to domestic ways of
operating.
The concept of corporate social responsibility:
A.
B.
C.
D.
4.
owners.
interested parties.
stakeholders.
stockholders.
is a simple concept, and all authorities agree on a
definition.
has been debated throughout the years, but now there is
a consensus opinion on the subject, brought about by
legislative actions.
is a complex concept, and it is very difficult to find
or develop a precise definitions.
means simply acting in a way so that the members of
society who have invested in the organization profit
from their investments.
The concepts of social contract and moral agent, as they
relate to business organizations and developed by Bowen:
Chapter 3: Social Responsibility and Ethics
A.
B.
C.
D.
5.
are generally considered to be outdated today.
are the foundation for the concept of social
responsibility.
have been determined by the courts to be unenforceable
by law.
are legal concepts upheld by the Supreme Court.
The "economic responsibility" perspective of social
responsibility argues that:
A.
B.
C.
D.
6.
55
the moral agent concept developed by Bowen is not
correct.
organizations must investigate the internal environment
and develop policies that enforce socially responsible
behavior.
the responsibility of business is to make a profit, but
only after societal desires have been satisfied.
individuals cannot serve as moral agents; this is the
province of organizations.
The "public responsibility" perspective of social
responsibility:
A.
B.
C.
D.
states that the responsibility of business
organizations is to attempt to change public policy for
their own benefit.
views public policy simply as the laws and regulations
with which business must comply.
states that the primary responsibility of business
organizations is pleasing the public sector (the
governments).
focuses almost exclusively on the social contract
premise of social responsibility.
56
7.
Chapter 3: Social Responsibility and Ethics
The "social responsiveness" perspective of social
responsibility:
A.
B.
C.
D.
8.
Prior to the passage of the Fair Labor Standards Act in
1938, it was legal to pay workers less than twenty-five
cents per hour, since there was no minimum wage established
by the Federal Government. Many organizations had taken
advantage of this and paid very low wages to their
employees. This action on the part of organizations might
be considered to be:
A.
B.
C.
D.
9.
reaction
accommodation
proaction
defense
Organizations that adopt a "proaction" strategy:
A.
B.
C.
D.
11.
illegal/irresponsible.
illegal/responsible.
legal/irresponsible.
legal/responsible.
According to the definitions found in the text, American
automobile manufacturers in the 1970s pursued which kind of
social responsibility strategy?
A.
B.
C.
D.
10.
relates social responsibility to an obligation on the
part of business organizations to react to expectations
of society.
states that corporations should act proactively in the
area of social responsibility.
defines rather precisely to what extent organizations
should behave in a proactive manner in relation to
social responsibility.
according to some authorities, directly addresses the
issue of social irresponsibility.
consider profit to be their major concern.
seek to improve the welfare of society.
consider compliance with the laws of society to be all
that is necessary to be socially responsible.
are generally considered by stockholders to be bad
investments.
Industry-wide social responsibility standards:
A.
are not feasible in today's society.
Chapter 3: Social Responsibility and Ethics
B.
C.
D.
12.
B.
C.
D.
the only reason for an organization to be responsive to
environmental concerns is to develop a good public
image.
the development of a corporate code of conduct is a
good idea, but there is no way to enforce adherence to
such a code.
organizations should ignore making profits.
organizations should not refrain from taking a position
on controversial issues.
One of the most important challenges to business is to
conduct business ethically and:
A.
B.
C.
D.
14.
cannot be enforced due to the complexity of modern day
business operations.
can help to avoid regulation by the various levels of
government.
usually force legislation to be passed.
One of the "ten commandments" listed in the text states
that:
A.
13.
57
not worry about the level of economic performance
achieved.
abide by local standards of behavior and morality, even
if they are different from those in the United States.
still achieve high levels of economic performance.
operate at a level of economic performance that will
please all of the stockholders of the organization.
Ethics reflects established customs and morals and
fundamental human relationships that:
A.
B.
C.
D.
are consistent throughout the world.
may vary from country to country throughout the world.
may vary throughout the world and should be changed to
be consistent with those in the United States.
benefit the individual over the group.
58
15.
Chapter 3: Social Responsibility and Ethics
Ethical behavior in business:
A.
B.
C.
D.
is generally the behavior that is copied from the
largest competitors of the organization.
is highly individualistic.
must ignore the values and experiences of the
individual managers.
does not relate to the treatment of the employees of
the organization.
16.
values prescribe desirable standards of
conduct or methods for attaining an end, and
values prescribe goals and reflect what a person is
ultimately striving to achieve.
A.
terminal, instrumental
B.
social, instrumental
C.
social, legal
D.
instrumental, terminal
17.
The values of an organization’s senior managers:
A.
B.
C.
D.
18.
Business ethics:
A.
B.
C.
D.
19.
are usually adopted by lower-level managers in the
organization.
are important determinants of the way the organization
will operate.
affect not only the behavior of the employees but also
of others associated with the organization.
all of the above.
is a special set of rules that has some relationship to
ethics in general, but also has great differences.
are in force in most organizations because the public
expects organizations to operate ethically and will
often take action against organizations that do not.
do not relate to the treatment of employees in the
organization; this is usually covered by a different
standard of behavior.
are practiced in all organizations at all times.
Organizations often have to consider economic vs. social
performance. When choices have to be made:
A.
B.
C.
usually the distinction between right and wrong is an
easy distinction to make.
there are usually obvious good and bad choices that can
be made.
often they relate to the standards and values of the
management of the organization.
Chapter 3: Social Responsibility and Ethics
D.
20.
59
the path to be taken is usually clear cut.
If a manager of a small manufacturing company has to decide
between two alternatives, and the main criteria for the
decision is the amount of good that the decision will
produce, he or she is using which of the following
approaches to handling ethical dilemmas?
A.
B.
C.
the utility approach
the human rights approach
the justice approach
21.
Throughout this course, the concept of cost-benefit analysis
will be mentioned several times. This means that the
manager has to look at what costs and benefits are
associated with an alternative before a decision is reached.
In the case of ethical behavior:
A.
costs are usually easy to determine, but benefits are
very difficult to determine.
B.
benefits are usually easy to determine, but costs are
very difficult to determine.
C.
costs and benefits are both easy to determine.
D.
costs and benefits are both difficult to determine.
22.
In order to improve business ethics in organizations, action
must be directed at five levels. Of the five levels, the
most fundamental is:
A.
B.
C.
D.
23.
A code of ethics for an organization:
A.
B.
C.
D.
24.
directed at the organization.
international in scope.
directed at the individual.
directed at society as a whole.
is usually a statement that no one in the organization
pays much attention to.
often serves the purpose of creating an employee
awareness that ethical issues need to be considered in
making business decisions.
has as its primary purpose making the organization look
good.
is valuable because it can serve as a legal defense for
the top executives of the company.
In most organizations, it is necessary to reinforce ethical
behavior in some way. This can be done by:
A.
covering ethical activities of employees on the
performance appraisal.
60
Chapter 3: Social Responsibility and Ethics
B.
C.
D.
the use of ethical audits.
through the development of ethics training programs.
All of the above may be used.
AGREE OR DISAGREE?
Indicate if you agree or disagree with the following statements.
If you disagree, rewrite the statement so that you agree with it.
25.
Stakeholders of an organization would include consumers,
owners and employees, but would not include government and
the community.
AGREE
26.
Social responsibility is a topic of great concern and much
debate, but there is no precise definition of the concept.
AGREE
27.
28.
DISAGREE--CORRECT THE STATEMENT
DISAGREE--CORRECT THE STATEMENT
Bowen developed two premises concerning social
responsibility: social contract and moral agent. These
premises have been the foundation for the concept of social
responsibility, and have not come under criticism by any
authorities.
AGREE
DISAGREE--CORRECT THE STATEMENT
There are three primary perspectives of corporate social
responsibility that have emerged over the years: economic
responsibility, public responsibility, and social
responsiveness.
AGREE
DISAGREE--CORRECT THE STATEMENT
Chapter 3: Social Responsibility and Ethics
29.
According to Friedman, even if profit is reduced by an
organization engaging in socially responsible actions, the
organization should still pursue a socially responsible
policy.
AGREE
30.
DISAGREE--CORRECT THE STATEMENT
When considering the public responsibility perspective,
"public policy" refers only to the laws and regulations with
which organizations must comply.
AGREE
31.
61
DISAGREE--CORRECT THE STATEMENT
The social responsiveness perspective relates to the concept
of proactive activities by organizations.
AGREE
DISAGREE--CORRECT THE STATEMENT
62
32.
Chapter 3: Social Responsibility and Ethics
It is clear that actions that are legal are, by definition,
socially responsible.
AGREE
33.
Organizations must abide by the results of cost-benefit
analysis when debating alternatives that have social
responsibility implications.
AGREE
34.
DISAGREE--CORRECT THE STATEMENT
An organization that adopts a reaction strategy is one that
fails to act socially responsible.
AGREE
35
DISAGREE--CORRECT THE STATEMENT
DISAGREE--CORRECT THE STATEMENT
The most socially responsible strategies for organizations
to adopt are the defense and the accommodation strategies.
AGREE
DISAGREE--CORRECT THE STATEMENT
Chapter 3: Social Responsibility and Ethics
36.
"Our organization has decided to adopt a proaction strategy
for social responsibility." This organization would be
taking a positive approach to the social responsibility
problem.
AGREE
37.
DISAGREE--CORRECT THE STATEMENT
According to Commandment IV in your text, organizations
should attempt to hide irresponsible behavior, as publicity
about the behavior would possibly damage the organization
and harm the stakeholders.
AGREE
38.
63
DISAGREE--CORRECT THE STATEMENT
One of the commandments in the text indicates that
organizations should not only avoid creating environmental
problems, but should also help to correct them.
AGREE
DISAGREE--CORRECT THE STATEMENT
64
39.
Chapter 3: Social Responsibility and Ethics
If you are operating in a country where it is common to
bribe governmental officials to get business, it is ethical
to offer bribes, since this is "common business practice" in
that country.
AGREE
40.
Ethical behavior in business is, by necessity, shaped by the
values and experiences of the individuals.
AGREE
41.
DISAGREE--CORRECT THE STATEMENT
Business ethics is not the same as other types of ethics,
such as medical ethics, since business operations are
outside the normal ethical thinking pattern.
AGREE
42.
DISAGREE--CORRECT THE STATEMENT
DISAGREE--CORRECT THE STATEMENT
An ethical dilemma arises when a manager may be pressured
into taking an action that will benefit the organization
(and, consequently, the stockholders) but which might be
considered by society to be unethical.
AGREE
DISAGREE--CORRECT THE STATEMENT
Chapter 3: Social Responsibility and Ethics
43.
The human rights approach to handling ethical dilemmas
emphasizes the treatment of human beings as valuable ends in
themselves rather than simply means to an end.
AGREE
44.
DISAGREE--CORRECT THE STATEMENT
A code of ethics describes the general value system, ethical
principles, and specific ethical rules that a company tries
to apply.
AGREE
47.
DISAGREE--CORRECT THE STATEMENT
To achieve improved business ethics in an organization,
there are five levels at which action must be directed. Of
these five levels, the most fundamental is the organization
level.
AGREE
46.
DISAGREE--CORRECT THE STATEMENT
The justice approach to handling ethical dilemmas is a good
one to use in most situations, since it involves the
determination of costs and benefits, and this is easy to do.
AGREE
45.
65
DISAGREE--CORRECT THE STATEMENT
Because it is a difficult document to develop, a code of
ethics typically covers a narrow range of issues.
AGREE
DISAGREE--CORRECT THE STATEMENT
66
48.
Chapter 3: Social Responsibility and Ethics
Ethics training is not feasible in most organizations, since
ethics is such an individual concept. Consequently, most
organizations do not engage in this type of training.
AGREE
49.
DISAGREE--CORRECT THE STATEMENT
Whistleblowing occurs when an insider reports alleged
organizational misconduct to the public. This type of
activity has been illegal since 1988.
AGREE
DISAGREE--CORRECT THE STATEMENT
FOR DISCUSSION
There are two reasons for discussion questions. The first is to
give you a chance to review the material in the chapter for
yourself. Look at each question and ask yourself what you know
about the subject, and then review the material in the text that
relates. The second is for actual discussion. Your instructor
might ask the class to discuss the questions, or they might be
discussed in groups. If groups have been assigned in the class,
these questions should be discussed in those groups. If not, you
should form groups and discuss the questions among yourselves.
Space is provided below each question for you to make notes.
50.
What is the concept of organizational stakeholders? Who are
the primary stakeholders in most corporations? In volunteer
organizations?
51.
The text states that as organizations become more global,
their stakeholder base increases. What problems does this
Chapter 3: Social Responsibility and Ethics
cause for the organization?
52.
How can corporate social responsibility be defined so that
the definition has practical application for the manager?
53.
There are two fundamental premises of the social
responsibility debate: social contract and moral agent.
Discuss these two premises, including what you believe are
both positive and negative about them.
54.
Discuss the three perspectives of social responsibility,
being sure to emphasize in your discussion the differences
among the three.
55.
Can an action of an organization be both legal and
unethical? Can an action be both illegal and ethical?
Discuss your reasoning.
56.
The text discusses four social responsibility strategies:
reaction, defense, accommodation, and proaction. Which of
these four strategies do you see in effect at ASTRA in the
case at the beginning of the chapter?
67
68
Chapter 3: Social Responsibility and Ethics
57.
What organizations are you aware of that have practiced a
proaction strategy in relation to business ethics? What was
your reaction to the strategy as a member of the public?
Would your reaction be different if you were a stockholder
in the organization?
58.
Discuss and give your opinion of the "ten commandments" of
social responsibility in the text.
59.
What is the definition of "ethical behavior"? Would this
definition change according to the situation, or would it
remain the same regardless of the situation? Explain your
viewpoint.
60.
Would ethical behavior be the same regardless of the country
in which you were doing business? If it would be different,
how would it be different?
61.
What is meant by the statement in the text that "ethical
behavior in business, while reflective of social and
cultural factors, is highly individualistic, shaped by an
individual's own values and experiences"?
Chapter 3: Social Responsibility and Ethics
69
62.
What are definitions of values, terminal values, and
instrumental values that would be valuable to a manager in
his or her work?
63.
How, if at all, does the concept of business ethics differ
from the concept of ethics in general?
64.
What kind of pressures for businesses to perform more
ethically are you aware of? How can businesses combat these
pressures?
65.
Discuss the three approaches to the solving of ethical
dilemmas as noted in the text. What is your opinion of each
of these approaches?
66.
Of the methods of fostering improved business ethics stated
in the text, which do you believe would be the most
effective? Would your answer vary depending on the
organization and/or the situation?
70
Chapter 3: Social Responsibility and Ethics
67.
Describe what you believe should be included in a code of
ethics for a business organization.
68.
The text discusses the concept of the ethical audit. How
difficult is this for an organization to perform? Why is it
difficult?
69.
What is your opinion of "whistleblowing" and
"whistleblower"? Why do you have this opinion?
EXERCISES
Read the exercises below and complete them as assigned by your
instructor. If an exercise is not assigned, it is recommended
that you review it and complete it for your own education and
your own use.
70.
Working in groups, as assigned by the instructor, read the
following scenario and answers the questions that follow.
Try to come to a consensus with your group members about
your responses. Report your answers to the instructor or to
the entire class.
I went to a small liberal arts college where they had a very
strict honor system. For example, if you saw another
student cheating, you were supposed to turn that student in
to the authorities. In reality, some students did cheat,
but only rarely did other students report the problem.
There seemed to be several reasons for this: (1) it was a
hassle to get involved because you had to go to meetings,
fill out forms, and answer numerous questions; (2) nobody
wanted to be considered a "tattletale"; and (3) even if you
Chapter 3: Social Responsibility and Ethics
71
were sure the person had cheated, you had to have specific
evidence to support the charge.
Ten years later, I am out of college and law school and
practice law with a large firm. We have an honor system
here, too, but bringing a complaint against another
professional is difficult: (1) it takes time and energy to
get involved; (2) no one trusts or likes a person who turns
in a peer; and (3) evidence is needed to support a claim
(consider recent news reports or stories from current
television shows).
A.
Discuss ethical dilemmas faced by other professional
groups such as accountants, professors, engineers, and
psychologists. If you are not a major in some aspect
of business administration, discuss the ethical
dilemmas you may encounter in your chosen field.
B.
Discuss the pros and cons of an honor system.
72
Chapter 3: Social Responsibility and Ethics
71.
What experiences have you had as a consumer of goods or
services you would consider either ethical or unethical
practices on the part of the organization you dealt with?
Note these experiences below, and share them with your group
or with the class.
72.
If you are currently employed, or have been employed in the
past, note below practices of your organization that you
believe are examples of unethical behavior. Was this
unethical behavior toward one particular group or person
associated with the organization? If so, is there another
associated group or person that might consider the behavior
to be ethical?
73.
Do you believe that the following actions represent
unethical and/or socially irresponsible actions? Why or why
not?
Chapter 3: Social Responsibility and Ethics
74.
73
A.
A vendor offers two fifty-yard-line tickets to the
Packers-Bears game to a purchasing agent of a company
with which the vendor does business, with "no strings
attached."
B.
A purchasing agent accepts two fifty-yard-line tickets
to the Packers-Bears game from a vendor with which his
company does business, with "no strings attached."
C.
An actor appears on television wearing a white coat in
an advertisement for a pain killer.
D.
A warranty on an automobile is sold, but the details of
the warranty (what is not covered, etc.) is not
explained to the buyer.
Locate in your library or on the Internet a statement of
ethics (a "code of ethics") for a professional organization
such as the American Institute of Certified Public
Accountants or the American Medical Association. How, if at
all, do you believe this statement should be revised to
bring it more "up-to-date"?
LEARNING OBJECTIVES--WHAT DID YOU LEARN?
Before reading further, review the Learning Objectives for
Chapter Three. Did you meet the objectives of this chapter?
Compare what you learned with the information below.
74
Chapter 3: Social Responsibility and Ethics
Now that you have finished studying this chapter, you should be
able to:
1.
discuss the stakeholder view of the firm.
Traditionally, the view of socially responsible behavior
considers only the view of the stockholders, but there is a
broader group of interested parties that are also affected.
These individuals are stakeholders and may include any
individual or group that is affected by or can affect the
organization. Because of globalization, the stakeholder
base has become wider and more diverse.
2.
describe the concept of corporate social responsibility and
the primary premises upon which it is based.
The concept of corporate social responsibility does not have
a precise definition. It refers, in a general sense, to the
interaction between business and the social environment in
which it exists. The two premises upon which the concept of
social responsibility rests are the concepts of social
contract and moral agent. The social contract premise
states that business exists at the pleasure of society and
must comply with the guidelines established by society. The
moral agent premise states that business must act in a way
so that it perceived as being "moral."
3.
distinguish among the three perspectives of corporate social
responsibility.
The three perspectives of corporate social responsibility
are the economic perspective, the public responsibility
perspective and the social responsiveness perspective. The
economic perspective states that the only social
responsibility of business is to maximize profits, as long
at it stays within the "rules of the game." The public
responsibility perspective states that business has an
obligation to act in a way that is consistent with what
society expects from business. The social responsiveness
perspective suggests that business should act proactively to
improve the welfare of society.
4.
identify and evaluate the four strategies for responding to
social issues.
The four strategies for responding to social issues,
according to the text, are reaction, defense, accommodation,
and proaction. There is no exact way to evaluate these; it
is somewhat situational, although most firms should adopt
either an accommodation or proaction strategic approach to
Chapter 3: Social Responsibility and Ethics
75
the problem of social responsibility.
5.
discuss the ten commandments of social responsibility.
The "ten commandments of social responsibility" are found on
pages 82 and 83 of the text. In general, these commandments
suggest that organizations should be observant, honest,
cooperative with stakeholders, and proactive in their
efforts to fulfill their obligations to society.
6.
explain what values are, how they form the basis of an
individual's ethical behavior, and how they may vary in a
global business environment.
Values are defined in the text as relatively permanent and
deeply held preferences of individuals or groups and are the
basis on which attitudes and personal choices are formed.
They are among the most stable and enduring characteristics
of individuals and form the foundation of ethical behavior.
When working in a global business environment, it must be
kept in mind that values vary from culture to culture and
country to country
7.
describe how advances in information technology have created
new ethical challenges.
Advances in information technology have raised issues about
privacy. Information about employees and customers is much
easier to obtain today than in the past. Employees are also
tempted to use the computer for personal reasons. The
computer can be used as a persuasive device in order to
alter practices and behavior of individuals.
8.
identify and discuss the differences in the utility, human
rights, and justice approaches to ethical dilemmas.
The utility approach to ethical dilemmas concentrates on the
overall amount of good that can be produced by an action or
a decision. The objective is to provide the greatest good
for the greatest number of people. The human rights
approach states that decisions should be consistent with
basic rights and privileges of human beings. Human beings
have certain moral entitlements such as life, freedom,
privacy, etc. The justice approach to ethical dilemmas
judges decisions on whether they represent an equitable,
fair, and impartial distribution of rewards and costs. All
of these approaches relate to the fair treatment of
individuals, even though the treatment may be achieved
differently with different approaches.
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9.
Chapter 3: Social Responsibility and Ethics
Explain the methods used by an organization to encourage
ethical business behavior.
Organizations develop codes of ethics (as do industries, at
times), institute training programs, consider ethical
behavior in performance appraisals, and conduct ethical
audits. All of these methods help to encourage ethical
behavior within the organization.
10.
describe the different approaches used in ethics training
programs.
Ethics training programs may involve case studies, relevant
to the employees and the organizations, presenting rules and
guidelines for deciding ethical issues, and cognitive
approaches that try to develop higher levels of ethical
understanding. In many cases, a checklist that can be used
by managers is useful.
11.
discuss what is meant by whistleblowing in monitoring
ethical behavior.
Whistleblowing takes place when an employee of an
organization exposes wrongdoing by the organization. The
purpose of this exposure is to force the organization to
preserve ethical standards and to protect against wasteful,
harmful, or illegal acts.
Chapter 3: Social Responsibility and Ethics
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