Law 483 managerial ethics

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Law 483 managerial ethics

  1. 1. Managerial Ethics 1
  2. 2. LEARNING OUTCOMEDefine social responsibility and ethicsList at least six main arguments for at least four main arguments againts businesses being socially responsible.Explain the importance of demonstrating social responsibility in today business world 2
  3. 3. Learning Objectives ( continued)•Describes the concern people have about business ethics•Explain the relationship between social responsibility and managerial ethics•Identify the seven factors that influence ethical behaviour•Describe ways an organization can improve ethical behaviour 3
  4. 4. Society’s Expectation from Organizations and ManagerManagers regularly make decisions about issues with a social dimensionIn competitive environment, organizations cannot afford to be seen as socially irresponsible 4
  5. 5. Arguments Supporting Businesses Being Socially ResponsiblePublic expectationsLong-run profitsEthical obligationPublic imageBetter environmentBalance of responsibility and powerShareholder interestsPossession of resourcesSuperiority of prevention over cures 5
  6. 6. Arguments Againts Businesses Being Socially ResponsibleViolation of profit maximizationDilution of purposeCostsToo much powerLack of skillsLack of accountabilityLack of broad public support 6
  7. 7. Demonstrating Social ResponsibilitySocial responsibilitySocial obligationSocial responsiveness 7
  8. 8. Relationship Between Social Responsibility and Economic PerformanceResearch studies show positive relationshipGeneral public perception that companies who behave in a socially responsible way have better business performance 8
  9. 9. Managers Becoming More Socially Responsible• It is the collective behaviour and actions of managers that make a company socially responsible• Managers who make the right decisions are described as being or behaving ethicallyRobbins et al., Fundamentals of Management, 4th Canadia Edition©2005 Pearson Education Canada, Inc. 9
  10. 10. Managerial Ethics• Ethics - Rules and principles that define right and wrong conduct• Three Views of Ethics - Utilirian view – ethical decisions are made on the basis of their outcomes or consequences (continued)Robbins et al., Fundamentals of Management, 4th Canadia Edition©2005 Pearson Education Canada, Inc. 10
  11. 11. Managerial Ethics (continued)• Three Views of Ethics (continued) - Right view – respects and protects individual liberties and privileges• Theory of injustice view – managers impose and enforce rules fairly and impartiallyRobbins et al., Fundamentals of Management, 4th Canadia Edition©2005 Pearson Education Canada, Inc. 11
  12. 12. Moral Development• Is a measure of an individual’s independence as his/her moral judgment becomes less and less dependent on outside influences• Stages start with making a choice between right and wrong based on personal consequences (continued)Robbins et al., Fundamentals of Management, 4th Canadia Edition©2005 Pearson Education Canada, Inc. 12
  13. 13. Moral Development (continued)• As development evolves, moral judgment is less dependent on outside factors• Individuals with highly-developed moral development can make clear distinctions to define moral principles separate from any authorityRobbins et al., Fundamentals of Management, 4th Canadia Edition©2005 Pearson Education Canada, Inc. 13
  14. 14. Values• Basic convictions about what is right and wrong• Influence ethical behaviour• Values are developed in early yearsRobbins et al., Fundamentals of Management, 4th Canadia Edition©2005 Pearson Education Canada, Inc. 14
  15. 15. Organizational Factors That Affect Ethical And Unethical Behaviour Organizational Culture Ethical/Unethical Moderators Behaviour Structural VariablesRobbins et al., Fundamentals of Management, 4th Canadia Edition©2005 Pearson Education Canada, Inc. FOM 2.15
  16. 16. Determinants Of Issue Intensity (Exhibit 2.3) How much agreement is there How many people will that this action is wrong? be harmed?ed? How likely is it that this action will cause harm? Consensus of Greatness Wrong Probability of of Harm Harm Issue Intensity Concentration Immediacy of of Effect Proximity Consequences to Victims How concentrated is the effect of the action on the victims? Will harm be felt How close are the potential immediately? victims?Source : Management, Seventh Canadian Edition, by Stephen P. Robbins, Mary Coulter, and RobbinStuart-Kotze, page 113. Copyright 2003. Reprinted by permission of Pearson Education Canada Inc.Robbins et al., Fundamentals of Management, 4th Canadian Edition 2005 PearsonEducation Canada, Inc.
  17. 17. Businesses Improving Ethical Behaviour• Strong emphasis on corporate governance• Companies refocusing efforts on businessethics• New legislation to hold boards of directorsmore accountableRobbins et al., Fundamentals of Management, 4th Canadian Edition 2005 PearsonEducation Canada, Inc. 17
  18. 18. Managers Improving Ethical Behaviour• Hire individuals with high ethical standards• Establish codes of ethics and decision rules• Lead by example (continued)Robbins et al., Fundamentals of Management, 4th Canadian Edition 2005 PearsonEducation Canada, Inc. 18
  19. 19. Managers Improving Ethical Behaviour (continued)• Delineate job goals and performance reviewmechanisms• Provide ethics training• Conduct social audits• Provide support to individuals facing ethicaldilemmasRobbins et al., Fundamentals of Management, 4th Canadian Edition 2005 PearsonEducation Canada, Inc. 19
  20. 20. Code of Ethics• Formal statement of an organization’s primaryvalues and ethical rules it expects employees tofollow• Usually written• Must state in detail acceptable behaviours andactionsRobbins et al., Fundamentals of Management, 4th Canadian Edition 2005 PearsonEducation Canada, Inc. 20
  21. 21. Management Responsibility Relating to Codes of Ethics• If possible, develop codes with activeinvolvement of everyone in the organization• All levels of management must support andcontinually reaffirm the importance• Consistently discipline those who break the code• Set an example by behaviour and actionRobbins et al., Fundamentals of Management, 4th Canadian Edition 2005 PearsonEducation Canada, Inc. 21
  22. 22. Concluding Remarks• More and more organizations are appearing innewspaper headlines about ethical conduct• Survey of employees shows workplacepressures are leading to more peopleconsidering acting unethically• Concerns about social responsibility aregrowingRobbins et al., Fundamentals of Management, 4th Canadian Edition 2005 PearsonEducation Canada, Inc. 22
  23. 23. itazulaikha@yahoo.com.my Format: LAWM483-

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