Ch22

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Ch22

  1. 1. Management Ethics and Social ResponsibilityMultiMedia by 2001 South-
  2. 2. Two Broad Categories of Ethical TheoriesConsequential principles judge the ethics of aaparticular situation byConsequential principles judge the ethics of particular situation bythe consequences of that action. the consequences of that action. – Determines the “rightness” or “wrongness” of any action by – Determines the “rightness” or “wrongness” of any action by determining the ratio of good to evil that the action will determining the ratio of good to evil that the action will produce. produce.Non-consequential principles tend to focus on the concept of duty.Non-consequential principles tend to focus on the concept of duty. – A person acts ethically if that person is faithful regardless of the – A person acts ethically if that person is faithful regardless of the consequences that follow from being faithful to that duty. consequences that follow from being faithful to that duty. – If aaperson carries out his or her duties, the greatest good occurs – If person carries out his or her duties, the greatest good occurs because the duty of the individual is carried out. because the duty of the individual is carried out. MultiMedia by 2001 South-
  3. 3. Two Factors Imperil Balance Never have so many conflicting demands been First made so insistently on those who manage institutions and hold power. The consequences of management decisions affectSecond far more people and environments—and more profoundly—than ever before. MultiMedia by 2001 South-
  4. 4. Time Pressure on Decisions To improve quality of productsTo increase productivity and operations To stay close to suppliers and To react swiftly to customers global changes MultiMedia by 2001 South-
  5. 5. Primary Factors Used by Individuals to Judge and Regulate Conduct Religious Educational beliefs and background training Socialization through family and peer group influencesPolitical and Work economic experience philosophyMultiMedia by 2001 South-
  6. 6. Organizations and Unethical Behavior  Offering unusually high rewards.  Threatening unusually severe punishments.  Emphasizing results and avoiding concern for the means employed by subordinates to achieve those results. MultiMedia by 2001 South-
  7. 7. Checklist for Determining if a Corporate Culture Supports Ethical Behavior and Social ResponsibilityIs the company: Yes No1. Concerned about quality in its services, products, and operations?2. Concerned about its employees’ quality of life?3. Proud of its reputation in the industry?4. Proud of its reputation in the community?5. Focused on the needs of its customers?6. Honest in its dealing with you?7. Honest in its dealings with customers?8. Honest in its dealings with others? MultiMedia by 2001 South-
  8. 8. Checklist for Determining if a Corporate Culture Supports Ethical Behavior and Social Responsibility (cont.)Is the company: Yes No9. Fair and equitable in the ways in which it decides on promotions?10. Fair and equitable in the ways in which it compensates employees?11. Open in its communications?12. Trusting in its relationships with employees?13. Concerned with developing and keeping its employees?14. Actively promoting ethical conduct in all its operations and employees?15. Actively searching for ways to better serve its stakeholders?16. Carefully monitoring how decisions are made and checking them for their concern for ethical behavior? MultiMedia by 2001 South-
  9. 9. Three Steps to Discourage Unethical Behavior “Draw a clean line between the behavior you’ll tolerate and the behavior you’ll have to punish.” “Invest the time and money in making sure that those distinctions are understood and remembered.” “Put the fear of God into would-be violators by conspicuously raising the risk of exposure.” MultiMedia by 2001 South-
  10. 10. Characteristics for Codes of Ethics They are visible guidelines for behavior at all levels. They are an unchallengeable basis for firing an unethical employee. They protect all personnel from the pressures of the market. They remind employees to look beyond the bottom line and they provide a touchstone for appeals through the hierarchy. MultiMedia by 2001 South-
  11. 11. Ethics Training Two Areas Compliance training that  Cognitive thinking alerts people to policies, exercises that develop regulations, and laws skills to allow people to that establish acceptable think through various behavior within a “moral mazes.” company. MultiMedia by 2001 South-
  12. 12. Legal/Ethical Behavior Model Applied to Smoking in the Workplace MultiMedia by 2001 South-
  13. 13. Codes of Conduct Written in the manner of company policies General guidelinesInterpretation varies from one individual to the nextAre meant to give freedom of action within certain boundaries and require interpretationMultiMedia by 2001 South-
  14. 14. Gray Areas Suggestions Don’t try to find When in doubt, out “how far is don’t. too far.” Superiors who push you to do things better, faster, cheaper will turn on you when you cross the line between right and wrong.MultiMedia by 2001 South-
  15. 15. Rules for Contemplating the Ethical Implications Consider other people’s well-being, including the well-being of nonparticipants. Think as a member of the business community and not as an isolated individual. Obey, but do not depend solely on, the law. Think of yourself—and your company—as part of society. Obey moral rules. Think objectively. Ask the question, “What sort of person would do such a thing?” Respect the customs of others, but not at the expense of your own ethics. MultiMedia by 2001 South-
  16. 16. Kenneth Blanchard and Norman Vincent Peal The Power of Management Is it balanced? Is it fair to Is it balanced? Is it fair to Is it legal? Will IIbe Is it legal? Will be all concerned in the short all concerned in the shortviolating either civil law or violating either civil law or term as well as the long term as well as the long company policy? company policy? term? Does it promote term? Does it promote win-win relationships? win-win relationships? How will it make be feel about How will it make be feel about myself? Will it make me proud? myself? Will it make me proud? Would IIfeel good if my decision Would feel good if my decision were published in aanewspaper? were published in newspaper? MultiMedia by 2001 South-
  17. 17. “Strategic Philanthropy” and “Financially Sound Goodwill” Gain Increased Increased A better A better employee employee image image loyalty loyalty Improved Improved customer customer ties tiesMultiMedia by 2001 South-
  18. 18. Employees Hold Certain RightsFreedom of Adequate Safetyexpression information Privacy and confidentiality in regard to personal concernsMultiMedia by 2001 South-
  19. 19. Green Products Those that minimize energy consumption and pollution by-products connected with their manufacture and disposal.MultiMedia by 2001 South-
  20. 20. People Become Whistle-Blowers for a Variety of Reasons Some believe that their superiors, like Some are participants in the Some doblow the whistle because of Some so because they feel a strong wrongdoing and maywant to letwhistle themselves, do not blow the their theirobligation to protect others strong moral and ethical codes companies or customers be harmed. out of fearMultiMedia by 2001 South-
  21. 21. Whistleblowers ConcernsOften isolatedOften isolated Harassed Harassed Verbally denigrated Demoted Demoted Fired Fired MultiMedia by 2001 South-
  22. 22. Elements to Make Organizations Proactive Top-level commitment and support. Corporate policies that integrate environmental issues. Effective interfaces between corporate and business- unit staff. High degree of employee awareness and training. Strong auditing programs. Establishment of responsibility for identifying and dealing with real and potential environmental problems. MultiMedia by 2001 South-
  23. 23. A Proactive Environmental Management ProgramMultiMedia by 2001 South-

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