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Ethics, Social
Responsibility,
and Diversity
*Stakeholders: people or groups that have an interest in the
organization.
* Stakeholders include employees, customers, shareholders,
suppliers, and others.
* Stakeholders often want different outcomes and managers
must work to satisfy as many as possible.
*Ethics: a set of beliefs about right and wrong.
* Ethics guide people in dealings with stakeholders and others, to
determine appropriate actions.
* Managers often must choose between the conflicting interest
of stakeholders.
It is difficult to know when a decision is ethical.
Here is a good test:
Managerial ethics: If a manager makes a decision
falling within usual standards, is willing to
personally communicate the decision to
stakeholders, and believes friends would
approve, then it is likely an ethical decision.
Social Ethics:
Legal rules, customs
Professional Ethics:
Values in workplace
Individual Ethics:
Family influence
Organization’s
Code of Ethics
*Societal Ethics: standards that members of society use
when dealing with each other.
* Based on values and standards found in society’s
legal rules, norm, and mores.
* Codified in the form of law and society customs.
* Norms dictate how people should behave.
*Societal ethics vary based on a given society.
* Strong beliefs in one country may differ elsewhere.
* Example: bribes are an accepted business practice in
some countries.
*Professional ethics: values and standards used by groups of
managers in the workplace.
* Applied when decisions are not clear-cut ethically.
* Example: physicians and lawyers have professional
associations that enforce these.
*Individual ethics: values of an individual resulting from their
family& upbringing.
* If behavior is not illegal, people will often disagree on
if it is ethical.
* Ethics of top managers set the tone for firms.
*A key ethical issue is how to disperse harm and benefits
among stakeholders.
* If a firm is very profitable for two years, who should
receive the profits? Employees, managers and
stockholders all want a share.
* Should we keep the cash for future slowdowns?
What is the ethical decision?
*What about the reverse, when firms must layoff workers.
*Final point: stockholders are the legal owners of the firm!
*Some other issues managers must consider.
* Should you hold payment to suppliers as long as possible to
benefit your firm?
* This will harm your supplier who is a stakeholder.
* Should you pay severance pay to laid off workers?
* This may decrease the stockholder's return.
* Should you buy goods from overseas firms that hire children?
* If you don’t the children might not earn enough
money to eat.
*Managers should behave ethically to avoid harming
others.
* Managers are responsible for protecting and nurturing
resources in their charge.
*Unethical managers run the risk for loss of reputation.
* This is a valuable asset to any manager!
* Reputation is critical to long term management
success.
* All stakeholders are judged by reputation.
*Social Responsibility: the manager’s duty to nurture, protect
and enhance the welfare of stakeholders.
There are many ways managers respond to this duty:
*Obstructionist response: managers choose not to be socially
responsible.
* Managers behave illegally and unethically.
* They hide and cover-up problems.
*Defensive response: managers stay within the law but make
no attempt to exercise additional social responsibility.
* Put shareholder interest above all other stakeholders.
* Managers say society should make laws if change is
needed.
*Accommodative response: managers realize the need for social
responsibility.
* Try to balance the interests of all stakeholders.
*Proactive response: managers actively embrace social
responsibility.
* Go out of their way to learn about and help
stakeholders.
*
Obstruction
response
Defensive
response
Accommodative
response
Proactive
response
Low HighSocial responsibility
*Managers accrue benefits by being responsible.
* Workers and society benefit.
* Quality of life in society will improve.
* It is the right thing to do.
*Whistleblowers: a person reporting illegal or unethical acts.
* Whistleblowers are protected by law in most cases.
*Social audit: managers specifically take ethics and business
into account when making decisions.
*
Profitability
Negative Low Medium High
Negative
Low
Medium
High
Favored
Strategies
SocialReturns
*There is evidence showing that ethical
managers benefit over the long run.
*Ethical Control System: a formal system to
encourage ethical management.
* Firms appoint an ethics ombudsman
to monitor practices.
* Ombudsman communicates standards to
all employees.
*Ethical culture: firms increasingly seek to
make good ethics part of the norm and
organizational culture.
*The workforce has become much more diverse during the
last 30 years.
* Diversity refers to differences among people such as
age, gender, race, religion.
* Diversity is an ethical and social responsibility issue.
*Managers need to give all workers equal opportunities.
* Not following this is against the law and unethical.
* When all have equal opportunity, the organization
benefits.
Capabilities
Disabilities
Socioeconomic
background
Sexual
orientation
Religion
Ethnicity
Race
Gender
Age
*Distributive Justice: dictates members be treated fairly
concerning pay raises, promotions, office space and
similar issues.
* These rewards should be assigned based on merit and
performance.
* A legal requirement that is becoming more prevalent in
American business.
*Procedural Justice: Managers should use fair practices to
determine how to distribute outcomes to members.
* This involves how managers appraise worker
performance or decide who to layoff.
*Diverse employees provide new, different points of view.
* Customers are also diverse.
*Still, some employees may be treated unfairly.
* Biases: systematic tendencies to use information in
ways that result in inaccurate perceptions.
* People often view those like themselves positively and
have biases about others.
* Social status is a type of bias conferred to people of
differing social position.
* Stereotypes: inaccurate beliefs about a given group.
*Increase diversity awareness: managers need to become
aware of their own bias.
*Understand cultural differences and their impact on working
styles.
*Practice effective communication with diverse groups.
*Be sure top management is committed to diversity.
*Damages both the person being harassed and the
organization.
* Both men and women can be victims.
*Quid pro quo harassment: victim is requested to perform
sexual favors to keep a job or win promotion.
*Hostile work environment harassment: Some members are
faced with a hostile, intimidating work environment.
* Lewd jokes, pornographic displays and remarks.
*Develop and communicate a sexual harassment policy.
* Point out that these actions are unacceptable.
*Set up a fair complaint system to investigate allegations.
* If there are problems, correct them at once.
*Provide harassment training to employees and managers.

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Principi del Management - Etica, Responsabilità Sociale, Diversità

  • 2. *Stakeholders: people or groups that have an interest in the organization. * Stakeholders include employees, customers, shareholders, suppliers, and others. * Stakeholders often want different outcomes and managers must work to satisfy as many as possible. *Ethics: a set of beliefs about right and wrong. * Ethics guide people in dealings with stakeholders and others, to determine appropriate actions. * Managers often must choose between the conflicting interest of stakeholders.
  • 3. It is difficult to know when a decision is ethical. Here is a good test: Managerial ethics: If a manager makes a decision falling within usual standards, is willing to personally communicate the decision to stakeholders, and believes friends would approve, then it is likely an ethical decision.
  • 4. Social Ethics: Legal rules, customs Professional Ethics: Values in workplace Individual Ethics: Family influence Organization’s Code of Ethics
  • 5. *Societal Ethics: standards that members of society use when dealing with each other. * Based on values and standards found in society’s legal rules, norm, and mores. * Codified in the form of law and society customs. * Norms dictate how people should behave. *Societal ethics vary based on a given society. * Strong beliefs in one country may differ elsewhere. * Example: bribes are an accepted business practice in some countries.
  • 6. *Professional ethics: values and standards used by groups of managers in the workplace. * Applied when decisions are not clear-cut ethically. * Example: physicians and lawyers have professional associations that enforce these. *Individual ethics: values of an individual resulting from their family& upbringing. * If behavior is not illegal, people will often disagree on if it is ethical. * Ethics of top managers set the tone for firms.
  • 7. *A key ethical issue is how to disperse harm and benefits among stakeholders. * If a firm is very profitable for two years, who should receive the profits? Employees, managers and stockholders all want a share. * Should we keep the cash for future slowdowns? What is the ethical decision? *What about the reverse, when firms must layoff workers. *Final point: stockholders are the legal owners of the firm!
  • 8. *Some other issues managers must consider. * Should you hold payment to suppliers as long as possible to benefit your firm? * This will harm your supplier who is a stakeholder. * Should you pay severance pay to laid off workers? * This may decrease the stockholder's return. * Should you buy goods from overseas firms that hire children? * If you don’t the children might not earn enough money to eat.
  • 9. *Managers should behave ethically to avoid harming others. * Managers are responsible for protecting and nurturing resources in their charge. *Unethical managers run the risk for loss of reputation. * This is a valuable asset to any manager! * Reputation is critical to long term management success. * All stakeholders are judged by reputation.
  • 10. *Social Responsibility: the manager’s duty to nurture, protect and enhance the welfare of stakeholders. There are many ways managers respond to this duty: *Obstructionist response: managers choose not to be socially responsible. * Managers behave illegally and unethically. * They hide and cover-up problems.
  • 11. *Defensive response: managers stay within the law but make no attempt to exercise additional social responsibility. * Put shareholder interest above all other stakeholders. * Managers say society should make laws if change is needed. *Accommodative response: managers realize the need for social responsibility. * Try to balance the interests of all stakeholders. *Proactive response: managers actively embrace social responsibility. * Go out of their way to learn about and help stakeholders.
  • 13. *Managers accrue benefits by being responsible. * Workers and society benefit. * Quality of life in society will improve. * It is the right thing to do. *Whistleblowers: a person reporting illegal or unethical acts. * Whistleblowers are protected by law in most cases. *Social audit: managers specifically take ethics and business into account when making decisions.
  • 14. * Profitability Negative Low Medium High Negative Low Medium High Favored Strategies SocialReturns
  • 15. *There is evidence showing that ethical managers benefit over the long run. *Ethical Control System: a formal system to encourage ethical management. * Firms appoint an ethics ombudsman to monitor practices. * Ombudsman communicates standards to all employees. *Ethical culture: firms increasingly seek to make good ethics part of the norm and organizational culture.
  • 16. *The workforce has become much more diverse during the last 30 years. * Diversity refers to differences among people such as age, gender, race, religion. * Diversity is an ethical and social responsibility issue. *Managers need to give all workers equal opportunities. * Not following this is against the law and unethical. * When all have equal opportunity, the organization benefits.
  • 18. *Distributive Justice: dictates members be treated fairly concerning pay raises, promotions, office space and similar issues. * These rewards should be assigned based on merit and performance. * A legal requirement that is becoming more prevalent in American business. *Procedural Justice: Managers should use fair practices to determine how to distribute outcomes to members. * This involves how managers appraise worker performance or decide who to layoff.
  • 19. *Diverse employees provide new, different points of view. * Customers are also diverse. *Still, some employees may be treated unfairly. * Biases: systematic tendencies to use information in ways that result in inaccurate perceptions. * People often view those like themselves positively and have biases about others. * Social status is a type of bias conferred to people of differing social position. * Stereotypes: inaccurate beliefs about a given group.
  • 20. *Increase diversity awareness: managers need to become aware of their own bias. *Understand cultural differences and their impact on working styles. *Practice effective communication with diverse groups. *Be sure top management is committed to diversity.
  • 21. *Damages both the person being harassed and the organization. * Both men and women can be victims. *Quid pro quo harassment: victim is requested to perform sexual favors to keep a job or win promotion. *Hostile work environment harassment: Some members are faced with a hostile, intimidating work environment. * Lewd jokes, pornographic displays and remarks.
  • 22. *Develop and communicate a sexual harassment policy. * Point out that these actions are unacceptable. *Set up a fair complaint system to investigate allegations. * If there are problems, correct them at once. *Provide harassment training to employees and managers.