Introduction to management 13th schemerhorn bachrach chapter 03

John R. Schermerhorn, Jr.
Daniel G. Bachrach

Introduction to 
Management
13th edition
Chapter 3
Ethical Behavior and 
Social Responsibility


Planning Ahead — Key Takeaways
 Define

ethics and describe the foundations of
ethical behavior.

 Discuss

ethical dilemmas and issues in the
workplace.

 Describe

approaches to maintaining high
ethical standards.

 Discuss

social responsibility and corporate
governance.

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Chapter 3 Outline
Ethics
•

Laws and values as influences on ethical behavior

•

Alternative views of ethics

•

Cultural issues in ethical behavior

Ethics in the workplace
•

Ethical dilemmas

•

Influences on ethical decision making

•

Rationalizations for unethical behavior
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Chapter 3 Outline
Maintaining High Ethical Standards
•

Moral management

•

Ethics training

•

Codes of ethical conduct

•

Whistleblower protection

Social Responsibility
•

Social responsibility, sustainability, and the triple bottom line

•

Perspectives on corporate social responsibility

•

Evaluating corporate social performance

•

Corporate governance
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Ethics
Ethics


Moral code of principles.



Set standards of “good” or “bad” or “right” or “wrong”
in one’s conduct.

Ethical behavior


What is accepted as good and right in the context of
the governing moral code.

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Ethics

Laws and values as influences on ethical
behavior:
 Legal behavior is not necessarily ethical behavior.
 Personal values help determine individual ethical behavior.

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Ethics
Laws and values as influences on ethical
behavior:
 Values - underlying beliefs and attitudes that help influence

individual behavior
Terminal values - preferences about desired ends
Instrumental values – preferences regarding the means to desired

ends

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Figure 3.1: Four views of ethical behavior

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Ethics
Four alternative ethical views


Utilitarian




Individualism




Advances long-term self-interests

Moral rights




Delivers the greatest good to the most people

Respects and protects the fundamental rights of all people

Justice


Fair and impartial treatment of people according to legal rules and standards
Procedural justice – policies and rules fairly applied
Distributive justice – fair distribution of outcomes
Interactional justice – people treated with dignity and respect
Commutative justice – fairness to all involved

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Ethics
Cultural issues in ethical behavior:


Cultural relativism




Moral absolutism




Ethical behavior is always determined by cultural
context.

Behavior unacceptable in one’s home environment
should not be acceptable anywhere else.

Ethical imperialism


Imposing one’s ethical standards on others.
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Figure 3.2 The extremes of cultural relativism and
ethical imperialism in international business ethics.

Source: Developed from Thomas Donaldson, “Values in Tension: Ethics Away from Home,”
Harvard Business Review, vol. 74 (September–October 1996), pp. 48–62.
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Ethics in the Workplace
Ethical dilemmas


occur when choices, although having potential for personal
and/or organizational benefit, may be considered unethical.

Ethical dilemmas common examples include:


Discrimination



Sexual harassment



Conflicts of interest



Product safety



Use of organizational resources
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Checklist for ethical dilemmas

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Ethics in the Workplace
Influences on Ethical Decision Making


Ethical framework


Provides personal rules or strategies for ethical decision
making



Includes personal values


Honesty



Courage



Fairness



Integrity



Self-respect
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Figure 3.3 Kohlberg’s levels of individual
moral development

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Situational Context and Ethics Intensity


Ethics intensity or issue intensity




Organization Setting




the extent to which situations are perceived to pose
important ethics challenges

The work and social settings of organizations have a strong
influence on the ethics of members

External Environment, Government Regulation, and
Industry Norms


Laws reflect social values and define appropriate behavior;
regulations help governments monitor these behaviors and
keep them within acceptable limits
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Ethics in the Workplace
External environment

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Ethics in the Workplace

Rationalizations for unethical behavior


People often rationalize ethical
transgressions with after-the-fact
justifications:

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Maintaining High Ethical Standards
• Moral Management
Managers behave in one of three 
ways

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Maintaining High Ethical Standards




Ethics training:


Structured programs that help participants to understand
ethical aspects of decision making.



Helps people incorporate high ethical standards into daily
life.

Codes of Ethical Conduct


Formal statement of an organization’s values and ethical
principles that set expectations for behavior.

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Maintaining High Ethical
Standards
 Areas often covered by codes of ethics:

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Maintaining High Ethical
Standards
 Whistleblowers



Expose misdeeds of others to:


Preserve ethical standards

Protect against wasteful, harmful, or illegal
acts





Laws protecting whistleblowers vary

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Maintaining High Ethical Standards

 Barriers

to whistleblowing include:



Strict chain of command



Strong work group identities



Ambiguous priorities

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Social Responsibility
•

Stakeholder Management
Stakeholders: persons, groups, and other organizations
directly affected by the behavior of the organization and
holding a stake in its performance.
– Stakeholder power: the capacity of the stakeholder to
positively or negatively affect the operations of the
organization.
– Demand legitimacy: the validity and legitimacy of a
stakeholder’s interest in the organization.
– Issue urgency: the extent to which a stakeholder’s
concerns need immediate attention.
–

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Figure 3.4: The Many Stakeholders of Organizations

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