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Management Ethics and
Social Responsibility
Chapter 3
MANAGEMENT
Meeting and Exceeding Customer Expectations
EIGHTH EDITION
Prepared by
Deborah Baker
Texas Christian University
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved
1
learning objectives
1. Describe the two broad categories of ethical
theories
2. Explain what individuals need in order to act
ethically
3. Describe the organizational influences on
ethical conduct
4. Discuss three primary ways in which business
can promote ethical conduct
Chapter 3
5. Describe the relationship between law and
ethics
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved
2
learning objectives
(continued)
6. Explain the concept of an ethical dilemma
7. Discuss the guidelines for acting ethically
8. Explain the three approaches by business to
social responsibility
9. Explain the responsibilities businesses
have to stakeholders
10.Describe the government’s role in promoting
socially responsible conduct by businesses
Chapter 3
11.Discuss the ways in which businesses can
promote socially responsible conduct
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved
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Managing Ethically
Chapter 3
Business
Business
Ethics
Ethics
The rules or standards
governing the conduct of
persons or members of
organizations in the field of
commerce
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved
4
11
Balancing Demands
Many conflicting demands have been
made on those who manage institutions
Consequences of management decisions
Chapter 3
affect more people and environments than
ever before
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Individuals and Ethical Conduct
Chapter 3
Morality
Morality
Core values and beliefs that act
as a guide when individuals
formulate courses of action
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6
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An Individual’s Code of Ethics
Religious
Religious beliefs
beliefs and
and training
training
Educational
Educational background
background
Political
Political and
and economic
economic philosophy
philosophy
Chapter 3
Socialization
Socialization
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved
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Organizational Influences
Offer unusually high rewards
Encouraging
Encouraging
Unethical
Unethical
Behavior
Behavior
Threaten unusually severe
punishments
Chapter 3
Emphasize results
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44
Importance of Organizational
Controls
Unifying
Ethics
Code of Ethics
Compliance Programs
Chapter 3
Commitment of Top Management
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44
Commitment of Top
Management
Establish
Establish aa code
code of
of ethics
ethics
Training
Training and
and oversight,
oversight,
reward
reward ethical
ethical behavior
behavior
Chapter 3
Discouraging
Discouraging
Unethical
Unethical
Behavior
Behavior
Punish
Punish wrongdoers
wrongdoers
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved
10
Codes of Ethics
44
Characteristics
Characteristics
Visible guidelines for behavior
Unchallengeable basis for firing an
unethical employee
Protect all personnel from market
pressures
Remind employees to look beyond the
Chapter 3
bottom line
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44
Compliance Programs
Chapter 3
Ethics
Ethics Training
Training
Compliance
Compliance Training
Training
alerts
alerts people
people to
to policies,
policies,
regulations,
regulations, and
and laws
laws
Cognitive
Cognitive Thinking
Thinking
develops
develops skills
skills to
to allow
allow
people
people to
to think
think through
through
“moral
“moral mazes”
mazes”
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved
12
Chapter 3
55
Legal Constraints
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13
66
Ethical Dilemmas
Suggestions
Suggestionsfor
forEthical
EthicalDilemmas
Dilemmas
When in doubt, don’t
Don’t try to find out “how far is too far”
Superiors who push you to do things
Chapter 3
better, faster, cheaper will turn on you
when you when you cross the line
between right and wrong
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Guidelines for Acting Ethically
Chapter 3
77
Consider other people’s well-being
Obey moral rules
Think as a member of the business community
Obey, but do not depend solely on, the law
Think of yourself and your company as part of
society
Think objectively
Ask “What sort of person would do such a thing?”
Respect the customs of others, but not at the
expense of your own ethics
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved
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77
Guidelines for Acting Ethically
Is it legal?
The
The Ethical
Ethical
Test
Test
Is it balanced?
Chapter 3
How will it make me feel
about myself?
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77
Dimensions of Reputation
Emotional
EmotionalAppeal
Appeal
Products
Products and
and Services
Services
Financial
FinancialPerformance
Performance
Vision
Vision and
and Leadership
Leadership
Chapter 3
Workplace
WorkplaceEnvironment
Environment
Social
SocialResponsibility
Responsibility
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88
Approaches to Social
Responsibility
Resistance
Resistance
Approach
Approach
Reactive
Reactive
Approach
Approach
Chapter 3
Proactive
Proactive
Approach
Approach
Businesses actively fight to
eliminate, delay, or fend off
demands being made of them
Businesses wait for demands to
be made and then react to them,
choosing a response by
evaluating alternatives
Businesses continually look to
the needs of constituents and try
to find ways to meet those needs
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved
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Chapter 3
99
Responsibilities to Stakeholders
Owners
Ownersand
and
Stockholders
Stockholders
Employees
Employees
Customers
Customers
Suppliers
Suppliers
Communities
Communities
Society
Society
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10
10
Government Regulation: Pros and
Cons
Social
Social Responsibility
Responsibility to
toPrevent
PreventPollution
Pollution
Chapter 3
Redesigning of processes and products
Recycling and repackaging for reduced waste
Anticipating needs
Facing problems up front
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved
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11
11Managing
for Social Responsibility
Making
MakingOrganizations
OrganizationsProactive
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
Chapter 3
Strong auditing programs
Establishment of responsibility for
dealing with environmental problems
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