Management by chuch williams chapter 04

Chapter 4
Ethics and Social Responsibility

MGMT
Chuck Williams

Designed & Prepared by
B-books, Ltd.
1


Ethical and Unethical
Workplace Behavior
Ethics
The set of moral principles or values
that defines right and wrong for a
person or group.

2


What Is Ethical and Unethical
Workplace Behavior?
After reading these sections,
you should be able to:

1. identity common kinds of workplace deviance.
2. describe the U.S. Sentencing Commission
Guidelines for Organizations and explain how
they both encourage ethical behavior and
punish unethical behavior by businesses.

3


Common Kinds of Workplace Deviance

1.1
4


U.S. Sentencing
Commission Guidelines

Companies can be prosecuted and punished
even if management didn’t know about
the unethical behavior.

2
5


Who, What, and Why?
• Nearly all businesses are covered
• Punishes a number of offenses
• Encourages businesses to be proactive

2.1
6

Partial List of Offenses
Invasion of privacy
Price fixing
Fraud
Customs violations
Antitrust violations
Civil rights violations
Theft

Money laundering
Conflicts of interest
Embezzlement
Dealing in stolen goods
Copyright infringements
Extortion
…and more

2.1
7


Compliance Program Steps
Steps
Steps in
in determining
determining fine
fine size:
size:
1.
1. Determine

Determine the
the base
base fine.
fine.
2.
2. Compute
Compute aa culpability
culpability score.
score.
3.
3. Multiply
Multiply the
the base
base fine
fine by
by the
the
culpability
culpability score.
score.
Proactive companies
get smaller fines!

2.2
8


Compliance Program Steps
1. Establish standards and procedures.
2. Assign upper-level managers to be in charge.

3. Delegate decision-making authority only
to ethical employees.
4. Encourage employees to report violations.
5. Train employees on standards and procedures.
6. Enforce standards consistently and fairly.

2.2

7. Improve program after violations.
9


How Do You Make Ethical
Decisions?
After reading the next two sections,
you should be able to:

4. describe what influences ethical decision
making.
5. explain what practical steps managers can
take to improve ethical decision making.

10


Influences on Ethical Decision
Making
Ethical
EthicalIntensity
Intensityof

ofDecision
Decision
Ethical
Ethical
Answers
Answers
Depend
Depend
on…
on…

Moral
MoralDevelopment
Development of
of Manager
Manager

Ethical
EthicalPrinciples
Principles Used
Used

3
11


Ethical Intensity Depends on…
Magnitude
Magnitude of
of consequences

consequences
Social
Social consensus
consensus
Probability
Probability of
of effect
effect
Temporal
Temporal immediacy
immediacy
Proximity
Proximity of
of effect
effect

3.1

Concentration
Concentration of
of effect
effect
12


Moral Development
Kohlberg’s Stages of Moral Development
Preconventional
Preconventional

Conventional
Conventional

Selfish

Societal
Expectations

Postconventional
Postconventional
Internalized
Principles

3.2
13


Stages of Moral Development
Preconventional
Preconventional

Conventional
Conventional

Postconventional
Postconventional

1.
1. Punishment
Punishmentand

and
Obedience
Obedience

3.
3. Good
Goodboy,
boy,
nice
nicegirl
girl

5.
5. Social
Socialcontract
contract

2.
2. Instrumental
Instrumental
Exchange
Exchange

4.
4. Law
Lawand
andorder
order

6.

6. Universal
Universal
principle
principle

3.2
14


Principles of
Ethical Decision Making
Long-term
Long-term self-interest
self-interest
Personal
Personalvirtue
virtue
Religious
Religiousinjunctions
injunctions
Government
Government requirements
requirements
Utilitarian
Utilitarianbenefits
benefits
Individual
Individualrights
rights
3.3

Distributive
Distributive justice
justice
15


Principles of
Ethical Decision Making
Principle
Principleof
oflong-term
long-termself-interest
self-interest
Never
Nevertake
takeany
anyaction
actionnot
notin
inyour
your
organization’s
organization’slong-term
long-termself-interest.
self-interest.

3.3
16

Principles of
Ethical Decision Making
Principle
Principleof
of Personal
PersonalVirtue
Virtue
Never
Neverdo
doanything
anythingthat
thatis
isnot
nothonest,
honest,open,
open,
and
andtruthful
truthfuland
andthat
thatyou
youwould
wouldnot
notbe
be
glad
gladto
tosee
seereported

reportedin
inthe
thenewspapers
newspapers
or
oron
onTV.
TV.

3.3
17


Principles of
Ethical Decision Making
Principle
Principle of
of Religious
ReligiousInjunctions
Injunctions
Never
Nevertake
takeany
anyaction
actionthat
thatis
isnot
notkind
kind
and

andthat
thatdoes
doesnot
notbuild
buildaa
sense
senseof
ofcommunity.
community.

3.3
18


Principles of
Ethical Decision Making
Principle
Principleof
ofGovernment
GovernmentRequirements
Requirements
Never
Nevertake
takeany
anyaction
actionthat
thatviolates
violatesthe
thelaw,
law,

for
forthe
thelaw
lawrepresents
representsthe
theminimal
minimal
moral
moralstandard.
standard.

3.3
19


Principles of
Ethical Decision Making
Principle
Principleof
ofUtilitarian
UtilitarianBenefit
Benefit
Never
Nevertake
takeany
anyaction
actionthat
thatdoes
doesnot
notresult

resultin
in
greater
greatergood
goodfor
forsociety.
society.

3.3
20


Principles of
Ethical Decision Making
Principle
Principleof
ofIndividual
IndividualRights
Rights
Never
Nevertake
takeany
anyaction
actionthat
thatinfringes
infringeson
on
others’
others’agreed-upon
agreed-uponrights.

rights.

3.3
21


Principles of
Ethical Decision Making
Principle
Principle of
of Distributive
DistributiveJustice
Justice
Never
Nevertake
takeany
anyaction
actionthat
thatharms
harmsthe
the
least
leastamong
amongus:
us:
the
thepoor,
poor,the
theuneducated,
uneducated,

the
theunemployed.
unemployed.

3.3
22


Practical Steps to
Ethical Decision Making
Select
Select and
and hire
hire ethical
ethical employees
employees
Establish
Establish aa Code
Code of
of Ethics
Ethics
Train
Train employees
employees to
to make
make ethical
ethical decisions
decisions
Create
Create an

an ethical
ethical climate
climate

4
23


Practical Steps to
Ethical Decision Making
Select
Select and
and hire
hire ethical
ethical employees
employees
If you found a wallet containing $50,
would you return it with the money?

•
•

Overt Integrity Tests
Personality-Based Integrity Tests

4.1
24


Practical Steps to

Ethical Decision Making
Establish
Establish aa Code
Code of
of Ethics
Ethics

• Communicate code of ethics both inside
and outside the company
• Develop ethical standards and procedures
specific to business

4.2

Web Link


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