Behavior in organizations 10th by greenberg chapter02

Organizational
Justice, Ethics, and
Corporate
Social Responsibility
Chapter 2

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Learning Objectives
1.

Identify four different forms of organizational
justice and the organizational impact of each.

2.

Describe strategies that can be used to promote
organizational justice.

3.

Explain what is meant by ethical behavior and
why organizations should be concerned about
ethics.

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Learning Objectives
4.

Explain ways of behaving ethically when
conducting business internationally.

5.

Describe the individual and situational factors
responsible for unethical behavior in
organizations and methods for minimizing such
behavior.

6.

Explain what is meant by corporate social
responsibility, the forms it take, and the nature
of the relationship between responsible
behavior and financial profitability.
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Organizational Justice

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Procedural Justice Criteria
Criterion

Description

Example

Voice in the making of
decisions

Perceptions of
procedural justice are
enhanced to the extent
that people are given a
say in the decisions
affecting them.

Workers are given an
opportunity to explain
their feelings about their
own work to a supervisor
who is evaluating their
performance.

Consistency in applying
rules

To be fair, the rules used
as the basis for making a
decision about one
person must be applied
equally to making a
decision about someone
else.

A professor must use the
same exact standards in
evaluating the term
papers of each student
in the class.

Accuracy in use of
information

Fair decisions must be
based on information
that is accurate.

A manager calculating
the amount of overtime
pay a worker is to
receive must add the
numbers accurately.

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Procedural Justice Criteria
Criterion

Description

Example

Opportunity to be
heard

Fair procedures are
ones in which people
have a readily
available opportunity
to correct any mistakes
that have been made.

Litigants have an
opportunity to have a
judge’s decision
reconsidered in the
event that an error was
made in legal
proceedings. (See also
the instant replay rule
used by the NFL as
described in the
Preview Case.)

Safeguards against
bias

A person making a
decision must not have
any opportunity to bias
the results.

Lottery drawings are
held in such a manner
that each number is
selected in a
completely random,
unbiased fashion.

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Distributive and Procedural
Justice Interaction

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Organizational Justice

Promotion Strategies
 Pay workers what they deserve
 Follow open and fair procedures
 Offer workers a voice
•Meet regularly and invite input
•Conduct employee surveys
•Keep an “open door policy”
•Use suggestion system
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Fair Process Effect

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Organizational Justice
Promotion Strategies
 Explain decisions thoroughly in a
manner demonstrating dignity and
respect
 Train workers to be fair
• Oorganizational citizenship behaviors
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Ethical Behavior in
Organizations

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Bad Ethics Is Bad Business

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Ethics Enforcement Policies
 Federal sentencing guidelines
 Sarbanes-Oxley act
 Limited acceptance of entertainment
and gifts by employees
 Increased accurate company
performance documentation standards

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Ethics in International Arena

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Global Ethics Guiding
Principles
 Show respect for core human values
 Demonstrate sensitivity to local
traditions
 Recognize that context matters

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Unethical Behavior Situational
Determinants

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Unethical Behavior
Situational Determinants
 Managerial values sometimes

discourage ethical behavior
• Bottom line mentality
• Exploitative mentality
• Madison Avenue mentality

 Subordinates emulate managers’
unethical behavior
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Corporate Ethics Programs
Components
 Code of ethics
 Ethics training
 Official bodies formally responsible for
ethics
 Mechanisms for communicating ethical
standards
 Ethics audits
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Corporate Ethics Programs
Effectiveness

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Corporate Social
Responsibility

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Socially Responsible Behavior
Forms
 Make charitable contributions
 Preserve the environment
 Invest socially responsibly
 Promote employee welfare
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Profitability and Social
Responsibility

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