2b80b0ed_ethics, social responsibility, and diversity
TRANSCRIPT
-
7/23/2019 2b80b0ed_Ethics, Social Responsibility, And Diversity
1/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-1
Ethics, SocialResponsibility,
and Diversity
5
-
7/23/2019 2b80b0ed_Ethics, Social Responsibility, And Diversity
2/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-
Ethics and StakeholdersStakeholders:people or !ro"ps that have aninterest in the or!ani#ation$ Stakeholders include employees, customers, shareholders,
suppliers, and others.
Stakeholders often want different outcomes and managersmust work to satisfy as many as possible.
Ethics:a set o% belie%s abo"t ri!ht and wron!$ Ethics guide people in dealings with stakeholders and
others, to determine appropriate actions. Managers often must choose between the conflicting
interest of stakeholders.
-
7/23/2019 2b80b0ed_Ethics, Social Responsibility, And Diversity
3/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-&
Ethics
It is di%%ic"lt to 'now when a decision isethical$ Here is a !ood test(
Managerial ethics( I% a )ana!er)a'es a decision %allin! within "s"alstandards, is willin! to personallyco))"nicate the decision to
sta'eholders, and believes %riendswo"ld approve, then it is li'ely anethical decision$
-
7/23/2019 2b80b0ed_Ethics, Social Responsibility, And Diversity
4/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-*
Ethical Models
Social Ethics(
+e!al r"les, c"sto)s
ro%essional Ethics(ro%essional Ethics(
al"es in wor'placeal"es in wor'placeIndivid"al Ethics(Individ"al Ethics(
.a)ily in%l"ence.a)ily in%l"ence
r!ani#ation0sr!ani#ation0s
ode o% Ethicsode o% Ethics
Figure 5.2
-
7/23/2019 2b80b0ed_Ethics, Social Responsibility, And Diversity
5/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-5
Ethical Origins
Societal Ethics:standards that )e)bers o%society "se when dealin! with each other$Based on values and standardsfound in societys legal
rules, norm, and mores. Codified in the form of lawand society customs.Norms dictate how people should behave.
Societal ethics vary based on a !iven society$ Strong beliefs in one country may differ elsewhere. Eample! bribes are anaccepted business practice in
some countries.
-
7/23/2019 2b80b0ed_Ethics, Social Responsibility, And Diversity
6/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-2
Ethical Origins
Professional ethics:val"es and standards"sed by !ro"ps o% )ana!ers in the wor'place$ "pplied when decisions are not clear#cut ethically.
Eample! physicians and lawyers have professionalassociations that enforce these.
Individual ethics:val"es o% an individ"alres"ltin! %ro) their %a)ily3 "pbrin!in!$ $f behavior is not illegal, people will often disagree on if
it is ethical. Ethics of top managers set the tone for firms.
-
7/23/2019 2b80b0ed_Ethics, Social Responsibility, And Diversity
7/22Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-4
Ethical %ecisions 'ey ethical iss"e is how to disperse har) andbene%its a)on! sta'eholders$ $f a firm is very profitable for two years, who should receive
the profits& Employees, managers and stockholders all want a
share. Should we keep the cash for future slowdowns&
What is the ethical decision?
6hat abo"t the reverse, when %ir)s )"st layo%%wor'ers$
.inal point( stoc'holders are the le!al owners o%the %ir)7
-
7/23/2019 2b80b0ed_Ethics, Social Responsibility, And Diversity
8/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-8
Ethical %ecisions
So)e other iss"es )ana!ers )"st consider$ Shold !o hold pa!ment to sppliers as lon" as
possi#le to #ene$it !or $irm?
'his will harm your supplier who is a stakeholder. Shold !o pa! se%erance pa! to laid o$$ wor&ers?
'his may decrease the stockholder(s return.
Shold !o #! "oods $rom o%erseas $irms that hire
children?$f you dont the children might not earn enough
money to eat.
-
7/23/2019 2b80b0ed_Ethics, Social Responsibility, And Diversity
9/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-9
)hy *ehave Ethically&
Mana!ers sho"ld behave ethically to avoidhar)in! others$ Managers are responsible for protecting and nurturing
resources in their charge.
:nethical )ana!ers r"n the ris' %or loss o%rep"tation$
'his is a valuable asset to any manager+ eputation is critical to long term management
success. "ll stakeholders are -udged by reputation.
-
7/23/2019 2b80b0ed_Ethics, Social Responsibility, And Diversity
10/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-1;
Social esponsibility
Social Responsibilit:the )ana!er0s d"ty ton"rt"re, protect and enhance the wel%are o%sta'eholders$
-
7/23/2019 2b80b0ed_Ethics, Social Responsibility, And Diversity
11/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-11
"efensive response:)ana!ers stay within the
law b"t )a'e no atte)pt to e=erciseadditional social responsibility$ ut shareholder interest above all other stakeholders. Managers say society should make laws if change is
needed.#ccommodative response:)ana!ers reali#ethe need %or social responsibility$
'ry to balance the interests of all stakeholders.Proactive response:)ana!ers activelye)brace social responsibility$ /o out of their way to learn about and help stakeholders.
-
7/23/2019 2b80b0ed_Ethics, Social Responsibility, And Diversity
12/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-1
0evels of esponsibility
bstr"ction
response
De%ensive
responsecco))odativecco))odative
responseresponse
roactiveroactive
responseresponse
'ow Hi"hSocial responsibilit
Figure 5.3
-
7/23/2019 2b80b0ed_Ethics, Social Responsibility, And Diversity
13/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-1&
)hy be esponsible&Mana!ers accr"e bene%its by bein!responsible$ )orkers and society benefit.
1uality of life in society will improve. $t is the right thing to do.
$histleblowers:a person reportin! ille!al or"nethical acts$
)histleblowers now protected by law in most cases.Social audit:)ana!ers speci%ically ta'e ethicsand b"siness into acco"nt when )a'in!decisions$
-
7/23/2019 2b80b0ed_Ethics, Social Responsibility, And Diversity
14/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-1*
'he Social "udit
ro%itability
>e!ative>e!ative +ow+ow Medi")Medi") Hi!hHi!h
>e!ative>e!ative
+ow+ow
Medi")Medi")
Hi!hHi!h
.avored
Strate!iesSocia
lRet"rns
Figure 5.4
-
7/23/2019 2b80b0ed_Ethics, Social Responsibility, And Diversity
15/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-15
romoting Ethics
-
7/23/2019 2b80b0ed_Ethics, Social Responsibility, And Diversity
16/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-12
Managing %iverse )orkforces
-
7/23/2019 2b80b0ed_Ethics, Social Responsibility, And Diversity
17/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-14
'ypes of %iversityFigure 5.5
apabilitiesapabilities
DisabilitiesDisabilities
Socioecono)icSocioecono)icbac'!ro"ndbac'!ro"nd
Se="alSe="al
orientationorientation
Reli!ionReli!ionEthnicityEthnicity
RaceRace
GenderGender
!e!e
-
7/23/2019 2b80b0ed_Ethics, Social Responsibility, And Diversity
18/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-18
Manage %iversity"istributive &ustice:dictates )e)bers betreated %airly concernin! pay raises,pro)otions, o%%ice space and si)ilar iss"es$ 'hese rewards should be assigned based on merit and
performance. " legal re4uirement that is becoming more prevalent in
"merican business.
Procedural &ustice:Mana!ers sho"ld "se %airpractices to deter)ine how to distrib"teo"tco)es to )e)bers$ 'his involves how managers appraise worker
performance or decide who to layoff.
-
7/23/2019 2b80b0ed_Ethics, Social Responsibility, And Diversity
19/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-19
%iversity Makes *usiness Sense
Diverse e)ployees provide new, di%%erentpoints o% view$ 5ustomers are also diverse.
Still, so)e e)ployees )ay be treated "n%airly$Biases(systematic tendencies to use information in ways
that result in inaccurate perceptions. eople often view those like themselves positively and
have biases about others. Social status is a type of bias conferred to people of
differing social position.Stereotpes(inaccurate beliefs about a given group.
-
7/23/2019 2b80b0ed_Ethics, Social Responsibility, And Diversity
20/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-;
6ow to Manage %iversity
Increase diversit awareness:)ana!ers needto beco)e aware o% their own bias$
'nderstand cultural differencesand theiri)pact on wor'in! styles$
Practice effective communicationwithdiverse !ro"ps$
@e s"re top management is committedtodiversity$
-
7/23/2019 2b80b0ed_Ethics, Social Responsibility, And Diversity
21/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-1
Seual 6arassment
Da)a!es both the person bein! harassed andthe or!ani#ation$ *oth men and women can be victims.
(uid pro %uo harassment:victi) is re?"estedto per%or) se="al %avors to 'eep a Aob or winpro)otion$
)ostile work environment harassment:So)e)e)bers are %aced with a hostile,inti)idatin! wor' environ)ent$ 0ewd -okes, pornographic displays and remarks.
-
7/23/2019 2b80b0ed_Ethics, Social Responsibility, And Diversity
22/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-
"voiding 6arassment
Develop and co))"nicate a se*ualharassment polic+ oint out that these actions are unacceptable.
Set "p afair complaint sstemto investi!atealle!ations$ $f there are problems, correct them at once.
rovide harassment trainingto e)ployeesand )ana!ers$