mgt 531 chapter of social responsiblity
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Managing with Ethics and
Social ResponsibilityWe Will
Examine the issues of managerialethics and corporate socialresponsibility;
Dene the termsloo! at the ways ofthin!ing about ethical beha"ior; and
#sses the role of the organi$ation as amember of the broader socialcommunity
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What is Ethical %eha"ior&
M'R#(SDoctrine of )onduct relating to*
dealing with* or capable of ma!ing thedistinction between right and wrong inconduct or character
E+,-)S +he system or )ode of Morals of a
particular person* religion* group* orprofession
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%eing Ethical is.
)onforming to Moral Standards;
conforming to the standards of conductof a gi"en group or profession
Ethical %eha"ior is.Doing what is accepted as /good/ and
/right/ as opposed to /bad/ and /wrong/in the context of the go"erning Moral
)ode
Ethical %eha"ior0(egal %eha"ior1/something else/
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)ontext of the 2o"erning
Moral )ode
Refers to the group*organi$ation* or broadersocietal "enue within whichthe pre"ailing norms and"alues underlying a go"erningmoral code are established
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(aws* 3alues* and Ethical
%eha"ior
#ny beha"ior considered Ethical
should also be legal in a 4ustand fair society
,owe"er(egal beha"ior is not necessarily
ethical beha"ior
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5our 3iews of Ethical
%eha"ior6tilitarian 3iew Where moral beha"ior is that
which deli"ers the greatest goodto the greatest number of people
-ndi"idualism 3iew Where moral beha"ior is that
which is best for long7term self7interest
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Moral7Rights 3iew Where moral beha"ior is thatwhich respects fundamental rightsshared by all human beings
8ustice 3iew Where moral beha"ior is that
which is impartial* fair* ande9uitable in treating people:rocedural and Distributi"e8usticeicts with superiors* customers*and subordinates
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Most )ommon 6nethical
Re9uests 5rom the %ossSupporting -ncorrect 3iewpoints
Signing 5alse Documents
'"erloo!ing %oss?s Wrongdoing
Doing %usiness with %oss?s5riend
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Rationali$ations for
6nethical %eha"iorConvincing yourself that the behavior
isnot really illegal
Convincing yourself that the behaviorisin e"eryone@s best interestConvincing yourself that nobody
will e"er !now what you?"e doneConvincing yourself that the
organi$ation will protect you
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5actors #=ecting ManagerialEthics
+he Manager as a erson5amily in>uences
Religious "aluesersonal standards* and needs
+he Employing 'rgani$ation
olicies* codes of conduct%eha"ior of super"isors
%eha"ior of peers
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5actors #=ecting ManagerialEthics
+he External En"ironment2o"ernment regulationsAorms and "alues of society
Ethical climate of the industry
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Maintaining ,igh Ethical
StandardsE+,-)#( +R#-A-A2-t is not about teaching people right
from wrongwe assume they !nowthat* and*-t is not about gi"ing people the
moral courage to do what isrightthey should be able to do that
anyhow
Ethical +raining
is about dealing with dilemmas
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# )hec!list for Ma!ing
Ethical DecisionsRecogni$e the ethical dilemma2et the facts
-dentify your options+est each option -s it legal& -s it right& -s it
benecial&
Decide which option to followDouble7chec! your decision byas!ing./,ow will - feel if my family
nds out about my decision&B
+a!e action
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Whistleblower
rotection(aws "ary from state to state* and
federal laws protect mainly
go"ernment wor!ers
Where legal protection existswhistleblowers face a number of
barriers that can ma!e it hard forthem to expose unethical beha"iorin the wor!place
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+op Management Support
+op management set the Ethical +onefor the organi$ation as a whole
+op managers ha"e the power toshape an organi$ation@s policies andset its moral tone as well
+op managers can and should ser"eas models of appropriate ethicalbeha"ior for the entire wor!force
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+op Management Support
Super"isors must becareful not to unwittinglyencourage unethicalbeha"ior by exerting toomuch pressure for theaccomplishment of diCcultgoals
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5ormal )ode of Ethics
Written and oCcial guidelines on how tobeha"e in situations prone to createethical dilemmas
#reas often addressed in written codesof ethics.
Wor!force Di"ersity
%ribes and ic!bac!s
)on>icts of -nterest
olitical )ontributions)ustomer and Supplier Relations
Misappropriation of )orporate #ssets
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)orporate Social
Responsibility#n obligation of the organi$ation
to act in ways that ser"e both its
own interests and the interests ofits many external publics
+hese publics are consideredS+#E,'(DERS* the persons andgroups who are a=ected in oneway or another by the beha"ior ofan organi$ation
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Stakeholders
EmployeesStoc!holders
)ustomersSuppliers)ompetitors(abor 6nions
5inancial-nstitutions
olitical artiesEducational
-nstitutions
)ourts and (egal-nstitutions
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)ontrasting 3iews on
Social Responsibility)lassical 3iew ,olds that management?s only
responsibility is running a businessto maximi$e prots
Socio7Economic 3iew ,olds that any organi$ation must be
concerned about the broader socialwelfare
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+he )lassical 3iew#gainst Social
ResponsibilityReduced business prots
,igher business costs
Dilution of business purpose+oo much social power for
businesses(ac! of business accountabilityto the public
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+he Socio7Economic 3iew5orB Social Responsibility
(ong7run prots for businessesublic expectations support business
social responsibility
%etter public image for businesses%usinesses may a"oid more regulation%usinesses ha"e the resources
%usinesses ha"e the ethical obligation
+he public wants it
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E"aluation of )orporateSocial erformance
+here are many action domainsin which social responsibility canbe pursued by business rms andother types of organi$ations+hey include.
)oncerns for Ecology and
En"ironmental Fuality
+ruth7in7(ending and )onsumerrotection
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E"aluation of )orporateSocial erformance
#id7to7Education and Ser"ice to)ommunity
Employment ractices #=ectingMinorities
rogressi"e (abor Relations
Employee #ssistance
2eneral )orporate hilanthropy
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)riteria for E"aluating)orporate Social
erformanceEconomic Responsibility -s fullled when it earns a prot
through the pro"ision of goods andser"ices desired by the public
(egal Responsibility -s fullled when an organi$ation
operates within the law andaccording to the re9uirements of"arious external regulations
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Ethical Responsibility -s met when its actions "oluntarily
conform not only to legal expectations*but also to the broader "alues andmoral expectations of society
Discretionary Responsibility-s met when the organi$ation"oluntarily mo"es beyond basic
economic* legal* and ethicalexpectations to pro"ide leadership inad"ancing the well7being of indi"iduals*communities* and society as a whole
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# )ontinuum of Social
Responsibility Strategies'bstruction5ight social demands
Defensi"eDo the minimum legally re9uired
#ccommodationDo the minimum ethically re9uired
roacti"e+a!e leadership in social initiati"es
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2o"ernment Regulation of
%usiness,ealth and Safety
5air (abor ractices
)onsumer rotectionEn"ironmental rotection
5## E# 'S,# -)) 5D# EE')'5)) A(R% SE):+o name a few
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