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Managements Ethical and Social Responsibilities

+ History of Management

Chapter # 2

References:Management (W. Griffin)Internet

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Individual Ethics in Organizations

Ethics : An individuals personalbeliefs about whether a behavior,action, or decision is right orwrong.

Ethical Behavior: Conforms togenerally accepted social norms

Unethical Behavior: Does notconform to generally acceptedsocial norms.

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Managerial EthicsStandards of behavior that guide individualmanagers in their work.Three Basic Areas of Concern:

Managers need to approach the following from anethical and moral perspective:

1. Relationships of the firm to the employees.(How an organization treats its employees)

2. The employees to the firm.(How employees treat organization)

3. The firm to other economic agents.(How employees & organization treat other economic

agents)

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1. How an Organization Treats Its EmployeesImportant areas of managerial ethics & legalconcern

Hiring &Firing- Should be solely based uponpersons ability to perform job. A manager,who discriminate against Muslim-non Muslimbases is unethical and illegal behavior.

Hiring friends & relatives mite be legal butunethicalWages- Paying less than employee deserves Working conditions- Safe working

environment Employee privacy- Leaking personalinformation, spreading rumors againstemployee, propaganda Employee respect-

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2. How Employees Treat the OrganizationEspecially in regard to:

Conflicts of interest- A conflict between aperson's private interests and organizationalobligations.Security & Confidentiality- Divulgingcompany secrets to othersHonesty- working in best interest of company, not utilizing companys resourcesfor personal use.

Most companies have policies thatguard against violation of these ethicalissues.

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3. How Employees and Organization TreatOther Economic Agents

Ethics play a part in the relationship between thefirm and its employees with other economicagents.Behaviors between the organization and theseagents that may be subject to ethical ambiguity

include:AdvertisingPromotionsFinancial disclosures

PurchasingShippingSolicitationBargaining

Negotiation, and other business relationships.

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Ethics in an Organizational ContextActions of peer managers and top managers, as well asthe organizations culture, all contribute to the ethicalcontext of the organization.Organizational practice may strongly influence theethical standards of employees.Top management establishes the organizations cultureand defines what will and will not be acceptable

behavior.Code of Ethics: a formal written statement of thevalues and ethical standards that guide a firms actions.

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Social Responsibility

The set of obligations an organization has to protectand enhance the society in which it functions.

Areas of social responsibility:Stakeholders.The natural environment.

Toward general social welfare.(see Figure next slide)

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Organizational Stakeholders

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How Business and the Government InfluenceEach Other