Transcript Management 8e. - Robbins and Coulter

Chapter 4
Social Responsibility and Managerial
Ethics
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.
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What Is Social Responsibility?
“a business’s obligation, beyond that required by law
and economics, to pursue long-term goals that are good
for society” Robbins, et. al., 2006, P. 96
• The Classical View
– Maximize profits for the benefit of the stockholders
– Doing “social good” unjustifiably increases costs
• The Socio-economic View
– Management should also protect and improve society’s welfare
– Corporations are responsible not only to stockholders
– Firms have a moral responsibility to larger society “to do the right
thing”
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.
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Exhibit 4.1 Approaches to Social
Responsibility
Obstructionist
Approach
Defensive
Approach
Accommodative
Approach
Proactive
Approach
Disregard
for social
responsibility
Minimal
commitment
to social
responsibility
Moderate
commitment
to social
responsibility
Strong
commitment
to social
responsibility
No Social Responsibility
High Social Responsibility
Source: Adapted from S.L. Wartick and P.L. Cochran, “The Evolution of the Corporate
Social Performance Model,” Academy of Management Review, October 1985, p. 766.
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.
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Values-based Management
• Values-based Management
– Managers establish and uphold an organization’s shared
values
• Purposes of Shared Values
–
–
–
–
Guiding managerial decisions
Shaping employee behaviour
Influencing the direction of marketing efforts
Building team spirit
• The Bottom Line on Shared Corporate Values
– An organization’s values are reflected in the decisions and
actions of its employees
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.
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Exhibit 4.3 Purposes of Shared
Values
SHARED
ORGANIZATIONAL
VALUES
Guide Managers'
Decisions and Actions
Shape Employee
Behaviour
Influence
Marketing Efforts
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.
Build Team Spirit
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Managerial Ethics
• Ethics:
“The rules and principles that define right and
wrong conduct” Robbins, et. al., 2006, p. 103
• Four Views of Ethics
–
–
–
–
Utilitarian view
Rights view
Theory of justice view
Integrative social contracts theory
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.
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Managerial Ethics (cont’d)
• Utilitarian View
– Greatest good is provided for the greatest
number
• Encourages efficiency and productivity and is
consistent with the goal of profit maximization
• Rights View
– Respecting and protecting individual liberties
and privileges
• Seeks to protect individual rights of conscience, free
speech, life and safety, and due process
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.
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Managerial Ethics (cont’d)
• The Theory of Justice
– Organizational rules are enforced fairly and impartially
and follow all legal rules and regulations
• Protects the interests of underrepresented stakeholders and the
rights of employees
• Integrative Social Contracts Theory
– Ethical decisions should be based on existing ethical
norms in industries and communities
• Based on integration of the general social contract and the
specific contract between community members
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.
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Factors That Affect Employee Ethics
•
•
•
•
•
Stages of moral development
Individual characteristics
Structural variables
Organizational culture
Issue intensity
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.
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•
•
•
•
•
Factors That Affect Employee Ethics
Stages of moral development
Individual characteristics
Structural variables
Organizational culture
Issue intensity
Locus of Control
A personality attribute that measures the degree to which
people believe they control their own life
• Internal locus: the belief that you control your destiny
• External locus: the belief that what happens to you is due to luck
or chance
1. Write down which applies most to you (Internal or External)
and explain why.
2. Get into your groups and try to figure out on average how
the group as a whole is motivated?
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.
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Exhibit 4.7 Determinants of Issue Intensity
How much agreement
is there that this
action is wrong?
How likely is it
that this action
will cause harm?
How many people
will be harmed?
Consensus
of Wrong
Greatness
of Harm
Probability
of Harm
Issue Intensity
Concentration
of Effect
How concentrated
is the effect of the
action on the victim(s)?
Immediacy of
Consequences
Proximity to
Victim(s)
Will harm be felt
immediately?
How close are the
potential victims?
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.
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Ethics in an International Context
• Ethical standards are not universal
– Social and cultural differences determine
acceptable behaviours
– LIST THREE ITEMS YOU FEEL ARE OF
UTMOST IMPORTANCE TO YOU in regards
to ethics!
– IN YOUR GROUPS DISCUSS TWO ethics you
all have in COMMON
– IN YOUR GROUP find ONE ethic that you have
DIFFERENT
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.
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How Managers Can Improve Ethical
Behaviour in an Organization
• Hire individuals with high ethical standards.
• Establish codes of ethics and decision rules.
• Lead by example.
• Delineate job goals and performance appraisal
mechanisms.
• Provide ethics training.
• Conduct independent social audits.
• Provide support for individuals facing ethical dilemmas.
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.
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Code of Ethics
• A formal statement of an organization’s
primary values and the ethical rules it expects
its employees to follow
– Be a dependable organizational citizen
– Don’t do anything unlawful or improper that will
harm the organization
– Be good to customers
Source: F.R. David, “An Empirical Study of Codes of Business Ethics: A Strategic Perspective.” Paper
presented at the 48th Annual Academy of Management Conference, Anaheim, California, August 1988.
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.
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Ethical Leadership
• Managers must provide a good role model by:
– Being ethical and honest at all times
– Telling the truth
– Admitting failure and not trying to cover it up
– Communicating shared ethical values to employees
through symbols, stories, and slogans
– Rewarding employees who behave ethically and
punishing those who do not
– Protecting employees (whistleblowers) who bring to light
unethical behaviours or raise ethical issues
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.
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The Value of Ethics Training
• Training can make a difference in ethical
behaviours
• Training increases employee awareness of
ethical issues in business decisions
• Training clarifies and reinforces the standards
of conduct
• Employees are more confident of support when
taking unpopular but ethically correct stances
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.
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Thank You!
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.
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