Transcript Document

Management Ethics and
Social Responsibility
MultiMedia by Stephen M. Peters
© 2001 South-Western
Two Broad Categories of
Ethical Theories
Consequential principles judge the ethics of a particular situation by
the consequences of that action.
– Determines the “rightness” or “wrongness” of any action by
determining the ratio of good to evil that the action will produce.
Non-consequential principles tend to focus on the concept of duty.
– A person acts ethically if that person is faithful regardless of the
consequences that follow from being faithful to that duty.
– If a person carries out his or her duties, the greatest good occurs
because the duty of the individual is carried out.
MultiMedia by Stephen M. Peters
© 2001 South-Western
Two Factors Imperil Balance
First
Never have so many conflicting demands been
made so insistently on those who manage
institutions and hold power.
Second
The consequences of management decisions affect
far more people and environments—and more
profoundly—than ever before.
MultiMedia by Stephen M. Peters
© 2001 South-Western
Time Pressure on Decisions
To increase productivity
To stay close to suppliers and
customers
MultiMedia by Stephen M. Peters
To improve quality of products
and operations
To react swiftly to
global changes
© 2001 South-Western
Primary Factors Used by Individuals
to Judge and Regulate Conduct
Religious
beliefs and
training
Educational
background
Socialization through
family and peer group
influences
Political and
economic
philosophy
MultiMedia by Stephen M. Peters
Work
experience
© 2001 South-Western
Organizations and Unethical Behavior
 Offering unusually high rewards.
 Threatening unusually severe punishments.
 Emphasizing results and avoiding concern
for the means employed by subordinates to
achieve those results.
MultiMedia by Stephen M. Peters
© 2001 South-Western
Checklist for Determining if a
Corporate Culture Supports Ethical
Behavior and Social Responsibility
Is the company:
Yes
1.
Concerned about quality in its services, products, and operations?
2.
Concerned about its employees’ quality of life?
3.
Proud of its reputation in the industry?
4.
Proud of its reputation in the community?
5.
Focused on the needs of its customers?
6.
Honest in its dealing with you?
7.
Honest in its dealings with customers?
8.
Honest in its dealings with others?
MultiMedia by Stephen M. Peters
© 2001 South-Western
No
Checklist for Determining if a Corporate
Culture Supports Ethical Behavior
and Social Responsibility (cont.)
Is the company:
9.
Yes
Fair and equitable in the ways in which it decides on promotions?
10. Fair and equitable in the ways in which it compensates employees?
11. Open in its communications?
12. Trusting in its relationships with employees?
13. Concerned with developing and keeping its employees?
14. Actively promoting ethical conduct in all its operations and employees?
15. Actively searching for ways to better serve its stakeholders?
16. Carefully monitoring how decisions are made and checking them for
their concern for ethical behavior?
MultiMedia by Stephen M. Peters
© 2001 South-Western
No
Three Steps to Discourage
Unethical Behavior
 “Draw a clean line between the behavior you’ll
tolerate and the behavior you’ll have to punish.”
 “Invest the time and money in making sure that
those distinctions are understood and remembered.”
 “Put the fear of God into would-be violators by
conspicuously raising the risk of exposure.”
MultiMedia by Stephen M. Peters
© 2001 South-Western
Characteristics for Codes of Ethics
 They are visible guidelines for behavior at all levels.
 They are an unchallengeable basis for firing an
unethical employee.
 They protect all personnel from the pressures of the
market.
 They remind employees to look beyond the bottom
line and they provide a touchstone for appeals through
the hierarchy.
MultiMedia by Stephen M. Peters
© 2001 South-Western
Ethics Training
Two Areas
Compliance training that
alerts people to policies,
regulations, and laws
that establish acceptable
behavior within a
company.
MultiMedia by Stephen M. Peters
Cognitive thinking
exercises that develop
skills to allow people to
think through various
“moral mazes.”
© 2001 South-Western
Legal/Ethical Behavior Model Applied to Smoking in the Workplace
MultiMedia by Stephen M. Peters
© 2001 South-Western
Codes of Conduct
Written in the manner of company policies
General guidelines
Interpretation varies from one individual to the next
Are meant to give freedom of action within certain
boundaries and require interpretation
MultiMedia by Stephen M. Peters
© 2001 South-Western
Gray Areas Suggestions
When in doubt, don’t.
Don’t try to find out
“how far is too far.”
Superiors who push you to do things
better, faster, cheaper will turn on you
when you cross the line between right and
wrong.
MultiMedia by Stephen M. Peters
© 2001 South-Western
Rules for Contemplating the
Ethical Implications
 Consider other people’s well-being, including the well-being of
nonparticipants.
 Think as a member of the business community and not as an
isolated individual.
 Obey, but do not depend solely on, the law.
 Think of yourself—and your company—as part of society.
 Obey moral rules.
 Think objectively.
 Ask the question, “What sort of person would do such a thing?”
 Respect the customs of others, but not at the expense of your own
ethics.
MultiMedia by Stephen M. Peters
© 2001 South-Western
Kenneth Blanchard and
Norman Vincent Peal
The Power of Management
Is it legal? Will I be
violating either civil law or
company policy?
Is it balanced? Is it fair to
all concerned in the short
term as well as the long
term? Does it promote
win-win relationships?
How will it make be feel about
myself? Will it make me proud?
Would I feel good if my decision
were published in a newspaper?
MultiMedia by Stephen M. Peters
© 2001 South-Western
“Strategic Philanthropy” and
“Financially Sound Goodwill” Gain
Increased
employee
loyalty
A better
image
Improved
customer
ties
MultiMedia by Stephen M. Peters
© 2001 South-Western
Employees Hold Certain Rights
Freedom of
expression
Safety
Adequate
information
Privacy and
confidentiality in
regard to
personal
concerns
MultiMedia by Stephen M. Peters
© 2001 South-Western
Green Products
Those that minimize energy consumption and
pollution by-products connected with their
manufacture and disposal.
MultiMedia by Stephen M. Peters
© 2001 South-Western
People Become Whistle-Blowers
for a Variety of Reasons
SomeSome
believe
arethat
participants
their superiors,
in the like
Some
Some
doblow
so because
the whistle
they because
feel a strong
of
wrongdoing
themselves,and
do may
not want
blowtothe
letwhistle
their
theirobligation
strong moral
to protect
and ethical
others
codes
companies orout
customers
of fear be harmed.
MultiMedia by Stephen M. Peters
© 2001 South-Western
Whistleblowers Concerns
Often isolated
Harassed
Verbally
denigrated
Demoted
MultiMedia by Stephen M. Peters
Fired
© 2001 South-Western
Elements to Make
Organizations Proactive
 Top-level commitment and support.
 Corporate policies that integrate environmental issues.
 Effective interfaces between corporate and businessunit staff.
 High degree of employee awareness and training.
 Strong auditing programs.
 Establishment of responsibility for identifying and
dealing with real and potential environmental
problems.
MultiMedia by Stephen M. Peters
© 2001 South-Western
A Proactive Environmental Management Program
MultiMedia by Stephen M. Peters
© 2001 South-Western