Transcript 878 KB - Management, Second Canadian Edition

Management
Second Canadian Edition
Chuck Williams
Alex Z. Kondra
Conor Vibert
Slides Prepared by:
Kerry Rempel, Okanagan College
©2008 by Nelson, a division of Thomson Canada Limited
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Chapter 3
Ethics and Social
Responsibility
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What Would You Do?

Whose interests should GAP pay most
attention to:
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stakeholders, suppliers, overseas workers,
or protestors
Is GAP responsible for the plight of
overseas workers in factories they
contract to?
What is the ethical thing to do?
©2008 by Nelson, a division of Thomson Canada Limited
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What is Ethical and Unethical
Workplace Behaviour?
After reading the next two sections,
you should be able to:
1. discuss how the nature of a
management job creates the possibility
for ethical abuses
2. identify common kinds of workplace
deviance
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Ethics and the Nature of
Management Jobs
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Ethical behaviour follows accepted
principles of right and wrong
Intentional managerial unethical
behaviours
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company resources for personal use
mishandling information
encouraging others’ unethical behaviour
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Ethics and the Nature of
Management Jobs

Unintentional managerial unethical
behaviour

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poorly constructed policies
unrealistic employee goals
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Workplace Deviance

Workplace Deviance – unethical
behaviour that violates organizational
norms about right and wrong
 Property deviance
 Production deviance
 Political deviance
 Personal aggression
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Types of Workplace Deviance
Production deviance
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leaving early
taking excessively long breaks
purposely working slower
intentionally wasting resources
Property deviance
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sabotaging, stealing
damaging equipment
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Types of Workplace Deviance
Political deviance
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using favouritism
spreading rumours
falsely blaming others for mistakes
Personal aggression
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sexual harassment
verbal abuse
threatening co-workers
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How Do You
Make Ethical Decisions?
After reading this section, you
should be able to:
3. describe what influences ethical
decision-making
4. explain what practical steps managers
can take to improve ethical decisionmaking
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Influences on Ethical
Decision-Making
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Ethical intensity of the decision
Moral development
Principles of ethical decision-making
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Ethical Intensity
of the Decision
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Magnitude of consequences
Social consensus
Probability of effect
Temporal immediacy
Proximity of effect
Concentration of effect
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Kohlberg’s Stages
of Moral Development
Preconventional Level
Stage 1: Punishment and Obedience
Stage 2: Instrumental Exchange
Conventional Level
Stage 3: Good Boy — Nice Girl
Stage 4: Law and Order
Post Conventional Level
Stage 5: Legal Contract
Stage 6: Universal Principle
Adapted from Exhibit 3.2
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Principles of
Ethical Decision-Making
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Principle of long-term self-interest
Principle of personal virtue
Principle of religious injunctions
Principle of government
requirements
Principle of utilitarian benefits
Principle of individual rights
Principle of distributive justice
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Principle of
Long-term Self-interest

People should never take any
action that is not in your or your
organization’s long-term selfinterest
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Principle of
Personal Virtue

People should never do anything
that is not honest, open, and
truthful, and which you would not
be glad to see reported in the
newspapers or on TV
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Principle of
Religious Injunctions

People should never take any action
that is not kind and that does not build
a sense of community; a sense of
everyone working together for a
commonly accepted goal
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Principle of
Government Requirements

People should never take any
action that violates the law, for
the law represents the minimum
moral standard
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Principle of
Utilitarian Benefits

People should never take any action
that does not result in greater good for
society. Instead, do whatever creates
the greatest good for the greatest
number.
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Principle of
Individual Rights

People should never take any
action that infringes on others’
agreed-on rights
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Principle of
Distributive Justice

People should never take any action
that harms the least among us: the
poor, the uneducated, the
unemployed
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Practical Steps to Ethical
Decision-Making
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Selecting and hiring ethical employees
Codes of ethics
Ethics training
Ethical climate
©2008 by Nelson, a division of Thomson Canada Limited
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Selecting and Hiring
Ethical Employees
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Increase ethical behaviours by hiring
more ethical employees
Testing for ethics
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Overt-integrity tests
Personality-based integrity tests
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What Really Works
Integrity Tests
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What Really Works
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Codes of Ethics
Corporate statements on ethics
 To encourage ethical decision-making
and behaviour
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Companies must communicate the codes
to others both within and outside the
organization
Management must also develop practical
ethical standards and procedures specific
to the company’s line of business
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Ethics Training
Objectives of Ethics Training
 Develop employee awareness about
ethics
 Achieve credibility with employees
 Teach employees a practical model of
ethical decision-making
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Ethical Climate
To establish an Ethical Climate:
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Managers must act ethically
Top managers must be active in the company
ethics program
There must be an effective reporting system
Managers must fairly and consistently punish
those who violate the ethics code
©2008 by Nelson, a division of Thomson Canada Limited
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A Basic Model of Ethical
Decision-Making
1.
2.
3.
4.
5.
6.
Identify the problem
Identify the constituents
Diagnose the situation
Analyze your options
Make your choice
Act
Adapted from Exhibit 3.4
©2008 by Nelson, a division of Thomson Canada Limited
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Learning Objectives:
What is Social Responsibility?
After reading the next four sections, you should
be able to explain:
5. Explain to whom organizations are socially
responsible
6. Explain for what organizations are socially
responsible
7. Explain how organizations can choose to respond to
societal demands for social responsibility
8. Explain whether social responsibility hurts or helps an
organization’s economic performance
©2008 by Nelson, a division of Thomson Canada Limited
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To Whom Are Organizations
Socially Responsible?
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Shareholders
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managers must satisfy the owners
social responsibility is maximizing
shareholder wealth
Stakeholders
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persons or groups with a legitimate
interest in a company’s actions
Social responsibility is satisfying the
interests of multiple stakeholders
©2008 by Nelson, a division of Thomson Canada Limited
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Shareholder Model:
Friedman
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Managers cannot act effectively as
moral agents for shareholders
Time, money, and attention diverted
to social causes undermine market
efficiency
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Stakeholder Model of Corporate
Social Responsibility
Exhibit 3.5
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Primary Stakeholders
Some stakeholders are more
important to the firm’s survival:
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Company
Employees
Shareholders
Customers
Suppliers
Public stakeholders
Adapted from Exhibit 3.6
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Secondary Stakeholders
Secondary Stakeholders can
influence or be influenced by the
company:
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media
special interest groups
Adapted from Exhibit 3.6
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For What Are Organizations
Socially Responsible
Total Social Responsibilities
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Economic
Legal
Ethical
Discretionary
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Responses to Demands for
Social Responsibility
Social Responsiveness
 Reactive
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Defensive
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Do only what is required
Accommodative
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Fight all the way
Be progressive
Proactive
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Lead the industry
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Social Responsibility and
Economic Performance
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Social responsibility can sometimes cost
a company significantly if it chooses to
be socially responsible
Sometimes it does pay to be socially
responsible
While socially responsible behaviour
may be “the right thing to do,” it does
not guarantee profitability
©2008 by Nelson, a division of Thomson Canada Limited
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What Really Happened?
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After three straight years of not being profitable, Gap
adopted a multi-stakeholder approach to solving the
problems in overseas factories.
Gap joined Social Accountability International’s
Corporate Involvement Program, the Ethical Trading
Initiative, and the UN’s Global Compact.
Gap began providing training for managers in
overseas factories on how to be better managers and
improve labour relations.
Suppliers were made to comply with Gap’s Code of
Vendor Conduct, pass initial evaluation visits and be
approved by Gap’s global compliance staff.
©2008 by Nelson, a division of Thomson Canada Limited
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