Transcript Chapter 3
Management Ethics and Social Responsibility Chapter 3 MANAGEMENT Meeting and Exceeding Customer Expectations EIGHTH EDITION Prepared by Deborah Baker Texas Christian University Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 1 learning objectives 1. Describe the two broad categories of ethical theories 2. Explain what individuals need in order to act ethically 3. Describe the organizational influences on ethical conduct 4. Discuss three primary ways in which business can promote ethical conduct Chapter 3 5. Describe the relationship between law and ethics Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 2 learning objectives (continued) 6. Explain the concept of an ethical dilemma 7. Discuss the guidelines for acting ethically 8. Explain the three approaches by business to social responsibility 9. Explain the responsibilities businesses have to stakeholders 10.Describe the government’s role in promoting socially responsible conduct by businesses Chapter 3 11.Discuss the ways in which businesses can promote socially responsible conduct Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 3 1 Managing Ethically Chapter 3 Business Ethics The rules or standards governing the conduct of persons or members of organizations in the field of commerce Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 4 1 Balancing Demands Many conflicting demands have been made on those who manage institutions Consequences of management decisions Chapter 3 affect more people and environments than ever before Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 5 2 Individuals and Ethical Conduct Chapter 3 Morality Core values and beliefs that act as a guide when individuals formulate courses of action Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 6 2 An Individual’s Code of Ethics Religious beliefs and training Educational background Political and economic philosophy Chapter 3 Socialization Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 7 3 Organizational Influences Offer unusually high rewards Encouraging Unethical Behavior Threaten unusually severe punishments Chapter 3 Emphasize results Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 8 4 Importance of Organizational Controls Unifying Ethics Code of Ethics Compliance Programs Chapter 3 Commitment of Top Management Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 9 4 Commitment of Top Management Establish a code of ethics Training and oversight, reward ethical behavior Chapter 3 Discouraging Unethical Behavior Punish wrongdoers Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 10 Codes of Ethics 4 Characteristics Visible guidelines for behavior Unchallengeable basis for firing an unethical employee Protect all personnel from market pressures Remind employees to look beyond the Chapter 3 bottom line Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 11 4 Compliance Programs Chapter 3 Ethics Training Compliance Training alerts people to policies, regulations, and laws Cognitive Thinking develops skills to allow people to think through “moral mazes” Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 12 Chapter 3 5 Legal Constraints Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 13 6 Ethical Dilemmas Suggestions for Ethical Dilemmas When in doubt, don’t Don’t try to find out “how far is too far” Superiors who push you to do things Chapter 3 better, faster, cheaper will turn on you when you when you cross the line between right and wrong Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 14 7 Guidelines for Acting Ethically Consider other people’s well-being Think as a member of the business community Obey, but do not depend solely on, the law Think of yourself and your company as part of society Chapter 3 Obey moral rules Think objectively Ask “What sort of person would do such a thing?” Respect the customs of others, but not at the expense of your own ethics Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 15 7 Guidelines for Acting Ethically Is it legal? The Ethical Test Is it balanced? Chapter 3 How will it make me feel about myself? Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 16 7 Dimensions of Reputation Emotional Appeal Products and Services Financial Performance Vision and Leadership Workplace Environment Chapter 3 Social Responsibility Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 17 8 Approaches to Social Responsibility Chapter 3 Resistance Approach Businesses actively fight to eliminate, delay, or fend off demands being made of them Reactive Approach Businesses wait for demands to be made and then react to them, choosing a response by evaluating alternatives Proactive Approach Businesses continually look to the needs of constituents and try to find ways to meet those needs Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 18 Chapter 3 9 Responsibilities to Stakeholders Owners and Stockholders Employees Customers Suppliers Communities Society Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 19 10 Government Regulation: Pros and Cons Social Responsibility to Prevent Pollution Chapter 3 Redesigning of processes and products Recycling and repackaging for reduced waste Anticipating needs Facing problems up front Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 20 11 Managing for Social Responsibility Making Organizations Proactive Top-level commitment and support Corporate policies that integrate environmental issues Effective interfaces between corporate and business-unit staff High degree of employee awareness and training Chapter 3 Strong auditing programs Establishment of responsibility for dealing with environmental problems Copyright ©2005 by South-Western, a division of Thomson Learning. 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