Transcript Chapter 5: Managerial Ethics & Corporate Social Responsibility

Locus of Control

People who believe that they are
in control of their own lives are
said to have an Internal locus of
control.

People who think that forces
beyond their control dictate what
happens to them are said to have
an External locus of control.
Self-Concept Components
»
Self-esteem: Degree to which people
feel good about themselves and their
abilities.
»
Self-efficacy: A person’s belief about
his or her chances of successfully
accomplishing a specific task.
Values vs. Attitudes

Values (Basic Convictions – What is
right, good, desirable)
» General - Contain many attitudes
» e.g., Conservative, Liberal, etc.

Attitudes (Beliefs, Assumptions)
» Evaluative judgments focused on specific
objects, concepts
» e.g., Attitude toward welfare, health care
reform, etc.
Hofstede’s Dimensions of
Culture
Power Distance
 Uncertainty Avoidance
 Individualism/Collectivism
 Masculinity/Femininity
 Time Orientation (Short vs. Long)

HOFSTEDE’S CULTURAL DIMENSIONS
Power Distance
low
Frequent interaction of
people from different
backgrounds; more democratic
low
high
Limited interaction between
low-status and high-status
individuals; obedience to power
Uncertainty Avoidance
Greater ease in unstructured,
unpredictable situations
Individualism
Primary concern for self; expected
to take care of self
Masculinity
Valuing achievement; Emphasis on
assertiveness, competitiveness,
material success
high
Avoidance of unstructured,
unpredictable situations
Collectivism
Primary concern for interests
of the group
Femininity
Valuing relationships; Emphasis on
security, feelings
Time Orientation

Short-Term Orientation means that
people expect fairly rapid feedback
from decisions, expect quick profits,
frequent job evaluations and
promotions, etc.
Hofstede’s Dimensions of
Culture
PD
UA
I/C
M/F
TO
US Jap Fra
40 54 68
46 92 86
91 46 71
62 95 43
26 80 63
Chil
63
86
23
28
31
Chin WAfr Mex Ger
80
77 81 35
30
54 82 65
20
20 30 67
66
46 69 66
87
16 24 83
Ethical Problems Survey
% of 4000 employees who observed various
ethical problems in the past year:
Lying to Supervisors - 56
Falsifying reports/records - 41
Theft - 35
Sexual Harassment - 35
Drug or alcohol abuse - 31
Conflict of Interest - 31
Criteria for Ethical Decision
Making
Consequentialism
Utilitarian Approach
Deontology (Duties, Obligations, Principles)
Individual (Moral) Rights Approach
Justice Approach (fairness, legality)
Individualism Approach
“Do unto others……..”
Virtue Ethics (Integrity)
Acting as society expects one with good character
would. One achieves a happy life by being honest
courageous, etc.
Facilitating Ethical Behavior
Training/Communication
Codes of Ethics
Principle-based
Policy-based
Ethical Structures
Hot Lines
Ethics Committees
Leading by Example
Reward Good Behavior; Punish Bad
Guidelines for Ethical Dilemmas








Is it legal?
Is it right?
Is it beneficial? To whom? How much?
Is it harmful? To whom? How much?
Have you consulted others who are
objective and knowledgeable?
Would you be willing to allow everyone to
do what you are considering?
Would you like your family to know?
Would you like your decision printed in the
newspaper?