Schermerhorn- Chapter 6 1

Management, 6eSchermerhorn

Prepared by

Cheryl Wyrick

California State Polytechnic University Pomona

John Wiley & Sons, Inc

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COPYRIGHT

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Ethics – code of moral principles– sets standards of good & bad and right & wrong

Ethical behavior – what is accepted as “good” and “right” in the

context of the governing moral code

Chapter 6What is Ethical Behavior?

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Law, Values, and Ethical Behavior

legal component to ethical behavior– not illegal is not

necessarily ethical

personal values help determine individual behavior

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Alternative Views of Ethical Behavior Utilitarian - greatest good to the greatest

number of people Individualism - primary commitment is to

one’s long term self-interests Moral-rights - respect the fundamental rights

of people Justice - ethical decisions treat people fairly

according to rules

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Cultural Issues in Ethical Behavior Cultural Relativism

– ethical behavior is always determined by cultural context

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Cultural Issues in Ethical Behavior

Ethical Imperialism – attempt to externally

impose one’s ethical standards on others

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Manager’s Notepad 6.1

How Companies Can Respect Core or Universal Values

Respect for human dignity Create corporate culture that values employees, customers, suppliers Keep a safe workplace Produce safe products and services

Respect for basic rights Protect rights of employees, customers, communities Avoid anything threatening peoples’ rights to safety, health, education

living standards

Be good citizens Support social, economic and educational systems Protect the environment through work with local govt. and institutions

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What is an Ethical Dilemma?

A situation that requires choosing a course of action– offers potential for

personal and/or organizational benefit

– may be considered unethical

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Rationalizations for Unethical Behavior Convincing oneself

that:– behavior is not really

illegal

– behavior is really in everyone’s best interests

– nobody will ever find out

– the organization will “protect” you

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Factors Influencing Ethical Behavior

Person Organization Environment

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Maintaining High Ethical Standards Ethics Training

– structured programs that help participants to understand ethical aspects of decision making

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Maintaining High Ethical Standards

Whistleblowers– expose misdeeds of others

to• preserve ethical standards

• protect against wasteful, harmful, illegal acts

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Whistleblower Protection

Barriers to whistleblowing– strict chain of command– strong work group identities– ambiguous priorities

State laws protecting whistleblowers vary Federal laws protect government workers

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Maintaining High Ethical Standards Top management support

– model appropriate ethical behavior

Formal codes of ethics– official written guidelines on how to behave

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Corporate Social Responsibility

Obligation of the organization to act in ways that serve both its own interests and that of stakeholders

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Social Responsibility and Corporate Performance Classical view

– management’s only responsibility is to maximize profits

Socioeconomic view– management must be

concerned about the broader social welfare, not just profits

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Social Responsibility Audits

Evaluate corporate social performance by asking– Is the organization’s

• Economic responsibility met?

• Legal responsibility met?

• Ethical responsibility met?

• Descretionary responsibility met?

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Social Responsibility Strategies

Obstructionist - economic priorities Defensive - do the minimum legally

required Accommodative - do the minimum ethically

required Proactive - take leadership in social

initiatives

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Government Regulation of Business Governmental agencies that monitor

compliance with government mandates – Federal Aviation Administration (FAA)– Environmental Protection Agency (EPA)– Occupational Safety & Health Administration

(OSHA)– Food & Drug Administration (FDA)

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Complex Legal Environment

Areas of government intervention– occupational safety and health– fair labor practices– consumer protection– environmental protection