Tim Pufundt Management 3000 Exam 3 Study Guide BOLD book definition RED lecture discussion Chapter 3 Ethics and Social Responsibility o 3 1 How Do Ethics and Ethical Behavior Play Out in the Workplace Ethical behavior is values driven Ethics set standards of good or bad or right or wrong in our conduct Ethical behavior right or good in the context of a governing moral code Values broad beliefs about what is appropriate behavior Think Believe Dream Dare Walt Disney Terminal values preferences about desired end states result oriented Instrumental values preferences regarding the means to desired ends process oriented What is considered ethical varies among moral reasoning approaches Moral Reasoning Reasons for various ethical practices Utilitarian view ethical behavior delivers the greatest good to the most people o Ex Government decisions with tax revenue o Contrasts individualism view Individualism view ethical behavior advances long term self interests Justice view ethical behavior treats people impartially and fairly o Procedural Justice Rules are applied fairly Distributive Justice Interactional Justice People are treated the same regardless of personal characteristics People are treated with dignity and respect Commutative Justice Transactions are fair and everyone has access to the same information Procedural justice focuses on the fair application of policies and rules Distributive justice focuses on treating people the same regardless of personal characteristics o Problem in organizations o Minimum Wage Hourly Wage o Work ethic violated by society Interactional justice the degree to which others are treated with dignity and respect o How management treats employees o Violated when manager embarrasses employee o 1 on 1 mentoring is important Commutative justice focuses on the fairness of exchanges or transactions Moral rights view ethical behavior respects and protects fundamental rights What is considered ethical can vary across cultures Cultural relativism suggests there is no one right way to behave cultural context determines ethical behavior Moral absolutism suggests ethical standards apply universally across all cultures o Ethical imperialism an attempt to impose one s ethical standards on other cultures Ethical dilemmas arise as tests of personal ethics and values Ethical dilemma a situation that although offering potential benefit or gain is also unethical People have tendencies to rationalize unethical behaviors 3 2 How Can We Maintain High Standards of Ethical Conduct Personal character and moral development influence ethical decision making Ethical frameworks well thought out personal rules and strategies for ethical decision making Training in ethical decision making can improve ethical conduct Ethics training seeks to help people understand the ethical aspects of decision making and to incorporate high ethical standards into their daily life o Spotlight questions highlight the risks from public disclosure on one s actions Protection of whistleblowers can encourage ethical conduct Whistleblowers expose misconduct of organizations and their members Managers as positive role models can inspire ethical conduct In order to have a positive impact on ethical conduct throughout an organization those at the top must walk the walk Immoral manager chooses to behave unethically Amoral manager fails to consider the ethics of her or his behavior Moral manager makes ethical behavior a personal goal Formal Codes of ethics set standards for ethical conduct Code of ethics formal statement of values and ethical standards 3 3 What Should We Know About the Social Responsibilities of Organizations Social responsibility is an organization s obligation to best serve society Stakeholders people and institutions most directly affected by an organizations performance Corporate social responsibility obligation of an organization to serve its own interests and those of its stakeholders Triple bottom line include financial social and environmental criteria 3 Ps of organizational performance profit people and planet Scholars argue cases for and against corporate social responsibility Classical view of CSR business should focus on the pursuits of profits Socioeconomic view of CSR business should focus on contributions to society not just making profits Socioeconomic View Classical View Responsibility ResponsibilityIncreases Increaseslong run long run profits profits Improves Improvespublic publicimage image Helps Helpsavoid avoidgovernment government regulation regulation Businesses Businesseshave haveresources resourcesand and ethical ethicalobligations obligationsto toact act responsibly responsibly Reduces Reducesbusiness businessprofits profitsCreates Creates higher higherbusiness businesscosts costs Dilutes Dilutesbusiness businesspurpose purpose Gives Givestoo toomuch muchsocial socialpower powerto to business business Virtuous circle exists when corporate social responsibility leads to improved financial performance that leads to more social responsibility Shared value approaches business decisions with understanding that economic and social progress are interconnected Social responsibility audits measure the social performance of organizations Social responsibility audit measures and reports on an organizations performance in various areas of corporate social responsibility ranges from compliance to conviction Sustainability is an important social responsibility goal Sustainability goal that addresses the rights of the present and future generations as co stakeholders of present day natural resources Sustainable business where firms operate in way that both meet the needs of customers and protect or advance the well being of our natural environment Sustainable development making use of natural resources to meet today s needs while also preserving and protecting the environment for use by future generations Environmental capital storehouse of natural resources atmosphere land water and minerals that we use to sustain life and produce goods and services for society ISO 4001 global quality standard that certifies organizations that set environmental objectives and targets account for the environmental impact of their activities and continuously improve environmental performance Social business and social entrepreneurs point the way in social responsibility Social business one in which the underlying business model directly addresses a social problem business model addresses social