PowerPoint PresentationLearning ObjectivesEthics5.1 Three Domains of Human ActionIllegal & Unethical Behavior in OrganizationsSome Ethical Issues in BusinessWhat is an “ethical dilemma”?Approaches to Ethical Decision MakingSlide 9Levels of Personal Moral DevelopmentA Process for Ethical Decision MakingBusiness EthicsYou tell me… How Can Managers or Organizations Influence the Ethical Behavior of their Employees ?Danger SignsSummary: Tips for Making Ethical Business DecisionsManaging Company Ethics and Social ResponsibilityWhistleblowingEthics ProgramsCorporate Social Responsibility (CSR)5.5 Criteria of Corporate Social PerformanceThe Ethic of SustainabilityContrasting ViewsReconciliation5-1Chapter 5Chapter 5Ethics and Corporate ResponsibilityEthics and Corporate ResponsibilityLearning ObjectivesLearning ObjectivesLO1 Describe how different ethical perspectives guide decision makingLO2 Explain how companies influence their ethics environmentLO3 Outline a process for making ethical decisionsLO4 Summarize the important issues surrounding corporate social responsibility5-2EthicsEthicsEthicsCode of moral principles and values that governs the behaviors of a person or group with respect to what is right or wrongLaws vs. ethicsBusiness or managerial ethicsThe moral principles and standards that guide behavior in the world of business.5-35.1 Three Domains of 5.1 Three Domains of Human ActionHuman ActionCopyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.4Illegal & Unethical Behavior in OrganizationsIllegal & Unethical Behavior in Organizations5-5Some Ethical Issues inSome Ethical Issues inBusinessBusiness5-6Table 5.2What is an What is an ““ethical dilemmaethical dilemma””??A dilemma that arises in a situation concerning right or wrong when values are in conflict5-7Approaches to Ethical Decision MakingApproaches to Ethical Decision MakingMoral RightsEgoism/IndividualismUtilitarianism5-8Approaches to Ethical Decision MakingApproaches to Ethical Decision MakingJustice ApproachPractical Approach/Relativism5-9Levels of Personal Moral DevelopmentLevels of Personal Moral Development5-10A Process for Ethical Decision MakingA Process for Ethical Decision Making5-11Figure 5.1Business EthicsBusiness EthicsEthical climateIn an organization, the processes by which decisions are evaluated and made on the basis of right and wrong5-12You tell me…You tell me…How Can Managers or Organizations Influence How Can Managers or Organizations Influence the Ethical Behavior of their Employees ?the Ethical Behavior of their Employees ?5-13Danger SignsDanger Signs1. Excessive emphasis on short-term revenues2. Failure to establish a written code of ethics.3. Desire for simple, quick fix solutions to ethical problems.4. An unwillingness to take an ethical stand that may impose financial costs.5. Consideration of ethics solely as a legal issue or a public relations tool6. Lack of clear procedures for handling ethical problems.7. Responding to the demands of shareholders at the expense of other constituencies5-14Summary: Summary: Tips for Making Ethical Business DecisionsTips for Making Ethical Business DecisionsTake time to learn the factsIdentify the ethical concernsIdentify the people impacted by the decisionConsider the consequencesCheck your potential response against the following ethical tests:5-15Managing Company Ethics and Social Managing Company Ethics and Social ResponsibilityResponsibilityCode of Ethics – a formal statement of the company’s values regarding ethics and social issuesEthical Structures – systems, positions, and programs like ethics trainingWhistle-blowing – employee disclosure of illegal, immoral, or illegitimate practices16Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.WhistleblowingWhistleblowing17Ethics ProgramsEthics ProgramsPolicy-based statements & Compliance-based ethics programsPrinciple-based statements & Integrity-based ethics programs5-18Corporate Social Responsibility (CSR)Corporate Social Responsibility (CSR)Obligation toward society assumed by business.Making choices that contribute to society and stakeholders5-195.5 Criteria of Corporate 5.5 Criteria of Corporate Social PerformanceSocial Performance20The Ethic of SustainabilityThe Ethic of Sustainability21Sustainability – economic development that generates wealth and meets the needs of current generation while preserving the environment for the needs of future generationsContrasting ViewsContrasting ViewsFirst - holds that managers act as agents for shareholders and, as such, are obligated to maximize the present value of the firmSecond - managers should be motivated by principled moral reasoning5-22Reconciliation Reconciliation Profit maximization and corporate social responsibility used to be regarded as antagonistic, leading to opposing policies. But the two views can convergeRecent attention has also been centered on the possible competitive advantage of socially responsible