Managerial EthicsEthicsThree Domains of Human ActionEthical DilemmaCriteria for Ethical Decision MakingUtilitarian ApproachIndividualism ApproachMoral-Rights ApproachJustice ApproachSocial ResponsibilityEconomic Responsibilities Be ProfitableLegal Responsibilities Obey the LawEthical Responsibilities Do What is RightDiscretionary Responsibilities Contribute to Quality of LifeCorporate Actions Toward Social DemandsObstructive Fight All the WayDefensive Do Only What is Legally RequiredAccommodative Accept Ethical ResponsibilityProactive Take Social InitiativesCode of EthicsManagerial Ethics What is Ethics?What is Ethics?Criteria for Ethical Decision MakingCriteria for Ethical Decision MakingSocial ResponsibilitySocial ResponsibilityCorporate Actions Toward Social Corporate Actions Toward Social DemandsDemandsCode of EthicsCode of EthicsEthics The code of moral principles and values that The code of moral principles and values that govern the behaviors of a person or group govern the behaviors of a person or group with respect to what is right or wrong. with respect to what is right or wrong. Lies between the domains of codified law Lies between the domains of codified law and free choiceand free choiceBased on shared principles and values Based on shared principles and values Disagreements and dilemmas about proper Disagreements and dilemmas about proper behavior often occur.behavior often occur.Three Domains of Human ActionDomain of Domain of Codified LawCodified Law(Legal Standard)(Legal Standard)Domain ofDomain ofEthicsEthics(Social Standard)(Social Standard)Domain ofDomain ofFree ChoiceFree Choice(Personal Standard)(Personal Standard)Amount ofExplicit ControlHigh LowEthical DilemmaA situation that arises when all A situation that arises when all alternative choices or behaviors have alternative choices or behaviors have been deemed undesirable because of been deemed undesirable because of potentially negative ethical potentially negative ethical consequences, making it difficult to consequences, making it difficult to distinguish right from wrong.distinguish right from wrong.Criteria for Ethical Decision MakingUtilitarian ApproachUtilitarian ApproachIndividualism ApproachIndividualism ApproachMoral-Rights ApproachMoral-Rights ApproachJustice ApproachJustice ApproachUtilitarian Approach Moral behaviors produce the greatest Moral behaviors produce the greatest good for the greatest number.good for the greatest number.Individualism Approach Acts are moral when they promote Acts are moral when they promote the individual's best long-term the individual's best long-term interests.interests.Moral-Rights Approach Human beings have fundamental Human beings have fundamental rights that cannot be taken away by rights that cannot be taken away by an individual's decision.an individual's decision.1. Free consent1. Free consent2. Privacy2. Privacy3. Conscience3. Conscience4. Free speech4. Free speech5. Due process5. Due process6. Life and safety.6. Life and safety.Justice Approach Standards of equity, fairness, and Standards of equity, fairness, and impartiality. impartiality. Distributive JusticeDistributive JusticeProcedural JusticeProcedural JusticeCompensatory JusticeCompensatory JusticeSocial ResponsibilityManagement's obligation to make Management's obligation to make choices and take actions that will choices and take actions that will contribute to the welfare and interests contribute to the welfare and interests of society as well as to the welfare and of society as well as to the welfare and interests of the organizationinterests of the organizationBeing a good corporate citizen.Being a good corporate citizen.4 criteria: economic, legal, ethical, 4 criteria: economic, legal, ethical, discretionary. discretionary.Economic ResponsibilitiesBe ProfitableLegal ResponsibilitiesObey the LawEthical ResponsibilitiesDo What is RightDiscretionary ResponsibilitiesContribute to Quality of LifeCorporate Actions Toward Social DemandsObstructiveObstructiveDefensiveDefensiveAccommodativeAccommodativeProactiveProactiveObstructiveFight All the WayDefensiveDo Only What is Legally RequiredAccommodativeAccept Ethical ResponsibilityProactiveTake Social InitiativesCode of EthicsA formal statement of the company's A formal statement of the company's values concerning ethics and social values concerning ethics and social