KIN 464 1st Edition Lecture 3 Outline of Current Lecture I Management s Ethical and Social Responsibilities II Making Ethical Decisions III Principles to Guide Decision making Toward better Ethics IV Social Responsibility Current Lecture I Management s Ethical and Social Responsibilities a Ethics and social responsibility are two of the most prominent topics in management today i They go beyond what you are required to do legally ii Ethics is a big area in coming up with your managerial philosophy b Unethical and illegal practices of managers in all types of organizations appear in the news on a daily basis c Many colleges today require courses in ethics and social responsibility for management students d Ethical behavior has grown to mean legal virtuous or highly moral behavior i Your moral compass e Ethics is generally considered to be a set of moral values or principles i f What is moral behavior Ethical behavior goes beyond what is legally correct and adds to the behavior a degree of social responsibility These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute g Ethical Responsibilities i Deontology 1 theory of moral obligation 2 To do absolutely no harm to anyone at all a Ex on a cruise ship and captain had too many drinks and landed ship into rocks There is water rushing in You are thinking you are going to drown If you were a deontologist you would have to find a way to get EVERYONE to safety There is no room for sacrifice to get the majority to safety ii Teleology 1 results are the true reality utilitarianism the ends justifies the means a You are balancing the right of individuals with the greater good b The end justifies the means iii Managers must balance 1 Achieving objectives 2 Maintaining the internal system 3 Adapting to the environment II Making Ethical Decisions a Considerations i Utility 1 Does it optimize benefits 2 Can you justify sacrifices b Rights i Does it respect the rights of those involved c Justice i Is the action fair to everyone involved d Intent i Is there an absence of prejudice ii You can t make certain people sacrifice because you don t like them e Most Organizations have a Code of Professional Ethics III Principles to Guide Decision making Toward better Ethics a Tell the truth the absolute truth i Honesty gains trust which you need as a manager ii You CAN put a positive spin on things but DO NOT lie b Maximize well being of owners within the law c Balance interest of stakeholders d Achieve most social good you can i There is often a greater good organizations tend to achieve e Follow standard business practices i f Not just the law but the intent behind that law Keep contractual and promissory obligations g Treat employees with dignity and respect i Treat others how you want to be treated IV Social Responsibility a The duty of business to promote or at least not damage the welfare of society i Ex athletes who do charity work and promote certain causes b The moral and ethical content of managerial and corporate decisions over and above the pragmatic requirements imposed by legal principle and market economy c Acting in the best interests of society in general d Management s most Important social responsibilities i Provide safe products 1 Consumers expect safe products ii Provide a safe and healthy environment 1 Use less power and be more efficient iii Protect the physical environment iv Provide equal opportunities v Obey the spirit and letter of laws be ethical vi Provide public service programs 1 Embrace diversity 2 Embrace not only the letter of the law but the intent behind it