BNAD 302, Human Side of Organizations Lecture 4, Chapter 3Outline of Last LectureChapter 2, Management Theory-Historical (classical, behavioral, and quantitative viewpoints) vs. Contemporary Perspectives (systems, contingency, and quality-management viewpoints)Chapter 3, Environment of Management Amazon.com and the customer experience: Jeff Bezos, founder of CEO of Amazon.com is obsessed with customer serviceA. Believes that company’s success is driven by the customer experienceB. Cut transportation costs by 40%I. Ethical ResponsibilitiesA. Ethical dilemma: situation in which you have to decide whether to pursue a course of action that may benefit you or your organization but that is unethical or even illegalB. Ethics: standards of right and wrong that influence behavior C. Values: relatively permanent and deeply held underlying beliefs and attitudes that help determine a person’s behavior -Organizations may have two value systems that conflict:1. The value system stressing financial performance 2. The value system stressing cohesion and solidarity in employee relationships II. 4 approaches to deciding ethical dilemmas:A. Utilitarian: guided by what will result in the greatest good for the greatest number of peopleB. Individual: guide by what will result in the individual’s best long-term interests, which ultimately are in everyone’s self-interestC. Moral-rights: guided by respect for the fundamental rights of human beingsD. Justice: guided by respect for impartial standards of fairness and equityThese 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.III. Sarbanes-Oxley Act of 2002: (often shortened to SarbOX or SOX) Established requirements for properfinancial record keeping for public companies and penalties of as much as 25 years in prison for noncompliance IV. How do people learn ethics?- Level 1: preconventional: follows rules (self-interest oriented, childlike) - Level 2: conventional: follows expectations of others (deal with authority well, understand social hierarchy, and conform)- Level 3: postconventional: guided by internal values (universal ethical principles)V. How organizations can promote ethics:1. Creating a strong ethical climate2. Screening prospective employees3. Instituting ethics codes and training programs4. Rewarding ethical behavior: Protecting whistle-blowers VI. Social ResponsibilitiesA. Social responsibility: manager’s duty to take actions that will benefit the interests of society as well as of the organizationB. Corporate social responsibility: notion that corporations are expected to go above and beyond following the law and making a profit C. Carroll’s Global Responsibilities: a pyramid with the following from top to bottom: philanthropic responsibility, ethical responsibility, legal responsibility, and economy