BNAD 302 9/10/13 Lecture 4 Outline of Last Lecture I. Evidence based management II. Scientific managementIII. Five Positive Bureaucratic FeaturesIV. Behavioral ViewpointV. Human Relations MovementVI. Systems ViewpointVII. Quality Control and AssuranceOutline of Current Lecture I. The Organizations EnvironmentII. Defining Ethics and ValueIII. 4 Approaches to Deciding Ethical DilemmasIV. Social Responsibilities Required of a ManagerCurrent LectureI. The Organizations Environmenta. Internal Stakeholdersi. Employeesii. Ownersiii. Board of Directorsb. The Task Environmenti. Customers, Media, Competitors, Interest Groups, Suppliers, Distributors, Allies, Unions, Lenders, Governmentsc. The General Environmenti. Economic Forcesii. International Forcesiii. Political-Legal Forcesiv. Technological Forcesv. Sociocultural Forcesd. Ex: Amazon.com and the customer experiencei. Jeff Bezos, founder and CEO of Amazon.com is obsessed with customer serviceii. Believes that company’s success is driven by the customer experienceiii. In 2011 the company’s revenue increased 41%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.e. What does a company owe its community?i. NCR is moving its headquarters from Dayton, OH to Atlanta, GAii. NCR had been headquartered in Dayton since the company was founded in 1884 iii. Georgia promised a lucrative incentive packageiv. Dayton officials thought the long relationship between the two should count for somethingII. Defining Ethics and Valuea. 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 oreven illegalb. Ethics: standards of right and wrong that influence behaviorc. Values: relatively permanent and deeply held underlying beliefs and attitudes that influence decisions and behaviord. Organizations may have 2 value systems that conflict1. The value system stressing financial performance versus2. The value system stressing cohesion and solidarity in employee relationshipsIII. 4 Approaches to Deciding Ethical Dilemmasi. Utilitarian: Guided by what will result in the greatest good for the most peopleii. Individual: Guided by what will result in the best interest for the individualiii. Moral-Rights: Guided by respect for fundamental human rightsiv. Justice: Guided by impartial standards of justiceb. Sarbanes-Oxley act of 2002i. Often shortened to SarbOx or SOX, established requirements for proper financial record keeping for public companies and penalties of as much as25 years in prison for noncompliancec. How do people learn ethics?i. Level 1: Preconventional – Follows rulesii. Level 2: Conventional – Follows expectations of othersiii. Level 3: Post-Conventional – guided by internal valuesd. How organizations can promote ethicsi. Creating of a strong ethical climateii. Screening prospective employeesiii. Instituting ethics codes and training programsiv. Rewarding ethical behavior: Protecting whistle-blowersIV. Social Responsibilities Required of a Managera. Social responsibility: manager’s duty to take actions that will benefit the interestsof 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 profitc. Two types of social responsibilityi. Philanthropy: making charitable donations to benefit mankindii. Corporate Governance: the system of governing a company so that the interests of corporate owners and other stakeholders are protected.d. The Need for Independent Directorsi. More attention is being paid to strengthening corporate governance so that directors are clearly separated in their authority from the