Ch22

MultiMedia by Stephen M. Peters © 2001 South-Western

Management Ethics andSocial Responsibility


Two Broad Categories of Ethical Theories

Consequential principles judge the ethics of a particular situation by the consequences of that action.

– Determines the “rightness” or “wrongness” of any action by determining the ratio of good to evil that the action will produce.

Non-consequential principles tend to focus on the concept of duty.– A person acts ethically if that person is faithful regardless of the

consequences that follow from being faithful to that duty.– If a person carries out his or her duties, the greatest good occurs

because the duty of the individual is carried out.

Consequential principles judge the ethics of a particular situation by the consequences of that action.

– Determines the “rightness” or “wrongness” of any action by determining the ratio of good to evil that the action will produce.

Non-consequential principles tend to focus on the concept of duty.– A person acts ethically if that person is faithful regardless of the

consequences that follow from being faithful to that duty.– If a person carries out his or her duties, the greatest good occurs

because the duty of the individual is carried out.


Two Factors Imperil Balance

Never have so many conflicting demands been made so insistently on those who manage

institutions and hold power.

The consequences of management decisions affect far more people and environments—and more

profoundly—than ever before.

First

Second


Time Pressure on Decisions

To stay close to suppliers and customers

To improve quality of products and operations

To react swiftly to global changes

To increase productivity


Primary Factors Used by Individuals to Judge and Regulate Conduct

Religious beliefs and

training

Educational background

Work experience

Political and economic

philosophy

Socialization through family and peer group

influences


Organizations and Unethical Behavior

Offering unusually high rewards.

Threatening unusually severe punishments.

Emphasizing results and avoiding concern for the means employed by subordinates to achieve those results.


Checklist for Determining if a Corporate Culture Supports Ethical Behavior and Social Responsibility

Is the company:

1. Concerned about quality in its services, products, and operations?

2. Concerned about its employees’ quality of life?

3. Proud of its reputation in the industry?

4. Proud of its reputation in the community?

5. Focused on the needs of its customers?

6. Honest in its dealing with you?

7. Honest in its dealings with customers?

8. Honest in its dealings with others?

Yes No


Checklist for Determining if a Corporate Culture Supports Ethical Behavior

and Social Responsibility (cont.)Is the company:

9. Fair and equitable in the ways in which it decides on promotions?

10. Fair and equitable in the ways in which it compensates employees?

11. Open in its communications?

12. Trusting in its relationships with employees?

13. Concerned with developing and keeping its employees?

14. Actively promoting ethical conduct in all its operations and employees?

15. Actively searching for ways to better serve its stakeholders?

16. Carefully monitoring how decisions are made and checking them for their concern for ethical behavior?

Yes No


Three Steps to Discourage Unethical Behavior

“Draw a clean line between the behavior you’ll tolerate and the behavior you’ll have to punish.”

“Invest the time and money in making sure that those distinctions are understood and remembered.”

“Put the fear of God into would-be violators by conspicuously raising the risk of exposure.”


Characteristics for Codes of Ethics

They are visible guidelines for behavior at all levels.

They are an unchallengeable basis for firing an unethical employee.

They protect all personnel from the pressures of the market.

They remind employees to look beyond the bottom line and they provide a touchstone for appeals through the hierarchy.


Ethics TrainingTwo Areas

Compliance training that alerts people to policies, regulations, and laws that establish acceptable behavior within a company.

Cognitive thinking exercises that develop skills to allow people to think through various “moral mazes.”


Legal/Ethical Behavior Model Applied to Smoking in the Workplace


Codes of Conduct

Written in the manner of company policies

General guidelines

Interpretation varies from one individual to the next

Are meant to give freedom of action within certain boundaries and require interpretation


Don’t try to find out “how far is

too far.”

When in doubt, don’t.

Gray Areas Suggestions

Superiors who push you to do things better, faster, cheaper

will turn on you when you cross the line between right and

wrong.


Rules for Contemplating theEthical Implications

Consider other people’s well-being, including the well-being of nonparticipants.

Think as a member of the business community and not as an isolated individual.

Obey, but do not depend solely on, the law. Think of yourself—and your company—as part of society. Obey moral rules. Think objectively. Ask the question, “What sort of person would do such a thing?” Respect the customs of others, but not at the expense of your own

ethics.


Kenneth Blanchard andNorman Vincent Peal

The Power of Management

Is it balanced? Is it fair to all concerned in the short term as well as the long term? Does it promote win-win relationships?

Is it balanced? Is it fair to all concerned in the short term as well as the long term? Does it promote win-win relationships?

Is it legal? Will I be violating either civil law or

company policy?

Is it legal? Will I be violating either civil law or

company policy?

How will it make be feel about myself? Will it make me proud? Would I feel good if my decision were published in a newspaper?

How will it make be feel about myself? Will it make me proud? Would I feel good if my decision were published in a newspaper?


“Strategic Philanthropy” and“Financially Sound Goodwill” Gain

A better image

A better image

Improved customer

ties

Improved customer

ties

Increased employee

loyalty

Increased employee

loyalty


Employees Hold Certain Rights

Freedom of expression

Safety

Privacy and confidentiality in

regard to personal concerns

Adequate information


Green Products

Those that minimize energy consumption and pollution by-products connected with their

manufacture and disposal.


People Become Whistle-Blowers for a Variety of Reasons

Some blow the whistle because of their strong moral and ethical codes

Some do so because they feel a strong obligation to protect others

Some are participants in the wrongdoing and may blow the whistle

out of fear

Some believe that their superiors, like themselves, do not want to let their companies or customers be harmed.


Whistleblowers Concerns

Often isolatedOften isolated HarassedHarassed

FiredFiredDemotedDemoted

Verbally denigrated

Verbally denigrated


Elements to MakeOrganizations Proactive

Top-level commitment and support.

Corporate policies that integrate environmental issues.

Effective interfaces between corporate and business-unit staff.

High degree of employee awareness and training.

Strong auditing programs.

Establishment of responsibility for identifying and dealing with real and potential environmental problems.


A Proactive Environmental Management Program

Date post:	23-Jan-2015
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Ch22

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