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Chapter Three
The ManagersChanging
Work Environment &Ethical
Responsibilities
Doing the Right Thing
McGraw-Hill/I rwin Copyright 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
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Major Questions You Should Be
Able to Answer
3.1 Who are the stakeholders important to me inside
the organization?
3.2 Who are the stakeholders important to me outside
the organization?
3.3 What does the successful manager need to know
about ethics and values?
3.4 Is being socially responsible really necessary3.5 What trends in workplace diversity should
managers be aware of?
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The Community of Stakeholders
Inside the Organization
Stakeholders
the people whose interests are affected by an
organizations activities
Internal, external
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The Organizations Environment
3-4
Figure 3.1
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The Community of Stakeholders
Inside the Organization
Internal stakeholders
consist of employees,
owners, and the board
of directors
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The Community of Stakeholders
Inside the Organization
Owners
consist of all those
who can claim the
organization as theirlegal property
Board of directors
members elected by
the stockholders to see
that the company isbeing run according o
their interests
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The Community of Stakeholders
Inside the Organization
External stakeholders
people or groups in the organizations external
environment that are affected by it
Task, general environment
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The Task Environment
Customers
those who pay to use an organizations goods or
services
Competitors
people or organizations that compete for
customers or services
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The Task Environment
Suppliers
A person or
organization that
provides rawmaterials, services,
equipment, labor or
energy to other
organizations
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The Task Environment
Distributor
a person or organization that helps another
organization sell its goods and services to
customers
Strategic allies
describes the relationship of two organizations
who join forces to achieve advantages neither canperform as well alone
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The Task Environment
Government regulators
regulatory agencies that establish ground rules
under which organizations may operate
Special interest groups
groups whose members try to influence specific
issues
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The Task Environment
Employee Organizations: Unions &
Associations
Local Communities
Financial Institutions
Mass Media
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The General Environment
Economic forces
consist of the general economic conditions and
trends unemployment, inflation, interest rates,
economic growth that may affect anorganizations performance
Technological forces
new developments in methods for transformingresources into goods and services
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The General Environment
Sociocultural forces
Influences and trends originating in a countrys, a
societys, or a cultures human relationships and
values that may affect an organization
Demographic forces
influences on an organization arising from
changes in the characteristics of a population,such as age, gender, or ethnic origin
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The General Environment
Political-Legal forces
changes in the way politics shape laws and laws
shape the opportunities for and threats to an
organization
International forces
changes in the economic, political, legal, and
technological global system that may affect anorganization
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The Ethical Responsibilities
Required of You as a Manager
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 unethicalor even illegal
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Defining Ethics & Values
Ethics
standards of right and
wrong that influence
behavior
Values
relatively permanent
and deeply held
underlying beliefs andattitudes that help
determine a persons
behavior
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Values
Organizations may have two value systems that
conflict:
1. The value system stressing financialperformance versus
2. The value system stressing cohesion andsolidarity in employee relationships
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Four Approaches to Deciding
Ethical Dilemmas
Utilitarian
guided by what will
result in the greatest
good for the greatestnumber of people
Individual
guide by what will
result in the
individuals best longterm interest, which
ultimately are in
everyones self-interest
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Four Approaches to Deciding
Ethical Dilemmas (cont.)
Moral-rights
guided by respect for
the fundamental rights
of human beings
Justice
guided by respect for
impartial standards of
fairness and equity
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White-Collar Crime, SarbOx, &
Ethical Training
Sarbanes-Oxley of 2002
Often shortened to SarbOx or SOX, established
requirements for proper financial record keeping
for public companiesand penalties of as much
as 25 years in prison for
noncompliance
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How Do People Learn Ethics?
Kohlbergs Theories
Level 1, preconventional follows rules
Level 2, conventional follows expectations of
others
Level 3, postconventional guided by internal
values
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How Organizations Can Promote Ethics
1. Creating a strong ethical climate
2. Screening prospective employees
3. Instituting ethics codes and trainingprograms
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The Social Responsibilities
Required of You as a Manager
Social responsibility
managers duty to take actions that will benefit
the interests of society as well as of the
organization
Corporate social responsibility
notion that corporations are expected to go
above and beyond following the law and making aprofit
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Carrolls Global Corporate Social
Responsibility Pyramid
3-25Figure 3.2
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Two Types of Social Responsibility
Philanthropy
making charitable
donations to benefit
humankind
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The Diversity Wheel
Figure 3.3
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How to Think about Diversity: Which
Differences Are Important?
Diversity
represents all the ways people are unlike and alike
the differences and similarities in age, gender,
race, religion, ethnicity, sexual orientation,capabilities, and
socioeconomic
background
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How to Think about Diversity: Which
Differences Are Important?
Personality
stable physical and mental characteristics
responsible for a persons identity
Internal dimensions of diversity
human differences that exert a powerful,
sustained effect throughout every stage of our
lives
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How to Think about Diversity: Which
Differences Are Important?
External dimensions of diversity
consist of the personal characteristics that people
acquire, discard, or modify throughout their lives
include an element of choice
Organizational dimensions
include management status, union affiliation,
work location, seniority, work content, anddivision
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Trends in Workforce Diversity
More older people in the workforce
More women working
More people ofcolor in the workforceGays & lesbians become more visible
People with differing physical and mental
abilitiesMismatches between education and
workforce needs
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Barriers to Diversity
Ethnocentrism
belief that ones native country, culture, language,
abilities, or behavior is superior to those of
another culture
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Barriers to Diversity
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Stereotypes and prejudices
Fear of reverse discrimination
Resistance to diversity program priorities
Unsupportive social atmospheres
Lack of support for family demands
Lack of support for career-building steps
