1Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Chapter 2Managerial Ethics

2Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Society’s Expectations from Organizations and Managers Managers regularly make decisions

about issues with a social dimension In competitive environment,

organizations cannot afford to be seen as socially irresponsible

3Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Demonstrating Social Responsibility Social responsibility Social obligation Social responsiveness

4Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Relationship Between Social Responsibility and Economic Performance Research studies show positive

relationship General public perception that

companies who behave in a socially responsible way have better business performance

5Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Managers Becoming More Socially Responsible It is the collective behaviour and actions

of managers that make a company socially responsible

Managers who make the right decisions are described as being or behaving ethically

6Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Managerial Ethics

Ethics Rules and principles that define right

and wrong conduct Three Views of Ethics

Utilitarian view - ethical decisions are made on the basis of their outcomes or consequences

(continued)

7Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Managerial Ethics (continued)

Three Views of Ethics (continued) Rights view - respects and protects

individual liberties and privileges Theory of justice view - managers

impose and enforce rules fairly and impartially

8Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Values Basic convictions about what is right

and wrong Influence ethical behaviour Values are developed in early years

Organizational Factors That Affect Ethical And Unethical Behaviour

ModeratorsEthical/Unethical

Behaviour

OrganizationalCulture

StructuralVariables

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

03 Pearson Education Canada Inc.9 9

10Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Managers Improving Ethical Behaviour Hire individuals with high ethical

standards Establish codes of ethics and

decision rules Lead by example

(continued)

11Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Managers Improving Ethical Behaviour (continued) Delineate job goals and performance

review mechanisms Provide ethics training Conduct social audits Provide support to individuals facing

ethical dilemmas

12Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Code of Ethics Formal statement of an organization’s

primary values and ethical rules it expects employees to follow

Usually written Must state in detail acceptable

behaviours and actions