Date post: | 30-May-2018 |
Category: |
Documents |
Upload: | deepandershahi1 |
View: | 215 times |
Download: | 0 times |
of 22
8/14/2019 Ethics, Social Responsibility, And Diversity
1/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-1
Ethics, SocialResponsibility,
and Diversity
5
8/14/2019 Ethics, Social Responsibility, And Diversity
2/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-2
Ethics and StakeholdersStakeholders:people or groups that have aninterest in the organization. Stakeholders include employees, customers, shareholders,
suppliers, and others.
Stakeholders often want different outcomes and managersmust work to satisfy as many as possible.
Ethics:a set of beliefs about right and wrong. Ethics guide people in dealings with stakeholders and
others, to determine appropriate actions. Managers often must choose between the conflicting
interest of stakeholders.
8/14/2019 Ethics, Social Responsibility, And Diversity
3/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-3
Ethics
It is difficult to know when a decision isethical. Here is a good test:
Managerial ethics: If a managermakes a decision falling within usualstandards, is willing to personallycommunicate the decision to
stakeholders, and believes friendswould approve, then it is likely anethical decision.
8/14/2019 Ethics, Social Responsibility, And Diversity
4/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-4
Ethical Models
Social Ethics:
Legal rules, customs
Professional Ethics:Professional Ethics:
Values in workplaceValues in workplaceIndividual Ethics:Individual Ethics:
Family influenceFamily influence
OrganizationsOrganizations
Code of EthicsCode of Ethics
Figure 5.2
8/14/2019 Ethics, Social Responsibility, And Diversity
5/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-5
Ethical OriginsSocietal Ethics:standards that members ofsociety use when dealing with each other.Based on values and standards found in societys legal
rules, norm, and mores.
Codified in the form of lawand society customs.
Norms dictate how people should behave.
Societal ethics vary based on a given society.
Strong beliefs in one country may differ elsewhere. Example: bribes are an accepted business practice in some
countries.
8/14/2019 Ethics, Social Responsibility, And Diversity
6/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-6
Ethical Origins
Professional ethics:values and standardsused by groups of managers in the workplace. Applied when decisions are not clear-cut ethically.
Example: physicians and lawyers have professionalassociations that enforce these.
Individual ethics:values of an individualresulting from their family& upbringing. If behavior is not illegal, people will often disagree on if
it is ethical. Ethics of top managers set the tone for firms.
8/14/2019 Ethics, Social Responsibility, And Diversity
7/22Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-7
Ethical DecisionsA key ethical issue is how to disperse harm andbenefits among stakeholders. If a firm is very profitable for two years, who should receive
the profits? Employees, managers and stockholders all want a
share. Should we keep the cash for future slowdowns?
What is the ethical decision?
What about the reverse, when firms must layoffworkers.
Final point: stockholders are the legal owners ofthe firm!
8/14/2019 Ethics, Social Responsibility, And Diversity
8/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-8
Ethical Decisions
Some other issues managers must consider. Should you hold payment to suppliers as long as
possible to benefit your firm?
This will harm your supplier who is a stakeholder. Should you pay severance pay to laid off workers?
This may decrease the stockholder's return.
Should you buy goods from overseas firms that hire
children?If you dont the children might not earn enough
money to eat.
8/14/2019 Ethics, Social Responsibility, And Diversity
9/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-9
Why Behave Ethically?
Managers should behave ethically to avoidharming others. Managers are responsible for protecting and nurturing
resources in their charge.
Unethical managers run the risk for loss ofreputation.
This is a valuable asset to any manager! Reputation is critical to long term management
success. All stakeholders are judged by reputation.
8/14/2019 Ethics, Social Responsibility, And Diversity
10/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-10
Social Responsibility
Social Responsibility:the managers duty tonurture, protect and enhance the welfare ofstakeholders.
There are many ways managers respond tothis duty:
Obstructionist response:managers choose not
to be socially responsible. Managers behave illegally and unethically. They hide and cover-up problems.
8/14/2019 Ethics, Social Responsibility, And Diversity
11/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-11
Defensive response:managers stay within the
law but make no attempt to exerciseadditional social responsibility. Put shareholder interest above all other stakeholders. Managers say society should make laws if change is
needed.Accommodative response:managers realizethe need for social responsibility. Try to balance the interests of all stakeholders.
Proactive response:managers activelyembrace social responsibility. Go out of their way to learn about and help stakeholders.
8/14/2019 Ethics, Social Responsibility, And Diversity
12/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-12
Levels of Responsibility
Obstruction
response
Defensive
responseAccommodativeAccommodative
responseresponse
ProactiveProactive
responseresponse
Low HighSocial responsibility
Figure 5.3
8/14/2019 Ethics, Social Responsibility, And Diversity
13/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-13
Why be Responsible?Managers accrue benefits by beingresponsible. Workers and society benefit. Quality of life in society will improve. It is the right thing to do.
Whistleblowers:a person reporting illegal orunethical acts.
Whistleblowers now protected by law in most cases.Social audit:managers specifically take ethicsand business into account when makingdecisions.
8/14/2019 Ethics, Social Responsibility, And Diversity
14/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-14
The Social Audit
Profitability
NegativeNegative LowLow MediumMedium HighHigh
NegativeNegative
LowLow
MediumMedium
HighHigh
Favored
Strategies
SocialReturns
Figure 5.4
8/14/2019 Ethics, Social Responsibility, And Diversity
15/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-15
Promoting Ethics
There is evidence showing that ethicalmanagers benefit over the long run.
Ethical Control System:a formal system toencourage ethical management. Firms appoint an ethics ombudsman to monitor practices. Ombudsman communicates standards to all employees.
Ethical culture:firms increasingly seek tomake good ethics part of the norm andorganizational culture.
8/14/2019 Ethics, Social Responsibility, And Diversity
16/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-16
Managing Diverse Workforces
The workforce has become much morediverse during the last 30 years.Diversity refers to differences among people such as age,
gender, race, religion. Diversity is an ethical and social responsibility issue.
Managers need to give all workers equalopportunities.Not following this is against the law and unethical. When all have equal opportunity, the organization
benefits.
8/14/2019 Ethics, Social Responsibility, And Diversity
17/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-17
Types of DiversityFigure 5.5
CapabilitiesCapabilities
DisabilitiesDisabilities
SocioeconomicSocioeconomicbackgroundbackground
SexualSexual
orientationorientation
ReligionReligionEthnicityEthnicity
RaceRace
GenderGender
AgeAge
8/14/2019 Ethics, Social Responsibility, And Diversity
18/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-18
Manage DiversityDistributive Justice:dictates members betreated fairly concerning pay raises,promotions, office space and similar issues. These rewards should be assigned based on merit and
performance. A legal requirement that is becoming more prevalent in
American business.
Procedural Justice:Managers should use fair
practices to determine how to distributeoutcomes to members. This involves how managers appraise worker
performance or decide who to layoff.
8/14/2019 Ethics, Social Responsibility, And Diversity
19/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-19
Diversity Makes Business Sense
Diverse employees provide new, differentpoints of view. Customers are also diverse.
Still, some employees may be treated unfairly.Biases:systematic tendencies to use information in ways
that result in inaccurate perceptions. People often view those like themselves positively and
have biases about others. Social status is a type of bias conferred to people of
differing social position.Stereotypes:inaccurate beliefs about a given group.
8/14/2019 Ethics, Social Responsibility, And Diversity
20/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-20
How to Manage Diversity
Increase diversity awareness:managers needto become aware of their own bias.Understand cultural differencesand theirimpact on working styles.
Practice effective communicationwithdiverse groups.
Be sure top management is committedtodiversity.
8/14/2019 Ethics, Social Responsibility, And Diversity
21/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-21
Sexual HarassmentDamages both the person being harassed andthe organization. Both men and women can be victims.
Quid pro quo harassment:victim is requestedto perform sexual favors to keep a job or winpromotion.
Hostile work environment harassment:Somemembers are faced with a hostile,intimidating work environment. Lewd jokes, pornographic displays and remarks.
8/14/2019 Ethics, Social Responsibility, And Diversity
22/22
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
5-22
Avoiding Harassment
Develop and communicate asexualharassment policy. Point out that these actions are unacceptable.
Set up afair complaint systemto investigateallegations. If there are problems, correct them at once.
Provide harassment trainingto employeesand managers.