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The Ethical and

Environmental issue

Md Irfanul Haque Siddiqui

Assistant ProfessorDepartment of Mechanical Engineering

Aligarh Muslim University, AligarhEmail: irfansiddiqui@live.in

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Individual Ethics in Organizations

Ethics: an individualspersonal beliefs aboutwhether a behavior, action,or decision is right orwrong.

Ethical behavior: conformsto generally accepted socialnorms.

Unethical behavior: does

not conform to generallyaccepted social norms.

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ManagerialEthics

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Managerial Ethics

Standards of behavior thatguide individual managersin their work.

Three Basic Areas ofConcern:

Managers need toapproach the followingfrom an ethical and moralperspective:

Relationships of the firm to

the employees. The employees to the firm.

The firm to other economicagents.

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How an Organization Treats Its Employees

Important areas ofmanagerial ethicsinclude:

Hiring.

Firing.

Wages.

Working conditions.

Employee privacy.

Employee respect.

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How Employees Treat the Organization

Especially in regard to:

Conflicts of interest.

Security.

Confidentiality.

Honesty.

Most companies havepolicies that guardagainst violation of

these ethical issues.

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How Employees and Organization Treat Other

Economic Agents

Ethics play a part in the relationshipbetween the firm and its employeeswith other economic agents.

Behaviors between the organizationand these agents that may be subject

to ethical ambiguity include: Advertising

Promotions

Financial disclosures

Purchasing

Shipping

Solicitation

Bargaining

Negotiation, and other businessrelationships.

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Ethics in an Organizational Context

Actions of peer managersand top managers, as wellas the organizationsculture, all contribute tothe ethical context of theorganization.

Organizational practice maystrongly influence theethical standards of

employees.

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Managing Ethical Behavior

Top managementestablishes theorganizations culture anddefines what will and willnot be acceptable behavior.

Code of ethics: a formalwritten statement of thevalues and ethicalstandards that guide a

firms actions.

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Managerial Ethics

Economic Agents

Customers, Competitors, Stockholders, Suppliers, Dealers, Unions

Hiring and firing,

Wages and working

conditions,

Privacy and respect

Conflicts of interest,

Secrecy and

confidentiality,Honesty

Employees Organization

Subject to ethical ambiguities:

Advertising and promotion.

Ordering and purchasing.

Bargaining and Negotiation.

Financial disclosure.

Shipping and solicitation.Other business relationships.

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Emerging Ethical Issues in Organizations

Ethical leadership: sinceleaders serve as rolemodels for others their veryaction is subject to scrutiny.

Issues in CorporateGovernance: insuring thatthe business is beingproperly managed and thatthe decisions made by its

senior management are inthe best interest ofshareholders and stakeholders.

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Ethical Issues in Information Technology

Online privacy has becomean issue as companies sortout the ethical andmanagement issues.

Management can addressthis issue by posting privacypolicies on the web.

Medical and financial datacan be reviewed and

corrected.

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Social Responsibility

The set of obligations an organization has to protect and enhance thesociety in which it functions.

Areas of social responsibility:

Stakeholders.

The natural environment.

Toward general social welfare.

(see Figure on next slide)

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Organizational Stakeholders

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Arguments For and Against Social Responsibility

FOR: Because organizationscreate many of the problems,such as air and water solutionand resource depletion, theyshould play a major role insolving them.

AGAINST: Widening theinterpretation of socialresponsibility will undermine theU.S. economy by detracting from

basic mission of business. (seeFigure 4.4)

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rguments For and gainst

Social Responsibility

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Organizational pproaches to Social Responsibility

Defensive stance, in which anorganization does everythingthat is required of it legally butnothing more.

Accommodative stance, in which

an organization meets its legaland ethical obligations and alsogoes beyond these requirementsin selected cases.

Proactive stance, in which anorganization views itself as a

citizen in a society andproactively seeks opportunitiesto contribute to that society.

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pproaches to Social Responsibility

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The Government and Social Responsibility

Direct regulation:government attempts toinfluence business byestablishing laws and rulesthat dictate whatbusinesses can and cannotdo in prescribed areas.

Indirect regulation: thegovernment can indirectly

influence the socialresponsibility oforganizations through itstax codes.

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How Organizations Influence Government

Personal contacts: politicalleaders and executives travel inthe same circles and may be ableto contact a politician directly.

Lobbying: persons or groups to

represent an organizationformally.

Political action committees:created to solicit and distributemoney to political candidates.

Favors: organizations sometimesrely on favors and otherinfluence tactics to gain support.

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How Business and the Government Influence

Each Other

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Managing Social Responsibility

Legal compliance: the extent to which anorganization complies with local, state,federal, and international laws.

Ethical compliance: an organization and its

members follow basic ethical (and legal)standards of behavior.

Philanthropic giving: awarding of funds or giftsto charities or other social programs.

Whistle-Blowing: the disclosure by anemployee of illegal or unethical conduct onthe part of others within the organization.

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Evaluating Social Responsibility

Corporate social audit:a formal and through

analysis of theeffectiveness of a firms

social performance.

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Organizational Stakeholders

TheOrganization

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Examples: Social welfare program

General Electrics GE foundation have supported senior centers,children with autism, literacy programs, and neglected urban spacesamong many other programs

Ciscos Global projects provide education, healthcare, economicempowerment, and disaster relief to areas in need.

Deloitte employees both have the opportunity to lead and attendconferences that provide training on volunteerism and non-profitorganization.

Dell supports over 4,615 charities around the world.

IBM believes in Corporate Citizenship. Their social good projectsextend across societal issues.

Tata Steel Tata Steel spends 5-7% of its profit after tax on CSRinitiatives, such as environmental sustainability and socialdevelopment.

https://twitter.com/generalelectrichttps://twitter.com/generalelectrichttps://twitter.com/CiscoCSRhttps://twitter.com/CiscoCSRhttps://twitter.com/Deloittehttps://twitter.com/Deloittehttps://twitter.com/Dell4Goodhttps://twitter.com/Dell4Goodhttps://twitter.com/citizenIBMhttps://twitter.com/citizenIBMhttps://twitter.com/citizenIBMhttps://twitter.com/Dell4Goodhttps://twitter.com/Deloittehttps://twitter.com/CiscoCSRhttps://twitter.com/generalelectric

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Thank you

Please keep silence &

let me mark your presence