4:
Ethics, PowerPointPresentation
toAccompany
Management,2/e
JohnR.Schermerhorn,Jr.
andBarryWright
Chapter Social Responsibility, and
Sustainability
Preparedby:JimLoPresti
UniversityofColorado,Boulder
Revisedby:Dr.ShavinMalhotra
RyersonUniversity,Toronto,Ontario
Publishedby:JohnWiley&SonsCanada,Ltd.
PlanningAhead Chapter4StudyQuestions
Whatisethicalbehaviour?
Howdoethicaldilemmascomplicatethe
workplace?
Howcanhighethicalstandardsbe
maintained?
Whataresocialresponsibility,governance,
andsustainability?
Management 2e - Chapter4
2
1
StudyQuestion1:Whatisethicalbehaviour?
Ethics
Codeofmoralprinciples.
Setstandardsofgoodorbadorrightor
wronginonesconduct.
Ethicalbehaviour
Whatisacceptedasgoodandrightinthecontext
ofthegoverningmoralcode.
Management 2e - Chapter4
3
StudyQuestion1:Whatisethicalbehaviour?
Law,values,andethicalbehaviour:
Legalbehaviourisnotnecessarilyethical
behaviour.
Personalvalueshelpdetermineindividual
ethicalbehaviour.
Valuesbroadbeliefs
Terminalvalues
Instrumentalvalues
Management 2e - Chapter4
4
2
StudyQuestion1:Whatisethicalbehaviour?
Law,values,andethicalbehaviour:
Values
underlyingbeliefsandattitudesthathelp
determineindividualbehaviour
Terminalvalues preferencesaboutdesiredends
Instrumentalvalues preferencesregardingthe
meanstodesiredends
Management 2e - Chapter4
5
StudyQuestion1:Whatisethicalbehaviour?
Utilitarian view of ethics
greatestgoodtothegreatestnumberofpeople.
Individualism view of ethics
primarycommitmentistooneslongtermselfinterests.
Moral-rights view of ethics
respectsandprotectsthefundamentalrightsofallpeople.
Justice view of ethics
fairandimpartialtreatmentofpeopleaccordingtolegalrulesand
standards.
Proceduraljustice policiesandrulesfairlyapplied
Distributivejustice equaltreatmentforallpeople
Interactionaljustice peopletreatedwithdignityandrespect
Management 2e - Chapter4
6
3
Figure4.1 Fourviewsofethicalbehaviour.
Management 2e - Chapter4
7
StudyQuestion1:Whatisethicalbehaviour?
Culturalissuesinethicalbehaviour:
Culturalrelativism
Ethicalbehaviourisalwaysdeterminedbycultural
context.
Culturaluniversalism
behaviourunacceptableinoneshomeenvironment
shouldnotbeacceptableanywhereelse.
Consideredbysometobeethicalimperialism
Management 2e - Chapter4
8
4
Figure4.2 Theextremesofculturalrelativismandethicalimperialismin
internationalbusinessethics.
Source: Developed from Thomas Donaldson, Values in Tension: Ethics Away from Home,
Harvard Business Review, vol. 74 (September-October 1996), pp. 48-62.
Management 2e - Chapter4
9
StudyQuestion1:Whatisethicalbehaviour?
Howinternationalbusinessescanrespectcoreoruniversalvalues:
Respectforhumandignity
Createculturethatvaluesemployees,customers,andsuppliers.
Keepasafeworkplace.
Producesafeproductsandservices.
Respectforbasicrights
Protectrightsofemployees,customers,andcommunities.
Avoidanythingthatthreateningsafety,health,education,andliving
standards.
Begoodcitizens
Supportsocialinstitutions,includingeconomicandeducationalsystems.
Workwithlocalgovernmentandinstitutionstoprotectenvironment.
Management 2e - Chapter4
10
5
StudyQuestion2:Howdoethicaldilemmascomplicatetheworkplace?
Anethicaldilemma
occurswhenchoices,althoughhavingpotentialfor
personaland/ororganizationalbenefit,maybe
consideredunethical.
Ethicaldilemmasinclude:
Discrimination
Sexualharassment
Conflictsofinterest
Customerconfidence
Organizationalresources
Management 2e - Chapter4
11
StudyQuestion2:Howdoethicaldilemmascomplicatethe
workplace?
Checklistfordealingwithethicaldilemmas:
Recognizetheethicaldilemma
Getthefacts
Identifyyouroptions
Testeachoption:Isitlegal?Isitright?Isitbeneficial?
Decidewhichoptiontofollow
Doublecheckdecisionbyaskingspotlightquestions:
HowwouldIfeelifmyfamilyfoundoutaboutmydecision?
HowwouldIfeelaboutthisifmydecisionwereinthelocalnews?
Takeaction
Management 2e - Chapter4
12
6
StudyQuestion2:Howdoethicaldilemmascomplicatetheworkplace?
Factors influencing ethical behaviour include:
Situationalcontext
ethicsintensityorissueintensityindicatesthedegreetowhicha
situationisrecognizedtoposeethicalchallenges
Theperson
Familyinfluences,religiousvalues,personalandfinancialneeds.
ethicalframeworkisapersonalruleorstrategyformakingethicaldecisions
Kohlbergsstagesofindividualmoraldevelopment
preconventionalstage
conventionalstage
postconventionalstage
Management 2e - Chapter4
13
Figure4.3Kohlbergsstages
Management 2e - Chapter4
14
7
StudyQuestion2:Howdoethicaldilemmascomplicatethe
workplace?
Factorsinfluencingethicalbehaviour
Internalenvironmentandtheorganization
Supervisorybehaviour,peergroupnormsandbehaviour,and
policystatementsandwrittenrules.
Externalenvironment
Governmentlawsandregulations,societalnormsandvalues,
andcompetitiveclimateinanindustry.
Management 2e - Chapter4
15
StudyQuestion2:Howdoethicaldilemmascomplicatetheworkplace?
Ethicalbehaviourcanberationalizedby
convincingyourselfthat:
behaviourisnotreallyillegal.
behaviourisreallyineveryonesbestinterests.
Nobodywilleverfindout.
Theorganizationwillprotectyou.
Management 2e - Chapter4
16
8
StudyQuestion3:Howcanhighethicalstandardsbemaintained?
Whistleblowers
Exposemisdeedsofothersto:
Preserveethicalstandards
Protectagainstwasteful,harmful,orillegalacts
Lawsprotectingwhistleblowersvary
Management 2e - Chapter4
17
StudyQuestion3:Howcanhighethicalstandardsbemaintained?
Barrierstowhistleblowinginclude:
Strictchainofcommand
Strongworkgroupidentities
Ambiguouspriorities
Management 2e - Chapter4
18
9
StudyQuestion3:Howcanhighethicalstandardsbe
maintained?
Ethicstraining:
Structuredprogramsthathelpparticipantstounderstand
ethicalaspectsofdecisionmaking.
Helpspeopleincorporatehighethicalstandardsintodaily
life.
2e Helpspeopledealwithethicalissuesunderpressure.
Management - Chapter4
19
StudyQuestion3:Howcanhighethicalstandardsbemaintained?
Codesofethics:
Formalstatementofanorganizationsvaluesandethicalprinciples
regardinghowtobehaveinsituationssusceptibletothecreationof
ethicaldilemmas.
Areasoftencoveredbycodesofethics:
Bribesandkickbacks
Politicalcontributions
Honestyofbooksorrecords
Customer/supplierrelationships
Coworkerrelationships
Confidentialityofcorporateinformation
Management 2e - Chapter4
20
10
StudyQuestion3:Howcanhighethicalstandardsbemaintained?
Ethicalrolemodels:
Topmanagersserveasethicalrolemodels.
Allmanagerscaninfluencetheethicalbehaviourofpeoplewho
workforandwiththem.
Excessivepressurecanfosterunethicalbehaviour.
Managersshouldberealisticinsettingperformancegoalsfor
others.
Management 2e - Chapter4
21
StudyQuestion3:Howcanhighethicalstandardsbemaintained?
MoralManagement:
Immoralmanager:
choosestobehaveunethically
Amoralmanager:
failstoconsidertheethicsofherorhisbehaviour
Moralmanager:
makesethicalbehaviourapersonalgoal
Management 2e - Chapter4
22
11
StudyQuestion3:Howcanhighethicalstandardsbemaintained?
MoralManagersinfluenceorganizationsthrough:
Ethicsmindfulness
Enrichedawarenessthatleadstoconsistentethicalbehaviour.
Causesapersontobehaveethicallyfromonesituationtothenext.
Canaffecttheethicsofgravityfortheorganizationasawhole.
Management 2e - Chapter4
23
Figure4.4Howcanhighethicalstandardsbemaintained?
Management 2e - Chapter4
24
12
StudyQuestion3:Howcanhighethicalstandardsbe
maintained?
Socialentrepreneurship:
auniqueformofentrepreneurshipthatseeksnovelwaysto
solvepressingsocialproblemsathomeandabroad
Housingandjobtrainingforhomeless
Bringingtechnologytopoorfamilies
Improvingliteracyamongdisadvantagedyouth
Offeringsmallloanstostartminorityownedbusinesses
Management 2e - Chapter4
25
StudyQuestion4:Whataresocialresponsibility,governance,and
sustainability?
Corporatesocialresponsibility:
Obligatesorganizationstoactinwaysthatserve
bothitsowninterestsandtheinterestsofsociety
atlarge.
Management 2e - Chapter4
26
13
StudyQuestion4:Whataresocialresponsibility,governance,and
sustainability?
Organizationalstakeholders
Thosepersons,groups,andotherorganizationsdirectlyaffectedby
thebehaviouroftheorganizationandholdingastakeinits
performance.
Typicalorganizationalstakeholders
Employees
Customers
Suppliers
Owners
Competitors
Regulators
Interestgroups
Management 2e - Chapter4
27
StudyQuestion4:Whataresocialresponsibility,governance,and
sustainability?
Perspectivesonsocialresponsibility:
Classicalview
Managementsonlyresponsibilityistomaximize
profits.
Socioeconomicview
Managementmustbeconcernedforthebroadersocial
welfare,notjustprofits.
Management 2e - Chapter4
28
14
StudyQuestion4:Whataresocialresponsibility,governance,
andsustainability?
Criteriaforevaluatingcorporatesocial
performance:
Socialresponsibilityaudit assessesorganizations
accomplishmentsinareasofCSR
Istheorganizations
Economicresponsibilitymet?
Legalresponsibilitymet?
Ethicalresponsibilitymet?
Discretionaryresponsibilitymet?
Management 2e - Chapter4
29
StudyQuestion4:Whataresocialresponsibility,
governance,andsustainability?
Strategiesforpursuingsocialresponsibility:
Obstructionist meetsonlyeconomicresponsibilities.
Defensive meetseconomicandlegalresponsibilities.
Accommodative meetseconomic,legal,andethical
responsibilities.
Proactive meetseconomic,legal,ethical,anddiscretionary
responsibilities.
Management 2e - Chapter4
30
15
Figure4.6Fourstrategiesofcorporatesocial
responsibility
responsibilityfromobstructionisttoproactivebehaviour.
Management 2e - Chapter4
31
StudyQuestion4:Whataresocialresponsibility,governance,
andsustainability?
Management 2e - Chapter4
32
16
StudyQuestion4:Whataresocialresponsibility,
governance,andsustainability?
Corporategovernance:
Theoversightofthetopmanagementofanorganizationbya
boardofdirectors.
Corporategovernanceinvolves:
Hiring,firing,andcompensatingtheCEO.
Assessingstrategy.
Verifyingfinancialrecords.
Management 2e - Chapter4
33
Figure4.7Centralityofethicsandsocialresponsibilityin
leadershipandthemanagerialrole.
Management 2e - Chapter4
34
17
StudyQuestion4:Whataresocialresponsibility,
governance,andsustainability?
Sustainability:
Developmentthatmeetstheneedsofthepresent
withoutcompromisingtheabilityoffuturegenerations
tomeettheirownneeds.
Sustainabilityfocuseson:
Socialrights
Environmentalprotection
Economicdevelopment
Management 10/e - Chapter4
35
StudyQuestion4:Whataresocialresponsibility,
governance,andsustainability?
BenefitsofSustainability:
Costreduction
Resourcepreservation
Legislativecompliance
Positivereputation
Rightinitiation
Management 10/e - Chapter4
36
18
StudyQuestion4:Whataresocialresponsibility,
governance,andsustainability?
Whatdoesasustainablecompanylooklike:
CEOleadsthecharge
Boardofdirectorsandemployeesareactivelyinvolved
Resourcesareadequatelyallocated
Followsaholisticapproach
Recognizedasasustainableleader
Management 10/e - Chapter4
37
COPYRIGHT
Copyright 2011 John Wiley & Sons Canada, Ltd. All rights
reserved. Reproduction or translation of this work beyond
that permitted by Access Copyright (The Canadian Copyright
Licensing Agency) is unlawful. Requests for further
information should be addressed to the Permissions
Department, John Wiley & Sons Canada, Ltd. The purchaser
may make backup copies for his or her own use only and not
for distribution or resale. The author and the publisher
assume no responsibility for errors, omissions, or damages
caused by the use of these programs or from the use of the
information contained herein.
19