chapter 12 ethics

chapter 12 ethics - Organizational Image, Influence &...

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Organizational Image, Influence & Ethics (Chapter 12) Ethics - Since the turn of the 21 st century, some of the hottest topics in US society have been fraud, corruption, and ethical malfeasance in major corporations. 2 largest bankruptcies in US history: Enron and WorldCom. - In some sectors of the economy, pressures to engage in illegal or unethical actions are so intense and the actions are so frequent that they have come to be seen as the normal way of doing business. - Organizational ethics and organizational rhetoric are intertwined in 2 ways: First, we will argue that organizations can be understood only with reference to the social, political, and economic climate within which they operate. When managers choose a particular strategy of organizing, they do so within the guidelines and constraints imposed by their societies. They legitimate their choices by drawing on the underlying assumptions of the society. However, leaders of organizations do not merely adapt to the environmental pressures they face; they also act to mold these pressures. One way they do so is by establishing a favorable image of themselves and their organizations in the minds of their audiences. At the same time, they can use rhetoric to reinforce the societal assumptions that privilege managerial and organizational interests over those of other individuals and groups. - A second way of controlling environmental pressures is by persuading politicians to pass favorable laws. Ex: a new plant return 10-20% of money invested and political donations return 300-500% and do so with much less risk. Ethics and Organizational Rhetoric - Over time, capitalists and scholars alike have struggled to deal with the moral and ethical dilemmas created by laissez-faire capitalism. - In The Wealth of Nations Adam Smith argues that people are indeed motivated by the desire to maximize their individual economic gains. However, a free, open, and informed competition among potential buyers and sellers will lead to optimal deals among them and eventually to a society that balances economic needs in the most efficient way possible. The challenge for market societies is to appropriately constrain those individual motivations. Greed may be good as a motivator, but if left unchecked, it can destroy societies and economies. It does so in 2 ways. It encourages people to undermine and short circuit the key element of the market economy, competition by creating monopolies. Greed also serves to undermine rational decision making by customers, investors and government officials because it encourages managers to hide or distort information about the quality of products being sold, the production processes being used, or the financial health of companies. -
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chapter 12 ethics - Organizational Image, Influence &...

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