1. Organizational Justice, Ethics, and Corporate Social Responsibility
Chapter Two
Organizational Justice, Ethics, and Corporate Social Responsibility

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Three Good Reasons Why You Should Care About Justice, Ethics, CSR
Treating employees unfairly can adversely affect many different types of work attitudes and behaviors
The public is growing increasingly intolerant of unethical corporate behavior, but managers can take steps to promote ethical behavior in organizations
Consumers and investors tend to support socially responsible companies, enhancing their financial performance
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3. Organizational Justice
The study of people’s perceptions of fairness in organizations
Distributive Justice: The form of organizational justice that focuses on people’s beliefs that they have received fair amounts of valued work-related outcomes
Procedural Justice: People’s perceptions of the fairness of the procedures used to determine the outcomes they receive
Interpersonal Justice: People’s perceptions of the fairness of the manner in which they are treated by other people
Informational Justice: People’s perceptions of the fairness of the information used as the basis for making a decision
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4. Forms of Organizational Justice
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5. Procedural Justice and Outcomes
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6. Promoting Organizational Justice
Pay workers what they deserve
Offer workers a voice
Openly follow fair procedures
Explain decisions thoroughly in a manner demonstrating dignity and respect
Train workers to be fair
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7. The Fair Process Effect
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8. Moral Values versus Ethics
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Why Ethics Matters
Good ethics is good business
Improved financial performance
Reduced operating costs
Enhanced corporate reputation
Increased ability to attract and retain employees
Legal regulations
False Claims Act (1986)
Foreign Corrupt Practices Act (revised 1988)
Federal Sentencing Guidelines for Organizations (1991)
Sarbanes-Oxley Act (2002)
Federal Prosecution of Business Organizations (2003)
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10. Reasons for Unethical Behavior
Individual differences in cognitive moral development
Situational determinants of unethical behavior
Some managerial values undermine integrity
Bottom line mentality: This line of thinking supports financial success as the only value to be considered
Exploitative mentality: This view encourages “using” people in a way that promotes stereotypes and undermines empathy and compassion
Madison Avenue mentality: This perspective suggests that anything is right if the public can be made to see it as right
Organizations sometimes encourage behavior that violates ethical standards
Workers emulate the unethical behavior of their superiors
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11. Kohlberg’s Theory of Moral Development
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12. Ethical Norms and Counternorms
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13. Corporate Ethics Programs
Formal, systematic mechanisms designed to promote ethics by creating organizational cultures that both make people sensitive to potentially unethical behaviors and discourage them from engaging in them
Components
A code of ethics
Ethics training
Ethics audits
An ethics committee
An ethics officer
A mechanism for communicating ethical standards
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14. Ethics Program Effectiveness
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15. Corporate Social Responsibility
Business decision making linked to ethical values, compliance with legal requirements, and respect for individuals, the community at large, and the environment
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16. Most Socially Responsible Firms
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The Virtuous Circle
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