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Organizational Justice, Ethics, and Corporate Social ResponsibilityChapter Two Organizational Justice, Ethics, and Corporate Social Responsibility
© Copyright Prentice-Hall 2004Three 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 © Copyright Prentice-Hall 2004 2
Organizational JusticeThe 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 © Copyright Prentice-Hall 2004
Forms of Organizational Justice© Copyright Prentice-Hall 2004
Procedural Justice and Outcomes© Copyright Prentice-Hall 2004
Promoting Organizational JusticePay 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 © Copyright Prentice-Hall 2004
The Fair Process Effect© Copyright Prentice-Hall 2004
Moral Values versus Ethics© Copyright Prentice-Hall 2004
© Copyright Prentice-Hall 2004Why 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) © Copyright Prentice-Hall 2004
Reasons for Unethical BehaviorIndividual 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 © Copyright Prentice-Hall 2004
Kohlberg’s Theory of Moral Development© Copyright Prentice-Hall 2004
Ethical Norms and Counternorms© Copyright Prentice-Hall 2004
Corporate Ethics ProgramsFormal, 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 © Copyright Prentice-Hall 2004 12
Ethics Program Effectiveness© Copyright Prentice-Hall 2004
Corporate Social ResponsibilityBusiness decision making linked to ethical values, compliance with legal requirements, and respect for individuals, the community at large, and the environment © Copyright Prentice-Hall 2004
Most Socially Responsible Firms© Copyright Prentice-Hall 2004
© Copyright Prentice-Hall 2004The Virtuous Circle © Copyright Prentice-Hall 2004
Legitimate Leadership SPIAA Training Conference Enhancing Legitimacy: Procedural Justice & Crime Control in the 21 st Century Tuesday, July 22,
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Organizational Justice, Ethics, and Corporate Social Responsibility
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Strategy and Ethics Ethics involves notions of Right and wrong Fair and unfair Moral and immoral Business Ethics is the application of general.
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