1. Organizational Justice, Ethics, and Corporate Social Responsibility
Chapter 2
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Learning Objectives
Identify four different forms of organizational justice and the organizational impact of each.
Describe strategies that can be used to promote organizational justice.
Explain what is meant by ethical behavior and why organizations should be concerned about ethics.
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Learning Objectives
Explain ways of behaving ethically when conducting business internationally.
Describe the individual and situational factors responsible for unethical behavior in organizations and methods for minimizing such behavior.
Explain what is meant by corporate social responsibility, the forms it take, and the nature of the relationship between responsible behavior and financial profitability.
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4. Organizational Justice
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5. Procedural Justice Criteria
Criterion
Description
Example
Voice in the making of decisions
Perceptions of procedural justice are enhanced to the extent that people are given a say in the decisions affecting them.
Workers are given an opportunity to explain their feelings about their own work to a supervisor who is evaluating their performance.
Consistency in applying rules
To be fair, the rules used as the basis for making a decision about one person must be applied equally to making a decision about someone else.
A professor must use the same exact standards in evaluating the term papers of each student in the class.
Accuracy in use of information
Fair decisions must be based on information that is accurate.
A manager calculating the amount of overtime pay a worker is to receive must add the numbers accurately.
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6. Procedural Justice Criteria
Criterion
Description
Example
Opportunity to be heard
Fair procedures are ones in which people have a readily available opportunity to correct any mistakes that have been made.
Litigants have an opportunity to have a judge’s decision reconsidered in the event that an error was made in legal proceedings. (See also the instant replay rule used by the NFL as described in the Preview Case.)
Safeguards against bias
A person making a decision must not have any opportunity to bias the results.
Lottery drawings are held in such a manner that each number is selected in a completely random, unbiased fashion.
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7. Distributive and Procedural Justice Interaction
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8. Organizational Justice Promotion Strategies
Pay workers what they deserve
Follow open and fair procedures
Offer workers a voice
Meet regularly and invite input
Conduct employee surveys
Keep an “open door policy”
Use suggestion system
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Fair Process Effect
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10. Organizational Justice Promotion Strategies
Explain decisions thoroughly in a manner demonstrating dignity and respect
Train workers to be fair
Oorganizational citizenship behaviors
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11. Ethical Behavior in Organizations
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12. Bad Ethics Is Bad Business
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13. Ethics Enforcement Policies
Federal sentencing guidelines
Sarbanes-Oxley act
Limited acceptance of entertainment and gifts by employees
Increased accurate company performance documentation standards
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14. Ethics in International Arena
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15. Global Ethics Guiding Principles
Show respect for core human values
Demonstrate sensitivity to local traditions
Recognize that context matters
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16. Unethical Behavior Situational Determinants
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17. Unethical Behavior Situational Determinants
Managerial values sometimes discourage ethical behavior
Bottom line mentality
Exploitative mentality
Madison Avenue mentality
Subordinates emulate managers’ unethical behavior
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18. Corporate Ethics Programs Components
Code of ethics
Ethics training
Official bodies formally responsible for ethics
Mechanisms for communicating ethical standards
Ethics audits
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19. Corporate Ethics Programs Effectiveness
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20. Corporate Social Responsibility
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21. Socially Responsible Behavior Forms
Make charitable contributions
Preserve the environment
Invest socially responsibly
Promote employee welfare
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22. Profitability and Social Responsibility
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23. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
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