Presentation on theme: "Principles of Management Core Principles"— Presentation transcript:
1 Principles of Management Core Principles Business EthicsPrinciples of ManagementCore PrinciplesThis set of PowerPoint slides is provided as a starting point. It does not containclip art or anything special.It follows the Instructor’s Notes. It may be more wordy than you prefer.Please modify and use the slides as you find helpful.
2 Individual v. Business Ethics Each of us has a view of what is right or wrong.A manager takes his/her personal ethics with them in to the organization.That company also has an organizational view of what is right or wrong in terms of the business decisions it makes.
3 Learning Objectives Be able to explain what business ethics is. Be able to recognize an ethical problem.Be able to identify the stakeholders impacted by an ethical problem.Evaluate solutions to the ethical problem using the different ethical philosophies.Make a decision and support your decision explaining the impact on different stakeholders.Identify steps for preventing the ethical problem from occurring again.
4 Defining Business Ethics Ethics Generally (definitions)Focus on what is right and wrongInquiry into moralityStandards governing how we behaveBusiness EthicsComprises moral principles and standards that guide behavior in business situationsWhat is right and wrong in a business setting?
5 Ethical Decision Making How a manager handlesthe situation depends on:PersonIndividual CharacteristicsPersonal ethicsStage of Moral DevelopmentOrganizationCultureValuesWhat is rewarded/punishedDilemma ItselfImportance to personImportance to organizationImportance to societyCompany ABCEthicalDilemmaIs perceivedManagerSmith
6 Role of StakeholdersStakeholders are people who have a stake or interest in the success of the organization.Examples of Stakeholders:Employees, customers, investors, suppliers, the communityAlso may include competitors, government, media, interest groupsStakeholders may have different views on whether a company’s actions are right or wrong.Difficult to satisfy the goals and needs of all stakeholders but managers should consider them prior to making decisions.Ethical Dilemma - When stakeholder needs and goals are in conflict and the manager must make a decision
7 UtilitarianismPhilosophers John Stuart Mill ( ) and Jeremy Bentham ( )Good consequences for societyDecision maker seeks alternative actions and evaluates the costs/benefits of each action on all persons in the foreseeable futureThe right decision is the one that provides the greatest total benefitCritics say can’t consider all alternatives and ignoring individual rights and justice
8 Deontology (Rights View) Philosopher Immanual Kant ( )Decision maker must focus on the individual rights of people impacted by the decisionIt also focuses on how people are treated in the decision making processEqual respect must be given to all personsSome decisions are wrong regardless of the social utility that may resultCritics argue that this theory fails to take what is best for society into account.
9 Ethical Decision Making There are different moral philosophies to guide decision makingThese are lenses through which a person looks at a situation for guidance of what is right or wrongOften the decision will be the same, but different reasoning is used to get to that decision -- but that is not always the case.Two Most Common Moral PhilosophiesUtilitarianism(greatest good for the most people)Deontology(Rights View)
10 Which Business Decision is Ethical? Evaluate the decision through the lenses of the utilitarian view as well as the deontological viewAlso consider –TV RuleProfessional EthicsVirtue Ethics
11 Legal v. Ethical What is legal is ethical? What is ethical is legal? What is illegal is unethical?What is unethical is illegal?
12 Making Ethics Part of Day-to-Day Operations Build an ethical cultureMission and values of organization must support ethical cultureManagers must lead by example and walk the walkTrain, expect, reward ethical behaviorMake ethics a job qualificationDevelop ethical policies and codes of behaviorMonitor and control activities to encourage ethical behaviorHold regular ethical auditsDesignate staff and resources to foster and support the ethical culture
13 Keys to Effective Ethics Training Teach employees how to identify the ethical dimensions of a decisionHelp employees understand the ambiguity involved when making ethical decisionsGive employees the tools and authority to address ethical issuesMake employees aware that their individual actions form the ethical behavior of the companyMake managers and support available to assist in ethical conflict resolutionEliminate the belief that unethical behavior is ever justified
14 Code of EthicsCode of Ethics is a set of formal statements of what an organization expects as “right” business behaviorMay be found within a Business Code of ConductCode of Ethics may contain values such as:TrustworthinessRespectResponsibilityFairnessCaringCitizenship
15 Office of Social Responsibility & Ethics Separate office and personnelManage organization’s ethics and legal compliance programsDedicated to fostering ethical behaviorUsually does not report directly to the board of directorsMay hire outside support or hire within
16 Social Responsibility Social Responsibility is a type of ethicsIt addresses to what degree a company views its obligation to the community or society.Traditionally, business was believed to only be responsible to its owners and shareholders, and its primary goal was to make a profit.Some businesses take a broader view that their purpose is also to have a positive impact on society.Most businesses fall somewhere in between the extremes and have some component of their business that tries to make the community or world a better place.
17 Examples of Social Responsibility Green Management or recycling programsSupport for community programsContributions to local schoolsPrograms to encourage healthy lifestyleResearching for alternative fuelsCommit to reduce pollution or construct “eco-friendly” buildingsProvide aid or supplies in times of disasters