Schermerhorn- Chapter 61 Management, 6e Schermerhorn Prepared by Cheryl Wyrick California State Polytechnic University Pomona John Wiley & Sons, Inc

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Schermerhorn- Chapter 63 4 Ethics –code of moral principles –sets standards of good & bad and right & wrong 4 Ethical behavior –what is accepted as “good” and “right” in the context of the governing moral code Chapter 6 What is Ethical Behavior?

Schermerhorn- Chapter 64 Law, Values, and Ethical Behavior 4 legal component to ethical behavior –not illegal is not necessarily ethical 4 personal values help determine individual behavior

Schermerhorn- Chapter 65 Alternative Views of Ethical Behavior 4 Utilitarian - greatest good to the greatest number of people 4 Individualism - primary commitment is to one’s long term self-interests 4 Moral-rights - respect the fundamental rights of people 4 Justice - ethical decisions treat people fairly according to rules

Schermerhorn- Chapter 66 Cultural Issues in Ethical Behavior 4 Cultural Relativism – ethical behavior is always determined by cultural context

Schermerhorn- Chapter 67 Cultural Issues in Ethical Behavior 4 Ethical Imperialism –attempt to externally impose one’s ethical standards on others

Schermerhorn- Chapter 68 Manager’s Notepad 6.1 How Companies Can Respect Core or Universal Values Respect for human dignity 4 Create corporate culture that values employees, customers, suppliers 4 Keep a safe workplace 4 Produce safe products and services Respect for basic rights 4 Protect rights of employees, customers, communities 4 Avoid anything threatening peoples’ rights to safety, health, education living standards Be good citizens 4 Support social, economic and educational systems 4 Protect the environment through work with local govt. and institutions

Schermerhorn- Chapter 69 What is an Ethical Dilemma? 4 A situation that requires choosing a course of action –offers potential for personal and/or organizational benefit –may be considered unethical

Schermerhorn- Chapter 610 Rationalizations for Unethical Behavior 4 Convincing oneself that: –behavior is not really illegal –behavior is really in everyone’s best interests –nobody will ever find out –the organization will “protect” you

Schermerhorn- Chapter 611 Factors Influencing Ethical Behavior 4 Person 4 Organization 4 Environment

Schermerhorn- Chapter 612 Maintaining High Ethical Standards 4 Ethics Training –structured programs that help participants to understand ethical aspects of decision making

Schermerhorn- Chapter 613 Maintaining High Ethical Standards 4 Whistleblowers –expose misdeeds of others to preserve ethical standards protect against wasteful, harmful, illegal acts

Schermerhorn- Chapter 614 Whistleblower Protection 4 Barriers to whistleblowing –strict chain of command –strong work group identities –ambiguous priorities 4 State laws protecting whistleblowers vary 4 Federal laws protect government workers

Schermerhorn- Chapter 615 Maintaining High Ethical Standards 4 Top management support –model appropriate ethical behavior 4 Formal codes of ethics –official written guidelines on how to behave

Schermerhorn- Chapter 616 Corporate Social Responsibility 4 Obligation of the organization to act in ways that serve both its own interests and that of stakeholders

Schermerhorn- Chapter 617 Social Responsibility and Corporate Performance 4 Classical view –management’s only responsibility is to maximize profits 4 Socioeconomic view –management must be concerned about the broader social welfare, not just profits

Schermerhorn- Chapter 618 Social Responsibility Audits 4 Evaluate corporate social performance by asking –Is the organization’s Economic responsibility met? Legal responsibility met? Ethical responsibility met? Descretionary responsibility met?

Schermerhorn- Chapter 619 Social Responsibility Strategies 4 Obstructionist - economic priorities 4 Defensive - do the minimum legally required 4 Accommodative - do the minimum ethically required 4 Proactive - take leadership in social initiatives

Schermerhorn- Chapter 620 Government Regulation of Business 4 Governmental agencies that monitor compliance with government mandates –Federal Aviation Administration (FAA) –Environmental Protection Agency (EPA) –Occupational Safety & Health Administration (OSHA) –Food & Drug Administration (FDA)

Schermerhorn- Chapter 621 Complex Legal Environment 4 Areas of government intervention –occupational safety and health –fair labor practices –consumer protection –environmental protection