Quality Management, Ethics, and Corporate Social Responsibility Chapter 4 Quality Management, Ethics, and Corporate Social Responsibility

Objectives After reading the chapter and reviewing the materials presented the students will be able to: Define ethics Understand Integrity and Total Quality Know the Manger’s role in Ethics Perform ethics Training Handle Ethical Dilemmas Define Corporate Social Responsibility

Definition and Overview of Ethics Ethics is about doing the right things within a moral framework. Ethics is the practical application of morality. The ever present challenge is not just determining what is right but doing what is right.

Guidelines for determining ethical behavior Just because a choice made is legal does not mean it is ethical. A person’s behavior can be well within the prescribed limits of the law and still be unethical. Some tests for determining ethical behavior assume the behavior in question is legal. By applying any one of the tests (morning after test, front page test, mirror test, role reversal test, common sense test) a person should be able to see through the gray area surrounding an issue and determine the ethical route to take.

Trust and Total Quality One of the best ways managers can build trust is to protect the interests of those who are not present at the moment as if they are. When a manager speaks up for someone who is not present but is being questioned or attacked, employees get two simultaneous messages: 1. Talking behind a colleague’s back is not acceptable behavior. 2. If this manager does not let me talk about fellow employees who are absent, he or she will not let others talk about me when I am absent.

Values and Total Quality Ethical behavior begins with values. Values that lead to ethical behavior include fairness, dependability, integrity, honesty, and truthfulness. These values tend to encourage a work environment that involves, empowers, values, and nurtures people: one that not only holds people responsible, but also gives them support, leeway and resources needed to fulfill their responsibilities.

Integrity & Total Quality It is important for managers in a total quality setting to understand that although honesty is fundamental to it, integrity is more than honesty. People with integrity can be counted on to do the right thing, do thing correctly, accomplish tasks thoroughly and completely, finish work on time, and keep promises. The same is true of organizations.

Responsibility & Total Quality Part of ethical behavior is accepting responsibility. Accepting responsibility is critical in the modern workplace because employees are drawn from a society that, as a rule shuns responsibility – which is why ours has become such a litigious society.

Manager’s Role in Ethics Managers have three main responsibilities: 1. They are responsible for setting an example of ethical behavior. 2. They are responsible for helping employees make ethical choices. 3. They are responsible for helping employees follow through and exhibit ethical behavior after the appropriate choice has been made.

Approaches to Ethics Three approaches managers can use in carrying out their responsibilities related to ethics: 1. Best Ratio Approach: When hard decisions must be made, managers should make the choice that will do the most good for the most people. This approach is sometimes called situational ethics. 2. Black and White Approach: When difficult decisions must be made, mangers should make fair and impartial choices regardless of the outcome and do the right thing without concern for short term circumstances. 3. Full Potential Approach: Decisions are made based on how they will affect the ability of those involved to achieve their full potential. Choices that can achieve this goal without infringing on the rights of others are considered ethical.

Organization’s Role in Ethics Managers cannot establish ethical standards without support from all levels above them in the organization. An organization’s task in ethics can be summarized as: 1. Create an internal environment that promotes, expects, and rewards ethical behavior. 2. Setting an example of ethical behavior in all external dealings.

Setting an Example Organizations that take the “Do as I say, not as I do” approach to ethics will not succeed. Employees must be able to trust their employer to conduct all external and internal dealings in an ethical manner. Companies that do not pay their bills on time, companies that pollute, companies that fail to live up to advertised quality standards or stand behind their guarantees, and companies that are not good neighbors in their communities fail to set a good ethical example. Such companies can expect employees to mimic their unethical behavior.

Corporate Social Responsibility Corporate social responsibility (CSR) is a balanced approach for organizations to address economic, social and environmental issues in a way that aims to benefit people, communities, and society.

Summary Ethics is about doing the right things within a moral framework. Just because a choice made is legal does not mean it is ethical. One of the best ways managers can build trust is to protect the interests of those who are not present at the moment as if they are. Values that lead to ethical behavior include fairness, dependability, integrity, honesty, and truthfulness. People with integrity can be counted on to do the right thing, do thing correctly, accomplish tasks thoroughly and completely, finish work on time, and keep promises. Managers have three main responsibilities: 1. They are responsible for setting an example of ethical behavior. 2. They are responsible for helping employees make ethical choices. 3. They are responsible for helping employees follow through and exhibit ethical behavior after the appropriate choice has been made. Three approaches managers can use in carrying out their responsibilities related to ethics: 1. Best Ratio Approach 2. Black and White Approach 3. Full Potential Approach. Organizations that take the “Do as I say, not as I do” approach to ethics will not succeed. Corporate social responsibility (CSR) is a balanced approach for organizations to address economic, social and environmental issues in a way that aims to benefit people, communities, and society.

Home Work Answer Questions 3, 5, 9, and 10 on page 66. 3. Explain how a certain behavior can be legal but not ethical. 5. Describe how managers can build trust. 9. Describe and differentiate among the following approaches to ethics: best ratio approach, black and white approach, and full potential approach. 10. What is the manager’s role in ethics?