Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. 1 Chapter 2 Managerial Ethics

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. 2 Society’s Expectations from Organizations and Managers Managers regularly make decisions about issues with a social dimension In competitive environment, organizations cannot afford to be seen as socially irresponsible

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. 3 Demonstrating Social Responsibility Social responsibility Social obligation Social responsiveness

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. 4 Relationship Between Social Responsibility and Economic Performance Research studies show positive relationship General public perception that companies who behave in a socially responsible way have better business performance

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. 5 Managers Becoming More Socially Responsible It is the collective behaviour and actions of managers that make a company socially responsible Managers who make the right decisions are described as being or behaving ethically

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. 6 Managerial Ethics Ethics Rules and principles that define right and wrong conduct Three Views of Ethics Utilitarian view - ethical decisions are made on the basis of their outcomes or consequences (continued)

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. 7 Managerial Ethics (continued) Three Views of Ethics (continued) Rights view - respects and protects individual liberties and privileges Theory of justice view - managers impose and enforce rules fairly and impartially

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. 8 Values Basic convictions about what is right and wrong Influence ethical behaviour Values are developed in early years

Organizational Factors That Affect Ethical And Unethical Behaviour Moderators Ethical/Unethical Behaviour Organizational Culture Structural Variables Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. 03 Pearson Education Canada Inc. 9

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. 10 Managers Improving Ethical Behaviour Hire individuals with high ethical standards Establish codes of ethics and decision rules Lead by example (continued)

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. 11 Managers Improving Ethical Behaviour (continued) Delineate job goals and performance review mechanisms Provide ethics training Conduct social audits Provide support to individuals facing ethical dilemmas

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. 12 Code of Ethics Formal statement of an organization’s primary values and ethical rules it expects employees to follow Usually written Must state in detail acceptable behaviours and actions