1. CHAPTER THREE Ethics and Social Responsibility
CHAPTER ONE
CHAPTER THREE Ethics and Social Responsibility
Effective Management
2nd Edition
Chuck Williams
Prepared by Deborah Baker Texas Christian University

2. Ethics and the Nature of Management Jobs
CHAPTER ONE
Ethics and the Nature of Management Jobs
Ethics: the set of moral principles or values that define right and wrong.
Managers can encourage ethical behaviors by…
using resources for company
handling information confidentially
not influencing others to engage in unethical behavior
not creating policies that reward employees for unethical behavior
setting reasonable goals 1

3. U.S. Sentencing Commission Guidelines
CHAPTER ONE
U.S. Sentencing Commission Guidelines
Companies can be prosecuted and punished even if management didn’t know about the unethical behavior
Who, What, and Why
Determining Punishment 2

4. Compliance Program Steps
CHAPTER ONE
Compliance Program Steps
1. Establish standards and procedures to meet the company’s business needs.
7. After violations occur, find appropriate ways to improve the compliance program.
6. Enforce compliance standards by fairly and consistently disciplining violators.
5. Use company publications and training to inform employees about the company’s compliance standards and procedures.
3. Don’t delegate decision-making authority to employees who are likely to act illegally or unethically.
4. Use auditing, monitoring, and other methods to encourage employees to report violations.
2. Put upper-level managers in charge of the compliance program.
2.2
Adapted from Exhibit 3.1

5. Influences on Ethical Decision Making
CHAPTER ONE
Influences on Ethical Decision Making
Ethical Answers Depend on…
Ethical Intensity of Decision
Moral Development of Manager
Ethical Principles Used
More 3

6. Practical Steps to Ethical Decision Making
CHAPTER ONE
Practical Steps to Ethical Decision Making
Select and hire ethical employees
Establish a Code of Ethics
Train employees to make ethical decisions
Create an ethical climate
More 4

7. A Basic Model of Ethical Decision Making
CHAPTER ONE
A Basic Model of Ethical Decision Making
1. Identify the problem
2. Identify the constituents
3. Diagnose the situation
4. Analyze your options
5. Make your choice
6. Act
4.3
Adapted from Exhibit 3.3

8. To Whom Are Organizations Socially Responsible?
CHAPTER ONE
To Whom Are Organizations Socially Responsible?
Shareholder Model
Maximize Profits
Stakeholder Model
Satisfy Interests of Multiple Stakeholders
More 5

9. Organization’s Social Responsibilities
CHAPTER ONE
Organization’s Social Responsibilities
Ethical
Legal
Economic
Discretionary
Social responsibilities
Don’t violate principles of right and wrong
Obey the Law
Make a Profit 6

10. Responses to Demands for Social Responsibility
CHAPTER ONE
Responses to Demands for Social Responsibility
Strategies
Reactive
Defensive
Accommodative
Proactive
More 7

11. Responses to Demands for Social Responsibility
CHAPTER ONE
Responses to Demands for Social Responsibility
Reactive
Defensive
Accommo- dative
Proactive
Fight all the way
Do only what is required
Be progressive
Lead the industry
Public Relations Approach
Legal Approach
Problem Solving
Withdrawal
Bargaining
DO NOTHING
DO MUCH 7
Adapted from Exhibit 3.6

12. Social Responsibility and Economic Performance
CHAPTER ONE
Social Responsibility and Economic Performance
Can cost a company
Realities of Social Responsibility
Sometimes it does pay
Does not guarantee profitability 8
Adapted from Exhibit 3.6