4 Personal EthicsMost of us believe we are ethical but most have unconscious biases that favor ourselves and our own groupManagers often:Hire people who are like themThink they are immune to conflicts of interestTake more credit than they deserveBlame others when they deserve some blame themselves
5 Is it ethical to: Shop online during company time? Using office equipment for personal use?Read personal s while at work?
6 Cultural Issues and Ethics Dimensions of justice perceptionsProceduralDistributiveInteractionalCultural RelativismUniversalismEthical Imperialism
7 Ethical Systems Moral philosophy Universalism Principles, rules, and values people use in deciding what is right or wrongUniversalismThe ethical system stating that all people should uphold certain values that society needs to function.
8 Ethical Systems Egoism Utilitarianism An ethical system defining acceptable behavior as that which maximizes consequences for the individualUtilitarianismAn ethical system stating that the greatest good for the greatest number should be the overriding concern of decision makers.
9 Ethics Systems Relativism Virtue ethics Philosophy that bases ethical behavior on the opinions and behaviors of relevant other peopleVirtue ethicsClassification of people based on their level of moral judgment.
10 Ethics Systems Kohlberg’s model of cognitive moral development Perspective that what is moral comes from what a mature person with “good” moral character would deem right.
11 Ethics in the Workplace Ethical dilemmasRationalizingFactorsIndividualOrganizationExternal environment
12 Ethics in the Workplace Ethical issueSituation, problem, or opportunity in which an individual must choose among several actions that must be evaluated as morally right or wrongBusiness ethicsThe moral principles and standards that guide behavior in the world of business.
13 Dangerous PracticeExcessive emphasis on short-term revenues over longer-term considerations.Failure to establish a written code of ethics.A desire for simple, “quick fix” solutions to ethical problems.An unwillingness to take an ethical stand that may impose financial costs.
14 Dangerous PracticesConsideration of ethics solely as a legal issue or a public relations toolLack of clear procedures for handling ethical problems.Responding to the demands of shareholders at the expense of other constituencies
15 Ethical Standards Training Whistleblowing Modeling Code of ethics Moral managementImmoralAmoralMoral
16 Ethical Environment Sarbanes-Oxley Act Act passed into law by Congress in 2002 to establish strict accounting and reporting rules in order to make senior managers more accountable and to improve and maintain investor confidence
17 Ethics Programming Compliance-based ethics programs Company mechanisms typically designed by corporate counsel to prevent, detect, and punish legal violations.Integrity-based ethics programsCompany mechanisms designed to instill in people a personal responsibility for ethical behavior
20 Ethical Decision Making Moral awarenessrealizing the issue has ethical implicationsMoral judgmentknowing what actions are morally defensibleMoral characterthe strength and persistence to act in accordance with your ethics despite the challenges
21 Courage to be EthicalWhy might employees lack courage in ethical issues?A belief that the company would not take corrective actionA fear that management would retaliate against the employee for speaking upDoubt that the employee’s report would be kept confidential
23 Corporate social responsibility (CSR) Obligation toward society assumed by business.
24 Corporate Social Responsibility Economic responsibilitiesProduce goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors.Legal responsibilitiesObey local, state, federal, and relevant international laws
25 Corporate Social Responsibility Ethical responsibilitiesMeeting other social expectations, not written as law.Philanthropic responsibilitiesAdditional behaviors and activities that society finds desirable and that the values of the business support.
26 Pyramid of Global Corporate Social Responsibility and Performance
27 Contrasting ViewsFirst - holds that managers act as agents for shareholders and, as such, are obligated to maximize the present value of the firm Second - managers should be motivated by principled moral reasoning
28 CSR as Competitive Advantage Profit maximization and corporate social responsibility used to be considered antagonistic, leading to opposing policies; the two views can convergeRecent attention has also been centered on the potential competitive advantage of socially responsible actions
29 Ecocentric management Creation of sustainable economic development and improvement of quality of life worldwide for all organizational stakeholders.
30 Ecocentric Management Sustainable growthEconomic growth and development that meet present needs without harming the needs of future generationsLife-cycle analysis (LCA)A process of analyzing all inputs and outputs, though the entire “cradle-to-grave” life of a product, to determine total environmental impact