Managerial Ethics and Social Responsibility. The Community of Stakeholders Inside the Organization Stakeholders the people whose interests are affected.
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Presentation on theme: "Managerial Ethics and Social Responsibility. The Community of Stakeholders Inside the Organization Stakeholders the people whose interests are affected."— Presentation transcript:
Yet… 76% of business students have cheated on at least one test 19% on four more 56% of workers report having lied to their boss Organizations short change employees $19B a year in overtime pay
Flawed Justifications “It’s only a little white lie” “When in Rome” “I’m Desperate” “The Devil made me do it” “Ignorance” “Eye for Eye” “No one will know”
Working Definitions Legal Compliance Conforming with formal laws and regulations Ethical Behavior Conforming with accepted social norms and standards of right and wrong Social Responsibility actions that will benefit the interests of society as well as of the organization
Ethical Perspectives Utilitarian guided by what will result in the greatest good for the greatest number of people Moral Imperatives Moral rules are without exception, conditions, or extenuating cicumstances Individual guide by what will result in the individual’s best long term interest, which ultimately are in everyone’s self-interest
Ethical Perspectives Moral-rights guided by respect for the fundamental rights of human beings Justice guided by respect for impartial standards of fairness and equity
Ethical Dilemmas Drug Testing Cultural Differences Technology
Three Levels of Moral Development Level 1, preconventional – follows rules Level 2, conventional – follows expectations of others Level 3, postconventional – guided by internal values
How Managers Can Promote Ethics 1.Support by top managers of a strong ethical climate 2.Selection 3.Ethics codes Communicated internally and externally Must be specific to the business
How Managers Can Promote Ethics 4.Ethics training programs 5.Rewarding ethical behavior: Encourage and protect whistleblowers 6.Punish unethical behavior
Two Types of Social Responsibility Sustainability economic development that meets the needs of the present without compromising the ability of future generations to meet their own needs Example: GE, Walmart, Toyota Philanthropy making charitable donations to benefit humankind Examples: Google, Bill Gates, McDonalds
Social Responsibility Classical Economics (Milton Friedman) Management’s responsibility is to maximize profits and generate shareholder wealth Socioeconomics Management also has a responsibility to protect and improve society Which perspective makes sense to you?