1. Managing Ethics and Social Responsibility
Chapter 5
Managing Ethics and Social Responsibility

2. Managerial Ethics
Ethics - code of moral principles and values that govern the behaviors of right or wrong
Standards about good/bad
Ethical issues can be complex
People in organizations have divergent views about right/wrong
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3. 5.1 Three Domains of Human Action
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4. Ethical Management Today
Ethical scandals during the last decade have been pervasive
Corporations and people have become associated with greed, deceit, irresponsibility, and lack of moral conscience
Managers carry a big responsibility for setting an ethical climate
Ethical crises have brought ethical management to the forefront
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5. 5.2 Examples of Unethical and Illegal Organizational Behavior
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6. Ethical Dilemmas
You are the moral agent, what would you do? Your company requires a terrorist watch list that screens all new customers and takes approximately 24 hours from the time an order is placed. You can close a lucrative deal with a potential long-term customer overnight, even though that means the required watch-list screening will have to be done after the fact.
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7. Criteria for Ethical Decision Making
Utilitarian Approach – moral behavior produces the greatest good for the greatest number
Individualism Approach – acts are moral if they promote the individual’s long-term interest
Moral-Rights Approach – humans have fundamental rights and liberties that cannot be taken away by an individual's decision
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8. Criteria for Ethical Decision Making
Justice Approach – moral decisions must be based on standards of equity, fairness, and impartiality
Virtue Ethics Approach– moral behavior stems from personal virtues
Practical Approach– bases decisions on prevailing standards, society, and all stakeholders
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9. A Manager’s Ethical Choices
Individuals bring their own personality and traits to organizations
Personal needs, family influence, and religious background shape individuals
Personality characteristics like ego, confidence, and independence
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10. 5.3 Three Levels of Personal Moral Development
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11. What is Corporate Social Responsibility (CSR)?
Distinguishing right from wrong; doing right
Good corporate citizenship
Make choices that contribute to society and stakeholders
Stakeholders – any group within or outside
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12. 5.4 Major Stakeholders Relevant to Monsanto Company
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13. The Green Movement Going GREEN is a new business imperative
Change in social attitudes
New governmental policies
Climate change
Information technology immediately spreads the negative decisions of corporations
More organizations are embracing sustainability
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14. The Ethic of Sustainability
Sustainability – economic development that generates wealth and meets the needs of current population while preserving the environment for the needs of future generations
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15. 5.5 Criteria of Corporate Social Performance
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16. Managing Company Ethics and Social Responsibility
Code of Ethics – a formal statement of the company’s values regarding ethics and social issues Ethical Structures – systems, positions, and programs like ethics training Whistle-blowing – employee disclosure of illegal, immoral, or illegitimate practices
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17. 5.6 Building an Ethical Organization
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18. The Business Case for Ethics and Social Responsibility
Ethics and social responsibility are important business issues
Stakeholders are pushing more initiatives and issues
The connection between ethics and financial performance has been widely debated
What do you THINK?
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