1. BUSINESS & SOCIETY Ethics and Stakeholder Management
Chapter 7
BUSINESS & SOCIETY Ethics and Stakeholder Management
Carroll & Buchholtz 6e
PERSONAL and ORGANIZATIONAL ETHICS
Prepared by Deborah Baker Texas Christian University
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Business and Society: Ethics and Stakeholder Management, 6e • Carroll & Buchholtz Copyright ©2006 by South-Western, a division of Thomson Learning.  All rights reserved

2. Ethical Issues Addressed at
Personal Level
Situations faced in personal lives
Organizational Level
Workplace dilemmas faced as
employees
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3. Ethical Issues Addressed at
Industry Level
Situations where a manager or organization might influence business ethics at the industry level
Societal and Global Levels
Local-to-global situations confronted indirectly as a management team (Ch. 9)
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4. Personal and Managerial Ethics
Conventional approach
(Ch. 6)
Principles approach
(Ch. 7)
Ethical tests approach
Resolving Ethical Conflicts
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5. Principles Approach to Ethics
Principle of …
Utilitarianism
Rights
Justice
Whose rights are right?
Page 219
Caring
Virtue ethics
Servant Leadership
Golden Rule
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6. Reconciling Ethical Conflicts
Honor written or verbal obligations
There are certain ideals worth striving for
Choose the action that produces the greatest good &
the least harm.
Consider the effects of our decisions on SH
Ethics in Practice page 224
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7. Ethical Tests Approach What action should I take in this situation?
Test of One’s Best Self
Test of Making Something Public
Test of Ventilation
Test of Common Sense
Test of the Purified Idea
Gag Test
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8. Making Organizational Decisions
What factors contribute to unethical decision-making (at work)?
What steps can we take to improve an organization’s ethical climate?
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9. Factors Contributing to Unethical Behavior
Behavior of superiors (poor role models)
Behavior of peers (desensitization)
Ethical practices of one’s industry or profession
Formal organizational policy (or lack of one)
Personal financial need
Which one is most influential? @
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10. Behavior of superiors Why? Top __% Middle __% Lower __%
What % of managers perceive pressure to compromise personal standards to achieve company goals?
Top __%
Middle __%
Lower __%
Why?
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11. Behaviors of Superiors or Peers that Create Questionable Moral Climate
Amoral decision making
Acceptance of legality as a standard of behavior
“Bottom-line mentality”, expectations of loyalty & conformity
Absence of ethical leadership
Objectives that overemphasize profits
Fundamental attribution bias
Insensitivity toward how subordinates perceive pressure to meet goals
Inadequate formal ethics policies.
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12. How do we Improve the Ethical Climate?
Moral Management
Ethics Programs and Officers
Realistic Objectives
Ethical Decision
Making
Strategies
Codes of Conduct
# 1 reason?
Chapter 7-27
Board of Directors Oversight
Ch 19
Corporate
Transparency
Whistle Blowing
Mechanisms
Discipline of
Violators
Ethics Audits
Effective Communication
of what?
Ethics Training
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13. Board of Director Oversight
The 2002 Sarbanes-Oxley Act
Companies are required to protect whistle-blowers without fear of retaliation
It is a crime to alter, destroy, conceal, cover up or falsify documents to prevent its use in a federal government lawsuit
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14. Example of Quick Ethics Screen
Is it legal?
Is it in line with co. values?
Would I want everyone to know about this?
Is it fair to all concerned?
How will it make me feel about myself?
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15. For next class  By April 23rd Read case 14: Toxic Tacos
Read: Why Hospitals Want Your Credit Report
By April 23rd
Choose the topic for your research paper-- Whose stance will you be taking?
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