1. Schermerhorn - Chapter 41 Chapter 4 Ethical Behavior and Social Responsibility 4 Planning Ahead –What is ethical behavior? –How do ethical dilemmas complicate the workplace? –How can high ethical standards be maintained? –What is corporate social responsibility?

2. Schermerhorn - Chapter 42 4 Ethical behavior –what is accepted as “good” and “right” in the context of the governing moral code –Business ethics is how business professionals should behave according to governing moral code. 4 Values –broad beliefs about what is or is not appropriate behavior What is Ethical Behavior?

3. Schermerhorn - Chapter 43 What is Ethical Behavior? 4 Examples of Values –Equality –Fairness (You value fairness so business code is set up to control professional behavior in a business situation) –Honesty –Responsibility –Harmony

4. Schermerhorn - Chapter 44 Alternative Views of Ethical Behavior 4 Utilitarian - greatest good to the greatest number of people (kill the rest?) 4 Individualism - primary commitment is to one’s long tem self-interests (get yours) 4 Moral-rights - respect the fundamental rights of people (hey, your morals aren’t mine) 4 Justice - ethical decisions treat people fairly according to rules (who makes the rules?)

5. Schermerhorn - Chapter 45 Cultural Issues in Ethical Behavior 4 Cultural Relativism – ethical behavior is always determined by cultural context

6. Schermerhorn - Chapter 46 Cultural Issues in Ethical Behavior 4 Ethical Imperialism –attempt to externally impose one’s ethical standards on others –Show me the whistle

7. Schermerhorn - Chapter 47 Ethics in the Workplace 4 What is an Ethical Dilemma? –Situation that requires choosing a course of action offers potential for personal and/or organizational benefit may be considered unethical

8. Schermerhorn - Chapter 48 Examples of Ethical Dilemmas 4 Should I support my bosses incorrect views? 4 Should I sign a false document? 4 Should I accept a gift from a client? 4 Should I give special treatment to a friend or boss’ friend?

9. Schermerhorn - Chapter 49 Ethics in the Workplace 4 Rationalizations for Unethical Behavior –Convincing oneself that: behavior is not really illegal behavior is really in everyone’s best interests nobody will ever find out the organization will “protect” you

10. Schermerhorn - Chapter 410 Preventing Rationalization for Unethical Behavior 4 Question 1 “How will I feel about this if my family finds out?” 4 Question 2 “How will I feel about this if it is printed in the local newspaper?”

11. Schermerhorn - Chapter 411 Ethics in the Workplace 4 Factors Influencing Ethical Behavior –Person –Organization –Environment

12. Schermerhorn - Chapter 412 Factors Affecting Ethical Behavior 4 Person –family influences –religious values –personal standards and needs

13. Schermerhorn - Chapter 413 Factors Affecting Ethical Behavior 4 Organization –policies, codes of conduct –behavior of supervisors, peers –organizational culture

14. Schermerhorn - Chapter 414 Factors Affecting Ethical Behavior 4 External Environment –government regulations –norms and values of society –ethical climate of industry

15. Schermerhorn - Chapter 415 Maintaining High Ethical Standards 4 Ethics Training –structured programs that help participants to understand ethical aspects of decision making

16. Schermerhorn - Chapter 416 Where do pressures for unethical acts come from? BOSSES LOWER LEVELS Sometimes, perhaps too often Bosses may ask: “support an incorrect view” “sign a false document” “overlook a wrong doing” “do business with my friends” Who hold a lot of power Who depend on them for raises, promotions, etc.

17. Schermerhorn - Chapter 417 Maintaining High Ethical Standards 4 Whistleblower Protection –Whistleblowers expose misdeeds of others to preserve ethical standards protect against wasteful, harmful, illegal acts

18. Schermerhorn - Chapter 418 Maintaining High Ethical Standards 4 Whistleblower Protection –Barriers to whistleblowing strict chain of command strong work group identities ambiguous priorities –State laws protecting whistleblowers vary –Federal laws protect government workers

19. Schermerhorn - Chapter 419 Maintaining High Ethical Standards 4 Top management support –model appropriate ethical behavior 4 Formal codes of ethics –official written guidelines on how to behave

20. Schermerhorn - Chapter 420 Corporate Social Responsibility 4 Obligation of the organization to act in ways that serve both its own interests and that of stakeholders

21. Schermerhorn - Chapter 421 Social Responsibility in Action 4 Social Audits –Evaluate corporate social performance by asking Is the organization’s –Economic responsibility met? –Legal responsibility met? –Ethical responsibility met? –Discretionary responsibility met?

22. Schermerhorn - Chapter 422 Social Responsibility and the Legal Environment 4 Governmental agencies that monitor compliance with government mandates –Federal Aviation Administration (FAA) –Environmental Protection Agency (EPA) –Occupational Safety & Health Administration (OSHA) –Food & Drug Administration (FDA)

23. Schermerhorn - Chapter 423 Complex Legal Environment 4 Areas of government intervention –occupational safety and health –fair labor practices –consumer protection –environmental protection