1. Ethics and Social Responsibility
CHAPTER 4
Ethics and Social Responsibility
Andrew J. DuBrin
Essentials of Management, 6/e South-Western College Publishing Copyright © 2003
Screen graphics created by:
Jana F. Kuzmicki, PhD, Christian Brothers University 1

2. After reading this chapter, you should be able to:
4.1
After reading this chapter, you should be able to:
Identify the philosophical principles behind business ethics.
Explain how values relate to ethics.
Identify factors contributing to lax ethics and common ethical temptations.
Apply a guide to ethical decision making.
Describe the stakeholder viewpoint of social responsibility and corporate social performance.
Present an overview of social-responsibility initiatives.
Summarize the benefits of ethical and socially responsible behavior, and show how managers can create an environment that fosters such behavior. 2

3. Philosophical Principles of Business Ethics
4.2
Philosophical Principles of Business Ethics
Consequences - If no one gets hurt, the decision is ethical.
When attempting to decide what is right and wrong, managers can focus on:
Duties, obligations, and principles - If a decision violates a universal principle, it is unethical.
Integrity - If the person in question has good character, he/she is behaving ethically. 3

4. Factors Contributing to Ethical Problems
4.3
Factors Contributing to Ethical Problems
An individual’s desire to maximize self-gain at the expense of others
An organizational atmosphere that condones unethical behavior
Moral laxity - slippage in moral behavior because other issues seem more important
Pressure from higher management to achieve organizational goals
Strength of relationships among people 4

5. Ethical Temptations and Violations
4.4
Ethical Temptations and Violations
Stealing from employers & customers
Greed, gluttony, avarice
Illegally copying software
Misuse of corporate resources
Treating people unfairly
Divulging confidential information
Sexual harassment
Conflict of interest 5

6. A Guide to Ethical Decision Making
4.5
A Guide to Ethical Decision Making
Is it right?
Is it fair?
Who gets hurt?
Would you be comfortable if the details of your decision were reported on the front page of your newspaper or throughout the company?
Would you tell your child to do it?
How does it smell? 6

7. The Stakeholder Viewpoint of Social Responsibility
4.6
The Stakeholder Viewpoint of Social Responsibility
Owners
Stockholders
Internal Stakeholders
Employees
The Organization
Board of Directors
Customers
Suppliers
Creditors
Labor Unions
External Stakeholders
Competitors
Special Interest Groups
Customer Groups
Government Agencies
Financial Institutions
Adapted from Exhibit 4.4 7

8. Social Responsibility Initiatives
4.7
Environmental Management
Work/Life Programs
Compassionate Downsizing
Social Responsibility Initiatives
Acceptance of Whistle Blowers
Social Leaves of Absence
Community Redevelopment Projects 8

9. Creating an Ethical and Socially Responsible Work Place
4.8
Creating an Ethical and Socially Responsible Work Place
Create formal mechanisms to monitor ethics
Provide written codes of conduct
Offer training programs
Confront ethical deviations
Lead by example
Talk about the issues 9