Management Chapter 4- Ethics and Social Responsibility

question

The nature of ethics involves
answer

– ethical dilemmas – ethics – social contracts
question

Ethical dilemma
answer

\”what is the right thing to do?\” – doing the right thing even though doing so might go against self-interest
question

Moral scruples
answer

thoughts and feelings that tell a person what is right or wrong – hesitate, debate, and reflect upon the rightness or goodness of a course of action
question

Ethics
answer

inner guiding moral principles, values, and beliefs about what is the right way to behave
question

Relationship between ethics and law
answer

– just because it is legal does not mean it is ethical – not fixed principles – laws change to reflect society’s changing ethical beliefs
question

Social contract
answer

– partly expressed in law and resides in social values – complex, ambiguous, ever changing
question

Social contract – organization and society
answer

duties organization must perform to retain society’s respect and support
question

Social contract- manager and employee
answer

duties manager must perform to retain employee’s respect and support
question

Stakeholders
answer

various groups of people who may benefit or be harmed by how managers make decisions
question

Stakeholders include
answer

1. stockholders 2. managers 3. employees 4. suppliers and distributors 5. customers 6. community, society, nation-state
question

Rules for ethical decision making
answer

principles to analyze the impact of your decision on stakeholders 1. utilitarian rule 2. moral rights rule 3. justice rule 4. practical rule
question

Utilitarian rule
answer

ethical decision produces the greatest good for the greatest number of people – how do you measure the harm and benefit that will be done to each stakeholder? – how do you evaluate importance of each stakeholder? – may lead to decisions that permit harm to an individual or minority group’s rights
question

Moral rights rule
answer

ethical decision maintains and protects the fundamental rights of people – right to freedom, life, safety, property, privacy, free speech, religion – how will action affect the rights of the different stakeholders? – protecting the rights of some may hurt the rights of others
question

Justice rule
answer

ethical decision distributes benefits and burdens in a fair and impartial way – employees who are similar in skill and performance should receive the same pay – outcomes should not be based on gender, race, religion, favorites
question

Practical rule
answer

ethical decision is one a manager could easily share with others – how would you feel sharing your actions with family, friends, or the media? – does my action fall within accepted standards
question

Sources for managerial ethics
answer

1. societal ethics 2. professional ethics 3. individual ethics
question

Societal ethics
answer

emanate from a society’s laws, customs, unwritten attitudes, values, and norms – vary greatly among societies – ex: justice, poverty, rights of individual
question

Occupational ethics
answer

standards that govern how members of a profession, trade or craft should conduct themselves when performing work-related activities
question

Professional ethics
answer

professional groups can punish violators
question

Organizational ethics
answer

guiding practices and beliefs through which a particular company and its managers view their responsibility toward their stakeholders
question

Individual ethics
answer

personal standards and values that determine how people view their responsibilities to other people and groups; how to act in situations when own self-interest is at stake – sources include family, peers, upbringing, personality and experiences
question

social responsibility
answer

way managers and employees view their duty or obligation to make decisions that protect, enhance, and promote the welfare of stakeholders and society
question

Approaches to social responsibility – low to high
answer

1. Obstructionist approach 2. defensive approach 3. accommodative approach 4. proactive approach
question

Obstructionist approach
answer

behave unethically and often illegally – attempt to hide their behavior – tobacco companies, Lehman Brothers
question

Defensive approach
answer

stay within the law, but no attempt to exercise social responsibility beyond what is required by law – WorldCom, Merrill Lynch
question

Accommodative approach
answer

acknowledge need to support social responsibility – try to balance interests of different stakeholders – typical approach for large US companies
question

Proactive approach
answer

actively embrace the need to behave in socially responsible ways – forefront of campaigns for causes such as environmental causes, recycling/conservation, elimination of use of animals in drug testing

Get instant access to
all materials

Become a Member