MGMT 303 Chapter 4

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Ethical Dilemma
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Quandry people find themselves in when they have to decide if they should act in a way that helps another person or group and is the right thing to do even if doing so goes against their own self interest
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Ethics
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Inner guiding moral principles, values, and beliefs used to analyze a situation and decide how to behave
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Neither laws nor ethics are fixed principles
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true
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Stakeholders
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Supply a company with its productive resources and as a result have a claim/stake in the company.
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Who are stakeholders
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Stockholders, managers, employees, suppliers & distributors, customers, and community, society, and nation-state
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Stockholders as stakeholders
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Have a claim in company by buying stock/shares to become owners. They are interested in how a company operates because they want to maximize return on profit
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Managers as stakeholders
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Responsible for using a companies financial, capital, and HR to increase performance and thus stock price. They have a claim on an org because they bring to it their skill expertise and experience. Decide which goals an org should pursue to most benefit of stakeholders.
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Customers
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Most critical stakeholder group
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Utilitarian Rule
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An ethical decision is a decision that produces the greatest amount of good for the greatest number of people.
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Moral Rights Rule
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An ethical decision that best maintains the fundamental or inalienable rights and privileges of the people affected by it. ex: protect peoples rights to freedom, life, and safety, property, privacy, free speech, and freedom of conscience.
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Justice
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An ethical decision distributes benefits and harms among people and groups in a fair, equitable, or impartial way.
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Practical Rule
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An ethical decision that a manager has no hesitation or reluctance about communicating to people outside the company because the typical person in society would think its acceptable.
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Trust
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Willingness of one person or group to have faith or confidence in the goodwill of another person even though this puts them at risk.
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Reputation
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The esteem or high repute that people or organizations gain when they behave ethically
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Societal Ethics
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standards that govern how members of a society should deal with one another in matters concerning fairness, justice, poverty, and the rights of the individual.
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Occupational Ethics
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Standards that govern how members of a profession, trade, or craft should conduct themselves when performing work-related activities.
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Individual Ethics
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Personal standards and values that determine how people view their responsibilities to other people and groups and thus how they should act in situation when their own self interests are at stake.
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Organizational Ethics
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Guiding practices and beliefs through which a particular company and its managers view their responsibility toward their stakeholders.
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Social responsibility
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A companies stance on this is the way its managers and employees view their duty or obligation to make decisions that protect, enhance, and promote the welfare and well-being of stakeholders and society as a whole
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Obstructionist Approach
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Companies and their managers choose not to behave in a socially responsible way
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Defensive Approach
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Indicates at least some commitment to ethical behavior. They stay within the law and abide by strictly legal requirements but make no attempt to exercise social responsibility beyond what the law dictates.
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Accommodative Approach
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Acknowledges the need to support social responsibility. Agree org members out to behave legally and ethically and try to balance interest of different stakeholders
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Proactive Approach
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Actively embrace socially responsible behavior.
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Ethics Ombudsperson
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Ethics officer. Monitors ethical practices and procedures. Responsible for communicating ethical standards to all employees, designing systems to monitor conformity, and teacher mgrs and employees at all levels how to respond to an ethical dilemma. They have organization wide authority.

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