1. Management Ethics and
Social Responsibility
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2. Two Broad Categories of
Ethical Theories
Consequential principles judge the ethics of aaparticular situation by
Consequential principles judge the ethics of particular situation by
the consequences of that action.
the consequences of that action.
– Determines the “rightness” or “wrongness” of any action by
– Determines the “rightness” or “wrongness” of any action by
determining the ratio of good to evil that the action will
determining the ratio of good to evil that the action will
produce.
produce.
Non-consequential principles tend to focus on the concept of duty.
Non-consequential principles tend to focus on the concept of duty.
– A person acts ethically if that person is faithful regardless of the
– A person acts ethically if that person is faithful regardless of the
consequences that follow from being faithful to that duty.
consequences that follow from being faithful to that duty.
– If aaperson carries out his or her duties, the greatest good occurs
– If person carries out his or her duties, the greatest good occurs
because the duty of the individual is carried out.
because the duty of the individual is carried out.
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3. Two Factors Imperil Balance
Never have so many conflicting demands been
First made so insistently on those who manage
institutions and hold power.
The consequences of management decisions affect
Second far more people and environments—and more
profoundly—than ever before.
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4. Time Pressure on Decisions
To improve quality of products
To increase productivity
and operations
To stay close to suppliers and To react swiftly to
customers global changes
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5. Primary Factors Used by Individuals
to Judge and Regulate Conduct
Religious Educational
beliefs and background
training
Socialization through
family and peer group
influences
Political and
Work
economic
experience
philosophy
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6. Organizations and Unethical Behavior
 Offering unusually high rewards.
 Threatening unusually severe punishments.
 Emphasizing results and avoiding concern
for the means employed by subordinates to
achieve those results.
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7. Checklist for Determining if a
Corporate Culture Supports Ethical
Behavior and Social Responsibility
Is the company: Yes No
1. Concerned about quality in its services, products, and operations?
2. Concerned about its employees’ quality of life?
3. Proud of its reputation in the industry?
4. Proud of its reputation in the community?
5. Focused on the needs of its customers?
6. Honest in its dealing with you?
7. Honest in its dealings with customers?
8. Honest in its dealings with others?
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8. Checklist for Determining if a Corporate
Culture Supports Ethical Behavior
and Social Responsibility (cont.)
Is the company: Yes No
9. Fair and equitable in the ways in which it decides on promotions?
10. Fair and equitable in the ways in which it compensates employees?
11. Open in its communications?
12. Trusting in its relationships with employees?
13. Concerned with developing and keeping its employees?
14. Actively promoting ethical conduct in all its operations and employees?
15. Actively searching for ways to better serve its stakeholders?
16. Carefully monitoring how decisions are made and checking them for
their concern for ethical behavior?
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9. Three Steps to Discourage
Unethical Behavior
 “Draw a clean line between the behavior you’ll
tolerate and the behavior you’ll have to punish.”
 “Invest the time and money in making sure that
those distinctions are understood and remembered.”
 “Put the fear of God into would-be violators by
conspicuously raising the risk of exposure.”
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10. Characteristics for Codes of Ethics
 They are visible guidelines for behavior at all levels.
 They are an unchallengeable basis for firing an
unethical employee.
 They protect all personnel from the pressures of the
market.
 They remind employees to look beyond the bottom
line and they provide a touchstone for appeals through
the hierarchy.
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11. Ethics Training
Two Areas
 Compliance training that  Cognitive thinking
alerts people to policies, exercises that develop
regulations, and laws skills to allow people to
that establish acceptable think through various
behavior within a “moral mazes.”
company.
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12. Legal/Ethical Behavior Model Applied to Smoking in the Workplace
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13. Codes of Conduct
Written in the manner of company policies
General guidelines
Interpretation varies from one individual to the next
Are meant to give freedom of action within certain
boundaries and require interpretation
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14. Gray Areas Suggestions
Don’t try to find
When in doubt,
out “how far is
don’t.
too far.”
Superiors who push you to do
things better, faster, cheaper
will turn on you when you cross
the line between right and
wrong.
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15. Rules for Contemplating the
Ethical Implications
 Consider other people’s well-being, including the well-being of
nonparticipants.
 Think as a member of the business community and not as an
isolated individual.
 Obey, but do not depend solely on, the law.
 Think of yourself—and your company—as part of society.
 Obey moral rules.
 Think objectively.
 Ask the question, “What sort of person would do such a thing?”
 Respect the customs of others, but not at the expense of your own
ethics.
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16. Kenneth Blanchard and
Norman Vincent Peal
The Power of Management
Is it balanced? Is it fair to
Is it balanced? Is it fair to
Is it legal? Will IIbe
Is it legal? Will be all concerned in the short
all concerned in the short
violating either civil law or
violating either civil law or term as well as the long
term as well as the long
company policy?
company policy? term? Does it promote
term? Does it promote
win-win relationships?
win-win relationships?
How will it make be feel about
How will it make be feel about
myself? Will it make me proud?
myself? Will it make me proud?
Would IIfeel good if my decision
Would feel good if my decision
were published in aanewspaper?
were published in newspaper?
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17. “Strategic Philanthropy” and
“Financially Sound Goodwill” Gain
Increased
Increased
A better
A better employee
employee
image
image loyalty
loyalty
Improved
Improved
customer
customer
ties
ties
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18. Employees Hold Certain Rights
Freedom of Adequate
Safety
expression information
Privacy and
confidentiality in
regard to
personal
concerns
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19. Green Products
Those that minimize energy consumption and
pollution by-products connected with their
manufacture and disposal.
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20. People Become Whistle-Blowers
for a Variety of Reasons
Some believe that their superiors, like
Some are participants in the
Some doblow the whistle because of
Some so because they feel a strong
wrongdoing and maywant to letwhistle
themselves, do not blow the their
theirobligation to protect others
strong moral and ethical codes
companies or customers be harmed.
out of fear
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21. Whistleblowers Concerns
Often isolated
Often isolated Harassed
Harassed
Verbally
denigrated
Demoted
Demoted Fired
Fired
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22. Elements to Make
Organizations Proactive
 Top-level commitment and support.
 Corporate policies that integrate environmental issues.
 Effective interfaces between corporate and business-
unit staff.
 High degree of employee awareness and training.
 Strong auditing programs.
 Establishment of responsibility for identifying and
dealing with real and potential environmental
problems.
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23. A Proactive Environmental Management Program
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