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Lecture Management - Chapter 5: Ethics and social responsibility

Chapter 5 makes the business case for incorporating ethical values in the organization. The chapter includes a new discussion of the bottom-of-the-pyramid business concept and how managers are successfully applying this new thinking. The chapter also has an expanded discussion of ethical challenges managers face today, including responses to recent fi nancial scandals. It considers global ethical issues, as well, including a discussion of corruption rankings of various countries. | Ethics and Social Responsibility Chapter 5 Ethics and Social Responsibility Ethical values Social responsibility Fundamental approaches to ethical issues Chapter 5 Topics Managers’s Challenge: Timberland Ethics The code of moral principles and values that govern the behaviors of a person or group with respect to what is right or wrong. Three Domains of Human Action Amount of Explicit Control High Low Domain of Certified Law (Legal Standard) Domain of Ethics (Social Standard) Domain of Free Choice (Personal Standard) Ethical Dilemma A situation that arises when all alternative choices or behaviors have been deemed undesirable because. potentially of negative ethical consequences, making it difficult to distinguish right from wrong Criteria For Ethical Decision Making Most ethical dilemmas involve Conflict between needs of the part & whole Individual versus the organization Organization versus society as a whole Managers use normative strategies to guide their . | Ethics and Social Responsibility Chapter 5 Ethics and Social Responsibility Ethical values Social responsibility Fundamental approaches to ethical issues Chapter 5 Topics Managers’s Challenge: Timberland Ethics The code of moral principles and values that govern the behaviors of a person or group with respect to what is right or wrong. Three Domains of Human Action Amount of Explicit Control High Low Domain of Certified Law (Legal Standard) Domain of Ethics (Social Standard) Domain of Free Choice (Personal Standard) Ethical Dilemma A situation that arises when all alternative choices or behaviors have been deemed undesirable because. potentially of negative ethical consequences, making it difficult to distinguish right from wrong Criteria For Ethical Decision Making Most ethical dilemmas involve Conflict between needs of the part & whole Individual versus the organization Organization versus society as a whole Managers use normative strategies to guide their decision making - norms and values Ethical Decision Making Approaches Utilitarian Approach Individualism Approach Moral-Rights Approach Justice Approach Utilitarian Approach Moral behavior produces the greatest good for the greatest number Critics fear a “Big Brother” approach and ask if the common good is squeezing the life out of the individual Example – Oregon’s decision to extend Medicaid to 400,000 previously ineligible recipients by refusing to pay for high-cost, high-risk procedures Individualism Approach Acts are moral when they promote the individual's best long-term interests, which ultimately leads to the greater good Individual self-direction paramount Individualism is believed to lead to honesty & integrity since that works best in the long run Examples: Top executives from WorldCom, Enron, Tyco demonstrate flaws of approach Moral-Rights Approach Moral decisions are those that best maintain the rights of those people affected by them. An ethical decision is one .