Ch 3 Ethical Behaviour & Social Responsibility

Ethics Code of moral principles sets standards for right or wrong Guide behaviour Help make moral choices among alternative courses of action

Ethical behaviour ?: what is regarded as good and right as opposed to bad or wrong Examples: bribery, harassment, environmental pollution, workplace theft, conflict of interest

Ethics & the law Legal vs. Ethical Personal Values – underlying beliefs & values influence behaviour

Terminal values Preferences about desired end states (goals to be achieved) Examples: self-respect, family security Instrumental values Preferences about how to achieve desired ends Examples: honesty, ambition, courage

Alternative Views Utilitarian Example: Cut workforce by 30% to keep plant open Individualism Example: ``Riding roughshod over other people to achieve goals``

Moral-rights Example: Employee`s right to privacy Justice Example: Treating all employees equitably

Justice Views Procedural Are policies & procedures fairly applied? Example: Sexual harassment charges fully applied at all levels of management

Distributive Are people treated the same regardless of personal characteristics? Example: Are women paid the same wage as a man for the same work?

Interactional Are others treated with dignity & respect? Do loans officers explain why an applicant is turned down?

Ethics & Culture Cultural relativism vs. universalism vs. ethical imperialism Core universal values: Human dignity Basic rights Good citizens

Ethics & the workplace Ethical dilemmas A situation that could result in economic benefits or gains yet could be considered unethical “A situation as one in which I have to do something that I don’t feel good about”

Ethical problems: discrimination, sexual harassment, conflicts of interest, customer confidence, organizational resources

Rationalization for unethical behaviour 1.Not illegal 2.In everyone’s best interests 3.Nobody will find out 4.The organization will protect me

Factors influencing ethical behaviour Person Employing organization External environment

Maintaining High Ethical Standards 1.Ethics training 2.Whistleblower protection 3.Ethical role models 4.Codes of ethics

Solving ethical dilemmas Method 1 1.Recognize ethical situation & issues 2.Identify & analyze principal elements 3.Identify alternatives & impact

Method 2 1.Transparency Make decision public? 2.Effect Harmful effects? 3.Fairness Decision fair to everyone?

Example: Rotary 4 way test Of the things we think, say, or do: Is it the Truth? Is it Fair to all concerned? Will it build Goodwill and better Friendships? Will it be Beneficial to all concerned?

Stakeholders ?: People, groups, institutions affected by organization’s performance Any group who could gain or lose from actions of organization Examples: ?

Social Responsibility ? : obligation to protect or contribute to social environment Examples: ?

Leadership beliefs 1.People 2.Communities 3.Natural environment 4.Term 5.Reputation =s socially responsible practice

Perspectives 1.Classical maximizing profits for shareholders 2.Socioeconomic broader social welfare, not just profits

Evaluation: Social Audit ? : Assessment of organizational accomplishment wrt social responsibility 1.Economic 2.Legal 3.Ethical 4.Discretionary

CSR Strategies 1.Obstructionist 2.Defensive 3.Accommodative 4.Proactive