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Presentation transcript:

© 2010 South-Western, Cengage Learning, Inc. All rights reserved.

Individual Ethics In Organizations An individual’s personal beliefs regarding what is right and wrong or good and bad. Ethical Behavior “Eye of the beholder” or behavior that conforms to generally accepted social norms. Examples of Unethical Behavior “Borrowing” office supplies for personal use. Surfing the Internet on company time. Filing falsified or inflated business expense reports. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.

Determinants of Individual Ethics Family Peers Individual Experiences Values and Morals Individual Ethics An individual’s ethics are determined by a combination of factors. © 2010 South-Western, Cengage Learning, Inc. All rights reserved. 22

Ethics in Organizations Organizational Values Individual Values Managerial Values © 2010 South-Western, Cengage Learning, Inc. All rights reserved.

Ethics in Organizations (cont’d) Train Employees Written Code of Ethics Individual Issues: Behavior, Conscience, Privacy Top Management Involvement Managing Ethical Behavior © 2010 South-Western, Cengage Learning, Inc. All rights reserved.

Applying Ethical Judgments Model for deciding whether or not a particular action or decision is ethical Gather relevant factual information. Determine the most appropriate moral values. Make a judgment. Ethical Norms Affecting Actions Utility Rights Justice Caring © 2010 South-Western, Cengage Learning, Inc. All rights reserved.

Maintaining Organizational Justice Distributive justice Procedural justice Interpersonal justice Informational justice Forms of Organizational Justice © 2010 South-Western, Cengage Learning, Inc. All rights reserved.

Emerging Ethical Issues in Organizations Ethical leadership Information technology Emerging Ethical Issues Corporate governance © 2010 South-Western, Cengage Learning, Inc. All rights reserved.

Social Responsibility and Organizations Organizational Stakeholders People and organizations directly affected by the behaviors of an organization and that have a stake in its performance. Social Responsibility The set of obligations an organization has to protect and enhance the societal context in which it functions. Areas of Social Responsibility Stakeholders The natural environment The general social welfare © 2010 South-Western, Cengage Learning, Inc. All rights reserved.

Managing Social Responsibility Formal Organizational Dimensions Informal Organizational Dimensions Legal compliance Organization leadership and culture Ethical compliance Whistle Blowing Philanthropic giving © 2010 South-Western, Cengage Learning, Inc. All rights reserved.

Evaluating Social Responsibility (cont’d) Corporate Social Audit Clearly define social goals Analyze resources applied Determine if goals are being met Recommend changes for improvement © 2010 South-Western, Cengage Learning, Inc. All rights reserved.

Key Terms unethical behavior managerial ethics code of ethics Sarbanes-Oxley Act of 2002 social responsibility organizational stakeholder obstructionist stance defensive stance accommodative stance proactive stance regulation lobbying legal compliance ethical compliance philanthropic giving whistle blowing corporate social audit © 2010 South-Western, Cengage Learning, Inc. All rights reserved.