CHAPTER 3 Ethics & Social Responsibility (continued) STRATEGIC MANAGEMENT & BUSINESS POLICY 12TH EDITION THOMAS L. WHEELEN J. DAVID HUNGER Prentice Hall 2006

Moral Relativism “Moral Relativism” says that morality is relative to some personal, social, or cultural standard and there is no method for deciding whether one decision is better than another. Prentice Hall 2006

1. Preconventional level Kohlberg’s Levels of Moral Development 1. Preconventional level Characterized by a concern for self Personal interest Avoidance of punishment 2. Conventional level Characterized consideration of society’s values External code of conduct 3. Principled level Characterized by adherence to internal moral code Universal values or principles Prentice Hall 2006

Guidelines for Ethical Behavior Encouraging Ethical Behavior Guidelines for Ethical Behavior Ethics Morality Law Prentice Hall 2006

Encouraging Ethical Behavior Codes of Ethics Specifies how an organization expects its employees to behave on the job. Prentice Hall 2006

Approaches to Ethical Behavior Encouraging Ethical Behavior Approaches to Ethical Behavior Utilitarian Judged by consequences Individual Rights Fundamental rights in all decisions Justice Distribution in equitable fashion Categorical imperative “golden rule” Means - Ends Prentice Hall 2006

192 U.S. companies surveyed -- Strategy Bits 192 U.S. companies surveyed -- 92% monitored employees use of e-mail/Internet 26% monitored employees electronic activities all the time Almost none had checks in place to protect employees privacy Prentice Hall 2006