Prepared by Management Department | | D EMONSTRATING ETHICAL BEHAVIOR & SOCIAL RESPONSIBILITY Week 3.

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Presentation transcript:

Prepared by Management Department | | D EMONSTRATING ETHICAL BEHAVIOR & SOCIAL RESPONSIBILITY Week 3

What Is Ethical Behavior?  Ethics Right and wrong, good and bad, in actions that affect others  Ethical Behavior Conforming to generally accepted ethical norms

If…

Same blue taxi ?

Coincidence or... ?

Source: Marketing Magazine, 2006 What Do You Think About This One...?

Ethics Begins with You

Factors Influencing Managerial Ethics Individual OrganizationalEnvironmental Values Values Work Background Work Background Family Status Family Status Personality Personality Top Level Mgmt. Philosophy Top Level Mgmt. Philosophy The Firm’s Reward System The Firm’s Reward System Job Dimensions Job Dimensions Competition Competition Economic Conditions Economic Conditions Social/Cultural Institutions Social/Cultural Institutions

Steps in Making Ethical Judgments Steps In Making Ethical Judgements

Expanded Model of Ethical Judgment Making Gather the facts concerning the act or policy Is the act or policy acceptable according to the four ethical norms? Utility: Does it optimize the satisfaction of all constituencies? Utility: Does it optimize the satisfaction of all constituencies? Rights: Does it respect the rights and duties of the individuals involved? Rights: Does it respect the rights and duties of the individuals involved? Justice: Is it consistent with the canons of justice? Justice: Is it consistent with the canons of justice? Caring: Is it consistent with the responsibility to care? Caring: Is it consistent with the responsibility to care? Is there any reason for overriding one or two of the ethical norms? Is one ethical norm more important than the others? Is there any reason why a person may have been forced into committing an act or following a policy? No on all criteria No on one or two criteria Yes on all criteria The act or policy is not ethical. The act or policy is ethical. No Yes Data Gathering Analysis Judgment

How organization can promote ethics 1. Support by top managers of a strong ethical climate 2. Ethics codes & training programs Code of ethics consists of a formal written set of ethical standards guiding an organization’s actions 3. Rewarding ethical behavior : protecting whistleblowers Whistleblower is an employee who reports organizational misconduct to the public.

Social Responsibility Social responsibility is a manager’s duty to take actions that will benefit the interests of society as well as of the organization. I S SOCIAL RESPONSIBILITY WORTHWHILE ?  Against social responsibility  For Social responsibility

 The idea of blended value: measuring both economic & social benefit All investment are understood to operate simultaneously in both economic and social realms 2 TYPES OF SOCIAL RESPONSIBILITY 1. Sustainability : the business of green 2. Philanthropy : “Not dying rich”

To Whom is Management Responsible?

Social Auditing  Company  Outside Groups that serve as watchdogs: Socially-Conscious Investors Environmentalists Union Officials Customers

4-18 Best Company Reputation  Johnson & Johnson (80.6)  Coca-Cola (79.7)  Google (79.5)  UPS (79.4)  3M (78.8) Source: USA Today

See Starbuck CSR-Video

See Mc Donald Packaging-Video

thank you