BUSINESS & SOCIETY Ethics and Stakeholder Management

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BUSINESS & SOCIETY Ethics and Stakeholder Management Chapter 7 BUSINESS & SOCIETY Ethics and Stakeholder Management Carroll & Buchholtz 6e PERSONAL and ORGANIZATIONAL ETHICS Prepared by Deborah Baker Texas Christian University Chapter 7- Business and Society: Ethics and Stakeholder Management, 6e • Carroll & Buchholtz Copyright ©2006 by South-Western, a division of Thomson Learning.  All rights reserved

Chapter 7 Learning Outcomes Understand the different levels at which business ethics may be addressed. Differentiate between consequence-based and duty-based principles of ethics. Enumerate and discuss principles of personal ethical decision making and ethical tests for screening ethical decisions. Identify the factors affecting an organization’s moral climate and provide examples. Describe and explain actions, strategies, or “best practices” to improve an organization’s ethical climate. Chapter 7- 2

Chapter 7 Outline Levels at Which Ethics May Be Addressed Personal and Managerial Ethics Managing Organizational Ethics From Moral Decisions to Moral Organizations Summary Levels at Which Ethical Issues May Be Addressed Personal Level Organizational Level Industry Level Societal and International Levels Personal and Managerial Ethics Principles Approach to Ethics Ethical Tests Approach Managing Organizational Ethics Factors Affecting the Organization’s Moral Climate Improving the Organization’s Ethical Climate Summary Chapter 7-

Principles Approach to Ethics Major Principles of Ethics Utilitarianism Rights Justice Caring Virtue ethics Servant Leadership Golden Rule Chapter 7-

Ethical Tests Approach Test of One’s Best Self Test of Making Something Public Test of Ventilation Test of Common Sense Test of the Purified Idea Gag Test Chapter 7-

Improving the Ethical Climate Top Management Leadership Moral Management Ethics Programs and Officers Realistic Objectives Ethical Decision- Making Processes Codes of Conduct Chapter 7-27 Board of Director’s Oversight Ethics Training Corporate Transparency Whistle-Blowing Mechanisms Ethics Audits Effective Communication Discipline of Violators Chapter 7-

Ethical Decision-Making Process Chapter 7-

Selected Key Terms categorical imperative codes of conduct codes of ethics compensatory justice corporate transparency deontological theorites/principles distributive justice ethical due process ethical tests ethical audits ethics officer ethics programs Golden Rule legal rights moral rights Chapter 7-

Selected Key Terms (continued) moral rights opacity principle of caring principle of justice principle of rights principle of utilitarianism procedural justice rights servant leadership teleological theories/principles transparency utilitarianism virtue ethics Chapter 7-