Organizational Justice, Ethics, and Corporate Social Responsibility Chapter 2

2 Learning Objectives 1.Identify four different forms of organizational justice and the organizational impact of each. 2.Describe strategies that can be used to promote organizational justice. 3.Explain what is meant by ethical behavior and why organizations should be concerned about ethics.

3 Learning Objectives 4.Explain ways of behaving ethically when conducting business internationally. 5.Describe the individual and situational factors responsible for unethical behavior in organizations and methods for minimizing such behavior. 6.Explain what is meant by corporate social responsibility, the forms it take, and the nature of the relationship between responsible behavior and financial profitability.

4 Procedural Justice Criteria

5 Organizational Justice Promotion Strategies  Pay Workers What They Deserve  Follow Open and Fair Procedures  Offer Workers a Voice Meet Regularly and Invite Input Conduct Employee Surveys Keep an “Open Door Policy” Use Suggestion System

6 Organizational Justice Promotion Strategies  Explain Decisions Thoroughly in a Manner Demonstrating Dignity and Respect  Train Workers to Be Fair Organizational Citizenship Behaviors

7 Ethics Enforcement Policies  Federal Sentencing Guidelines  Sarbanes-Oxley Act  Limited Acceptance of Entertainment and Gifts by Employees  Increased Accurate Company Performance Documentation Standards

8 Global Ethics Guiding Principles  Show Respect for Core Human Values  Demonstrate Sensitivity to Local Traditions  Recognize That Context Matters

9 Unethical Behavior Situational Determinants  Managerial Values Sometimes Discourage Ethical Behavior Bottom Line Mentality Exploitative Mentality Madison Avenue Mentality  Subordinates Emulate Managers’ Unethical Behavior

10 Corporate Ethics Programs Components  Code of Ethics  Ethics Training  Official Bodies Formally Responsible for Ethics  Mechanisms for Communicating Ethical Standards  Ethics Audits

11 Socially Responsible Behavior Forms  Make Charitable Contributions  Preserve the Environment  Invest Socially Responsibly  Promote Employee Welfare