HOFAM vak Organisatie & Management les 11

Ethics 2 The code of moral principles and values that govern the behaviors of a person or group with respect to what is right or wrong.

Three Domains of Human Action 3

Ethical Dilemma 4 A situation that arises when all alternative choices or behaviors are deemed undesirable because of potentially negative consequences, making it difficult to distinguish right from wrong

5 Criteria For Ethical Decision Making Most ethical dilemmas involve Conflict between needs of the part & whole -Individual versus the organization -Organization versus society as a whole Managers benefit from a normative strategy to guide their decision making - norms and values

Ethical Decision Making Approaches 6 Utilitarian Approach Individualism Approach Moral-Rights Approach Justice Approach

Utilitarian Approach 7 ● Moral behavior produces the greatest good for the greatest number ● Example – recent trend among companies to monitor employee use of the Internet

Individualism Approach 8 ● Acts are moral when they promote the individual's best long-term interests, which ultimately leads to the greater good ● Individual self-direction paramount ● Individualism is believed to lead to honesty & integrity since that works best in the long run ●However, top executives from WorldCom, Enron, Tyco demonstrate flaws of approach

Moral-Rights Approach 9 −Moral decisions are those that best maintain the rights of those people affected by them. −An ethical decision is one that avoids interfering with the fundamental rights of others.

Justice Approach 10 −Moral decisions must be based on standards of equity, fairness and impartiality. −Three types of justice are of concern to managers: Distributive justice Procedural justice Compensatory justice

Corporate Social Responsibility 11 −Organization’s obligation to make decisions and take actions that will enhance the welfare and interests of society and organization −Being a good corporate citizen −Difficulty in understanding – issues can be ambiguous with respect to right and wrong

Organizational Stakeholders 12 −Any group within or outside the organization that has a stake in the organization’s performance −Each stakeholder Has a different criterion of responsiveness Has a different interest in the company −Monsanto

Criteria of Corporate Social Responsibility 13

The Ethical Organization 14

Het vier-instrumentenmodel van managementcontrol 15

Organizational Control −The systematic process through which managers regulate organizational activities to make them consistent with expectations established in ●Plans ●Targets ●Standards of performance 16

Organizational Control −To effectively control an organization, managers need to decide −What information is essential −How will they obtain that information −How they can and should respond to it 17