Managing Ethics and Social Responsibility

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Ethics and Social Responsibility

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Presentation transcript:

Managing Ethics and Social Responsibility Week 7

Lecture Outline Managing Ethics Social Responsibility What is Managerial Ethics? Ethical Dilemmas Criteria for Ethical Decision Making Three Levels of Personal Moral Development Social Responsibility What is Corporate Social Responsibility? Evaluating Corporate Social Responsibility Sustainability

What is Managerial Ethics? Ethics - code of moral principles and values that govern the behaviors of right or wrong Standards about good/bad People in organizations have divergent views about right/wrong- complex

Three Domains of Human Action

Ethical Management Today 55% of survey respondents think that cheating in business is more common than 10 years ago More businesses are being associated with greed, deceit, and irresponsibility Managers are responsible for setting an ethical climate and act as models Executive compensation has become a hot issue related to ethical management What about Ghana?

Discussion Question Do you believe it is ethical for organizational managers to try to get access to and scrutinize Facebook pages of employees or job applicants?

Examples of Unethical and Illegal Organizational Behavior

Ethical Dilemmas What potential ethical dilemmas do anticipate to encounter in the work place after graduation? What ethical dilemmas do you face as students?

Criteria for Ethical Decision Making Utilitarian Approach Example Individualism Approach : egoism Moral-Rights Approach : the right of free speech, the right to due process, and the right to life and safety, no one shall be subjected to torture or to cruel, inhuman or degrading treatment or punishment. Justice Approach: Distributive & procedural

Virtue Ethics and Practical Approaches Virtue ethics approach: moral behavior stems from personal virtues Practical approach: prevailing standards of the profession, larger society and stakeholder interests

Factors that shape managers’ ethical decision making Personality Personal needs Family influence Religion Organizational values Organizational culture

Three Levels of Personal Moral Development

What is Corporate Social Responsibility? Distinguishing right from wrong; doing right Good corporate citizenship Make choices that contribute to society as well as the organization Organizational Stakeholders –?

Major Stakeholders Relevant to Monsanto Company

Sustainability Sustainability – economic development that generates wealth and meets the needs of current population while preserving the environment for the needs of future generations

Evaluating Corporate Social Responsibility

Managing Company Ethics and Social Responsibility Code of Ethics Ethical Structures Whistle-blowing

Building an Ethical Organization

The Business Case for Ethics and Social Responsibility Ethics and social responsibility is an important business issue Stakeholders are pushing more initiatives and issues The connection between ethics and financial performance has been widely debated What do you THINK?

Some questions to consider Identify important stakeholders for an organization and discuss how managers balance the interests of various stakeholders. A noted business executive said, “A company’s first obligation is to be profitable. Unprofitable enterprises can’t afford to be socially responsible.” Discuss why you agree or disagree with this statement. THANK YOU, Any Questions?