Chapter 6 Ethics and Corporate Social Responsibility Hellriegel, Jackson, and Slocum MANAGEMENT: A Competency-Based Approach South-Western College Publishing Copyright © 2002

Learning Objectives After reading this chapter, you should be able to:  State the importance of ethics for employees and organizations  Describe four forces that influence the ethical behavior of individuals and corporate social responsibility  Describe three approaches that people use when making ethical judgments  Explain how the concerns of stakeholders influence managers’ ethical decisions  Describe how individuals and organizations can contribute to improving ethical conduct at work 6.1

Hellriegel, Jackson, and Slocum MANAGEMENT: A Competency-Based Approach South-Western College Publishing Copyright © 2002 Adapted from Figure 6.1 Forces That Shape Ethical Conduct 6.2 Societal Norms and Culture Laws and Regulations Organizational Practices and Culture Individual Perspective Ethical Conduct: Individuals Organizations Ethical Conduct: Individuals Organizations

Hellriegel, Jackson, and Slocum MANAGEMENT: A Competency-Based Approach South-Western College Publishing Copyright © 2002 Ethical Models Utilitarian Justice Moral Rights IDEALOutcome 6.3

Hellriegel, Jackson, and Slocum MANAGEMENT: A Competency-Based Approach South-Western College Publishing Copyright © 2002 Stakeholders of the Organization Adapted from Figure 6.2 Society in General Strategic partners Government Employees Customers Suppliers Local Community Owners Unions 6.4

Hellriegel, Jackson, and Slocum MANAGEMENT: A Competency-Based Approach South-Western College Publishing Copyright © 2002 Stakeholders’ Concerns  Owners and Investors Examples of Concerns Stakeholder Group  Financial Soundness  Consistency in meeting shareholder expectations  Sustained profitability  Average return on assets over five- year period  Timely and accurate disclosure of financial information 6.5

Hellriegel, Jackson, and Slocum MANAGEMENT: A Competency-Based Approach South-Western College Publishing Copyright © 2002 Stakeholders’ Concerns (cont.)  Customers Examples of Concerns Stakeholder Group  Product/service quality, innovativeness, and availability  Responsible management of defective or harmful products/services  Safety records for products/services  Pricing policies and practices  Honest, accurate, and responsible advertising 6.6

Hellriegel, Jackson, and Slocum MANAGEMENT: A Competency-Based Approach South-Western College Publishing Copyright © 2002 Stakeholders’ Concerns (cont.)  Employees Examples of Concerns Stakeholder Group  Nondiscriminatory, merit-based hiring and promotion  Diversity of the workforce  Wage and salary levels and equitable distribution  Availability of training and development  Workplace safety and privacy 6.7

Hellriegel, Jackson, and Slocum MANAGEMENT: A Competency-Based Approach South-Western College Publishing Copyright © 2002 Stakeholders’ Concerns (cont.)  Society Examples of Concerns Stakeholder Group  Environmental issues Environmental sensitivity in packaging and product design Recycling efforts and use of recycled materials Pollution prevention Global application of environmental standards 6.8

Hellriegel, Jackson, and Slocum MANAGEMENT: A Competency-Based Approach South-Western College Publishing Copyright © 2002 Stakeholders’ Concerns (cont.)  Society Examples of Concerns Stakeholder Group  Community involvement Percentage of profits designated for cash contributions Innovation and creativity in philanthropic efforts Product donations Availability of facilities and other assets for community use Support for employee volunteer efforts 6.9