1. Managing Ethics and Social Responsibility
Chapter 4

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

3. Three Domains of Human Action

4. 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

5. Examples of Unethical and Illegal Organizational Behavior

6. Ethical Dilemmas: What Would You Do?
Your company requires a terrorist watch list that screen all new customers and take approximately 24 hours from the time an order is placed You can close a lucrative deal with a potential long-term customer overnight, even though that means the required watch-list screening will have to be done after the fact

7. Criteria for Ethical Decision Making
Utilitarian Approach – moral behavior produces the greatest good for the greatest number
Individualism Approach – acts are moral if they promote the individual’s long-term interest
Moral-Rights Approach – humans have fundamental rights and liberties that cannot be taken by an individual's decision
Justice Approach – moral decisions must be based on standards of equity, fairness and impartiality

8. Virtue Ethics and Practical Approaches
Virtue ethics approach says that moral behavior stems from personal virtues
Practical approach – decisions based on prevailing standards of the profession, larger society and stakeholder interests

9. Manager Ethical Choices
Individuals bring their own personality and traits to organizations
Personal needs, family influence and religious background shape individuals
Personality characteristics like ego, confidence and independence

10. Three Levels of Personal Moral Development

11. 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 – any group that has a stake in the organization’s performance

12. Major Stakeholders Relevant to Monsanto Company

13. The Green Movement “Going Green” has become a new business imperative
General Electric EcoImagination and Walmart’s zero waste initiative are examples
Corporations are embracing sustainability and sustainable development

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

15. Evaluating Corporate Social Responsibility

16. Managing Company Ethics and Social Responsibility
Code of Ethics – a formal statement of the company’s values regarding ethics and social issues Ethical Structures – systems, positions and programs like ethics training Whistle-blowing – employee disclosure of illegal, immoral, or illegitimate practices

17. Building an Ethical Organization

18. 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?