1. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.

2. Individual Ethics In Organizations
An individual’s personal beliefs regarding what is right and wrong or good and bad.
Ethical Behavior
“Eye of the beholder” or behavior that conforms to generally accepted social norms.
Examples of Unethical Behavior
“Borrowing” office supplies for personal use.
Surfing the Internet on company time.
Filing falsified or inflated business expense reports.
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.

3. Determinants of Individual Ethics
Family
Peers
Individual Experiences
Values and Morals
Individual Ethics
An individual’s ethics are determined by a combination of factors.
© 2010 South-Western, Cengage Learning, Inc. All rights reserved. 22

4. Ethics in Organizations
Organizational Values
Individual Values
Managerial Values
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.

5. Ethics in Organizations (cont’d)
Train Employees
Written Code of Ethics
Individual Issues: Behavior, Conscience, Privacy
Top Management Involvement
Managing Ethical Behavior
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.

6. Applying Ethical Judgments
Model for deciding whether or not a particular action or decision is ethical
Gather relevant factual information.
Determine the most appropriate moral values.
Make a judgment.
Ethical Norms Affecting Actions
Utility
Rights
Justice
Caring
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.

7. Maintaining Organizational Justice
Distributive justice
Procedural justice
Interpersonal justice
Informational justice
Forms of Organizational Justice
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.

8. Emerging Ethical Issues in Organizations
Ethical leadership
Information technology
Emerging Ethical Issues
Corporate governance
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.

9. Social Responsibility and Organizations
Organizational Stakeholders
People and organizations directly affected by the behaviors of an organization and that have a stake in its performance.
Social Responsibility
The set of obligations an organization has to protect and enhance the societal context in which it functions.
Areas of Social Responsibility
Stakeholders
The natural environment
The general social welfare
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.

10. Managing Social Responsibility
Formal Organizational Dimensions
Informal Organizational Dimensions
Legal compliance
Organization leadership and culture
Ethical compliance
Whistle Blowing
Philanthropic giving
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.

11. Evaluating Social Responsibility (cont’d)
Corporate Social Audit
Clearly define social goals
Analyze resources applied
Determine if goals are being met
Recommend changes for improvement
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.

12. Key Terms unethical behavior managerial ethics code of ethics
Sarbanes-Oxley Act of 2002
social responsibility
organizational stakeholder
obstructionist stance
defensive stance
accommodative stance
proactive stance
regulation
lobbying
legal compliance
ethical compliance
philanthropic giving
whistle blowing
corporate social audit
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.