1. Managerial Ethics What is Ethics? Criteria for Ethical Decision Making
Social Responsibility
Corporate Actions Toward Social Demands
Code of Ethics

2. Ethics
The code of moral principles and values that govern the behaviors of a person or group with respect to what is right or wrong.
Lies between the domains of codified law and free choice
Based on shared principles and values
Disagreements and dilemmas about proper behavior often occur.

3. Three Domains of Human Action
Domain of
Codified Law
(Legal Standard)
Ethics
(Social Standard)
Free Choice
(Personal Standard)
Amount of
Explicit Control
High
Low

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

5. Criteria for Ethical Decision Making
Utilitarian Approach
Individualism Approach
Moral-Rights Approach
Justice Approach

6. Utilitarian Approach
Moral behaviors produce the greatest good for the greatest number.

7. Individualism Approach
Acts are moral when they promote the individual's best long-term interests.

8. Moral-Rights Approach
Human beings have fundamental rights that cannot be taken away by an individual's decision.
1. Free consent
2. Privacy
3. Conscience
4. Free speech
5. Due process
6. Life and safety.

9. Justice Approach Standards of equity, fairness, and impartiality.
Distributive Justice
Procedural Justice
Compensatory Justice

10. Social Responsibility
Management's obligation to make choices and take actions that will contribute to the welfare and interests of society as well as to the welfare and interests of the organization
Being a good corporate citizen.
4 criteria: economic, legal, ethical, discretionary.

11. Economic Responsibilities Be Profitable

12. Legal Responsibilities Obey the Law

13. Ethical Responsibilities Do What is Right

14. Discretionary Responsibilities Contribute to Quality of Life

15. Corporate Actions Toward Social Demands
Obstructive
Defensive
Accommodative
Proactive

16. Obstructive Fight All the Way

17. Defensive Do Only What is Legally Required

18. Accommodative Accept Ethical Responsibility

19. Proactive Take Social Initiatives

20. Code of Ethics
A formal statement of the company's values concerning ethics and social issues.