1. © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

2.  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 2

3. © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3

4.  Ethical lapses during the last decade have been pervasive  Corporations and people have become associated with greed, deceit, irresponsibility, and lack of moral conscience  Managers carry a big responsibility for setting an ethical climate  Ethical crises have brought ethical management to the forefront 4

5. © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Ethical managers  Display honesty and integrity  Communicate and enforce ethical standards through their behavior  Are fair in their decisions and the distribution of rewards  Show kindness and concern for others 5

6. © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6

7.  Ethics and social responsibility are important business issues  The connection between ethics and financial performance has been widely debated  Customers would switch brands to do business with a company that is ethical and socially responsible 7

8. © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. You are the moral agent –what would you do? Your company requires a terrorist watch list that screens all new customers and takes 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. 8

9. © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  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 away by an individual’s decision 9

10. © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Justice approach – moral decisions must be based on standards of equity, fairness, and impartiality  Distributive justice  Procedural justice  Compensatory justice  Practical approach – bases decisions on prevailing standards, society, and all stakeholders 10

11. © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Individuals bring their own personality and traits to organizations  Personal needs, family influence, and religious background shape individuals  Personality characteristics such as ego, confidence, and independence may enable managers to make ethical choices 11

12. © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12

13. © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Distinguishing right from wrong; doing right  Good corporate citizenship  Make choices that contribute to society and stakeholders  Stakeholders – any group within or outside  Stakeholder mapping identifies needs, importance and power of stakeholders 13

14. © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14

15. © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Going GREEN is a new business imperative  Change in social attitudes  New governmental policies  Climate change  Information technology immediately spreads the negative decisions of corporations  More organizations are embracing sustainability 15

16. © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16 Sustainability – economic development that generates wealth and meets the needs of current generation while preserving the environment for the needs of future generations

17. © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Legal Responsibility  appropriate business behavior  Discretionary Responsibility  voluntary contributions to society  Organizational Virtuousness  a positive human impact, moral goodness 17

18. © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 18

19. © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 19

20. © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 20  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