1. Managerial Ethics & Corporate Social Responsibility
BMGT – Principles of
Management
hapter
Managerial Ethics & Corporate Social Responsibility 1

2. Ethics BMGT – Principles of Management
The code of moral principles and values that govern the behaviors of a person or group with respect to what is right or wrong. 2

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

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

5. Students For Responsible Business
BMGT – Principles of
Management
Criteria For Ethical Decision Making
Most ethical dilemmas involve
A conflict between needs of the part & whole
The individual versus the organization
The organization versus society as a whole
Students For Responsible Business 5

6. Four Considerations In Ethical Decision Making
BMGT – Principles of
Management
Four Considerations In Ethical Decision Making
Utilitarian Approach
Individualism Approach
Moral-Rights Approach
Justice Approach 6

7. Utilitarian Approach BMGT – Principles of Management
Moral behavior produces the greatest good for the greatest number
Critics fear a “Big Brother” approach and ask if the common good is squeezing the life out of the individual 7

8. Individualism Approach
BMGT – Principles of
Management
Individualism Approach
Acts are moral when they promote the individual's best long-term interests, which ultimately leads to the greater good
Individual self-direction paramount
Individualism is believed to lead to honesty & integrity since that works best in the long run 8

9. Moral-Rights Approach
BMGT – Principles of
Management
Moral-Rights Approach
Moral decisions are those that best maintain the rights of those people affected by them.
An ethical decision is one that avoids interfering with the fundamental rights of others 9

10. “Moral Rights” The right of free consent The right to privacy
The right of freedom of conscience
The right of free speech
The right to due process
The right to life & safety

11. Justice Approach BMGT – Principles of Management
Moral Decisions must be based on standards of equity, fairness, and impartiality
Three types of Justice Approaches:
Distributive Justice
Procedural Justice
Compensatory Justice 11

12. Distributive Justice BMGT – Principles of Management
Treatment of people should not be based on arbitrary characteristics
People should be treated differently in proportion to the differences among them 12

13. Procedural Justice BMGT – Principles of Management
Rules should be clearly stated
Rules should be consistently and impartially enforced 13

14. Compensatory Justice BMGT – Principles of Management
Individuals should not be held responsible for matters they have no control over
Individuals should be compensated for the cost of their injuries by the party responsible 14

15. Factors Affecting Ethical Choices
BMGT – Principles of
Management
Factors Affecting Ethical Choices
The Manager
Levels or stages of moral development
Pre-conventional
Conventional
Post-conventional
The Organization
Moral Development 15

16. Social Responsibility
BMGT – Principles of
Management
Social Responsibility
Organization’s obligation to make choices and take actions that will contribute to the welfare and interests of society and organization
Distinguishing right from wrong
Being a good corporate citizen
Many social responsibilities issues are ambiguous with respect to right and wrong 16

17. Environmental Consumers
BMGT – Principles of
Management
Environmental Consumers
True-Blue Greens... Highly committed and make decisions to help (14%)
Greenback Greens... Usually will not change purchase behavior, but support (6%)
Sprouts... Make few environmental purchases and support some causes(26%)
Grousers ... Grudgingly acknowledge mandates (13%)
Basic Browns ... Generally do not support (32%).
Which one are you? 17

18. Ethical Responsibility
BMGT – Principles of
Management
Total Corporate Responsibility
Discretionary
Responsibility
Ethical Responsibility
Legal Responsibility
Economic Responsibility 18

19. Degree of Social Responsibility
Corporate Responses to Social Demands
High
Low
Degree of Social Responsibility
Proactive
Take social initiatives.
Accommodation
Accept ethical responsibility.
Defense
Do only what is legally required.
Obstruction
Fight all the way.

20. Managing Company Ethics You Need
Levi Strauss
Leadership
Code of Ethics
Ethical Structure
Whistle Blowers