Quản trị kinh doanh - Chapter 5: Ethics and social responsibility

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 Example – Oregon’s decision to extend Medicaid to 400,000 previously ineligible recipients by refusing to pay for high-cost, high-risk procedures

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Ethics and Social ResponsibilityChapter 51Ethics and Social ResponsibilityEthical valuesSocial responsibilityFundamental approaches to ethical issuesChapter 5 TopicsManagers’s Challenge: Timberland2EthicsThe code of moral principles and values that govern the behaviors of a person or group with respect to what is right or wrong.3Three Domains of Human ActionAmount ofExplicit ControlHighLowDomain of Certified Law(Legal Standard)Domain of Ethics(Social Standard)Domain of Free Choice(Personal Standard)4Ethical DilemmaA situation that arises when all alternative choices or behaviors have been deemed undesirable because...potentially of negative ethical consequences, making it difficult to distinguish right from wrong5Criteria For Ethical Decision MakingMost ethical dilemmas involve Conflict between needs of the part & wholeIndividual versus the organization Organization versus society as a wholeManagers use normative strategies to guide their decision making - norms and values6Ethical Decision Making ApproachesUtilitarian Approach Individualism Approach Moral-Rights ApproachJustice Approach7Utilitarian ApproachMoral behavior produces the greatest good for the greatest numberCritics fear a “Big Brother” approach and ask if the common good is squeezing the life out of the individualExample – Oregon’s decision to extend Medicaid to 400,000 previously ineligible recipients by refusing to pay for high-cost, high-risk procedures8Individualism ApproachActs are moral when they promote the individual's best long-term interests, which ultimately leads to the greater goodIndividual self-direction paramountIndividualism is believed to lead to honesty & integrity since that works best in the long runExamples: Top executives from WorldCom, Enron, Tyco demonstrate flaws of approach9Moral-Rights ApproachMoral 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 others10 Six Moral Rights1. The right of free consent2. The right to privacy3. The right of freedom of conscience4. The right of free speech5. The right to due process6. The right to life & safety11Justice ApproachMoral Decisions must be based on standards of equity, fairness, impartialityThree types of Justice Approaches:Distributive JusticeProcedural JusticeCompensatory Justice12Distributive JusticeDifferent treatment of people should not be based on arbitrary characteristicsIn case of substantive differences, people should be treated differently in proportion to the differences among them13Procedural JusticeRules should be clearly stated Rules should be consistently and impartially enforced14Compensatory JusticeIndividuals should be compensated for the cost of their injuries by the party responsible Individuals should not be held responsible for matters they have no control over15Factors Affecting Ethical ChoicesThe ManagerLevels or stages of moral developmentPre-conventionalConventionalPost-conventionalThe Organization16Levels of Personal Moral Development17The OrganizationRarely can ethical or unethical corporate actions be attributed solely to the personal values of a single managerValues adopted within the organization are highly importantMost people believe their duty is to fulfill obligations and expectations of othersExperiential Exercise: Ethical Work Climates18Social ResponsibilityOrganization’s obligation to make choices and take actions that will contribute to the welfare and interests of society and organizationBeing a good corporate citizenDifficulty in understanding – issues can be ambiguous with respect to right and wrong19Organizational StakeholdersAny group within or outside the organization that has a stake in the organization’s performanceEach stakeholder Has a different criterion of responsiveness Has a different interest in the companyMonsanto20Environmental Responsibility CommitmentActivist ApproachStakeholderApproachMarket ApproachLegal ApproachThe Shades of Corporate Green21Total Corporate ResponsibilityEconomic ResponsibilityLegal ResponsibilityEthical ResponsibilityDiscretionary ResponsibilityEthical Dilemma: Should We Go Beyond the Law?22The Ethical Organization Ethical individuals = honest, have integrity, strive for a high level of moral developmentEthical leadership = provides the necessary actions, committed to ethical values and helps others to embody those valuesOrganizational structure = embodies a code of ethics, and methods to implement ethical behavior23Ethics and the New WorkplaceTelecommuting, virtual work, and flexible hours - Success of new programs depends on mutual trustIT provides opportunities for monitoringCompanies that make an unwavering commitment to maintaining high standards of ethics and social responsibility will lead the way toward a brighter future for both business and society24

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