1 Management Ethics and Social Responsibility 2 Ethical Behavior Ethics 3 Telling the Truth and Lying: Possible Outcomes 4 Personal Ethics Most of us believe we are ethical but most have unconscious biases that favor ourselves and our own group Managers often: Hire people who are like them Think they are immune to conflicts of interest Take more credit than they deserve Blame others when they deserve some blame themselves 5 Is it ethical to: Shop online during company time? 6 Cultural Issues and Ethics 7 Ethical Systems Moral philosophy Universalism 8 Ethical Systems Egoism Utilitarianism 9 Ethics Systems Relativism Virtue ethics 10 Ethics Systems Kohlberg’s model of cognitive moral development 11 Ethics in the Workplace 12 Ethics in the Workplace 13 Dangerous Practice Excessive emphasis on short-term revenues over longer-term considerations. Failure to establish a written code of ethics. A desire for simple, “quick fix” solutions to ethical problems. An unwillingness to take an ethical stand that may impose financial costs. 14 Dangerous Practices Consideration of ethics solely as a legal issue or a public relations tool Lack of clear procedures for handling ethical problems. Responding to the demands of shareholders at the expense of other constituencies 15 Ethical Standards Training Whistleblowing Modeling Code of ethics 16 Ethical Environment Sarbanes-Oxley Act 17 Ethics Programming Compliance-based ethics programs 18 Ethical Issues in Business 19 Ethical Decision Making Model 20 Ethical Decision Making 21 Courage to be Ethical Why might employees lack courage in ethical issues? A belief that the company would not take corrective action A fear that management would retaliate against the employee for speaking up Doubt that the employee’s report would be kept confidential 22 Business Costs of Unethical Activity 23 Corporate social responsibility (CSR) 24 Corporate Social Responsibility 25 Corporate Social Responsibility 26 Pyramid of Global Corporate Social Responsibility and Performance 27 Contrasting Views First - holds that managers act as agents for shareholders and, as such, are obligated to maximize the present value of the firm Second - managers should be motivated by principled moral reasoning 28 CSR as Competitive Advantage 29 Ecocentric management 30 Ecocentric Management |