Ch 3- Quiz

Ethics

• Ethics are moral principles that define right and wrong conduct.
• Ethical behavior follows a governing moral code, influenced by family, friends, culture, religion, education, and experiences.
• Laws and values profoundly affect ethical behavior. Just because something is legal doesn't mean it's ethical. An example is slavery.
• Unethical behavior typically violates personal beliefs and values.
• Terminal values are desired end goals (e.g., happiness, freedom).
• Instrumental values are the means to achieve those ends (e.g., honesty, ambition).

Alternative Views of Ethics

• Utilitarianism: Ethical behavior maximizes good for the most people. Managers prioritize profit, efficiency, and other performance measures to achieve this.
• Individualism: Ethical behavior prioritizes long-term self-interest. Society benefits when individuals maximize their personal interests.
• Moral rights: Ethical behavior respects and protects fundamental human rights (e.g., right to life, liberty).
• Justice: Ethical behavior treats people impartially and fairly according to legal rules and standards (e.g., procedural justice, distributive justice).

Ethics in the Workplace

• Ethical dilemmas arise in situations where potentially beneficial actions are morally questionable. There's no clear "right" or "wrong" path.
• Examples: discrimination, sexual harassment, conflicts of interest, product safety, and misuse of organizational resources.
• Key considerations for ethical decision-making:
  • Recognize the dilemma
  • Identify options and their consequences
  • Gather facts and evaluate
  • Make a decision
  • Reflect on the decision and its potential impact

Maintaining High Ethical Standards

• Archie Carroll's Manager Types:

  • Immoral Managers: intentionally choose unethical behavior for self-gain
  • Amoral Managers: unintentionally or unknowingly disregard ethical implications
  • Moral Managers: prioritize ethical behavior in their actions

• Ethics Training: Programs designed to help understand ethical aspects of decision-making, conflict resolution, client relations, and bribery.

• Codes of Ethical Conduct: Formal statements of an organization's values. Often address organizational citizenship, misconduct, and relationships with stakeholders.

• Whistleblowing: Exposing misconduct within an organization.

• Moral Muteness: Avoiding addressing ethical concerns due to fear of consequences.

Social Responsibility

• Stakeholders: Individuals, groups, or organizations impacted by an organization's actions.
• Social responsibility: A broad obligation to consider stakeholder needs, along with the organization's own interests.
• Corporate social responsibility (CSR): The obligation of an organization to act in ways that serve the interests of multiple stakeholders, including society at large.
• Stewardship: Managerial responsibility to act with moral sensitivity in regards to stakeholder needs.
• Sustainable: Actions that benefit people now and coming generations. (i.e., good economic, social, and environmental performance).
• The Triple Bottom Line: Economic, social, and environmental performance.

Evaluating Corporate Social Responsibility

• A way to evaluate an organization's social performance using a rating scale. Includes compliance, conviction, and commitment to social responsibility.

Corporate Governance

• Enron Example: A high-profile case where the company failed to maintain ethical standards, leading to a significant scandal.
• Corporate Governance: An active oversight of management decisions and company actions by a board of directors.

Ethical Dilemmas and Ethical Decisions

• Shattered Confidence: Organizations failing to prioritize ethical conduct could lead to financial losses and reputational damage.
• Ethical dilemmas: complex situations requiring tough choices with no easy answers.
• Possible answers to ethical dilemmas can be based on ethical theories like utilitarianism, individualism, moral rights, or justice view.