Chapter 2 Blackboard.pdf

Organizational Justice, Ethics, and Corporate Social Responsibility  Learning Objectives IDENTIFY the different forms of organizational justice DESCRIBE the relationships between perceived managerial controls and the form of justice monitoring that occurs EXPLAIN what is meant by ethical be...

Organizational Justice, Ethics, and Corporate Social Responsibility  Learning Objectives IDENTIFY the different forms of organizational justice DESCRIBE the relationships between perceived managerial controls and the form of justice monitoring that occurs EXPLAIN what is meant by ethical behavior and why organizations should be concerned about ethics DESCRIBE the individual and situational factors responsible for unethical behavior in organizations and methods for minimizing such behavior COMPARE ethical relativism and ethical imperialism as orientations to ethics in the international arena EXPLAIN what is meant by corporate social responsibility and the nature of the relationship between responsible behavior and financial profitability  Three Good Reasons Why You Should Care About... Justice, Ethics, CSR 1. Treating employees unfairly adversely affects work attitudes and behaviors. 2. The public is growing increasingly intolerant of unethical corporate behavior, but managers can take steps to promote ethical behavior in organizations. 3. Consumers and investors tend to support socially responsible companies, enhancing the companies’ financial performance.  Organizational Justice Organizational justice - the study of people’s perceptions of fairness in organizations  Forms of Organizational Justice Distributive justice - the form of organizational justice that focuses on people’s beliefs that they have received fair amounts of valued work-related outcomes  Forms of Organizational Justice Procedural justice - people’s perceptions of the fairness of the procedures used to determine the outcomes they receive ▪ Fair process effect  Forms of Organizational Justice Interactional justice consists of ▪ Interpersonal justice - people’s perceptions of the fairness of the manner in which they are treated by other people ▪ Informational justice - people’s perceptions of the fairness of the information used as the basis for making a decision  Forms of Organizational Justice 1. Distributive justice - the form of organizational justice that focuses on people’s beliefs that they have received fair amounts of valued work-related outcomes 2. Procedural justice - people’s perceptions of the fairness of the procedures used to determine the outcomes they receive Fair process effect 3. Interactional justice consists of Interpersonal justice - people’s perceptions of the fairness of the manner in which they are treated by other people Informational justice - people’s perceptions of the fairness of the information used as the basis for making a decision  Promoting Organizational Justice ▪ Pay workers what they deserve ▪ Offer workers a voice ▪ Openly follow fair procedures ▪ Explain decisions thoroughly ▪ Train managers to treat others with dignity and respect Moral Values Versus Ethics  Ethical Behavior in Organizations Surveys show that today, managers are ✓ more likely to keep their promises ✓ less likely to engage in misconduct ✓ less likely to feel pressure to be unethical ✓ believe that more attention is paid to practicing honesty and respect for others  Why Ethics Matters Good ethics is good business ✓ Improved financial performance ✓ Reduced operating costs ✓ Enhanced corporate reputation ✓ Increased ability to attract and retain employees Ethical Norms and Counternorms  Corporate Ethics Programs Formal, systematic mechanisms designed to promote ethics by creating organizational cultures that both make people sensitive to potentially unethical behaviors and discourage them from engaging in them. Components: ▪ A code of ethics ▪ Ethics training ▪ Ethics audits ▪ An ethics committee ▪ An ethics officer ▪ A mechanism for communicating ethical standards  Corporate Social Responsibility Organizations have four fundamental responsibilities known as the pyramid of corporate social responsibility. 1. Economic 2. Legal 3. Ethical 4. Philanthropic Corporate Social Responsibility  Corporate Social Responsibility Business practices that adhere to ethical values that comply with legal requirements, demonstrate respect for individuals, and promote the betterment of the community at large and the environment  Corporate Social Responsibility Forms of corporate social responsibility: ▪ Helping the community by making charitable contributions ▪ Promoting environmental sustainability ▪ Socially responsible investing ▪ Promoting the welfare of employees