Thursday, May 29, 2014

Business Leadership
Chapter 4: Ethical Behaviour & Social Responsibility
Friday, May 30, 14
Chapter 4 Study Questions
i.) What is ethical behaviour?
ii.) How do ethical dilemmas complicate the
workplace?
iii.) How can high ethical standards be
maintained?
iv.) What are social responsibility,
governance, and sustainability?
Friday, May 30, 14
Ethical Behaviour
Ethics: a code of moral principles; a set
standards of good or bad or right
or wrong in ones conduct.
Ethical behaviour:
what is accepted as good
and right in the context of
the governing moral code.
Friday, May 30, 14
Laws, Values & Ethical Behaviour
Legal behaviour is not necessarily ethical
behaviour.
Values: underlying beliefs and attitudes that help determine individual
behaviour.
Legal behaviour is guided by laws, ethical
behaviour is guided by personal values.
Terminal values: preferences
about desired ends
(e.g., self-respect, happiness, freedom)
Instrumental values: preferences
about the means to desired
ends.
(e.g., honesty, courage, ambition)
Friday, May 30, 14
Views of Ethics
Utilitarian View: greatest good to
the greatest number of people.
Individualism View: primary
commitment to ones long-term
self-interests.
Moral-Rights View: respects and protects the fundamental rights of all people.
Justice View: fair and impartial treatment of people according to legal rules and
standards.
Procedural justice: policies and rules fairly applied
Distributive justice: equal treatment for all people
Interactional justice: people treated with dignity and respect
Friday, May 30, 14
Cultural Issues
Cultural relativism: ethical behaviour is always
determined by the cultural context.
Universalism: ethical behaviour is universal; behaviour unacceptable in ones home
environment should not be acceptable anywhere else.
Friday, May 30, 14
Respecting Core/Universal
Values in the Workplace
Respect for human dignity
- create a culture that values employees,
customers, and suppliers;
- keep a safe workplace;
- produce safe products and services.
Respect for basic rights
- protect rights of employees, customers, and communities;
- avoid anything that threatens safety, health, education,
and living standards.
Be good citizens
- support social institutions, including
economic and educational systems;
- work with local government and
institutions to protect the environment.
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How do ethical dilemmas complicate the
workplace?
Study Question #2
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Ethical dilemmas
An ethical dilemma occurs when
choices, although having potential for
personal and/or organizational
benet, may be considered unethical.
Examples include:
- discrimination
- harrassment
- conicts of interest
- customer condence
- organizational resources
Friday, May 30, 14
Dealing with
ethical dilemmas
i.) Recognize the ethical dilemma
ii.) Get the facts
iii.) Identify your options
iv.) Test each option
- is it legal?
- is it right?
- is it benecial?
v.) Decide which option to follow
vi.) Double-check decision by asking
spotlight questions:
- how would I feel if my family
found out about the decision?
- how would I feel about this if my
decision were in the local news?
vii.) Take action
Friday, May 30, 14
Factors influencing
ethical behaviour
!
Situational context
- ethics intensity or issue intensity indicates the degree
to which a situation is recognized to pose ethical
challenges
!
The person
- family inuences, religious values, personal and
nancial needs
!
Kohlbergs stages of individual moral
development
- pre-conventional stage
- conventional stage
- post-conventional stage
Lawrence Kohlberg
Friday, May 30, 14
Kohlbergs Stages of Individual
Moral Development
Friday, May 30, 14
Internal and External
Factors
i.) Internal environment and the organization
- supervisory behaviour
- peer group norms and behaviour
- policy statements and written rules
ii.) External environment
- government laws and regulations
- societal norms and values
- competitive climate in an industry
Friday, May 30, 14
Rationalizations for
Unethical Behaviour
!
behaviour isnt really illegal;
!
behaviour is really in everyones best
interests;
!
nobody will ever nd out;
!
the organization will protect you.
Which of these rationalizations have you used?
Are there any others you think should be included?
Friday, May 30, 14
Whistleblowers
Edward Snowden
Whistleblowers expose the misdeeds of
others to:
!
preserve ethical standards
!
protect against wasteful, harmful
or illegal acts
*Laws protecting whistleblowers vary.
Find out whether there are laws protecting whistleblowers in Canada and China.
Are you surprised?
Friday, May 30, 14
How can high ethical standards be maintained?
Study Question #3
Friday, May 30, 14
How can high ethical
standards be maintained?
!
Ethics training
!
Codes of ethics
!
Ethical role models
- moral managers (118): moral,
immoral, amoral
Something you will not have to remember
Friday, May 30, 14
What are social responsibility, governance and
sustainability?
Study Question #4
Friday, May 30, 14
Corporate Social
Responsibility (CSR)
CSR obligates
organizations to act in
ways that serve both
its own interests and
the interests of society
at large.
Organizational stakeholders: those persons, groups
and other organizations directly affected by the
behaviour of the organization and holding a stake
in its performance.
(e.g., employees, suppliers, customers, owners,
competitors, regulators, interest groups)
Friday, May 30, 14
Perspectives on Social
Responsibility
!
Classical view: managements
only responsibility is to maximize
prots.
!
Socioeconomic view: management must
be concerned for the broader social
welfare, not just prots.
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Criteria for Evaluating CSR
!
Social responsibility audit: assesses
organizations accomplishments in
areas of CSR
!
Is the organizations...
- economic responsibility met?
- legal responsibility met?
- ethical responsibility met?
- discretionary responsibility met?
Friday, May 30, 14
Strategies for pursuing CSR
Friday, May 30, 14
Sustainability
Sustainable development is development that meets the needs of the
present without compromising the ability of future generations to meet
their own needs.
It focuses on social rights, environmental protection, and economic
development.
!
cost reduction
!
resource preservation
!
legislative compliance
Benets of sustainability include:
!
positive reputation
!
right initiation
Friday, May 30, 14
Homework
!
Essay due Tuesday!
!
Unit 2 Quiz on Tuesday!
Friday, May 30, 14