Chapter 4 Ethics and Social Responsibility - UPJocw.upj.ac.id/files/Slide-MGT201-Slide05.pdf · Ethics and Social Responsibility . ... Workplace Behavior? After reading these sections,

Chapter 4

Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 1

Chapter 4

Management

4th Edition

Chuck Williams

Ethics and

Social

Responsibility

Chapter 4


What Would You Do?

Gap has received negative news

coverage regarding sweatshop

labor exploitation

Retailers rely on foreign

factories to keep their prices low

How do you decide whose interests take precedence?

Is Gap responsible for poor treatment of workers?

What would you do?

Gap, Inc. Headquarters

Protest groups are calling for boycotts; Gap is losing $$

Chapter 4


Ethical and Unethical

Workplace Behavior

Ethics

The set of moral principles or values

that defines right and wrong for a

person or group.

Chapter 4


What Is Ethical and Unethical

Workplace Behavior?

After reading these sections,

you should be able to:

1. discuss how the nature of management jobs

creates the possibility for ethical abuses.

2. identity common kinds of workplace deviance.

3. describe the U.S. Sentencing Commission

Guidelines for Organizations and explain how

they both encourage ethical behavior and punish

unethical behavior by businesses.

Chapter 4


Ethics and the

Nature of Management Jobs

Unethical Managerial Behavior

Authority and Power

Handling Information

Influencing the Behavior of Others

Setting Goals

1

Chapter 4


Ethics and the

Nature of Management Jobs

Managers can encourage ethical behaviors by…

using resources for company business only

handling information confidentially

not influencing others to engage in unethical behavior

not creating policies that reward employees for unethical behavior

setting reasonable goals

1

Chapter 4


Workplace Deviance

2

Workplace Deviance

Unethical behavior that violates

organizational norms about

right and wrong

Two dimensions

Degree of deviance

Target of deviant behavior

Chapter 4


Types of Workplace Deviance

2

Adapted from Exhibit 4.1

Production Deviance

Property Deviance

Political Deviance

Personal Aggression

Minor Serious

Organizational

Interpersonal

Chapter 4


Production Deviance

Leaving early

Taking excessive breaks

Intentionally working slow

Wasting resources

2

Chapter 4


Property Deviance

Sabotaging

equipment

Accepting

kickbacks

Lying about

hours worked

Stealing from

company

2

Chapter 4


Political Deviance

Showing favoritism

Gossiping about

coworkers

Blaming coworkers

Competing nonbeneficially

2

Chapter 4


Personal Aggression

Sexual harassment

Verbal abuse

Stealing from coworkers

Endangering coworkers

2

Chapter 4


Partial List of Offenses

3.1

Invasion of privacy

Price fixing

Fraud

Customs violations

Antitrust violations

Civil rights violations

Theft

Money laundering

Conflicts of interest

Embezzlement

Dealing in stolen goods

Copyright infringements

Extortion

…and more

Chapter 4


How Do You Make Ethical Decisions?

After reading the next two sections,

you should be able to:

4. describe what influences ethical decision making.

5. explain what practical steps managers can

take to improve ethical decision making.

Chapter 4


Influences on Ethical Decision Making

Ethical

Answers Depend

on…

Ethical Intensity of Decision

Moral Development of Manager

Ethical Principles Used

4

Chapter 4


Ethical Intensity Depends on…

Concentration of effect

Magnitude of consequences

Social consensus

Probability of effect

Proximity of effect

Temporal immediacy

4.1

Chapter 4


Moral Development

4.2


Societal

Expectations Selfish

Internalized

Principles

Preconventional

Conventional

Postconventional

Kohlberg’s Stages of Moral Development

Chapter 4


Stages of Moral Development

Preconventional

1. Punishment and

Obedience

2. Instrumental

Exchange

Conventional

3. Good boy,

nice girl

4. Law and order

Postconventional

5. Social contract

6. Universal

principle

4.2

Chapter 4


Principles of

Ethical Decision Making

Long-term self-interest

Personal virtue

Religious injunctions

Government requirements

Utilitarian benefits

Individual rights

Distributive justice 4.3

Chapter 4


Principle of long-term self-interest

Never take any action not in your

organization’s long-term self-interest.

4.3

Principles of


Chapter 4


Principles of


Principle of Personal Virtue

Never do anything that is not honest, open,

and truthful and that you would not be

glad to see reported in the newspapers

or on TV.

4.3

Chapter 4


Principles of


Principle of Religious Injunctions

Never take any action that is not kind

and that does not build a

sense of community.

4.3

Chapter 4


Principles of


Principle of Government Requirements

Never take any action that violates the law,

for the law represents the minimal

moral standard.

4.3

Chapter 4


Principles of


Principle of Utilitarian Benefit

Never take any action that does not result in

greater good for society.

4.3

Chapter 4


Principles of


Principle of Individual Rights

Never take any action that infringes on

others’ agreed-upon rights.

4.3

Chapter 4


Principles of


Principle of Distributive Justice

Never take any action that harms the

least among us:

the poor, the uneducated,

the unemployed.

4.3

Chapter 4


Practical Steps to


Select and hire ethical employees

Establish a Code of Ethics

Train employees to make ethical decisions

Create an ethical climate

5

Chapter 4


Practical Steps to


Overt Integrity Tests

Personality-Based Integrity Tests

Select and hire ethical employees

If you found a wallet containing $50,

would you return it with the money?

5.1

Chapter 4


Doing the Right Thing

If You Cheat in College,

Will You Cheat in the Workplace?

College students who cheat are likely to cheat again.

70 percent of students don’t see cheating as a problem.

People who cheat and cheat again see their

behavior as normal.

60 percent of people who cheat their employers

don’t feel guilty for doing so.

Chapter 4


What Really Works

Studies show that Integrity Tests…

Help reduce workplace deviance

Help hire workers who are better performers

However they have a smaller effect

on assessing theft.

Chapter 4


What Really Works (continued)

Overt Integrity Tests & Workplace Deviance

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

probability of success 82%

Workplace Deviance (Counterproductive Behaviors)

Personality-Based Integrity Tests & Workplace Deviance

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


Chapter 4



Overt Integrity Tests & Job Performance

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


Job Performance

Personality-Based Integrity Tests & Job Performance

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


Chapter 4



Overt Integrity Tests & Theft

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


Theft

Chapter 4


Practical Steps to


Establish a Code of Ethics

Communicate code of ethics to both inside and outside the company

Develop ethical standards and procedures specific to business

5.2

http://www.nortelnetworks.com

Web Link

http://www.nortelnetworks.com/

Chapter 4


Ethics Training

Ethics Training

Develops employee awareness of ethics

Achieves credibility with employees

Teaches a practical model of ethical

decision making

5.3

http://ethics.bellsouth.com

“Ethics Scenarios Game”

Web Link

http://ethics.bellsouth.com/

Chapter 4


Ethics Training

Tower Records

Lockheed

Boeing

Bell South

U.S. Dept. of

Justice

3M

City of

Philadelphia

And more require employees to take ethics training

Chapter 4


A Basic Model of


1. Identify the problem

2. Identify the constituents

3. Diagnose the situation

4. Analyze your options

5. Make your choice

6. Act


5.3

Chapter 4


Ethical Climate

Managers:

1. Act ethically

2. Are active in company ethics programs

3. Report potential ethics violations

4. Punish those who violate the code of ethics

Establishing an Ethical Climate

5.4

http://www.whistleblowers.org

Web Link

http://www.whistleblowers.org/

Chapter 4


What Is Social Responsibility?

After reading these sections,

you should be able to explain:

6. to whom organizations are socially responsible.

7. for what organizations are socially responsible.

8. how organizations can choose to respond to

societal demands for social responsibility.

9. whether social responsibility hurts or helps an

organization’s economic performance.

Chapter 4



Social Responsibility

A business’s obligation to…

pursue policies

make decisions

take actions that benefit society

Chapter 4



Recall from

Chapter 3 that

PETA and

Procter &

Gamble have

an ongoing

disagreement

about what is

socially

responsible.

Chapter 4


To Whom Are Organizations

Socially Responsible?

Stakeholder

Model

Satisfy Interests

of Multiple Stakeholders

Shareholder

Model

Maximize Profits

6

Chapter 4


Pros

Shareholder Model

Firm maximizes

shareholder wealth and

satisfaction

The company stock

increases in value

6

Cons

Organizations cannot act

effectively as moral agents

for shareholders

Time, money, and attention

diverted to social causes

undermine market

efficiency

Chapter 4


Stakeholder Model

Primary

Stakeholders:

Shareholders

Employees

Customers

Suppliers

Governments

Local Communities

Secondary

Stakeholders:

Media

Special Interest Groups

Trade Associations

6

Chapter 4


Organization’s Social Responsibilities

Abide by principles of right and wrong

Obey laws and

regulations

Ethical

Legal

Economic

Discretionary

Be profitable

Serve a social role

7

$

?

Chapter 4


Responses to Demands

for Social Responsibility

8

Reactive Defensive Accommo-

dative Proactive

Fight all

the way

DO

NOTHING

DO

MUCH

Withdrawal

Do only what

is required

Legal

Approach Bargaining

Problem

Solving

Public

Relations

Approach

Be

progressive

Lead the

industry

Chapter 4


Social Responsibility and

Economic Performance

Realities of Social

Responsibility

Can cost a company

Sometimes it does pay

Does not guarantee profitability

9

Chapter 4

Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved

Solve the Dilemma

Customer Privacy

• Checkers Pizza offered home delivery first but the larger pizza

chains soon took away their competitive advantage

• Jon Barnard, Checker’s founder, developed a database to

track phone customer’s orders, and regain his advantage

• Using information from the database, Barnard planned to

reward the family who ordered the most pizzas

• But, would that family want the recognition?

? What are some of the ethical issues in giving customers an

award for consumption behavior without notifying them first?

? Do you see this as a potential violation of privacy? Explain.

? How would you handle the situation if you were Barnard? 2-48

Documents

Chapter 4 Ethics and Social Responsibility - UPJocw.upj.ac.id/files/Slide-MGT201-Slide05.pdf · Ethics and Social Responsibility . ... Workplace Behavior? After reading these sections,