Upload
aizuddinzaihan
View
214
Download
0
Embed Size (px)
Citation preview
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
1/44
Week 7
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
2/44
Social Responsibility and Managerial Ethics
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
3/44
Social Responsibility andManagerial Ethics
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
4/44
LEARNING OUTLINE .
What Is Social Responsibility?Contrast the classical and socio-economicviews of social responsibility.
Discuss the role that stakeholders play inthe four approaches to social
responsibility.
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
5/44
LEARNING OUTLINE (cont d)
Social Responsibility and Economic
PerformanceExplain what research studies have shownabout the relationship between anorganizations social involvement and itseconomic performance.
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
6/44
LEARNING OUTLINE (cont d) .
Values-based Management
Discuss the four purposes that sharedvalues serve.
Describe the relationship of values-basedmanagement to ethics.
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
7/44
LEARNING OUTLINE (cont d) Managerial Ethics
Contrast the four views of ethics.
Discuss the factors that affect ethical and
unethical behavior.Discuss the six determinants of issue intensity.
Explain codes of ethics and how their effectiveness can be improved.
Describe the important roles managers play inencouraging ethical behavior.
Discuss how managers and organizations canprotect employees who raise ethical issues or
concerns.
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
8/44
What Is Social Responsibility? The Classical View
Maximize profits for the benefit of the stockholdersDoing social good unjustifiablyincreases costs
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
9/44
What Is Social Responsibility? (contd)
The Socio-economic View
Management should also protect andimprove societys welfare Corporations are responsible not onlyto stockholdersFirms have a moral responsibility tolarger society to do the right thing
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
10/44
Approaches to Social Responsibility
Adapted from S.L. Wartick and P.L. Cochran, The Evolution of the Corporate Social PerformanceModel, Academy of Management Review , October 1985, p. 766.
Defensive Approach
Minimal commitment
to social responsibility
Accommodative Approach
Moderate commitment
to social responsibility
Proactive Approach
Strong commitment
to social responsibility
Obstructionist Approach
Disregard for social
responsibility
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
11/44
Arguments For and Against Social Responsibility
For
Public expectationsLong-run profitsEthical obligationPublic image
Superiority of prevention over cure
For
Better environmentDiscouragement of further governmentalregulationBalance of responsibilityand powerStockholder interestsPossession of resources
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
12/44
Arguments For and Against Social Responsibility
Against Violation of profit maximizationDilution of purposeCosts
Too much powerLack of skillsLack of accountability
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
13/44
Values-based Management Values-based Management
Managers establish and uphold anorganizations shared values
Purposes of Shared ValuesGuiding managerial decisionsShaping employee behavior Influencing the direction of marketing effortsBuilding team spirit
The Bottom Line on Shared Corporate ValuesAn organizations values are reflected in thedecisions and actions of its employees
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
14/44
Purposes of Shared Values
Build Team Spirit Guide Managers '
Decisions and Actions Shape Employee
behavior Influence
Marketing Efforts
SHARED ORGANIZATIONAL
VALUES
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
15/44
Cust. satisfaction 77%
Ethics/integrity 76%Accountability 61%
Respect others 59%
Open comm. 51%
Profitability 49%
Teamwork 47%
Innovation 47%
Cont. learning 43%
Source : AMA Corporate Values Survey, (www.amanet.org), October 30, 2002.
Positive environ. 42%
Diversity 41%Community service 38%
Trust 37%
Social responsibility 33%
Security/safety 33%
Empowerment 32%
Job satisfaction 31%
Have fun 24%
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
16/44
Managerial Ethics Ethics Defined
The rules and principles that define
right and wrong conductFour Views of Ethics
Utilitarian view
Rights viewTheory of justice viewIntegrative social contracts theory
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
17/44
Managerial Ethics (cont d)
Utilitarian ViewGreatest good is provided for
the greatest number Encourages efficiency and
productivity and is consistentwith the goal of profitmaximization
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
18/44
Managerial Ethics (cont d) Rights View
Respecting and protecting
individual liberties andprivileges Seeks to protect individual
rights of conscience, freespeech, life and safety, anddue process
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
19/44
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
20/44
Managerial Ethics (cont d) Integrative Social Contracts Theory
Ethical decisions should be basedon existing ethical norms inindustries and communities Based on integration of the
general social contract and thespecific contract betweencommunity members
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
21/44
Factors That Affect Ethical and Unethical Behavior
Ethical Dilemma
Stage of Moral Development
Organizational Culture
Structural Variables
Individual Characteristics
Issue Intensity
Moderators Ethical/Unethical Behavior
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
22/44
Factors Affect Employee Ethics Stages of moral developmentIndividual characteristics
Structural variablesOrganizational cultureIssue intensity
A measure of independence from outside influencesLevels of Individual Moral Development
Pre-conventional levelConventional level
Principled level
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
23/44
Factors Affect Employee Ethics Stages of moral developmentIndividual characteristics
Structural variablesOrganizational cultureIssue intensity
Stage of moral development interacts with:Individual characteristicsThe organizations structural design The organizations culture
The intensity of the ethical issue
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
24/44
Stages of Moral Development
Based on L. Kohlberg, Moral Stages and Moralization: The Cognitive -DevelopmentApproach, in T. Lickona (ed.). Moral Development and Behavior: Theory, Research, and Social
Issues (New York: Holt, Rinehart & Winston, 1976), pp. 34 35.
6. Following self -chosen ethical principles even if they violate the law
5. Valuing rights of others and upholding absolutev alues and rights regardless of the majority
sopinion
4. Maintaining conv entional order by f ulf illing obligationsto which y ou hav e agreed
3. Liv ing up to what is expected by people close to y ou2. Following rules only when doing so is in your immediate interest
1. Sticking to rules to av oid phy sical punishment
Preconventional
Conv entional
Lev el Description of Stage
Principled
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
25/44
Factors Affect Employee Ethics Stages of moral developmentIndividual characteristics
Structural variablesOrganizational cultureIssue intensity
Research Conclusions: People proceed through the stages of moral development sequentially There is no guarantee of continued moral development Most adults are in Stage 4 (good corporate citizen)
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
26/44
Stages of moral developmentIndividual characteristics
Structural variablesOrganizational cultureIssue intensity
Values Basic convictions about what is right or wrong on a broad range of issuesEgo strength A personality measure of the strength of a persons convictions
Factors Affect Employee Ethics
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
27/44
Stages of moral developmentIndividual characteristics
Structural variablesOrganizational cultureIssue intensity
Locus of ControlA personality attribute that measures the degree to which people
believe they control their own life Internal locus: the belief that you control your destiny
External locus:
the belief that what happens to you is due to luck or chance
Factors Affect Employee Ethics
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
28/44
Stages of moral developmentIndividual characteristicsStructural variablesOrganizational cultureIssue intensity
Organizational characteristics and mechanisms thatguide and influence individual ethics:
Performance appraisal systems Reward allocation systems Behaviors (ethical) of managers An organizations culture Intensity of the ethical issue
Factors Affect Employee Ethics
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
29/44
Stages of moral developmentIndividual characteristics
Structural variablesOrganizational cultureIssue intensity
Good structural design minimizes ambiguityand uncertainty and fosters ethical behavior
Factors Affect Employee Ethics
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
30/44
Stages of moral developmentIndividual characteristics
Structural variablesOrganizational cultureIssue intensity
Cultures high in risk tolerance, control, andconflict tolerance are most likely to encouragehigh ethical standards
Weak cultures have less ability to encourage high
ethical standards
Factors Affect Employee Ethics
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
31/44
Determinants of Issue Intensity
Issue Intensity
Consensus of Wrong
Proximity to Victim(s)
Concentration of Effect
Greatness of Harm
Immediacy of Consequences
Probability of Harm
How many people will be harmed?
How concentrated is the effect of the
action on the victim(s)?
How likely is it that this action
will cause harm?
Will harm be felt immediately?
How much agreement is there that this action is wrong?
How close are the potential victims?
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
32/44
Ethics in an International Context Ethical standards are not
universalSocial and cultural differencesdetermine acceptable Behaviors
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
33/44
The Global Compact Human Rights
Principle 1: Support and respectthe protection of internationalhuman rights within their sphere of influencePrinciple 2: Make sure businesscorporations are not complicit inhuman rights abuses
Source: The Global Compact Web Site (www.unglobalcompact.org), November 7, 2004.
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
34/44
The Global Compact Labor Standards
Principle 3: Freedom of association andthe effective recognition of the right to
collective bargainingPrinciple 4: Eliminate all forms of forcedand compulsory labour
Principle 5: Abolish child labour Principle 6: Eliminate discrimination inrespect of employment and occupation
Source: The Global Compact Web Site (www.unglobalcompact.org), November 7, 2004.
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
35/44
The Global Compact (cont d) Environment
Principle 7: Support a precautionaryapproach to environmental challenges
Principle 8: Undertake initiatives topromote greater environmentalresponsibilityPrinciple 9: Encourage the developmentand diffusion of environmentally friendlytechnologies
Source: The Global Compact Web Site (www.unglobalcompact.org), November 7, 2004.
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
36/44
The Global Compact (cont d) Anticorruption
Principle 10: Work against all formsof corruption, including extortionand bribery
Source: The Global Compact Web Site (www.unglobalcompact.org), November 7, 2004.
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
37/44
How To Improve Ethical Behavior in an Organization
Hire individuals with high ethicalstandards.
Establish codes of ethics anddecision rules.
Lead by example.
Delineate job goals andperformance appraisal mechanisms.
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
38/44
How To Improve Ethical Behavior in an Organization
Provide ethics training.
Conduct independent socialaudits.
Provide support for individuals
facing ethical dilemmas.
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
39/44
Code of Ethics
A formal statement of an organizationsprimary values and the ethical rules itexpects its employees to follow
Be a dependable organizational citizenDont do anything unlawful or improper that will harm the organization
Be good to customers
F.R. David, An Empirical Study of Codes of Business Ethics: A Strategic Perspective.Paper presented at the 48 th Annual Academy of Management Conference, Anaheim, California,August 1988.
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
40/44
Effective Use of a Code of Ethics
Develop a code of ethics to guidedecision making
Communicate the code regularlyHave all levels of managementshow commitment to the code
Publicly reprimand and consistentlydiscipline those who break thecode
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
41/44
Examining Ethics
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
42/44
Ethical Leadership Managers must provide a good role model by:
Being ethical and honest at all times
Telling the truth
Admitting failure and not trying tocover it up
Communicating shared ethical valuesto employees through symbols, stories,and slogans
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
43/44
Ethical Leadership Managers must provide a good role model by:
Rewarding employees who behave
ethically and punishing those who donot
Protecting employees ( )who bring to light unethical behaviorsor raise ethical issues
7/30/2019 SPE3002 Entrerpeneurship - Education on Ethics and Socia (1)
44/44
The Value of Ethics Training Training can make a difference inethical behaviorsTraining increases employee awarenessof ethical issues in business decisionsTraining clarifies and reinforces thestandards of conduct
Employees are more confident of support when taking unpopular butethically correct stances