Mgt & Org Behavior- Chapter 5

c

Which of the following refers to the code of moral principles and values that govern behaviors with respect to what is right and wrong? a. Social responsibility b. Free domain c. Ethics d. Codified law e. Discretionary responsibility

b

An organization's decision to produce a new product is in the a. domain of codified law. b. domain of free choice. c. domain of ethics. d. domain of compensatory justice. e. domain of social responsibility.

a

A new drug has not been approved by the FDA to sell in the U.S. because further testing is needed. The company has a chance to sell its product in another country immediately to start recovering the costs of R & D and production three years ahead of time. This example places the decision in which of the categories from the text? a. The ethical domain b. The domain of free choice c. The legal domain d. The obstructive category e. The protective domain

d

Which of the following is a(n) is the individual who must make an ethical choice in an organization? a. The symbolic leader b. An obstructive manager c. The defensive individual d. The moral agent e. An authoritarian manager

a

Sharon is a manager at Softest Tissue Corporation. She is faced with an interesting problem. One of her employees has been cheating the company out of expense money. Sharon must decide whether or not to fire this employee. In this role, Sharon is acting as a. a moral agent. b. an ethical theorist. c. a symbolic leader. d. an authoritarian leader. e. an obstructive manager.

b

The assumption that "If it's not illegal, it must be ethical," ignores which of the following? a. Domain of codified law b. Domain of ethics c. Domain of free choice d. Discretionary responsibility e. Domain of symbolism

c

A situation that arises when all alternative choices or behaviors have been deemed undesirable because of the potentially negative ethical consequences, making it difficult to distinguish right from wrong, is considered a. a moral agent. b. a social responsibility. c. an ethical dilemma. d. an ethical standard. e. discretionary responsibility.

b

A normative approach to ethical decision making a. reduces ethical dilemmas to easy-to-understand formulas. b. uses various approaches to describe guiding values for decisions. c. states that everyone must use their employer's value system at work. d. dictates only one way to choose to resolve dilemmas. e. none of these.

c

Which approach is the ethical concept that moral behaviors produce the greatest good for the greatest number? a. Defensive b. Justice c. Utilitarian d. Individualism e. Moral-rights

a

Robbie's Robots decided to continue operations at one plant while shutting down another. The decision was justified on the basis of what was best for the total corporation. This is an example of the a. utilitarian approach. b. individualism approach. c. moral-justice approach. d. justice approach. e. illegal approach.

a

Caleb is a manager at Computer-Care Company. He is expected to consider the effort of each decision alternative on all parties and select the one that optimizes the satisfaction for the greatest number of people. This is an example of the a. utilitarian approach. b. individualism approach. c. moral-justice approach. d. justice approach. e. soft-line managerial approach.

b

Which ethical approach are companies citing to justify their policing of employee's personal habits on and off the job, such as alcohol and tobacco consumption? a. Justice approach b. Utilitarian approach c. Individualism approach d. Moral-justice approach e. Discretionary responsibility

e

The ____ ethic was the basis for the state of Oregon's decision to extend Medicaid to 400,000 previously ineligible recipients by refusing to pay for high-cost, high-risk procedures. a. justice b. moral-rights c. obstructive d. individualism e. utilitarian

b

When everyone is pursuing self-direction, the greater good is ultimately served because people learn to accommodate each other in their own long-term interest is an example of ____. a. utilitarian approach b. individualism approach c. moral-justice approach d. justice approach e. social responsibility

c

Which of the following is NOT a normative ethics approach? a. Utilitarian approach b. Individualism approach c. Social responsibility approach d. Moral-rights approach e. All of these are normative approaches as described in the text.

c

The golden rule "do unto others as they would do unto you" is a. an example of the utilitarian approach to ethical behavior. b. representative of the moral-justice approach to moral decision making. c. an example of the values that guide the individualism approach to ethical behavior. d. silly and outdated. e. an example of the justice approach to ethical behavior.

c

Human beings have fundamental rights and liberties that cannot be taken away by another individual's decision. This ethical decision making approach is known as the a. utilitarian approach. b. individualism approach. c. moral-rights approach. d. dualism approach. e. None of these.

d

The ____ refers to the ethical concept that moral decisions are those that best maintain the rights of those people affected by them. a. individualism approach b. justice approach c. utilitarian approach d. moral-rights approach e. discretionary responsibility approach

b

Which of the following is NOT one of the moral rights that could be considered during decision-making? a. The right to free consent b. The right to invade privacy c. The right to free speech d. The right of freedom of conscience e. The right to life and safety

c

____ refers to the concept that different treatment of people should not be based on arbitrary characteristics. a. Procedural justice b. Compensatory justice c. Distributive justice d. Organizational justice e. Moral-justice

b

Individualism is most closely related to a. social responsibility. b. free choice. c. economic responsibility. d. codified law. e. togetherness.

a

____ to ethical decision-making is consistent with due process, free consent, privacy, freedom of conscience and free speech. a. Moral-rights approach b. Individualism approach c. Utilitarian approach d. Justice approach e. Dual-economic approach

d

Sexual harassment is unethical because it violates an important part of which approach to ethical behavior? a. The utilitarian approach b. The individualism approach c. The justice approach d. The moral-rights approach e. The defensive approach

d

The ethical decision approach that requires persons to be guided by standards of equity, fairness and impartiality is the a. moral-rights approach. b. individualism approach. c. utilitarian approach. d. justice approach. e. discretionary responsibility.

a

The moral rights approach that deals with performing experimental treatment on unconscience trauma patient is the a. right of free consent. b. right to privacy. c. right of freedom of conscience. d. right of free speech. e. right of due process.

d

Which of the following is not a concern to managers under the justice approach? a. Compensatory justice b. Distributive justice c. Procedural justice d. Obstructive justice e. All of these

a

Disk Replacement Services has just completed a procedure manual to handle employee grievances. One of the main criteria is to make it clear to employees that rules will be administered fairly and consistently. Disk Replacement operates on a. the procedural justice approach. b. the utilitarian approach. c. the individual approach. d. the defensive approach. e. the free-choice approach.

b

Which of these refers to procedural justice? a. The concept that different treatment of people should not be based on arbitrary characteristics b. The concept that rules should be clearly stated and consistently and impartially enforced c. The concept that individuals should be compensated for the cost of their injuries by the party responsible d. The concept that people should be treated differently e. None of these

e

The concept that the party responsible should compensate individuals for the cost of their injuries is referred to as a. distributive justice. b. injury justice. c. procedural justice. d. organizational justice. e. compensatory justice.

c

The thinking underlying the domain of ____ is the closest to the justice approach. a. social responsibility b. free choice c. law d. discretionary responsibility e. ethics

d

Most of the laws guiding human resource management are based on the a. utilitarian approach. b. moral-rights approach. c. individualism approach. d. justice approach. e. collectivism approach.

e

____ is NOT included in the model of personal moral development described in your text. a. Preconventional level b. Conventional level c. Principled level d. Postconventional level e. All of these are included in the model

a

In what stage of personal moral development is a person mostly concerned with external rewards and personal consequences of an action? a. Preconventional b. Conventional c. Principled d. Discretionary e. None of these

b

Most people have learned to conform to expectations of good behavior expected by colleagues, family, friends, and society. They are in what stage of moral development? a. Preconventional b. Conventional c. Discretionary d. Principled e. Traditional

d

Which of these best illustrates the preconventional stage of moral development? a. Everybody else is doing it, so it must be okay. b. What would my boss think if I did this? c. I know this is not right, and I will not do it, even if everyone else is. d. What am I going to get from making this decision? e. All of these

b

The conventional stage of moral development is best described by which of the following statements? a. I won't do that because the boss will be upset with me. b. Everybody else is doing it, so it must be okay. c. I know this is not right, and I will not do it, even if everyone else is. d. What am I going to get from making this decision? e. All of these

a

The ____ leadership style matches with the preconventional level of personal moral development. a. autocratic b. team oriented c. servant leadership d. guiding/encouraging e. transforming

b

____ matches with the preconventional level of personal moral development. a. Work group collaboration b. Task accomplishment c. Empowered employees d. Full participation e. Transforming

c

Which of these employee behaviors matches with the conventional level of personal moral development? a. Task accomplishment b. Empowered employees c. Work group collaboration d. Full participation e. Act in own interest

c

Which of the following stages is the stage of personal moral development in which an individual develops an internal set of standards and values? a. Preconventional b. Conventional c. Principled d. Discretionary e. Social

c

People making decisions based on an internal set of beliefs that has more meaning to them than the expectations of others a. are in the preconventional level of moral development. b. are in the conventional level of moral development. c. are in the principled level of moral development. d. do not care what people think of them. e. none of these.

e

____ matches with the postconventional level of personal moral development. a. Team oriented b. Autocratic c. Guiding/encouraging d. Coercive e. Servant leadership

a

Which of these employee behaviors matches with the postconventional level of personal moral development? a. Empowered employees, full participation b. Task accomplishment c. Act in own interest d. Work group collaboration e. Autocratic

c

The great majority of managers operate at the a. preconventional level. b. principled level. c. conventional level. d. postconventional level. e. autocratic level.

e

Only about ____ percent of American adults reach the level-three stage of moral development. a. two b. four c. eleven d. fifteen e. twenty

d

Regarding the levels of personal moral development, the majority of managers operate at the ____ level. a. preconventional b. autocratic c. postconventional d. conventional e. transformative

b

MANAGER'S SHOPTALK in Chapter 5 suggests all of the following when challenging the boss on ethical issues EXCEPT: a. do your research b. begin the meeting by taking the floor c. pay attention to your word choice and demeanor d. take care how you suggest your alternative solution e. be patient

b

The obligation of organization management to make decisions and take actions that will enhance the welfare and interests of society as well as the organization is referred to as a. organizational responsibility. b. social responsibility. c. discretionary responsibility. d. economic responsibility. e. none of these.

a

Which of these is true about the policy a bank adopts toward its investing of depositor's money? a. It is an expression of its philosophy of social responsibility. b. It is important only to the community. c. It has no ethical implications. d. It would represent its personal state of moral development. e. All of these.

c

Any group within or outside the organization that has a stake in the organization's performance is called a. a supplier. b. an international customer. c. a stakeholder. d. OPEC. e. a trade association.

e

Primary stakeholders of an organization include a. employees. b. customers. c. investors and shareholders. d. suppliers. e. all of these.

d

All of the following are examples of special interest groups EXCEPT a. professional associations. b. trade associations. c. political action committees. d. courts. e. consumerists.

d

What type of a stakeholder would a nature conservation group be for a paper manufacturing company? a. Supplier b. Competitor c. Employee d. Special interest group e. None of these

a

With a philosophy of ____, managers weave environmental and social concerns into every strategic decision, revise policies and procedures to support these efforts and goals. a. sustainability b. conservation c. ethics d. preservation e. human concerns

c

____ is economic development that generates wealth and meets the needs of their current generation while focusing on future generations. a. Ethical management b. Activist strategy c. Sustainability d. Market strategy e. Future management

e

Which of the following concepts argues that organizations can find innovative ways to create wealth at the same time they are preserving natural resources? a. Preservation b. Conservation c. Environmentalism d. Protectionism e. Sustainability

d

According to the book's model for judging corporate social performance, social responsibility is divided into what into four sections? a. Ethical, legal, technical, and rational b. Mandatory, technical, discretionary, and economic c. Legal, mandatory, economic, and ethical d. Discretionary, legal, economic, and ethical e. None of these

b

____ is considered a decision that enables an individual or company to benefit at society's expense. a. A legal behavior b. An unethical behavior c. An economic responsibility d. A discretionary responsibility e. A responsible behavior

c

____ includes behavior that is not always written down and may actually not serve an organization's bottom-line. a. Legal responsibility b. Economic responsibility c. Ethical responsibility d. Discretionary responsibility e. None of these

d

With respect to appropriate corporate behavior, what society deems ____ as important. a. ethical responsibility b. discretionary responsibility c. economic responsibility d. legal responsibility e. moral responsibility

d

Which of the following responsibilities is purely voluntary and is guided by a company's desire to make social contributions not mandated by economics, law, or ethics? a. Ethical b. Economic c. Legal d. Discretionary e. Stakeholder

b

____ is the responsibility that goes beyond societal expectations to contribute to the community welfare. a. Ethical responsibility b. Discretionary responsibility c. Economic responsibility d. Legal responsibility e. Technical responsibility

a

____ means that managers are honest and trustworthy, fair in their dealings with employees and customers, and behave ethically in both their personal and professional lives. a. Ethical leadership b. Followership c. Corporate espionage d. Command-and-control approach e. Concern for production leadership

d

A code of ____ is a formal statement of the company's values concerning ethics and social issues. a. integrity b. trust c. citizenship d. ethics e. honesty

a

Statements that define fundamental values and reference organizational responsibilities, products and employees are often called ____. a. principle-based b. policy-based c. ethically-based d. codified e. codes of organizational integrity

a

An example of an ethical structure is a. chief ethics officer. b. a formal statement of company values. c. an equal opportunity policy. d. whistle-blowing. e. corporate speech.

b

When an official is given the responsibility of overseeing all aspects of ethics and legal compliance. S/he is referred to as a. a whistle-blower. b. a chief ethics officer. c. vice-president of human resource management. d. a yes-man. e. a political play.

b

Which of these is the disclosure by an employee of an illegal activity? a. Tattling b. Whistle-blowing c. Organizational communication d. The filing of a disclosure statement e. Snooping

e

____ is not part of the structures and systems pillar of an ethical organization. a. Corporate culture b. Code of ethics c. Ethics committee d. Whistle-blowing mechanisms e. Rewarding ethical behavior

b

The relationship between social responsibility and financial performance has been shown to be ____. a. non-existent b. positive c. negative d. not important e. a reflection of top leadership

c

Anne Chinoda, top executive at Florida Blood Centers, is under pressure to resign because she took a $71,000 pay increase just months before she laid off 42 employees. Chinoda's decision lies in the a. domain of codified law b. domain of free choice c. domain of ethics d. domain of social responsibility e. none of these

d

A recent poll found that ________ percent of people surveyed say corporate America's moral compass is pointing in the wrong direction a. 10 b. 29 c. 52 d. 76 e. 98

c

When the USS Indianapolis sank after being torpedoed, one Navy pilot disobeyed orders and risked is life to save men who were being picked off by land sharks. The Navy pilot was operating from the ________ level of moral development a. preconventional b. conventional c. postconventional d. lowest e. conservative

a

The profit-maximizing view of economic responsibility is advocated by ________. a. milton friedman b. arthur anderson c. donald trump d. warren buffett e. steve jobs

e

Of the following, which may whistle-blowers suffer? a. job loss b. ostracism by coworkers c. transfer to lower-level position d. hostile work environment e. all of the above

e

Examples of unethical behavior toward ________ include a hostile work environment and violations of health and safety rules a. customers b. financiers c. society d. suppliers e. employees

b

The decision by ABC International to downsize and reduce its labor force is in the a. domain of codified law b. domain of free choice c. domain of ethics d. social responsibility e. none of these

How are laws, ethics, and free choice different

legal choices by government, based on the human culture of what's right, and free choice is not governed only opinionated.

List/discuss* 4 different approaches to ethical decision-making.

utilitarian, individualism, moral rights approach, and justice approach.

Describe the 3 levels of personal moral development. List examples of leadership styles and employee behaviors for each.

pre conventional: follows rules to avoid punishment. Acts in own interest. Obedience for its own sake., conventional: lives up to expectations of others. Fulfills duties and obligations of social system, upholds laws., post conventional: follows self-chosen principles of justice and right. Aware that people hold different values and seeks creative solutions to ethical dilemmas. Balances concern for individual with concern for common good.

List the 3 major goals of sustainable development

organizational stakeholders, the green movement,

What is corporate social responsibility?

management's obligation to make choices and take actions that will contribute to the welfare and interests of society as well as the organization.

chief ethics officer

A company executive who oversees ethics and legal compliance.

code of ethics

A formal statement of the organization's values regarding ethics and social issues.

compensatory justice

The concept that individuals should be compensated for the cost of their injuries by the party responsible and also that individuals should not be held responsible for matters over which they have no control.

corporate social responsibility

The obligation of organization management to make decisions and take actions that will enhance the welfare and interests of society as well as the organization.

discretionary responsibility

Organizational responsibility that is voluntary and guided by the organization's desire to make social contributions not mandated by economics, law, or ethics.

distributive justice

The concept that different treatment of people should not be based on arbitrary characteristics. In the case of substantive differences, people should be treated differently in proportion to the differences among them.

ethical dilemma

A situation that arises when all alternative choices or behaviors are deemed undesirable because of potentially negative consequences, making it difficult to distinguish right from wrong.

ethics

The code of moral principles and values that governs the behaviors of a person or group with respect to what is right or wrong.

ethics committee

A group of executives assigned to oversee the organization's ethics by ruling on questionable issues and disciplining violators.

ethics training

Training programs to help employees deal with ethical questions and values.

individualism approach

The ethical concept that acts are moral when they promote the individual's best long-term interests.

justice approach

The ethical concept that moral decisions must be based on standards of equity, fairness, and impartiality.

moral-rights approach

The ethical concept that moral decisions are those that best maintain the rights of those people affected by them.

practical approach

The ethical concept which sidesteps debates about what is right, good, or just, and bases decisions on prevailing standards of the profession and the larger society, taking the interests of all stakeholders into account.

procedural justice

The ethical concept that rules should be clearly stated and consistently and impartially enforced.

stakeholder

Any group within or outside the organization that has a stake in the organization's performance.

sustainability

Economic development that generates wealth and meets the needs of the current population while preserving the environment for the needs of future generations.

utilitarian approach

The ethical concept that moral behaviors produce the greatest good for the greatest number.

virtue ethics approach

The ethical concept that says moral behavior stems from personal virtues. If a manager develops good character traits and learns to overcome negative traits, he or she will make ethical decisions based on personal virtue.

whistle-blowing

The disclosure by an employee of illegal, immoral, or illegitimate practices by the organization.

Describe the organization's 4 primary criteria for total corporate social responsibility.

Discretionary responsibility, ethical responsibility, legal responsibility, economic responsibility

Describe 3 primary mechanisms to manage company ethics and social responsibility.

code of ethics, ethical structures, whistle-blowing

Ethics

set of morals that define right and wrong

Workplace deviance

Unethical behavior that violates company norms about right and wrong

examples of workplace deviance

Computer fraud , Vandalizing company property, Sabotaging company projects, Faking injuries to get insurance money, Taking "sick days" when not sick

TYPES OF WORKPLACE DEVIANCE

Production, Property, Political, Personal

Production Deviance

Unethical behavior that hurts quality and quantity of work

Political Deviance

Using one's influence to harm others kin the company

Personal Aggression

Hostile or aggressive behavior towards others

Property Deviance

Unethical behavior aimed at property or products Sabotaging Equipment, Stealing, Lying about hours worked

Examples of Production Deviance

Leaving early, Excessive breaks, wasting resources

Examples of Political Deviance

Favoritism, Gossiping about Coworkers, Blaming coworkers

Examples of Personal Aggression

Sexual harassment, verbal abuse, stealing from coworkers

Examples of Property Deviance

Sabotaging Equipment, Stealing, Lying about hours worked

Social Responsibility

A business's obligation to pursue policies, make decisions, and take actions that benefit society.

Examples of Social responsibility

Give back Offer free outdoor concerts Recycle Produce "green" products

Legal Responsibility

Follow laws. Example, Employee Safety

Ethical Responsibility

Follow principles of right/wrong. Example, News corporation shut down News of the World

Discretionary Responsibility

Fulfill social roles. Example, Hurricane Sandy

Economic Responsibility

Make a profit because Companies that don't make a profit, come under pressure. Example, JCP CEO fired after 1 year

Does it financially pay off for a business to be socially responsible?

It doesn't guarantee business's success but it wont make a business less profitable.

What does each letter in SWOT stand for?`

Strengths, Weaknesses, Opportunities, Threats.

Why do companies use SWOT analysis?

It creates a strategy to improve, Identify current growth and problems, etc

Ethics

Set of morals that define right and wrong

Whistleblower

Person who alerts authorities when something unethical is happening

Moral Development

Your personal Level of Honorable Growth

2 Steps managers can take to increase ethical decision making at an organization?

Ethics training, ethics test.

U.S. commission Guidelines

Punish For unethical Behavior and encourage companies to discourage crime

Factors to determine level of offense?

Selfish reasons, Advance own wants and needs, Conform to society's ways, Follow the law, For society's Benefit, For your own personal benefit

Code of moral principles and values that govern the behaviors of a person or group with respect to what is right or wrong

Ethics

1) Codified law (Legal standard)
2) Domain of Ethics (Social Standards)
3) Domain of Free Choice (Personal Standards)

Three categories of human behavior

1) Shows kindness and compassion
2) Honest and Integrity
3) Communicates and enforces ethical standards through behavior
4) Is fair in decisions and distribution of rewards

Four types of ethical manager behavior

true

True or false: There is generally a positive relationship between ethical and socially responsible behavior and a firm's financial performance

Moral behavior produces the greatest good for the greatest number

Utilitarian Approach

Acts are moral when the promote the individual's best long-term interests. In theory, with everyone pursuing self-direction, the greater good is ultimately served b/c people learn to accommodate each other

Individualism Approach

It is misinterpreted to support immediate self-gain

Why isn't the individualism approach popular in today's society?

An ethical decision is the one that best maintains the rights of those affected by it.

Moral-Rights Approach

Moral decisions must be based on standards of equity, fairness, and impartiality.

Justice Approach

1) Distributive justice: different treatment of people should not be based on arbitrary characteristics. ex: men & women with unequal pay
2) Procedural: Rules must be administered fairly. Clearly stated, consistently and impartially enforced
3) Compensatory: Individuals should be compensated for the cost of their injuries by the party responsible

Three types of justice

Sidesteps what is right, good, or just and bases decisions on prevailing standards of the profession and the larger society, taking the interests of all stakeholders into account.

Practical Approach

practical approach

Which approach combines elements of three other approaches?

1) Preconventional: Follows rules to avoid punishment. self-interest
2) Conventional: Fulfills duties and obligations of social system, upholds laws
3) Postconventional: Follows self-chosen principles of justice, internal values

Stages of Moral Development

False; 20 %

True or false: 40% of American adults reach the postconventional stage of moral development

Management's obligation to make choices and take actions that will contribute to the welfare and interests of society, not just the organization. Hard to define

Corporate Social Responsibility

Group or person within or outside the organization that has some type of investment or interest in the organization's performance and is affected by the organization's actions.

Stakeholder

Providing a systematic way to identify the expectations, needs, importance, and relative power of various stakeholders, which may change over time

Stakeholder Mapping

customers, regulatory authorities, stockholders, employees, suppliers, gov, special interest groups, partners, human rights organizations, trade unions, creditors, nongov organizations, communities

Examples of stakeholders

Economic development that generates wealth and meets the needs of the current generation while preserving the environment and society so that future generations can meet their needs as well.

Sustainability

Measuring a company's social performance, its environmental performance, and its financial performance. Sometimes called the three P's

Triple Bottom Line

1) Economic; be profitable.
2) Legal; don't break law
3) Ethical; self-explanatory
4) Discretionary; voluntary, guided by company's desire to make social contributions not mandated by the other layers.

4 layers of corporate social responsibility

Economic responsibility carried to the extreme; sole mission to increase profits so long as it stays within the rules of the game

Profit-maximizing view

Organization pursues a positive human impact, moral goodness, and unconditional society betterment for its own sake.

Organizational Virtuousness

Ethical leadership, codes of ethics, ethics committees. chief ethics officer, ethics hotlines, ethics training, support for whistle-blowers

Ways that managers can support and create an ethical organization

definition: formal statement of a company's values concerning ethics and social issues
Two types: principle-based and policy-based

two types of code of ethics

Designed to affect corp. culture. Define values and general language about responsibilities, treatment of employees, etc

Principle-based code of ethics

Outline the procedures to be used in specific ethical situations.

Policy-based code of ethics

True

True or false: general statements of principle are often called corporate credos

Ethics

is the code of moral principles and values that governs the behaviors of a person or group with respect to what is right or wrong

ethical dilemma

is a situation in which all alternatives choices or behaviors have potentially negative consequences. right or wrong cannot be clearly distinguished

utilitarian approach

ethical decision making says that the ethical choice is the one that produces the greatest good for the greatest number

individualism approach

suggest that actions are ethical when they promote the individual's best long term interests, because with everyone pursuing self interest, the greater good is ultimately served

moral rights approach

holds that ethical decisions are those that best maintain the fundamental rights of the people affected by them

justice approach

says that ethical decisions must be based on standards of equity, fairness, and impartiality

distributive approach

requires that different treatment of individuals not be based on arbitrary characteristics

procedural justice

holds that rules should be clearly stated and consistently and impartially enforced

compensatory justice

argues that individuals should be compensated for the cost of their injuries by the party responsible, and individuals should not be held responsible for matters over which they have no control

practical approach

sidesteps debates about what is right, good, or just, and bases decisions on prevailing standards of the profession and the larger, society, taking the interests of all stakeholders into account

corporate social responsibility

refers to the obligation of organizational managers to make choices and take actions that will enhance the welfare and interests of society, as well as the organization

stakeholder

refers to any group or person within or outside the organization that has some type of investment or interest in the organization's performance

stakeholder mapping

provides a systematic way to identify the expectations needs, importance, and relative power of various stakeholders

sustainability

refers to economic development that generates wealth and meets the needs of the current population while preserving society and the environment for the needs of future generations

triple bottom line

companies that embrace sustainability measure performance in terms of financial performance, social performance, and environmental performance

discretionary responsibility

is purely voluntary and is guided by the organization's desire to make social contributions not mandated by economics, laws, or ethics

code of ethics

is a formal statement of the organization's values regarding ethics and social issues

ethics committee

is a group of executives(and sometimes lower-level employees as well) with overseeing company ethics by ruling questionable issues and disciplining violators

chief ethics officer

a manager who oversees all aspects of ethics and legal compliance

whistle blowing

the disclosure by employees of unethical, illegitimate, or illegal practices of the organization.

corporate social responsibility (CSR)

refers to the obligation of organizational managers to make choices and take actions that will enhance the welfare and interests of society, as well as the organization.

stakeholder

refers to any group or person within or outside the organization that has some type of investment or interest in the organizations performance.

primary stakeholders

shareholders, employees, customers, and suppliers.

other stakeholders

government, the community, and special interest groups.

stakeholder mapping

provides a systematic way to identify the expectations, needs, importance, and relative power of various stakeholders.

green movement

a special interest group of particular importance today.

sustainability

refers to economic development that generates wealth and meets the needs of the current population while preserving society and the environment for the needs of future generations.

triple bottom line

companies that embrace sustainability measure performance in terms of financial performance, social performance, and environmental performance.

survey

found that 90 percent of Americans agree that there are important "green" issues and problems, and 82 percent think that businesses should implement environmentally friendly practice.

evaluating company's social performance

uses four criteria: economic, legal, ethical, and discretionary.

profit-maximizing view

companies may get into trouble when they use economic criteria as their only measure of responsibility.

Discretionary responsibility

purely voluntary and is guided by the organization's desire to make social contributions not mandated by economics, laws, or ethics. Corporations that sent generous donations to Japan following the devastating earthquake and tsunami.

Ethical leadership

means that managers are honest and trustworthy, fair in their dealings with employees and customers, and behave ethically in both their personal and professional lives.

code of ethics

a formal statement of the company's values concerning ethics and social issues; it communicates to employees what the company stands for. Codes of ethics tend to exist in two types: principle-based statements and policy-based statements.

principle-based statements

are designed to affect corporate culture; they define fundamental values and contain general language about company responsibilities, quality of products, and treatment of employees.

policy-based statements

generally outline the procedures to be used in specific ethical situations, which include marketing practices, conflicts of interest, observance of laws, proprietary information, political gifts, and equal opportunities.

corporate credos

general statements of principle that guide making decisions that honor the company's responsibilities to employees, customers, the community, and stockholders. Google's code of conduct.

ethical structures

represent the various systems, positions, and programs that a company can undertake to encourage and support ethical behavior.

ethics committee

group of executives (and sometimes lower-level employees) appointed to oversee the company ethics. The committee provides rulings on questionable ethical issues and assumes responsibility for disciplining wrongdoers.

chief ethics officer

a company executive who oversees all aspects of ethics and legal compliance, including establishing and broadly communicating standards, ethics training, dealing with exceptions or problems, and advising senior managers in the ethical and compliance aspects of decisions.

whistle-blowing

employee disclosure of illegal, unethical, or illegitimate practices on the employer's part.

ethics

code of moral principles and value about what is right or wrong

Just because its not illegal does not mean that its ethical

...

If you're harming people, that is already an ethical issue

...

People have different views on what is ethical or not

...

ethical dilemma

situation in which all choices have negative consequences; cannot tell what is right or wrong

utilitarian, individualism, moral rights, justice, and practical approach

5 Ethical Decision Approaches

utilitarian approach

the ethical choice is the one that produces the greatest good for the greatest number

individualism approach

actions are ethical when they promote the individual's best long term interests, because when everyone else does that, the greater good is achieved

The individualism approach is rarely sued today because it can easily be used for wrong personal gains instead.

...

moral rights approach

ethical decisions are those that maintains the fundamental rights of the people affected by them

justice approach

ethical decisions must be based on equality, freedom, and impartiality

distributive, procedural, and compensatory justice

3 Types of justice approaches

distributive justice

different treatments of individuals should not be based on arbitrary characteristics (Ex: Men and women should not have different salaries)

procedural justice

rules should be clearly stated and enforced

compensatory justice

people should be compensated for the cost of their injuries by who is responsible and people should not be responsible for matters outside of their control

practical approach

sidesteps debates about good or bad and bases decisions on standards of the profession and society taking the interests of the stakeholders into account

Level 1: Preconventional, Level 2: Conventional, Level 3: Postconventional

3 Levels of Personal Moral Development

Level 1: Preconventional

acts on self interest to achieve rewards and avoid punishment; task accomplishment; autocratic/coersive

Level 2: Conventional

acts on societal expectations; for the group

Level 3: Postconventional

guided by their own internal values which are more important than societal expectations; transforming/servant leadership

corporate social responsibility

obligation of managers to make choices and actions that will enhance the welfare and interests of the org and society

stakeholder

any group or person outside of the org that has some sort of investment or interest in the org's performance

stakeholder mapping

provides a systematic way to identify the expectations, needs, importance, and relative power of various stakeholders

sustainability

the economic development that generates wealth anf meets the needs of the current population while preserving society and the environment for the needs of future generations

triple bottom line

companies that embrace sustainability and measure their performance in terms of finance, social and environmental performance

1. Economic Responsibility - Be profitable
2. Legal Responsibility - obey the law
3. Ethical Responsibility - Be ethical. Do what is right. Avoid harm.
4. Discretionary Responsibility - Contribute to the community, be a good corporate citizen

4 Criteria of Corporate Social Importance

discretionary responsibility

voluntary and is guided by the org/s desire to make social contributions that are not mandated by anything

code of ethics

a formal statement of the org's values regarding ethics and social issues

principle and policy based statements

2 types of code of ethics

Principle based statements

designed to affect corporate culture

Policy based statements

generally outline the procedures to be used in specific ethical situations

Corporate credos

general statements of principles

ethics committee

group of executives (or sometimes lower level employees) charged with overseeing company ethics by ruling on issues and disciplining violators

chief ethics officer

a manager who oversees all aspects of ethics and legal compliance

whistle blowing

the disclosure by employees of unethical, illegitimate, or illegal practices by the organization

Find the right balance of ethics and business!

...

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Mgt & Org Behavior- Chapter 5

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c

Which of the following refers to the code of moral principles and values that govern behaviors with respect to what is right and wrong? a. Social responsibility b. Free domain c. Ethics d. Codified law e. Discretionary responsibility

b

An organization’s decision to produce a new product is in the a. domain of codified law. b. domain of free choice. c. domain of ethics. d. domain of compensatory justice. e. domain of social responsibility.

a

A new drug has not been approved by the FDA to sell in the U.S. because further testing is needed. The company has a chance to sell its product in another country immediately to start recovering the costs of R & D and production three years ahead of time. This example places the decision in which of the categories from the text? a. The ethical domain b. The domain of free choice c. The legal domain d. The obstructive category e. The protective domain

d

Which of the following is a(n) is the individual who must make an ethical choice in an organization? a. The symbolic leader b. An obstructive manager c. The defensive individual d. The moral agent e. An authoritarian manager

a

Sharon is a manager at Softest Tissue Corporation. She is faced with an interesting problem. One of her employees has been cheating the company out of expense money. Sharon must decide whether or not to fire this employee. In this role, Sharon is acting as a. a moral agent. b. an ethical theorist. c. a symbolic leader. d. an authoritarian leader. e. an obstructive manager.

b

The assumption that "If it’s not illegal, it must be ethical," ignores which of the following? a. Domain of codified law b. Domain of ethics c. Domain of free choice d. Discretionary responsibility e. Domain of symbolism

c

A situation that arises when all alternative choices or behaviors have been deemed undesirable because of the potentially negative ethical consequences, making it difficult to distinguish right from wrong, is considered a. a moral agent. b. a social responsibility. c. an ethical dilemma. d. an ethical standard. e. discretionary responsibility.

b

A normative approach to ethical decision making a. reduces ethical dilemmas to easy-to-understand formulas. b. uses various approaches to describe guiding values for decisions. c. states that everyone must use their employer’s value system at work. d. dictates only one way to choose to resolve dilemmas. e. none of these.

c

Which approach is the ethical concept that moral behaviors produce the greatest good for the greatest number? a. Defensive b. Justice c. Utilitarian d. Individualism e. Moral-rights

a

Robbie’s Robots decided to continue operations at one plant while shutting down another. The decision was justified on the basis of what was best for the total corporation. This is an example of the a. utilitarian approach. b. individualism approach. c. moral-justice approach. d. justice approach. e. illegal approach.

a

Caleb is a manager at Computer-Care Company. He is expected to consider the effort of each decision alternative on all parties and select the one that optimizes the satisfaction for the greatest number of people. This is an example of the a. utilitarian approach. b. individualism approach. c. moral-justice approach. d. justice approach. e. soft-line managerial approach.

b

Which ethical approach are companies citing to justify their policing of employee’s personal habits on and off the job, such as alcohol and tobacco consumption? a. Justice approach b. Utilitarian approach c. Individualism approach d. Moral-justice approach e. Discretionary responsibility

e

The ____ ethic was the basis for the state of Oregon’s decision to extend Medicaid to 400,000 previously ineligible recipients by refusing to pay for high-cost, high-risk procedures. a. justice b. moral-rights c. obstructive d. individualism e. utilitarian

b

When everyone is pursuing self-direction, the greater good is ultimately served because people learn to accommodate each other in their own long-term interest is an example of ____. a. utilitarian approach b. individualism approach c. moral-justice approach d. justice approach e. social responsibility

c

Which of the following is NOT a normative ethics approach? a. Utilitarian approach b. Individualism approach c. Social responsibility approach d. Moral-rights approach e. All of these are normative approaches as described in the text.

c

The golden rule "do unto others as they would do unto you" is a. an example of the utilitarian approach to ethical behavior. b. representative of the moral-justice approach to moral decision making. c. an example of the values that guide the individualism approach to ethical behavior. d. silly and outdated. e. an example of the justice approach to ethical behavior.

c

Human beings have fundamental rights and liberties that cannot be taken away by another individual’s decision. This ethical decision making approach is known as the a. utilitarian approach. b. individualism approach. c. moral-rights approach. d. dualism approach. e. None of these.

d

The ____ refers to the ethical concept that moral decisions are those that best maintain the rights of those people affected by them. a. individualism approach b. justice approach c. utilitarian approach d. moral-rights approach e. discretionary responsibility approach

b

Which of the following is NOT one of the moral rights that could be considered during decision-making? a. The right to free consent b. The right to invade privacy c. The right to free speech d. The right of freedom of conscience e. The right to life and safety

c

____ refers to the concept that different treatment of people should not be based on arbitrary characteristics. a. Procedural justice b. Compensatory justice c. Distributive justice d. Organizational justice e. Moral-justice

b

Individualism is most closely related to a. social responsibility. b. free choice. c. economic responsibility. d. codified law. e. togetherness.

a

____ to ethical decision-making is consistent with due process, free consent, privacy, freedom of conscience and free speech. a. Moral-rights approach b. Individualism approach c. Utilitarian approach d. Justice approach e. Dual-economic approach

d

Sexual harassment is unethical because it violates an important part of which approach to ethical behavior? a. The utilitarian approach b. The individualism approach c. The justice approach d. The moral-rights approach e. The defensive approach

d

The ethical decision approach that requires persons to be guided by standards of equity, fairness and impartiality is the a. moral-rights approach. b. individualism approach. c. utilitarian approach. d. justice approach. e. discretionary responsibility.

a

The moral rights approach that deals with performing experimental treatment on unconscience trauma patient is the a. right of free consent. b. right to privacy. c. right of freedom of conscience. d. right of free speech. e. right of due process.

d

Which of the following is not a concern to managers under the justice approach? a. Compensatory justice b. Distributive justice c. Procedural justice d. Obstructive justice e. All of these

a

Disk Replacement Services has just completed a procedure manual to handle employee grievances. One of the main criteria is to make it clear to employees that rules will be administered fairly and consistently. Disk Replacement operates on a. the procedural justice approach. b. the utilitarian approach. c. the individual approach. d. the defensive approach. e. the free-choice approach.

b

Which of these refers to procedural justice? a. The concept that different treatment of people should not be based on arbitrary characteristics b. The concept that rules should be clearly stated and consistently and impartially enforced c. The concept that individuals should be compensated for the cost of their injuries by the party responsible d. The concept that people should be treated differently e. None of these

e

The concept that the party responsible should compensate individuals for the cost of their injuries is referred to as a. distributive justice. b. injury justice. c. procedural justice. d. organizational justice. e. compensatory justice.

c

The thinking underlying the domain of ____ is the closest to the justice approach. a. social responsibility b. free choice c. law d. discretionary responsibility e. ethics

d

Most of the laws guiding human resource management are based on the a. utilitarian approach. b. moral-rights approach. c. individualism approach. d. justice approach. e. collectivism approach.

e

____ is NOT included in the model of personal moral development described in your text. a. Preconventional level b. Conventional level c. Principled level d. Postconventional level e. All of these are included in the model

a

In what stage of personal moral development is a person mostly concerned with external rewards and personal consequences of an action? a. Preconventional b. Conventional c. Principled d. Discretionary e. None of these

b

Most people have learned to conform to expectations of good behavior expected by colleagues, family, friends, and society. They are in what stage of moral development? a. Preconventional b. Conventional c. Discretionary d. Principled e. Traditional

d

Which of these best illustrates the preconventional stage of moral development? a. Everybody else is doing it, so it must be okay. b. What would my boss think if I did this? c. I know this is not right, and I will not do it, even if everyone else is. d. What am I going to get from making this decision? e. All of these

b

The conventional stage of moral development is best described by which of the following statements? a. I won’t do that because the boss will be upset with me. b. Everybody else is doing it, so it must be okay. c. I know this is not right, and I will not do it, even if everyone else is. d. What am I going to get from making this decision? e. All of these

a

The ____ leadership style matches with the preconventional level of personal moral development. a. autocratic b. team oriented c. servant leadership d. guiding/encouraging e. transforming

b

____ matches with the preconventional level of personal moral development. a. Work group collaboration b. Task accomplishment c. Empowered employees d. Full participation e. Transforming

c

Which of these employee behaviors matches with the conventional level of personal moral development? a. Task accomplishment b. Empowered employees c. Work group collaboration d. Full participation e. Act in own interest

c

Which of the following stages is the stage of personal moral development in which an individual develops an internal set of standards and values? a. Preconventional b. Conventional c. Principled d. Discretionary e. Social

c

People making decisions based on an internal set of beliefs that has more meaning to them than the expectations of others a. are in the preconventional level of moral development. b. are in the conventional level of moral development. c. are in the principled level of moral development. d. do not care what people think of them. e. none of these.

e

____ matches with the postconventional level of personal moral development. a. Team oriented b. Autocratic c. Guiding/encouraging d. Coercive e. Servant leadership

a

Which of these employee behaviors matches with the postconventional level of personal moral development? a. Empowered employees, full participation b. Task accomplishment c. Act in own interest d. Work group collaboration e. Autocratic

c

The great majority of managers operate at the a. preconventional level. b. principled level. c. conventional level. d. postconventional level. e. autocratic level.

e

Only about ____ percent of American adults reach the level-three stage of moral development. a. two b. four c. eleven d. fifteen e. twenty

d

Regarding the levels of personal moral development, the majority of managers operate at the ____ level. a. preconventional b. autocratic c. postconventional d. conventional e. transformative

b

MANAGER’S SHOPTALK in Chapter 5 suggests all of the following when challenging the boss on ethical issues EXCEPT: a. do your research b. begin the meeting by taking the floor c. pay attention to your word choice and demeanor d. take care how you suggest your alternative solution e. be patient

b

The obligation of organization management to make decisions and take actions that will enhance the welfare and interests of society as well as the organization is referred to as a. organizational responsibility. b. social responsibility. c. discretionary responsibility. d. economic responsibility. e. none of these.

a

Which of these is true about the policy a bank adopts toward its investing of depositor’s money? a. It is an expression of its philosophy of social responsibility. b. It is important only to the community. c. It has no ethical implications. d. It would represent its personal state of moral development. e. All of these.

c

Any group within or outside the organization that has a stake in the organization’s performance is called a. a supplier. b. an international customer. c. a stakeholder. d. OPEC. e. a trade association.

e

Primary stakeholders of an organization include a. employees. b. customers. c. investors and shareholders. d. suppliers. e. all of these.

d

All of the following are examples of special interest groups EXCEPT a. professional associations. b. trade associations. c. political action committees. d. courts. e. consumerists.

d

What type of a stakeholder would a nature conservation group be for a paper manufacturing company? a. Supplier b. Competitor c. Employee d. Special interest group e. None of these

a

With a philosophy of ____, managers weave environmental and social concerns into every strategic decision, revise policies and procedures to support these efforts and goals. a. sustainability b. conservation c. ethics d. preservation e. human concerns

c

____ is economic development that generates wealth and meets the needs of their current generation while focusing on future generations. a. Ethical management b. Activist strategy c. Sustainability d. Market strategy e. Future management

e

Which of the following concepts argues that organizations can find innovative ways to create wealth at the same time they are preserving natural resources? a. Preservation b. Conservation c. Environmentalism d. Protectionism e. Sustainability

d

According to the book’s model for judging corporate social performance, social responsibility is divided into what into four sections? a. Ethical, legal, technical, and rational b. Mandatory, technical, discretionary, and economic c. Legal, mandatory, economic, and ethical d. Discretionary, legal, economic, and ethical e. None of these

b

____ is considered a decision that enables an individual or company to benefit at society’s expense. a. A legal behavior b. An unethical behavior c. An economic responsibility d. A discretionary responsibility e. A responsible behavior

c

____ includes behavior that is not always written down and may actually not serve an organization’s bottom-line. a. Legal responsibility b. Economic responsibility c. Ethical responsibility d. Discretionary responsibility e. None of these

d

With respect to appropriate corporate behavior, what society deems ____ as important. a. ethical responsibility b. discretionary responsibility c. economic responsibility d. legal responsibility e. moral responsibility

d

Which of the following responsibilities is purely voluntary and is guided by a company’s desire to make social contributions not mandated by economics, law, or ethics? a. Ethical b. Economic c. Legal d. Discretionary e. Stakeholder

b

____ is the responsibility that goes beyond societal expectations to contribute to the community welfare. a. Ethical responsibility b. Discretionary responsibility c. Economic responsibility d. Legal responsibility e. Technical responsibility

a

____ means that managers are honest and trustworthy, fair in their dealings with employees and customers, and behave ethically in both their personal and professional lives. a. Ethical leadership b. Followership c. Corporate espionage d. Command-and-control approach e. Concern for production leadership

d

A code of ____ is a formal statement of the company’s values concerning ethics and social issues. a. integrity b. trust c. citizenship d. ethics e. honesty

a

Statements that define fundamental values and reference organizational responsibilities, products and employees are often called ____. a. principle-based b. policy-based c. ethically-based d. codified e. codes of organizational integrity

a

An example of an ethical structure is a. chief ethics officer. b. a formal statement of company values. c. an equal opportunity policy. d. whistle-blowing. e. corporate speech.

b

When an official is given the responsibility of overseeing all aspects of ethics and legal compliance. S/he is referred to as a. a whistle-blower. b. a chief ethics officer. c. vice-president of human resource management. d. a yes-man. e. a political play.

b

Which of these is the disclosure by an employee of an illegal activity? a. Tattling b. Whistle-blowing c. Organizational communication d. The filing of a disclosure statement e. Snooping

e

____ is not part of the structures and systems pillar of an ethical organization. a. Corporate culture b. Code of ethics c. Ethics committee d. Whistle-blowing mechanisms e. Rewarding ethical behavior

b

The relationship between social responsibility and financial performance has been shown to be ____. a. non-existent b. positive c. negative d. not important e. a reflection of top leadership

c

Anne Chinoda, top executive at Florida Blood Centers, is under pressure to resign because she took a $71,000 pay increase just months before she laid off 42 employees. Chinoda’s decision lies in the a. domain of codified law b. domain of free choice c. domain of ethics d. domain of social responsibility e. none of these

d

A recent poll found that ________ percent of people surveyed say corporate America’s moral compass is pointing in the wrong direction a. 10 b. 29 c. 52 d. 76 e. 98

c

When the USS Indianapolis sank after being torpedoed, one Navy pilot disobeyed orders and risked is life to save men who were being picked off by land sharks. The Navy pilot was operating from the ________ level of moral development a. preconventional b. conventional c. postconventional d. lowest e. conservative

a

The profit-maximizing view of economic responsibility is advocated by ________. a. milton friedman b. arthur anderson c. donald trump d. warren buffett e. steve jobs

e

Of the following, which may whistle-blowers suffer? a. job loss b. ostracism by coworkers c. transfer to lower-level position d. hostile work environment e. all of the above

e

Examples of unethical behavior toward ________ include a hostile work environment and violations of health and safety rules a. customers b. financiers c. society d. suppliers e. employees

b

The decision by ABC International to downsize and reduce its labor force is in the a. domain of codified law b. domain of free choice c. domain of ethics d. social responsibility e. none of these

How are laws, ethics, and free choice different

legal choices by government, based on the human culture of what’s right, and free choice is not governed only opinionated.

List/discuss* 4 different approaches to ethical decision-making.

utilitarian, individualism, moral rights approach, and justice approach.

Describe the 3 levels of personal moral development. List examples of leadership styles and employee behaviors for each.

pre conventional: follows rules to avoid punishment. Acts in own interest. Obedience for its own sake., conventional: lives up to expectations of others. Fulfills duties and obligations of social system, upholds laws., post conventional: follows self-chosen principles of justice and right. Aware that people hold different values and seeks creative solutions to ethical dilemmas. Balances concern for individual with concern for common good.

List the 3 major goals of sustainable development

organizational stakeholders, the green movement,

What is corporate social responsibility?

management’s obligation to make choices and take actions that will contribute to the welfare and interests of society as well as the organization.

chief ethics officer

A company executive who oversees ethics and legal compliance.

code of ethics

A formal statement of the organization’s values regarding ethics and social issues.

compensatory justice

The concept that individuals should be compensated for the cost of their injuries by the party responsible and also that individuals should not be held responsible for matters over which they have no control.

corporate social responsibility

The obligation of organization management to make decisions and take actions that will enhance the welfare and interests of society as well as the organization.

discretionary responsibility

Organizational responsibility that is voluntary and guided by the organization’s desire to make social contributions not mandated by economics, law, or ethics.

distributive justice

The concept that different treatment of people should not be based on arbitrary characteristics. In the case of substantive differences, people should be treated differently in proportion to the differences among them.

ethical dilemma

A situation that arises when all alternative choices or behaviors are deemed undesirable because of potentially negative consequences, making it difficult to distinguish right from wrong.

ethics

The code of moral principles and values that governs the behaviors of a person or group with respect to what is right or wrong.

ethics committee

A group of executives assigned to oversee the organization’s ethics by ruling on questionable issues and disciplining violators.

ethics training

Training programs to help employees deal with ethical questions and values.

individualism approach

The ethical concept that acts are moral when they promote the individual’s best long-term interests.

justice approach

The ethical concept that moral decisions must be based on standards of equity, fairness, and impartiality.

moral-rights approach

The ethical concept that moral decisions are those that best maintain the rights of those people affected by them.

practical approach

The ethical concept which sidesteps debates about what is right, good, or just, and bases decisions on prevailing standards of the profession and the larger society, taking the interests of all stakeholders into account.

procedural justice

The ethical concept that rules should be clearly stated and consistently and impartially enforced.

stakeholder

Any group within or outside the organization that has a stake in the organization’s performance.

sustainability

Economic development that generates wealth and meets the needs of the current population while preserving the environment for the needs of future generations.

utilitarian approach

The ethical concept that moral behaviors produce the greatest good for the greatest number.

virtue ethics approach

The ethical concept that says moral behavior stems from personal virtues. If a manager develops good character traits and learns to overcome negative traits, he or she will make ethical decisions based on personal virtue.

whistle-blowing

The disclosure by an employee of illegal, immoral, or illegitimate practices by the organization.

Describe the organization’s 4 primary criteria for total corporate social responsibility.

Discretionary responsibility, ethical responsibility, legal responsibility, economic responsibility

Describe 3 primary mechanisms to manage company ethics and social responsibility.

code of ethics, ethical structures, whistle-blowing

Ethics

set of morals that define right and wrong

Workplace deviance

Unethical behavior that violates company norms about right and wrong

examples of workplace deviance

Computer fraud , Vandalizing company property, Sabotaging company projects, Faking injuries to get insurance money, Taking "sick days" when not sick

TYPES OF WORKPLACE DEVIANCE

Production, Property, Political, Personal

Production Deviance

Unethical behavior that hurts quality and quantity of work

Political Deviance

Using one’s influence to harm others kin the company

Personal Aggression

Hostile or aggressive behavior towards others

Property Deviance

Unethical behavior aimed at property or products Sabotaging Equipment, Stealing, Lying about hours worked

Examples of Production Deviance

Leaving early, Excessive breaks, wasting resources

Examples of Political Deviance

Favoritism, Gossiping about Coworkers, Blaming coworkers

Examples of Personal Aggression

Sexual harassment, verbal abuse, stealing from coworkers

Examples of Property Deviance

Sabotaging Equipment, Stealing, Lying about hours worked

Social Responsibility

A business’s obligation to pursue policies, make decisions, and take actions that benefit society.

Examples of Social responsibility

Give back Offer free outdoor concerts Recycle Produce "green" products

Legal Responsibility

Follow laws. Example, Employee Safety

Ethical Responsibility

Follow principles of right/wrong. Example, News corporation shut down News of the World

Discretionary Responsibility

Fulfill social roles. Example, Hurricane Sandy

Economic Responsibility

Make a profit because Companies that don’t make a profit, come under pressure. Example, JCP CEO fired after 1 year

Does it financially pay off for a business to be socially responsible?

It doesn’t guarantee business’s success but it wont make a business less profitable.

What does each letter in SWOT stand for?`

Strengths, Weaknesses, Opportunities, Threats.

Why do companies use SWOT analysis?

It creates a strategy to improve, Identify current growth and problems, etc

Ethics

Set of morals that define right and wrong

Whistleblower

Person who alerts authorities when something unethical is happening

Moral Development

Your personal Level of Honorable Growth

2 Steps managers can take to increase ethical decision making at an organization?

Ethics training, ethics test.

U.S. commission Guidelines

Punish For unethical Behavior and encourage companies to discourage crime

Factors to determine level of offense?

Selfish reasons, Advance own wants and needs, Conform to society’s ways, Follow the law, For society’s Benefit, For your own personal benefit

Code of moral principles and values that govern the behaviors of a person or group with respect to what is right or wrong

Ethics

1) Codified law (Legal standard)
2) Domain of Ethics (Social Standards)
3) Domain of Free Choice (Personal Standards)

Three categories of human behavior

1) Shows kindness and compassion
2) Honest and Integrity
3) Communicates and enforces ethical standards through behavior
4) Is fair in decisions and distribution of rewards

Four types of ethical manager behavior

true

True or false: There is generally a positive relationship between ethical and socially responsible behavior and a firm’s financial performance

Moral behavior produces the greatest good for the greatest number

Utilitarian Approach

Acts are moral when the promote the individual’s best long-term interests. In theory, with everyone pursuing self-direction, the greater good is ultimately served b/c people learn to accommodate each other

Individualism Approach

It is misinterpreted to support immediate self-gain

Why isn’t the individualism approach popular in today’s society?

An ethical decision is the one that best maintains the rights of those affected by it.

Moral-Rights Approach

Moral decisions must be based on standards of equity, fairness, and impartiality.

Justice Approach

1) Distributive justice: different treatment of people should not be based on arbitrary characteristics. ex: men & women with unequal pay
2) Procedural: Rules must be administered fairly. Clearly stated, consistently and impartially enforced
3) Compensatory: Individuals should be compensated for the cost of their injuries by the party responsible

Three types of justice

Sidesteps what is right, good, or just and bases decisions on prevailing standards of the profession and the larger society, taking the interests of all stakeholders into account.

Practical Approach

practical approach

Which approach combines elements of three other approaches?

1) Preconventional: Follows rules to avoid punishment. self-interest
2) Conventional: Fulfills duties and obligations of social system, upholds laws
3) Postconventional: Follows self-chosen principles of justice, internal values

Stages of Moral Development

False; 20 %

True or false: 40% of American adults reach the postconventional stage of moral development

Management’s obligation to make choices and take actions that will contribute to the welfare and interests of society, not just the organization. Hard to define

Corporate Social Responsibility

Group or person within or outside the organization that has some type of investment or interest in the organization’s performance and is affected by the organization’s actions.

Stakeholder

Providing a systematic way to identify the expectations, needs, importance, and relative power of various stakeholders, which may change over time

Stakeholder Mapping

customers, regulatory authorities, stockholders, employees, suppliers, gov, special interest groups, partners, human rights organizations, trade unions, creditors, nongov organizations, communities

Examples of stakeholders

Economic development that generates wealth and meets the needs of the current generation while preserving the environment and society so that future generations can meet their needs as well.

Sustainability

Measuring a company’s social performance, its environmental performance, and its financial performance. Sometimes called the three P’s

Triple Bottom Line

1) Economic; be profitable.
2) Legal; don’t break law
3) Ethical; self-explanatory
4) Discretionary; voluntary, guided by company’s desire to make social contributions not mandated by the other layers.

4 layers of corporate social responsibility

Economic responsibility carried to the extreme; sole mission to increase profits so long as it stays within the rules of the game

Profit-maximizing view

Organization pursues a positive human impact, moral goodness, and unconditional society betterment for its own sake.

Organizational Virtuousness

Ethical leadership, codes of ethics, ethics committees. chief ethics officer, ethics hotlines, ethics training, support for whistle-blowers

Ways that managers can support and create an ethical organization

definition: formal statement of a company’s values concerning ethics and social issues
Two types: principle-based and policy-based

two types of code of ethics

Designed to affect corp. culture. Define values and general language about responsibilities, treatment of employees, etc

Principle-based code of ethics

Outline the procedures to be used in specific ethical situations.

Policy-based code of ethics

True

True or false: general statements of principle are often called corporate credos

Ethics

is the code of moral principles and values that governs the behaviors of a person or group with respect to what is right or wrong

ethical dilemma

is a situation in which all alternatives choices or behaviors have potentially negative consequences. right or wrong cannot be clearly distinguished

utilitarian approach

ethical decision making says that the ethical choice is the one that produces the greatest good for the greatest number

individualism approach

suggest that actions are ethical when they promote the individual’s best long term interests, because with everyone pursuing self interest, the greater good is ultimately served

moral rights approach

holds that ethical decisions are those that best maintain the fundamental rights of the people affected by them

justice approach

says that ethical decisions must be based on standards of equity, fairness, and impartiality

distributive approach

requires that different treatment of individuals not be based on arbitrary characteristics

procedural justice

holds that rules should be clearly stated and consistently and impartially enforced

compensatory justice

argues that individuals should be compensated for the cost of their injuries by the party responsible, and individuals should not be held responsible for matters over which they have no control

practical approach

sidesteps debates about what is right, good, or just, and bases decisions on prevailing standards of the profession and the larger, society, taking the interests of all stakeholders into account

corporate social responsibility

refers to the obligation of organizational managers to make choices and take actions that will enhance the welfare and interests of society, as well as the organization

stakeholder

refers to any group or person within or outside the organization that has some type of investment or interest in the organization’s performance

stakeholder mapping

provides a systematic way to identify the expectations needs, importance, and relative power of various stakeholders

sustainability

refers to economic development that generates wealth and meets the needs of the current population while preserving society and the environment for the needs of future generations

triple bottom line

companies that embrace sustainability measure performance in terms of financial performance, social performance, and environmental performance

discretionary responsibility

is purely voluntary and is guided by the organization’s desire to make social contributions not mandated by economics, laws, or ethics

code of ethics

is a formal statement of the organization’s values regarding ethics and social issues

ethics committee

is a group of executives(and sometimes lower-level employees as well) with overseeing company ethics by ruling questionable issues and disciplining violators

chief ethics officer

a manager who oversees all aspects of ethics and legal compliance

whistle blowing

the disclosure by employees of unethical, illegitimate, or illegal practices of the organization.

corporate social responsibility (CSR)

refers to the obligation of organizational managers to make choices and take actions that will enhance the welfare and interests of society, as well as the organization.

stakeholder

refers to any group or person within or outside the organization that has some type of investment or interest in the organizations performance.

primary stakeholders

shareholders, employees, customers, and suppliers.

other stakeholders

government, the community, and special interest groups.

stakeholder mapping

provides a systematic way to identify the expectations, needs, importance, and relative power of various stakeholders.

green movement

a special interest group of particular importance today.

sustainability

refers to economic development that generates wealth and meets the needs of the current population while preserving society and the environment for the needs of future generations.

triple bottom line

companies that embrace sustainability measure performance in terms of financial performance, social performance, and environmental performance.

survey

found that 90 percent of Americans agree that there are important "green" issues and problems, and 82 percent think that businesses should implement environmentally friendly practice.

evaluating company’s social performance

uses four criteria: economic, legal, ethical, and discretionary.

profit-maximizing view

companies may get into trouble when they use economic criteria as their only measure of responsibility.

Discretionary responsibility

purely voluntary and is guided by the organization’s desire to make social contributions not mandated by economics, laws, or ethics. Corporations that sent generous donations to Japan following the devastating earthquake and tsunami.

Ethical leadership

means that managers are honest and trustworthy, fair in their dealings with employees and customers, and behave ethically in both their personal and professional lives.

code of ethics

a formal statement of the company’s values concerning ethics and social issues; it communicates to employees what the company stands for. Codes of ethics tend to exist in two types: principle-based statements and policy-based statements.

principle-based statements

are designed to affect corporate culture; they define fundamental values and contain general language about company responsibilities, quality of products, and treatment of employees.

policy-based statements

generally outline the procedures to be used in specific ethical situations, which include marketing practices, conflicts of interest, observance of laws, proprietary information, political gifts, and equal opportunities.

corporate credos

general statements of principle that guide making decisions that honor the company’s responsibilities to employees, customers, the community, and stockholders. Google’s code of conduct.

ethical structures

represent the various systems, positions, and programs that a company can undertake to encourage and support ethical behavior.

ethics committee

group of executives (and sometimes lower-level employees) appointed to oversee the company ethics. The committee provides rulings on questionable ethical issues and assumes responsibility for disciplining wrongdoers.

chief ethics officer

a company executive who oversees all aspects of ethics and legal compliance, including establishing and broadly communicating standards, ethics training, dealing with exceptions or problems, and advising senior managers in the ethical and compliance aspects of decisions.

whistle-blowing

employee disclosure of illegal, unethical, or illegitimate practices on the employer’s part.

ethics

code of moral principles and value about what is right or wrong

Just because its not illegal does not mean that its ethical

If you’re harming people, that is already an ethical issue

People have different views on what is ethical or not

ethical dilemma

situation in which all choices have negative consequences; cannot tell what is right or wrong

utilitarian, individualism, moral rights, justice, and practical approach

5 Ethical Decision Approaches

utilitarian approach

the ethical choice is the one that produces the greatest good for the greatest number

individualism approach

actions are ethical when they promote the individual’s best long term interests, because when everyone else does that, the greater good is achieved

The individualism approach is rarely sued today because it can easily be used for wrong personal gains instead.

moral rights approach

ethical decisions are those that maintains the fundamental rights of the people affected by them

justice approach

ethical decisions must be based on equality, freedom, and impartiality

distributive, procedural, and compensatory justice

3 Types of justice approaches

distributive justice

different treatments of individuals should not be based on arbitrary characteristics (Ex: Men and women should not have different salaries)

procedural justice

rules should be clearly stated and enforced

compensatory justice

people should be compensated for the cost of their injuries by who is responsible and people should not be responsible for matters outside of their control

practical approach

sidesteps debates about good or bad and bases decisions on standards of the profession and society taking the interests of the stakeholders into account

Level 1: Preconventional, Level 2: Conventional, Level 3: Postconventional

3 Levels of Personal Moral Development

Level 1: Preconventional

acts on self interest to achieve rewards and avoid punishment; task accomplishment; autocratic/coersive

Level 2: Conventional

acts on societal expectations; for the group

Level 3: Postconventional

guided by their own internal values which are more important than societal expectations; transforming/servant leadership

corporate social responsibility

obligation of managers to make choices and actions that will enhance the welfare and interests of the org and society

stakeholder

any group or person outside of the org that has some sort of investment or interest in the org’s performance

stakeholder mapping

provides a systematic way to identify the expectations, needs, importance, and relative power of various stakeholders

sustainability

the economic development that generates wealth anf meets the needs of the current population while preserving society and the environment for the needs of future generations

triple bottom line

companies that embrace sustainability and measure their performance in terms of finance, social and environmental performance

1. Economic Responsibility – Be profitable
2. Legal Responsibility – obey the law
3. Ethical Responsibility – Be ethical. Do what is right. Avoid harm.
4. Discretionary Responsibility – Contribute to the community, be a good corporate citizen

4 Criteria of Corporate Social Importance

discretionary responsibility

voluntary and is guided by the org/s desire to make social contributions that are not mandated by anything

code of ethics

a formal statement of the org’s values regarding ethics and social issues

principle and policy based statements

2 types of code of ethics

Principle based statements

designed to affect corporate culture

Policy based statements

generally outline the procedures to be used in specific ethical situations

Corporate credos

general statements of principles

ethics committee

group of executives (or sometimes lower level employees) charged with overseeing company ethics by ruling on issues and disciplining violators

chief ethics officer

a manager who oversees all aspects of ethics and legal compliance

whistle blowing

the disclosure by employees of unethical, illegitimate, or illegal practices by the organization

Find the right balance of ethics and business!

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