1 3 Ethics and Social Responsibility Flashcards
Ethics
The inner guiding moral principles, values, and beliefs that people use to analyze or interpret a situation and then decide what is the “right” or appropiate way to behave
Ethical dilemma
The quandary people find themselves in when they have to decide if they should act in a way that might help another person or group even thought doing so might go against their own self interest
Utilitarian rule
An ethical decision that produces the greatest good for the greatest number of people
Lesser of two evils ethical dilemma
decide on 2 courses if action whichever you choose will benefit one group and harm another
Stakeholder
the people and groups that supply a company with its productive resources and so have a claim on and stake in the company
Rules for Ethical Decision making
1 Utilitarian rule
2 Moral rights rule
3 Practical rule
4 Justice rule
Moral right rule
An ethical decision should maintain and protect the fundamental rights and privileges of people
Practical rule
An ethical decision should be one that a manager has no hesitation about communicating outside the company because typical person in a society would thin the decision is acceptable
Why should managers behave ethically?
Relentess pursuit if selfinterest can lead to collextive disaster since it encorages others to behave the same way. “The tragedy of the commons”
Trust
Willingess of one person or group to have faith or confidence in the goowdwill of another person, even though this puts them at risk
Reputation
The esteem or high repute that individuals or organizations gain when they behave ethically
Four main sources of managerial ethics
Societal ethics, occupational ethics, individual ethics, organizational ethics
Societal Ethics
Standards that govern how members of a society should deal with one another in matters involving issues such as fairness, justice, poverty, and the rights of the individual
Which act forbids us companies to pay bribes abroad?
Foreign Corrupt Practices Act
Effort by Reebok, L.L. Bean and Timberland to promote ethical suppliers
Fair Factories Clearinghouse
Occupational Ethics
Standards that govern how members of a profession, trade, or craft should conduct themselves when performing work telated activities
Individual Ethics
Personal standards and values that determine how people view their responsibilities to others and how they should act in situations when their own self interests are at stake
Organizational Ethics
The guiding practices and beliefs through which a particular company and its managers view their responsibility toward their stakeholders
Social Responsibility
The way a company’s managers and employees view their duty ir obligation to make decisions that protect, enhance, and promote the welfare and well being if stakeholders and society as a whole
Obstructionist approach SR
Companies and managers choose not to behave in a socially responsible way and instead behave unethically and illegaly
4 approaches to social responsibility
Obstructionist approach
Defensive approach
Accommodative approach
Proactive approach
Defensive approach SR
Companies and their managers behave ethically to the degree that they stay within the law and abide strictly with legal requirements
Accomodative approach SR
Companies and managers behave legally and ethically and try to balance the interests of different stakeholders as the need arises
Proactive approach SR
Companies and managers actively embrace SR behavior, going out of their way to learn the needs of different stakeholders and utilizing org resources to promote the interests of all stakeholders
