CH 3: Changing the work environment and doing the right thing Flashcards
triple bottom line
-measures an organizations social, enviornmental, and financial performence
represents the 3 ps
-people
-planet
-profit
people (3ps)
org has a responsibility to its employees and community
planet (3ps)
org is committed to sustainable development
profit (3ps)
includes costs of pollution, worker displacement, etc in financial calculations
how can success of triple bottom line be measured
a social audit
(a systematic assessment of a companies performance in implementing socially responsible programs)
social responsibility
managers duty to take actions that will benefit interest of society as well as the org
corporate social responsibility
notion that corporations are expected to go above and beyond following the law and making a profit
Carroll’s global and corporate social responsibility pyramid
order
1-philanthropic responsibility
2- ethical responsibility
3-legal responsibility
4- economic responsibility
philanthropic responsibility
Be a good global corporate citizen
Do what is desired by global stakeholders
ethical responsibility
Be ethical
Do what is expected by global stakeholders
legal responsibility
Obey the law
Do what is required by global stakeholders
economic responsibility
Be profitable
Do what is required by global capitalism
what is the community of stakeholders
-internal stakeholders
-task env (external)
-the general env (external)
internal stakeholders consit of
-owners, employees, bod
owners
consists of those who can claim the org as their legal property
BOD
members elected by stockholders to see that the org is being run according to their interests
the task env consists of
Customers, competitors, distributors, suppliers, allies, unions, lenders, governments, interest groups, and media
customers
those who use an orgs goods/services
Competitors
ppl/or orgs that compete for customers or service
Supplier
provides raw materials, services, equipment, labor, or energy to other organizations
Distributor
a person/org that helps another org sell its goods and services to customers
Allies
relationship of 2 organizations who join forces to achieve advantages they cant perform alone
Employee organization (union)
labor unions and professional associations
Local communities
may institute clawbacks (rescinding tax breaks when firms don’t deliver on promised jobs)
Financial institutions (lenders)
banks, savings and loans, and credit unions, may engage in crowdfunding my raising small money
Govt regulators
Regulatory agencies that establish ground rules under which organizations may operate
Special interest group
media, groups whose members try to influence specific issues
the general env consists of
Economic forces, technological forces, sociocultural forces, demographic forces, political legal forces, international forces
Economic forces
consists of the general economic conditions and trends (unemployment, inflation, interest ratesm economic growth)
Technological forces
new development methods for transforming resources into goods and services
Sociocultural forces
influences and trends originating in a countries, societies, or a culture’s human relationship and values that may affect an org
Demographic forces
Influences on an organization arising from changes in the characteristics of a population, such as age, gender, or ethnic origin
Political-Legal forces
Changes in the way politics shape laws and laws shape the opportunities for and threats to an organization.
International forces
Changes in the economic, political, legal, and technological global system that may affect an organization.
ethical dilemma
situation in which you have to decide whether to pursue a course of action that may benefit you or your org but may be unethical or illegal
ethics
standards of right and wrong that influence behavior but may vary among countries
values
relatively permeant and deeply held underlying beliefs and attitudes that help determine a persons behavior
5 most common unethical behaviors at work
-misusing company time
-abusive behavior
-employee theft
-workplace cheating
-violating corporate internet policies
what are the 4 approaches to resolving ethical dilemmas
-utilitarian
-individul
-moral-right
-justice
utilitarian approach
guided by what will result in the greatest good for the greatest number of ppl often associated w fnan performance
individual approach
Guided by what will result in the individuals best long term interest which ultimately is in everyones self interest
Assumes that people will act ethically in the short run to avoid harm in the long run
Flaw is one person’s short term gain may not be good for everyone in the long term
moral right approach
guided by the respect for the fundamental rights of human beings
(the right to life, liberty, privacy, health, safety, and due process) (ex bill of rights)
the justice approach
guided by the respect for impartial standards of fairness and equity
Policies administered impartially and fairly, regardless of gender, age,sexual orientation, etc)
How do people learn ethics
Kohlberg’s 3 levels of personal moral development
level 1, 2,3
Level 1 preconventional
follows rules to avoid unpleasant consequences
Level 2 conventional
follows expectations of others (most managers are at this level)
Level 3, postconventional
guided by internal values, they lead by example
how orgs can promote ethics
Create a strong ethical climate
Screen prospective employees
Institute ethics codes and training programs
Reward ethical behavior- protecting whistleblowers who report organizational misconduct
stakeholders definition
People whose interests are affected by an organization’s activities
ethical behavior
Behavior that is accepted as “right” as opposed to “wrong” according to those standards
Corporate governance
The system of governing a company so that the interests of corporate owners and other stakeholders are protected
Which group is projected to make up almost 60% of the workforce by 2029?
Millennials and Gen Zers
A company’s external environment consists of which two environments?
-general
-task
insider trading
People who buy or sell stock illegally based on confidential company information
