Ch 5 - Ethics + CSR Flashcards
What is ethics?
code of moral principles and values that governs the behaviors of a person or group with respect to what is right or wrong`
What are the 3 categories of behaviour? How do these relate on a scale?
1) Codified law: values and standards written into the legal system and enforceable in the courts
2) Free choice: behavior not covered by law and for which an individual has complete freedom
3) Ethics: standards of conduct based on shared principles and values about moral conduct
scale of amount of explicit control:
HIGH ——————————-> LOW
codified law > ethics > free choice
Have ethical issues been a problem recently? What causes unethical behaviour? What must managers do?
lots of ethics issues lately in many businesses, especially with new technology
causes:
- Personal ego
- Greed
- Pressure to increase profit
- Desire to appear successful
**lately has been an overemphasis on shareholders (at the cost of cust, empl, etc)
managers need to be aware of their own actions as THEY SET THE ETHICAL CLIMATE
What are the 4 types of ethical manager behaviour?
a) displays honesty and integrity
b) communicates and enforces ethical standards with behaviour
c) is fair in decisions and distribution of rewards
d) kind, compassionate, concern for needs and feelings of others
How does ethics/CSR tie into success for the business?
- people prefer to work for ethical companies (so you get better choice of employeees)
- majority of cust would switch brands to a more ethical/socialy resp company
- cust willing to pay more for prod from ethical brands
What is an ethical dilemma? What is a moral agent?
=situation concerning right or wrong when values are in conflict, right and wrong cannot be clearly defined
moral agent = individual who must make an ethical choice in an organization
What are the main frameworks for ethical decision making?
a) Utilitarian approach: greatest good for the greatest number (John Stuart Mill + Jeremy Bentham)
b) Individualism approach: promote the individual’s best long-term interests (bc ppl learn to accomodate others in their own longterm interest)
c) Moral-rights approach: humans have fundamental rights and liberties that cannot be taken away by an individual’s decision, so moral decision maintains the rights of those affected
d) Justice approach: moral decisions must be based on standards of equity, fairness, and impartiality (**equitable, not equal!)
What are the subcategories under the justice approach?
- Distributive justice: different treatment of people cannot be based on arbitrary characteristics (ex: who you like more) **ok to apply standards, but need to be consistent and rational
- Procedural justice: rules must be administered fairly (ex: hear everyone’s side, impartial judgement)
- Compensatory justice: individuals should be compensated for the cost of their injuries by the party responsible
A coworker’s spouse is setting up a home business. You see the coworker, who is also a friend, taking office supplies such as paper and copier ink from your company’s supply room. It’s not much, but clearly against company rules. You decide to tell your supervisor. What approach have you just taken to resolve this ethical dilemma?
a) Utilitarian
b) Procedural justice
c) Compensatory justice
d) Individualism
b) procedural justice
bc applied in consistent way!
What is the practical approach to ethical decision makign? What criteria must be met for a decision to be considered ethical under this method?
= bases decisions on prevailing standards, society, and all stakeholders (ignores debates about what is right, good, or just)
criteria:
- acceptable by the professional community (either established group or just peer group)
- would not hesitate to publicize decision on the evening news
- would typically feel comfortable explaining to family and friends
What did one business ethics expert suggest as questions to ask oneself in the face of an ethical dilemma?
- What’s in it for me?
- What decision would lead to the greatest good for the greatest number?
- What rules, policies, or social norms apply?
- What are my obligations to others?
- What will be the long-term impact for myself and important stakeholders?
What impact does management and leadership have on ethics of hte organization? How does each individual influence the organization?
=> studies shown that unethical corp culture and pressure from superiors can induce empl to behave unethically
individuals:
- bring their own personality and traits to org
- value systems influenced by personal needs, family influence, religious background
- personality characteristics such as ego, self-confidence, and independence may enable managers to make ethical choices in the face of outside pressures
What are the stages of moral development?
- Preconventional = follow rules to avoid punishment, acts in own interest = self interest
- Conventional = lives up to expecctations of others, fulfills duties and obligations of social system upholds laws = societal expectations
- Postconventional = follows self chosen principles of justice and right, aware that ppl have diff values, seeks creative solutions to ethical dilemmas, balances concern for ind with concern for common good = internal values
What are the leadership styles of each stage of moral dev? Employee behaviour at each?
Leader Style:
Pre: Autocratic/coercive (“do it or you’re fired”)
Conv: Guiding/encouraging, team oriented
Post: Transforming, or servant leadership
Employee Behavior:
Pre: Task accomplishment (ex: kids)
Conv: Work-group collaboration
Post: Empowered employees, full participation
What are the benefits of being at higher levels of moral development as a manger? How many people reach the postconventional level?
higher level
= have an influence on their followers
= stand out as ethical role model whose behavior and communications attracted followers’ attention
20% of adults reach postconventional!
