Ch3-Ethics And Social Responsibility Flashcards
How is ethics driven?
Values-broad beliefs about what is appropriate behavior
terminal: preferences about desired end states
Instrumental: preferences of means to desired ends
Ethics
A code of moral principles that sets standards of what is good or bad; right or wrong in our behavior
Common unethical acts by managers
Verbal, sexual, racial harassment, misuse of property, giving preferential treatment
Moral rights view
Does a decision or behavior maintain the fundamental rights of all human beings?
Individualism view
Does a decision or behavior promote one’s long term interest
Justice view
Fairness and impartiality
Utilitarian view
Decision for the greatest good for the most people
Cultural relativism
Suggests that there is no one right way to behave; cultural context determines ethical behavior
- no culture’s ethics are superior to another
Ethical imperialism
An attempt to impose one’s ethical standards on other cultures
How do people rationalize unethical behavior?
- What I’m doing is not really illegal.
- My behavior is in everyone’s best interests.
- Nobody will ever know about it.
- The organization will stand behind me.
Ethical frameworks
Personal rules and strategies for making ethical decisions.
What is Kohlberg’s theory on moral development?
We start out with a selfish view when making choices but move onto follow rules and choose actions based on personal principles influenced by society
Whistleblower
Persons who expose organizational misdeeds in order to preserve ethical standards and protect against wasteful, harmful or illegal acts.
What are some organizational barriers to whistleblowing?
Strict chain of command
Strong work group identities
Ambiguous priorities
Corporate social responsibility
The obligation of an organization to serve its own interest and those of its stakeholders
Triple bottom line
How well an organization performs when measured on financial criteria and social and environmental ones
The 3 Ps
Profit
People
Planet
Socioeconomic view
- Responsibility increases long-run profits
- Improves public image
- Helps avoid govt. regulation
- Businesses have resources & ethical obligations to act responsibly
Social responsibility audit
Determines the organization’s performance in various areas of social responsibility
-compliance to conviction
Sustainability
Concerns doing business in such a way that respects future generations and their right to the world’s natural resources
Sustainable business
Organization operates in a way that meets the needs of the customer and protects natural environment
Sustainable development
Business uses natural resources to meet today’s needs and preserved for future generations
Environmental capital
Land, water, minerals and atmosphere
ISO14001
Global quality standard that certifies organizational environmental development for minimal environmental impact.
Social business
Business model that addresses social problems such as hunger, illiteracy and poverty
Social entrepreneurs
Create business that help solve social problems
Eg. Tom’s shoes
