Engineering Ethics Flashcards
business’s obligation, beyond that
required by law and economics, to pursue
long-term goals that are good for society.
Social Responsibility
Management’s role is to maximize profits
for the benefit of the stockholders
Doing “social good” unjustifiably increases costs
Classical View
Management’s social responsibility goes
beyond making profits but also protect and
improve society’s welfare
Socioeconomic View
how the company engage responsibility especially in society
Approaches to social responsibility
4 approaches to social responsibility
-Obstructionist Approach
-Defensive Approach
-Accommodative Approach
-Proactive Approach
-Avoid Social Responsibility.
-it is when the company neglects or denies any social responsibility or any environmental concern. They might engage in activities that might harm the environment and might ignore or deny the unacceptable practice in case legal actions are being taken by any stakeholder.
Obstructionist Approach
=Minimal commitment to Social Responsibility.
= a company is sure to follow the law so that legal action can’t be taken against it, but the main focus is on profits.
Defensive Approach
=Moderate commitment to Social Responsibility
=transition from a company more consumed by profits to a company that believes that social responsibility should be a priority.
Accommodative Approach
=Strong commitment to Social Responsibility
=involves business strategies and practices adopted voluntarily by firms that go beyond regulatory requirements in order to manage their social responsibilities, and thereby contribute broadly and positively to society.
Proactive Approach
When managers consider the impact of their
organization on the natural environment.
Green Management
How to Organizations
Go “Green” (2 reasons)
-fulfill their
social obligation.
-changed their
products and even their production
processes.
4 Green Approaches
Legal Approach
Stakeholder Approach
Market Approach
Activist Approach
according to iso 14000
Legal Approach
environmental preferences
market approach
meeting environmental demands and standards
Stakeholder
Approach
looks for ways to protect the earth’s natural resources
Activist Approach
Evaluating Green
Management (3 checklist like)
=Global Reporting Initiative 23
=ISO 14000 (Environmental Management) Standards
=Global 100 Most Sustainable Corporations in the World
An approach to managing in which managers
establish, promote, and practice an
organization’s shared values
Value-Based Management
Explicit or implicit fundamental beliefs, concepts,
and principles that underlie the culture of an
organization, and which guide decisions and
behavior of its employees, management, and
members.
Shared Values
4 shared Organizational values
-Guide Managers’ Decisions & Actions
-Influence Marketing Efforts
-Shape Employee Behavior
-Build Team Spirit
They act as guide posts for
managerial decisions and
actions
Guide Managers’
Decisions & Actions
The shared corporate values also
can influence the organization’s
marketing efforts.
Influence Marketing
Efforts
They also serve to shape
employee behavior and to
communicate what the
organization expects of its
members
Shape Employee
Behavior
Finally, shared values are a way
to build team spirit in
organizations.
Build Team Spirit
stated Values of Organizations
Customer satisfaction-77%
Ethics/integrity-76%
Accountability-61%
Respect for others-59%
Open communication-51%
Profitability-49%
Teamwork-47%
Innovation/change-47%
Continuous learning-43%
Positive work environment-42%
Diversity-41%
Community service-38%
Trust-37%
Social responsibility-33%
Security/safety-33%
Empowerment-32%
Employee job satisfaction-31%
Have fun-24%
64% of respondents said
that their organization’s
values were linked to
performance
evaluations and
compensation.
American Management
Association (AMA) Corp.
Values Survey Oct 2002
In these organizations,
shared values serve as a
powerful incentive to
employee behavior —
good or bad, ethical or
unethical
American Management
Association (AMA) Corp.
Values Survey Oct 2002
Refers to the rules, principles, values and
beliefs that define right and wrong
conduct and behavior
Ethics
.Four Views of Ethics
1.Utilitarian View
2.Rights View
3. Theory of Justice
4. Integrative Social Contracts Theory
Greatest good is provided for
the greatest number
* Encourages efficiency and
productivity and is consistent
with the goal of profit
maximization
Utilitarian View
Organizational rules are
enforced fairly and impartially
and follow all legal rules and
regulations
* Protects the interests of under
represented stakeholders and the
rights of employees
The Theory of Justice
Respecting and protecting
individual liberties and
privileges
* Seeks to protect individual
rights of conscience, free
speech, life and safety, and
due process
Rights View
- Ethical decisions should be based
on existing ethical norms in
industries and communities - Based on integration of the
general social contract and the
specific contract between
community members
Integrative Social
Contracts Theory
7 Factors That Affect Ethical and Unethical Behavior
-Stages of Moral Development
-Ethical Dilemma
-Ethical and Unethical Behavior
-Individual Characteristics
-Structural Variable
-Organizational Culture
-Issue Intensity
5 Factors That Affect Employee Ethics
- Stages of Moral Development
2.Individual Characteristics
3 Structural Variable
4 Organizational Culture
5 Issue Intensity
interacts with:
Individual characteristics
The organization’s structural design
The organization’s culture
The intensity of the ethical issue
stages of Moral Development
A measure of independence from outside influences
Levels of Individual Moral Development
Preconventional
Conventional
Principled
-Following rules only when doing so is in your immediate interest.
-Sticking to rules to avoid physical punishment
Preconventional
-Living up to what is expected by people close to you.
-Maintaining conventional order by fulfilling obligations to which you have agreed
Conventional
-Valuing rights of others and upholding absolute values and rights regardless of the majority’s opinion.
-Following self-chosen ethical principles even if they violate the law
Principled
affect a person’s ethical behavior at work, such as knowledge, values, personal goals, morals and personality
individual characteristics
2 types of individual characteristics
-Values
-Measuring Employee Satisfaction
Are basic convictions about what
is right or wrong on a broad range
of issues.
Values
2 personality variables have been
found to influence an individual’s
actions according to his/her beliefs
about what is right or wrong.
* Ego strength - measures the
strength of a person’s convictions.
* Locus of control - measures the
degree to which people believe they
control their own life
Measuring Employee Satisfaction
2 personality variables
-Ego strength
-Locus of control -
measures the
strength of a person’s convictions.
*
Ego strength -
measures the
degree to which people believe they
control their own life
Locus of control -
2 types of locus of control
Internal
External
believe that they are responsible for their own success.
Internal
believe that external forces, like luck, determine their outcomes.
External
Good structural design minimizes ambiguity and uncertainty and fosters ethical behavior
structural Variables
Organizational characteristics and mechanisms that guide
and influence individual ethics: (3 Systems)
*Performance Appraisal Systems
* Reward Allocation Systems
* Behaviors (ethical) of Managers