Schermerhorn Chapter 4- Ethics, Social Responsibility, and Sustainability

Question 1

What are ethics

Answer 1

A code of moral principles. System of defining what is right and wrong.

Question 2

Comment on Legal vs. Ethical

Answer 2

Just because an action can be ethical doesnt mean its legal, opposite is true.

Personal values help determine individual ethical behaviour

Question 3

Name 4 views of Ethics

Answer 3

Utilitarian view
-greatest good to the greatest number of people

Individualism view
-primary commitment is to one’s long-term self-interests

Moral-rights view -Respects and protects the fundamental rights of all people

Justice view
-Fair and impartial treatment of people according to legal rules and standards
Procedural justice: policies and rules fairly applied
Distributive justice: equal treatment for all people
Interactional justice: people treated with dignity and respect

Question 4

What are two ways of interpreting differences between cultures?

Answer 4

Cultural Relativism
- Ethical behaviour is always determined by cultural context

Cultural Universalism

• Behaviour unacceptable in ones home environment should not be acceptable anywhere else
• Considered by some to be ethical imperialism

In my opinion, cultural relativism is an absolutely worthless mentality. There is absolute truth and morality, and as a result of that, some cultures are inferior to others by virtue of the values and behaviour that their norms propagate.

Question 5

How can businesses make sure to respect universal values? (not step on toes)

Answer 5

Respect for human dignity (Implying all cultures truly respect human dignity. Wouldn’t it be nice.)

Respect for basic rights. (See above)

Be good citizens

• Support social institutions, including economic and educational systems.
• Work with local government and institutions to protect the environment.

Question 6

Name 3 examples of ethical dilemmas

Answer 6

• Discrimination
• Sexual Harassment
• Conflicts of interests
• Customer confidence
• Organizational Resources

Question 7

What are Kohlbergs levels of individual moral development

Answer 7

Pre-conventional level: Self-centered
Stage 1: Avoid harm or punishment
Stage 2: Make deals for personal gain
Conventional level: Social centered
Stage 3: Follow rules, Meet obligation
Stage 4: Act consistently with peers, others
Post-conventional level: Principle centered
Stage 5: Live up to societal expectations
Stage 6: Act according to internal Principles

Question 8

Name a couple of ways to rationalize ethical behaviour?

Answer 8

• Behaviour not really illegal
• Its really in everyones best interests
• Nobody will ever find out
• The organization will ‘protect’ you

Question 9

Name some areas a companies code of ethics will often cover

Answer 9

• Bribes and kickbacks
• Political contributions
• Honesty of books & records
• Customer/Supplier relationship
• Coworker relationships
• Confidentiality of corporate relationships

Question 10

Compare the Classical vs Socioeconomic view of Social Responsibility

Answer 10

Classical: managements only concern is profits first and foremost

Socioeconomic view: Management must be concerned for the broader social welfare, not just profits

Question 11

Name the 4 forms of responsibility an organization can take on

Answer 11

In order of increasing ethical stature

Economic Responsibility:
   Be profitable
Legal Responsibility:
   Obe the law
Ethical Responsibility:
   Do what is right
Discretionary Responsibility:
   Contribute to community

Question 12

Name 4 strategies for pursuing social responsibility

Answer 12

Obstructionist-
Meet only economic responsibilities
Defensive-
Meet economic and legal responsibilities
Accommodative-
Meets economic, legal, and ethical responsibilities
Proactive-
Meets economic, legal, ethical, and discretionary responsibilities

Question 13

Name some benefits of sustainability

Answer 13

• Cost reduction
• Resource preservation
• Legislative compliance
• Positive reputation
• Right initiative