SU 3: Managing Ethics And Social Corporate Governance Flashcards
Explain managerial ethics
It is the code of moral principles and values that govern the behaviours of right or wrong, standards of good or bad ethics
What are the three domains of human action
- Domain of codified law (legal standard)
- Domain of ethics (social standard)
- Domain of free choice (personal standard)
What are examples of an ethical/illegal organisation behaviour
- towards customers
Fabricating product quality, misleading invoices - towards employees
Discrimination, creating a hostile work environment, violating health and safety rules - towards suppliers
Accepting favours, violating contract terms - towards financiers
Falsifying financial reports using confidential information - towards society
Violating environmental standards, exposing public to safety risks
What is the criteria for ethical decision-making
- utilitarian approach
- individualism approach
- moral rights approach
- justice approach
- practical approach
Explain the utilitarian approach
Moral behaviour produces the greatest good for the greatest number
Explain the individualism approach
Acts are moral if they promote the individuals long-term interest
Explain the moral rights approach
Humans have fundamental rights and liberties that cannot be taken away by an individual decision
Explain the Justice approach
Moral decisions must be based on standards of equity, fairness and impartiality
Explain the practical approach
Bases decisions on prevailing standards, society, and all stakeholders
What are the three levels of personal moral development and explain them
- Level 1: pre-conventional (autocratic leader + task accomplishing employee)
Follow rules to avoid punishment and act in own interest - Level 2: conventional (guiding leader + work group collaboration employee)
Lives up to other expectations and fulfil duties and obligations of social system - Level 3: post-conventional (servant + empowered employees)
Follows self chosen principles of justice and right, uses creativity to solve ethical dilemmas
What is corporate social responsibility
It is distinguishing right from wrong - and doing right. It is good corporate citizen, making choices that contributes to society and stakeholders not just the organisation
What are the common major stakeholders
- Customers
- Employees
- Suppliers
- Stockholders
- NGOs
Define sustainability
It is the economic development that generates wealth and meets the needs of the current generation while preserving the environment for the needs of future generation
What is the criteria of corporate social performance
Economic responsibility, legal responsibility, ethical responsibility, discretionary responsibility
Ways companies can manage ethics and corporate social responsibility
Through 1. Code of ethics 2. Ethical structures 3. Whistleblowing
