Week 3-4 Flashcards
Basic Approaches to Ethical Decision Making
- The Utilitarian Approach
- The Moral Rights Approach
- The Universal Approach
- The Justice Approach
Managerial Ethics
It is concerned with morality and standards of business conduct, especially among individuals.
The utilitarian approach focuses on consequences of an action.
You try to make decisions that result “in the greatest good.”
The Utilitarian Approach
This approach focuses on an examination of the moral standing of actions independent of their consequences.
According to this approach, some things are just “right” or “wrong,” independent of consequences.
The Moral Rights Approach
This was imperative to “do unto others as you would have them do unto everyone, including yourself.”
The Universal Approach
It focuses on the equity of process and outcomes.
The Justice Approach
Types of Justice Approach:
Distributive Justice
Procedural Justice
Compensatory Justice
Managers ascribing to distributive justice distribute rewards and punishments equitably based on performance.
Distributive Justice
Managers ascribing to procedural justice make sure that people affected by managerial decisions consent to the decision-making process and that the process is administered impartially.
Procedural Justice
The main thesis of compensatory justice is that if distributive justice and procedural justice fail or are not followed as they should be, then those hurt by the inequitable distribution of rewards should be compensated.
Compensatory Justice
is concerned with the obligation corporations have to constituencies and the nature and extent of those obligations.
Corporate social responsibility
The concept that a manager’s responsibility is to maximize profits for the owners of the business.
The Efficiency Perspective
Types of the Efficiency Perspective
Managers as Owners
Managers as Agents
the efficiency perspective argues that the self-interests of the owner are best achieved by serving the needs of society.
Managers as Owners
In most large organizations today, the manager is not the owner.
Managers should “conduct business in accordance with [owners’] desires, which will generally be to make as much money as possible while conforming to the basic rules of society, both those embodied in law and those embodied in ethical custom.
Managers as Agents
argues that society grants existence to firms.
The Social Responsibility Perspective
Is an individual or group that has an interest in and is affected by the actions of an organization.
Stakeholder
Other stakeholders include current and future customers and employees; financiers; ________; the media; the communities in which the business operates; and society at large.
Media
