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Ethics and Social Responsibility in Business

This document discusses ethics and social responsibility in business. It defines ethics as moral principles that define right and wrong. It explains that companies can be prosecuted under sentencing guidelines for unethical behavior, even without management's knowledge. It also discusses factors that influence ethical decision-making like moral development and ethical intensity of an issue. Finally, it introduces models of social responsibility, comparing shareholder and stakeholder approaches.

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10 views12 pages

Ethics and Social Responsibility in Business

This document discusses ethics and social responsibility in business. It defines ethics as moral principles that define right and wrong. It explains that companies can be prosecuted under sentencing guidelines for unethical behavior, even without management's knowledge. It also discusses factors that influence ethical decision-making like moral development and ethical intensity of an issue. Finally, it introduces models of social responsibility, comparing shareholder and stakeholder approaches.

Uploaded by

notweaksauce
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

Chapter 4

Ethics and Social Responsibility

1
Ethical and Unethical
Workplace Behavior
Ethics

The set of moral principles or values


that defines right and wrong for a
person or group.

2
U.S. Sentencing
Commission Guidelines

Companies can be prosecuted and


punished
even if management didn’t know about
the unethical behavior.

2
3
Who, What, and Why?

• Nearly all businesses are covered

• Punishes a number of offenses

• Encourages businesses to be proactive

2.1
4
Influences on Ethical Decision
Making
Ethical
EthicalIntensity
Intensityof
ofDecision
Decision

Ethical
Ethical
Answers
Answers Moral
MoralDevelopment
Development of
of Manager
Manager
Depend
Depend
on…
on…
Ethical
Ethical Principles
PrinciplesUsed
Used

3
5
Ethical Intensity Depends on…
Magnitude
Magnitude of
of consequences
consequences

Social
Social consensus
consensus

Probability
Probability of
of effect
effect

Temporal
Temporal immediacy
immediacy

Proximity
Proximity of
of effect
effect

Concentration
Concentration of
of effect
effect
3.1
6
Moral Development
Kohlberg’s Stages of Moral Development

Preconventional
Preconventional Conventional
Conventional Postconventional
Postconventional

Societal Internalized
Selfish
Expectations Principles

3.2
7
Principles of
Ethical Decision Making
Long-term
Long-termself-interest
self-interest
Personal
Personalvirtue
virtue
Religious
Religiousinjunctions
injunctions
Government
Governmentrequirements
requirements
Utilitarian
Utilitarian benefits
benefits
Individual
Individual rights
rights
Distributive
Distributivejustice
justice
3.3
8
Practical Steps to
Ethical Decision Making
Select
Select and
and hire
hire ethical
ethical employees
employees

Establish
Establish aa Code
Code of
of Ethics
Ethics

Train
Train employees
employees to
to make
make ethical
ethical decisions
decisions

Create
Create an
an ethical
ethical climate
climate

4
9
A Basic Model of
Ethical Decision Making
1.
1. Identify
Identify the
the problem
problem

2.
2. Identify
Identify the
the constituents
constituents

3.
3. Diagnose
Diagnose the
the situation
situation

4.
4. Analyze
Analyze your
your options
options

5.
5. Make
Make your
your choice
choice

6.
6. Act
Act
4.3
10
Ethical Climate
Establishing
Establishing an
an Ethical
Ethical Climate
Climate

Managers establish an ethical climate when they…


1. act ethically.
2. are active in company ethics programs.
3. report potential ethics violations.
4. punish those who violate the code of ethics.

Web Link [Link]


4.4
11
To Whom Are Organizations
Socially Responsible?
Shareholder
Shareholder Maximize
Maximize Profits
Profits
Model
Model

Stakeholder
Stakeholder Satisfy
Satisfy Interests
Interests
Model
Model of
of Multiple
Multiple Stakeholders
Stakeholders

5
12

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