Management 301 Chapter 2 Book Notes
Management 301 Chapter 2 Book Notes Management 301
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This 3 page Study Guide was uploaded by Stephanie Marie on Sunday February 8, 2015. The Study Guide belongs to Management 301 at a university taught by Professor Mangaliso in Fall. Since its upload, it has received 221 views.
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Date Created: 02/08/15
Chapter 2 Social Responsibility and Managerial Ethics How the Ethics of Individual People Develop Managerial ethics the study of morality and standards of business conduct 0 Ethical dilemma having to choose between two competing but arguably valid options 0 Ethical lapse a decision that is contrary to one s stated beliefs and company policies Basic Approaches to Ethical Decision Making The Utilitarian Approach 0 Focuses on consequences of an action 0 Try to make decisions that result in the greatest good The Moral Rights Approach 0 Focuses on examination of the moral standing of actions independent of their consequences 0 Some things are just right or wrong The Universal Approach 0 lmmaneual Kant 0 Do unto others as you would have them do unto everyone including yourself The Justice Approach Equity of process and outcome Costs and bene ts should be equally distributed Rules should be impartially applied Damages because of discrimination should be compensated Distributive justice distribute awards and punishments equitly based on performance 0 Procedural justice make sure that people affected by managerial decisions consent to the decision making process and that the process is administered impartially o Compensatory Justice lf distributive justice and procedural justice fail or are not followed then those hurt by the inequitable decision of rewards should be compensated 0000 O The Moral Intensity Factor Moral intensity the degree to which people see an issue as an ethical one o 1 Magnitude of consequences the anticipated level of impact of the outcome of a given action 0 2 Social consensus the extent to which members of a society agree that an act is either good or bad one of the more powerful dimensions 0 3 Probability of effects the moral intensity of an issue rises and falls depending on how likely people think the consequences are 4temporal immediacy a function of the interval between the time an action occurs and the onset of its consequences 0 5 Proximity the physical psychological and emotional closeness the decision maker feels to those affected by the decision 0 6 Concentration of effect the extent to which consequences are focused on a few individuals or dispersed across many 0 Social Responsibility 0 The Efficiency Perspective 0 The concept that a manager s responsibility is to maximized pro ts for the owner of the business 0 Managers as Owners Manager owner then the self interests of the owner are best achieved by serving the needs of society 0 Managers as Agents In most large organizations the manager is not the owner Managers serve as agents of the organization s owners Need to maximize pro ts for shareholders don t care as much for society 0 Externality an indirect or unintended consequence imposed on society that may not be understood or anticipated 0 The Social Responsibility Perspective 0 Society grants existence to rms 0 Shareholders simply risk capital 0 Managers must consider the legitimate concerns of other stakeholders beyond just the rm s shareholders o Stakeholders An individual or group that has an interest in and is affected by the actions of an organization 0 The Strategic Corporate Responsibility Perspective 0 Argues that three fundamental criteria guide managers Inside out managers can look inside the company at issues that are more rather than less important as a function of the company s strategy Outside in managers can look outside the company at issues the company can in uence Outside Out managers look at social issues in general terms of the extent to which they are problematic Examples poverty literacy sanitation How Firms and People can Make Better Ethical Decisions 0 Code of ethics 0 A formal one to three page statement outlining the types of behavior that are and are not acceptable Successfully implementing code of ethics 0 Communication 0 Training 0 Reward and recognition 0 Whistle blowing Whistle blower employee who discloses illegal or unethical conduct on the part of others in the organization
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