MGT 101 Ethics
MGT 101 Ethics 101
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This 4 page Class Notes was uploaded by Samantha jose on Saturday February 6, 2016. The Class Notes belongs to 101 at Washington State University taught by Maggie Reed in Spring 2016. Since its upload, it has received 36 views. For similar materials see Introduction to Business in Business, management at Washington State University.
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Date Created: 02/06/16
Ethics and Social Responsibilities 2/6/16 12:47 PM Ethics Social Responsibility Belief about right & wrong The obligation of business to contribute to society A close relationship, but not the same. Ethics and the Law • Law often represents an ethical minimum • Ethics often represents a standard that exceeds the legal minimum • There is often some overlap between the two Business Ethics • The public’s interest in business ethics has increased during the last four decades • It is largely spurred by the media • Why it’s important? o Understanding business ethics and social responsibility makes you informed of your rights as a consumer, an employee, and a citizen. • Rules or standards governing the conduct of a business • Moral code – what is ‘right’ and what is ‘wrong’? • Highly subjective nature • There may be tension between different stakeholders/stakeholder groups Two Key Branches of Ethics • Descriptive ethics – involves describing, characterizing and studying morality o – “What is” • Normative ethics – involves supplying and justifying moral systems o “What should be” Four Important Ethical Questions • What is? • What ought to be? • How do we get from what is to what ought to be? • What is our motivation for acting ethically? Stakeholders • Local Community – provide employment, safe working environment, minimize pollution and negative externalities – provide external benefits? • Government – abide by the law, pay taxes, abide by regulations • Management – their aims versus those of the organization as a whole • Environment – limit pollution, congestion, environmental degradation, development, etc. Responsibilities to Stakeholder Groups • Shareholders – generate profits and pay dividends • Customers – provide good quality products at reasonable prices. Safety, honesty, decency and truthfulness • Employees – health and safety at work, security, fair pay • Suppliers – pay on time, pay fair rates for the work done, provide elements of security Tension • Profits versus higher wages • Expansion versus development • Production versus pollution • Supplier benefits versus consumer prices/lower costs • Survival of the business versus needs of stakeholders Ethical Dilemmas • it is important to consider outcomes of the decision-making process. One way of dealing with ethical dilemmas is by using the four way test to evaluate decisions. This test involves askng four questions o Is my decision a truthful one? o Is my decision fair to everyone affected? o Will it build goodwill for the organization? o Is the decision beneficial to the parties who have vested interest in the outcome? 7 Principles of Admirable Business Ethics 1. Be trustful 2. Keep an open mind 3. Meet obligations 4. Have clear documents 5. Become community involved 6. Maintain accounting control 7. Be respectful 3 Models of Management Ethics • Immoral Management o – a style devoid of ethical priniciples and active opposition to what is ethical • Moral Management o – Conforms to high standard of ethical behavior • Amoral Management o – Intentional – does not consider ethical factors o – unintentional – casual or careless about ethical considerations in business External Sources of a Manager’s Values • Religious values • Philosophical values • Cultural values • Legal values • Professional values Internal Sources of a Manager’s Values • Respectful for the authority structure • Loyalty • Conformity • Performance • Results Are you Ethical? • is it stealing ever OK? • Is it OK to take paper or other office supplies from work? • Is making long-distance calls at work unethical? • Is it OK to surf the web at work? • Would you snitch on a co-worker? Corporate Social Responsibility (CSR) • The process by which businesses negotiate their role in society • In the business world, ethics is the study of morally appropriate behaviors and decisions, examining that “should be done” • Although the two are linked in most firms, CSR activities are not guarantee of ethical behavior Definitions of CSR • Requires managers to consider their acts in terms of a whole social system, and be responsible for the effects of those acts anywhere in that system • CSR mandates that the corporation has not only economic and legal obligations, but also certain responsibilities to society that extend beyond these obligations Reasons for CSR Activities • CSR activities are important to and even expected by the public o And they are easily monitored worldwide • CSR activities help organizations hire and retain the people they want • CSR activities contribute to business performance Reasons for Unethical Behavior Reason Percent Power 4% Money 73% Advancement 40% Recognition 38% Take it out on someone 13% [Total > 100% because of multiple answers] Role Conflict • Role conflict occurs when a person finds themselves torn between two roles with which they identify, but each role has conflicting requirements. People will act out what they believe is expected of them, despite conflicting with their values, principles, and ethics
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