Management Ethics and Social Responsibility

1
Management Ethics and Social Responsibility
Prepared by Deborah Baker Texas Christian
University
2
learning objectives

• Describe the two broad categories of ethical
  theories
• Explain what individuals need in order to act
  ethically
• Describe the organizational influences on ethical
  conduct
• Discuss three primary ways in which business can
  promote ethical conduct
• Describe the relationship between law and ethics

3
learning objectives (continued)

• Explain the concept of an ethical dilemma
• Discuss the guidelines for acting ethically
• Explain the three approaches by business to
  social responsibility
• Explain the responsibilities businesses have to
  stakeholders
• Describe the governments role in promoting
  socially responsible conduct by businesses
• Discuss the ways in which businesses can promote
  socially responsible conduct

4
Managing Ethically
1
5
Balancing Demands
1

• Many conflicting demands have been made on those
  who manage institutions
• Consequences of management decisions affect more
  people and environments than ever before

6
Individuals and Ethical Conduct
2
7
An Individuals Code of Ethics
2
8
Organizational Influences
3
9
Importance of Organizational Controls
4
Unifying Ethics
Code of Ethics
Compliance Programs
Commitment of Top Management
10
Commitment of Top Management
4
11
Codes of Ethics
4
Characteristics

• Visible guidelines for behavior
• Unchallengeable basis for firing an unethical
  employee
• Protect all personnel from market pressures
• Remind employees to look beyond the bottom line

12
Compliance Programs
4
13
Legal Constraints
5
14
Ethical Dilemmas
6
Suggestions for Ethical Dilemmas

• When in doubt, dont
• Dont try to find out how far is too far
• Superiors who push you to do things better,
  faster, cheaper will turn on you when you when
  you cross the line between right and wrong

15
Guidelines for Acting Ethically
7

• Consider other peoples well-being
• Think as a member of the business community
• Obey, but do not depend solely on, the law
• Think of yourself and your company as part of
  society
• Obey moral rules
• Think objectively
• Ask What sort of person would do such a thing?
• Respect the customs of others, but not at the
  expense of your own ethics

16
Guidelines for Acting Ethically
7
17
Dimensions of Reputation
7
18
Approaches to Social Responsibility
8
19
Responsibilities to Stakeholders
9
20
Government Regulation Pros and Cons
10
Social Responsibility to Prevent Pollution

• Redesigning of processes and products
• Recycling and repackaging for reduced waste
• Anticipating needs
• Facing problems up front

21
Managing for Social Responsibility
11
Making Organizations Proactive

• Top-level commitment and support
• Corporate policies that integrate environmental
  issues
• Effective interfaces between corporate and
  business-unit staff
• High degree of employee awareness and training
• Strong auditing programs
• Establishment of responsibility for dealing with
  environmental problems