LMD - Ethics

Managing Ethical & Corporate Social Responsibility

Values
Ethics as values in action: ideas or cog nations present in every group of society about
desirable end states
Fundamental characteristics that operate at multiple levels, which shape organisational
culture
Problems occur when there is a mismatch between individual & organisational values

Organisational Justice
'The psychological fairness as perceived by the employee (Cropanzo & Greenberg)
Distributive: across all levels of the organisation
Procedural: process are fair and allow a change of outcomes
Interactional: interaction with a decision maker

Why does (in)justice matter at work?

To achieve personal work related goals (instrumental reasons)
To meet self-esteem and identity needs (relational reasons)
To make sure the basic human right of treating all employees fairly is practiced
(deontic reasons)
Theories of justice judgements:
Equity Theory (Adams, 1965) - each individual compares input with outcome as an
individual, and once these is balanced compares with a referential 'other'
Fairness Theory (Folger & Cropanzo, 2001) - Would - Could - Should
Uncertainty Management Theory (Van den Bos & Lind, 2002) - injustice is a problem of
limited information
unconscious incompetence - conscious incompetence - conscious competence
- unconscious competence

LMD - Ethics

Corporate Social Responsibility

Corporate Social Responsibility - taking care of both the shareholders and stakeholders
Social Responsibility - in organisations which are not corporate
Corporate Citizen - ethical and engaged member of wider society, organisations are
entities which follow rules of the society they are in
1. Produce goods or services that people want and are safe and ethical
2. Providing employment and treating employees fairly
3. Paying taxes to contribute to the society in which they operate
Current theme: do you pay your taxes?

Carroll's Model of
Corporate Social Responsibility

Sustainability
The capacity for continuance into the long-term future, living within the constraints and
limits of the biophysical world (Porritt, 2007)
Endpoint, non-negotiable, pre-conditional
Sustainable development is meeting the needs of the present without compromising the
ability of future generations to meet their own needs.
Traditional: businesses are separate from society and the natural world
Transitional: reduce, reuse, repair, recycle, regulate
Transformational: rethink, reinvent, redesign, redirect, recover