Professional Documents
Culture Documents
CONSCIOUS
MANAGEMENT
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LEARNING OBJECTIVES
1. Discuss what it means to be socially responsible and what
factors influence that decision.
2. Explain green management and how organizations can go
green.
3. Discuss the factors that lead to ethical and unethical
behavior.
• Develop your skill at creating trust in work groups.
4. Describe management’s role in encouraging ethical
behavior.
Know how to make good decisions about ethical dilemmas.
5. Discuss current social responsibility and ethics issues.
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FROM OBLIGATION TO RESPONSIVENESS
TO RESPONSIBILITY
• Social Obligation – the obligation of a
business to meet its economic and legal
responsibilities and nothing more.
• Classical view – the view that management’s
only social responsibility is to maximize
profits.
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FROM OBLIGATION TO RESPONSIVENESS
TO RESPONSIBILITY (CONT.)
• Socioeconomic view – the view that
management’s social responsibility goes beyond
making profits to include protecting and
improving society’s welfare.
• Social responsiveness – when a firm engages
in social actions in response to some popular
social need.
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FROM OBLIGATION TO RESPONSIVENESS
TO RESPONSIBILITY (CONT.)
• Social responsibility
– a business’s
intention, beyond its
legal and economic
obligations, to do the
right things and act in
ways that are good for
society.
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SHOULD ORGANIZATIONS
BE SOCIALLY INVOLVED?
Social Screening – applying social criteria
(screens) to investment decisions.
• SRI funds usually will not invest in
companies involved in liquor, gambling,
tobacco, nuclear power weapons, price
fixing, fraud, or in companies that have
poor product safety, employee relations,
and environmental track records.
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EXHIBIT 6-1
ARGUMENTS FOR
AND AGAINST
SOCIAL
RESPONSIBILITY
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GREEN MANAGEMENT AND
SUSTAINABILITY
• Green Management – managers consider
the impact of their organization on the
natural environment.
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HOW ORGANIZATIONS GO GREEN
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HOW ORGANIZATIONS GO GREEN
(CONT.)
• Stakeholder Approach – firms work to meet
the environmental demands of multiple
stakeholders—employees, suppliers, and the
community.
• Activist Approach – firms look for ways to
respect and preserve the environment and be
actively socially responsible.
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EXHIBIT 6-2
GREEN APPROACHES
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MANAGERS
AND ETHICAL BEHAVIOR
Ethics – principles, values, and beliefs that
define right and wrong behavior.
• Many decisions managers make require
them to consider both the process and
who’s affected by the result.
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EXHIBIT 6-3
FACTORS THAT DETERMINE ETHICAL
AND UNETHICAL BEHAVIOR
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FACTORS THAT DETERMINE ETHICAL AND
UNETHICAL BEHAVIOR
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EXHIBIT 6-4
STAGES OF MORAL DEVELOPMENT
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FACTORS THAT DETERMINE ETHICAL AND
UNETHICAL BEHAVIOR (CONT.)
Individual Characteristics
– Values – basic convictions about what is right
and wrong.
– Ego Strength – a personality measure of the
strength of a person’s convictions.
– Locus of Control – a personality attribute
that measures the degree to which people
believe they control their own fate.
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FACTORS THAT DETERMINE ETHICAL AND
UNETHICAL BEHAVIOR (CONT.)
Structural Variable
– Organization’s structural design can influence whether
employees behave ethically
– Those structures that minimize ambiguity and
uncertainty with formal rules and regulations and
those that continuously remind employees of what is
ethical are more likely to encourage ethical behavior
– Structural variables that influence ethical choices include
goals, performance appraisal systems, and reward
allocation procedures
– New doctors take the Hippocratic Oath, which pledges that they will do no harm and they
will follow ethical standards. However, in recent years, the news has been filled with stories
about surgeons who have performed unnecessary surgeries. Dr. John Santa indicated that
financial considerations explain why many unnecessary surgeries take place: “Doctors’
income can hinge largely on the number of surgeries they do—and the revenue those
procedures generate.”52 Tragically, unnecessary surgeries cause many patients to sustain
major injuries or death
–
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FACTORS THAT DETERMINE ETHICAL AND
UNETHICAL BEHAVIOR (CONT.)
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EXHIBIT 6-5 ISSUE INTENSITY
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ETHICS IN AN INTERNATIONAL
CONTEXT
• Ethical standards are not universal
– Social and cultural differences determine
acceptable behaviors.
• Foreign Corrupt Practices Act
– It is illegal to corrupt a foreign official, yet
“token” payments to officials are permissible
when doing so is an accepted practice in that
country.
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EXHIBIT 6-6
THE TEN
PRINCIPLES OF
THE UNITED
NATIONS
GLOBAL
COMPACT
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ENCOURAGING ETHICAL BEHAVIOR
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EXHIBIT 6-7 CODES OF ETHICS
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EXHIBIT 6-7 CODES OF ETHICS (CONT.)
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EXHIBIT 6-8
A PROCESS FOR ADDRESSING ETHICAL
DILEMMAS
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ENCOURAGING ETHICAL BEHAVIOR
(CONT.)
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ENCOURAGING ETHICAL BEHAVIOR
(CONT.)
• Ethics Training – seminars, workshops,
and similar ethics training programs to
encourage ethical behavior.
• Independent Social Audits – evaluate
decisions and management practices in
terms of the organization’s code of ethics.
• Protective Mechanisms – allow employees
who face ethical dilemmas to do what’s
right without fear of reprimand.
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SOCIAL RESPONSIBILITY AND ETHICS
ISSUES IN TODAY’S WORLD
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SOCIAL RESPONSIBILITY AND ETHICS
ISSUES IN TODAY’S WORLD (CONT.)
Ethical Leadership – managers must
provide ethical leadership. What managers do
has a strong influence on employees’
decisions whether to behave ethically.
• Protection of Employees Who Raise Ethical
Issues:
– Whistle-Blower – individuals who raise ethical
concerns or issues to others
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EXHIBIT 6-9
BEING AN ETHICAL LEADER
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SOCIAL RESPONSIBILITY AND ETHICS
ISSUES IN TODAY’S WORLD (CONT.)
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REVIEW LEARNING OBJECTIVE 6.1
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REVIEW LEARNING OBJECTIVE 6.2
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REVIEW LEARNING OBJECTIVE 6.3
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REVIEW LEARNING OBJECTIVE 6.4
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REVIEW LEARNING OBJECTIVE 6.5
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