Summary Notes

Chapter 5: Ethics & Social Responsibility.

Business Ethics
Definition - Principles or standards of conduct used by managers to carry out their business.
Standards a manager uses:
Legal
Personal
Social
How much control is exercised by each standard?
2. Approaching Ethical Dilemmas – (a business choice where it is difficult to distinguish between right and
wrong.)
Four common approaches:
Utilitarian approach -
Individualism approach –
Moral Rights approach –
Justice Approach –
3. What affects Managers choices?
(i) Levels of Moral Development
a. Preconventional
b. Conventional
c.Post conventional
(ii) Organisation, Department or Personal Values
Corporate Culture
Other Factors
Social Responsibility
Definition – Protect & enhance the welfare & interest of society as well as the organisation.
1. Stakeholders interested in an organisations performance.
(i)
(ii)
(iii)
(iv)
(v)
(vi)
2. Hot issue today? How to create wealth at the same time as preserving the natural environment.
3. Criteria for evaluating an organisations performance
(i) Discretionary
(ii) Ethical
(iii) Legal
(iv) Economic
4. Responses to Social Demands
(i) Obstructive
(ii) Defensive
(iii) Accommodate
(iv) Proactive
Promoting Ethics and Social Responsibility
1. Managers can promote ethical and socially responsible behaviour through:
(i) Example
(ii) Commitment to ethical values
(iii) Helping others to understand & do
(iv) Support ethical behaviour
(v) Codes of ethics
(vi) Ethics committees
(vii) Ethics Ombudsman
(viii) Support Whistle blowing
2. Issues facing managers today?

(i) Issues in Australia and New Zealand

(ii) Does good citizenship decrease financial performance?
(iii) Sustainable development
a. What is it?
b. Is Sustainable development profitable?
c. Motivation for Sustainable development practices.