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Managerial Ethics

What is Ethics?
 Criteria for Ethical Decision Making
 Social Responsibility
 Corporate Actions Toward Social
Demands
 Code of Ethics

Ethics
The code of moral principles and values that
govern the behaviors of a person or group
with respect to what is right or wrong.
 Lies between the domains of codified law
and free choice
 Based on shared principles and values
 Disagreements and dilemmas about proper
behavior often occur.

Three Domains of Human Action Domain of Codified Law Domain of Ethics Domain of Free Choice (Legal Standard) (Social Standard) (Personal Standard) Amount of High Explicit Control Low .

. making it difficult to distinguish right from wrong.Ethical Dilemma A situation that arises when all alternative choices or behaviors have been deemed undesirable because of potentially negative ethical consequences.

Criteria for Ethical Decision Making Utilitarian Approach  Individualism Approach  Moral-Rights Approach  Justice Approach  .

.Utilitarian Approach Moral behaviors produce the greatest good for the greatest number.

.Individualism Approach Acts are moral when they promote the individual's best long-term interests.

. Free speech 5. Conscience 4. 1. Privacy 3. Free consent 2. Life and safety. Due process 6.Moral-Rights Approach Human beings have fundamental rights that cannot be taken away by an individual's decision.

 Distributive Justice  Procedural Justice  Compensatory Justice .Justice Approach Standards of equity. fairness. and impartiality.

legal.  4 criteria: economic. discretionary.  .Social Responsibility Management's obligation to make choices and take actions that will contribute to the welfare and interests of society as well as to the welfare and interests of the organization  Being a good corporate citizen. ethical.

Economic Responsibilities Be Profitable .

Legal Responsibilities Obey the Law .

Ethical Responsibilities Do What is Right .

Contribute to Quality of Life .

Corporate Actions Toward Social Demands Obstructive  Defensive  Accommodative  Proactive  .

Obstructive Fight All the Way .

Do Only What is Legally Required .

Accept Ethical Responsibility .

Proactive Take Social Initiatives .

Code of Ethics A formal statement of the company's values concerning ethics and social issues. .