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CHAPTER 3
THE MANAGER’S WORK
ENVIRONMENT AND
ETHICAL
RESPONSIBILITIES
Doing the Right Thing

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 LEARNING OBJECTIVES

3-1 Describe the triple bottom line of people, planet, and

profit.
3-2 Identify important stakeholders inside the organization.
3-3 Identify important stakeholders outside the organization.
3-4 Explain the importance of ethics and values in effective
management.
3-5 Describe the concept of social responsibility and its role
in today’s organizations.
3-6 Discuss the role of corporate governance in assessing
management performance.
3-7 Describe how to develop the career readiness
competency of professionalism/work ethic.

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 MANAGE U: BEING COURAGEOUS AT WORK

• Practice in a Low-Risk Setting

• Plan for an Endurance Event
• Rely on Self-Regulation after
the Act of Courage

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 THE GOALS OF BUSINESS: MORE THAN
MAKING MONEY

The Triple Bottom Line: People, Planet, and Profit

Younger Workers’ Search for Meaning

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 THE TRIPLE BOTTOM LINE: PEOPLE, PLANET, AND PROFIT

• In this view of corporate performance, an

organization has a responsibility to its
people, planet, and profit.
• Success in these areas can be measured
through a social audit.

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 YOUNGER WORKERS’ SEARCH FOR MEANING

• Millennials (born between 1981 and 1996)

and Gen Zers (born after 1997) care about
the triple bottom line.
• Younger workers expect more from the
organizations they work for and do business
with.
• These generations want things like
meaningful work and products that represent
their personal values more than older
generations ever did.
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 THE COMMUNITY OF STAKEHOLDERS
INSIDE THE ORGANIZATION

Internal and External Stakeholders

Internal Stakeholders

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 INTERNAL AND EXTERNAL STAKEHOLDERS

• Managers operate in two organizational

environments, both made up of various
stakeholders.

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 INTERNAL STAKEHOLDERS

Large or small, your organization has people

in it who have both an important stake in how
it performs and the power to shape its future.
• Employees
• Owners
• Board of Directors

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 THE COMMUNITY OF STAKEHOLDERS

Figure 3.1.
Source: From Diverse Teams at
Work by Lee Gardenswartz.
Published by the Society for
Human Resource Management.
Access the text alternative for slide images.

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 THE COMMUNITY OF STAKEHOLDERS
OUTSIDE THE ORGANIZATION

The Task Environment

The General Environment

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 THE TASK ENVIRONMENT

• Customers
Task
• Competitors
environment
• Suppliers
consists of 10
• Distributors
groups that
• Strategic Allies
interact with
• Employee Organizations
the • Local Communities
organization on • Financial Institutions
a regular basis. • Government Regulators
• Special-Interest Groups

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 THE GENERAL ENVIRONMENT

• The general environment includes six forces:

economic, technological, sociocultural,
demographic, political–legal, and international.
• You may be able to control some forces in the
task environment, but you can’t control those
in the general environment.
• As a manager you need to keep your eye on
the far horizon because these forces of the
general environment can affect long-term
plans and decisions.

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 THE GENERAL ENVIRONMENT:
FIGURE 3.2 STATES WHERE MARIJUANA IS LEGAL

Source: “State Medical Marijuana Laws,” National Conference

of State Legislatures, October 16, 2019, https://www.ncsl.org/
research/health/state-medical-marijuana-laws.aspx. 

Access the text description for slide image.

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 THE ETHICAL RESPONSIBILITIES
REQUIRED OF YOU AS A MANAGER

Defining Ethics and Values

Four Approaches to Resolving Ethical

Dilemmas
White-Collar Crime, SarbOx, and Ethical
Training

How Organizations Can Promote Ethics

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 DEFINING ETHICS AND VALUES

Ethical standards may vary among countries and among cultures.

Six most common workplace behaviors that are considered ethical
misconduct.
• Conflicts of interest
• Abusive behaviors
• Violations of health and safety regulations
• Corruption
• Discrimination
• Sexual harassment
Values and value systems are the underpinnings for ethics and
ethical behavior.

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 DEFINING ETHICS AND VALUES:
FIGURE 3.3 GLOBAL RATES OF UNETHICAL
WORKPLACE BEHAVIOR

Source: Ethics & Compliance Initiative, “2019 Global Business Ethics Survey: Workplace Misconduct and Reporting—a Global Look,” 2019,
https://43wli92bfqd 835mbif2ms9qz-wpengine .netdna-ssl.com/wp-content/ uploads/Global-Business-Ethics- Survey-2019-Third-Report-1.pdf. 

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 FOUR APPROACHES TO RESOLVING
ETHICAL DILEMMAS

The Utilitarian Approach:

• For the Greatest Good
The Individual Approach:
• For Your Greatest Self-Interest Long Term, Which Will
Help Others
The Moral-Rights Approach:
• Respecting Fundamental Rights Shared by Everyone
The Justice Approach:
• Respecting Impartial Standards of Fairness

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 WHITE-COLLAR CRIME, SARBOX,
AND ETHICAL TRAINING

• Executives’ deceits generated a

great deal of public outrage, and as
a result Congress passed the
Sarbanes-Oxley Act.
• Sarbanes–Oxley Act established
requirements for proper financial
record keeping for public
companies.
• It also requires companies to have
established procedures and
guidelines for audit committees.
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 HOW ORGANIZATIONS CAN PROMOTE ETHICS

Ethics needs to be an everyday affair, not a one-time

thing.
There are several ways an organization may promote
high ethical standards:
• Creating a strong ethical climate
• Screening prospective employees
• Instituting ethics codes and training programs
• Rewarding ethical behavior: protecting whistle-blowers
• Using a multi-faceted approach

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 THE SOCIAL RESPONSIBILITIES
REQUIRED OF YOU AS A MANAGER

Corporate Social Responsibility: The Top of the Pyramid

Is Social Responsibility Worthwhile? Opposing and

Supporting Viewpoints

One Type of Social Responsibility: Climate Change,

Sustainable Development, and Natural Capital

Another Type of Social Responsibility: Undertaking

Philanthropy, “Not Dying Rich”

Does Being Good Pay Off?

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 CORPORATE SOCIAL RESPONSIBILITY:
THE TOP OF THE PYRAMID

Corporate social responsibility rests at the top of a

pyramid of a corporation’s obligations, right up there
with economic, legal, and ethical obligations.
The responsibilities of an organization in the global
economy should take the following priorities:
• Be a good global corporate citizen.
• Be ethical in its practices.
• Obey the law.
• Make a profit.

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 CORPORATE SOCIAL RESPONSIBILITY:
THE TOP OF THE PYRAMID.

Figure 3.4 Carroll’s

global corporate social
responsibility pyramid.
Source: A. Carroll,
“Managing Ethically and
Global Stakeholders: A
Present and Future
Challenge,” Academy of
Management Executive,
May 2004, p. 116.

Access text description for slide image.

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 IS SOCIAL RESPONSIBILITY WORTHWHILE? OPPOSING AND
SUPPORTING VIEWPOINTS

Against Social Responsibility:

• Unless a company focuses on maximizing profits, it will become
distracted and fail to provide goods and services, benefit the
stockholders, create jobs, and expand economic growth.
• This supports the efforts of companies to set up headquarters in
name only in offshore tax havens in order to minimize their tax
burden.
For Social Responsibility:
• A company must be concerned for society’s welfare as well as for
corporate profits.
• Beyond ethical obligation, the rationale for social responsibility is
the belief that it is good for business, morally appropriate, or
important to employees.

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 ONE TYPE OF SOCIAL RESPONSIBILITY: CLIMATE CHANGE,
SUSTAINABLE DEVELOPMENT, AND NATURAL CAPITAL

• Nearly everyone is aware of the growing threat of climate change and global
warming.
• Scientists say global warming is a “clear and unequivocal emergency” and
that without significant changes, the world will face “untold human suffering.
• Sustainable development, is economic development that meets the needs of the
present without compromising the ability of future generations to meet their own
needs.

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 ANOTHER TYPE OF SOCIAL RESPONSIBILITY:
UNDERTAKING PHILANTHROPY,
“NOT DYING RICH”

• “He who dies rich dies thus disgraced”

(Andrew Carnegie)
• The Bill and Melinda Gates Foundation,
has pledged to spend billions on health,
education, and overcoming poverty.
• The Gateses have been joined by 169
other billionaires from 22 countries.

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 DOES BEING GOOD PAY OFF?

• Indeed it pays to be ethical and socially

responsible.
• An organization’s commitment to CSR
may be an important factor for you to
consider during job searches.
• Supportive findings are shown in Table
3.1.

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 CORPORATE GOVERNANCE

Corporate Governance and Ethics

• Good corporate governance can contribute to more
ethical and socially responsible organizations.
• CEO accountability, board composition, and CSR
contracting are important governance factors for
organizations and their boards to consider.

Corporate Governance and Social

Responsibility
• Corporate governance is about such matters as long-term
strategies, sustainable finances, accurate reporting, and
positive work environment.

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 FIGURE 3.5 CAREER READINESS
COMPETENCIES

Access text description for slide image.

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 CAREER CORNER:
FOCUS ON THE GREATER GOOD
AND ON BEING MORE ETHICAL
Focus on the greater good and on being more ethical:
• Reduce your carbon footprint.
• Foster positive emotions in yourself and others.
• Spend time in nature.
• Get the proper amount of sleep.
• Increase your level of exercise.
• Expand your awareness of social realities.
• Fulfill your promises and keep appointments.
• Avoid people who lack integrity.

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 CAREER CORNER:
BECOME AN ETHICAL CONSUMER

Don’t purchase items

Purchase Fair Trade
that aren’t ethically
items.
made or sourced.

Bring your own

Don’t buy knockoffs.
grocery bags.

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 End of Main Content

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© 2022 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom.
No reproduction or further distribution permitted without the prior written consent of McGraw Hill.