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Management meeting and exceeding customer expectation 8th ch03

Management Ethics and
Social Responsibility

Chapter 3

MANAGEMENT
Meeting and Exceeding Customer Expectations
EIGHTH EDITION
Prepared by
Deborah Baker
Texas Christian University
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

1


learning objectives
1. Describe the two broad categories of ethical
theories

2. Explain what individuals need in order to act

ethically

3. Describe the organizational influences on
ethical conduct

4. Discuss three primary ways in which business
can promote ethical conduct

Chapter 3

5. Describe the relationship between law and
ethics
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

2


learning objectives

(continued)

6. Explain the concept of an ethical dilemma
7. Discuss the guidelines for acting ethically
8. Explain the three approaches by business to
social responsibility

9. Explain the responsibilities businesses
have to stakeholders

10.Describe the government’s role in promoting
socially responsible conduct by businesses
Chapter 3

11.Discuss the ways in which businesses can
promote socially responsible conduct
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

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11

Managing Ethically

Chapter 3

Business
Business
Ethics
Ethics

The rules or standards
governing the conduct of
persons or members of
organizations in the field of
commerce

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

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11

Balancing Demands
 Many conflicting demands have been
made on those who manage institutions

 Consequences of management decisions

Chapter 3

affect more people and environments than
ever before

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

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Individuals and Ethical Conduct

Chapter 3

Morality
Morality

Core values and beliefs that act
as a guide when individuals
formulate courses of action

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

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An Individual’s Code of Ethics
Religious
Religious beliefs
beliefs and
and training
training
Educational
Educational background
background
Political
Political and
and economic
economic philosophy
philosophy

Chapter 3

Socialization
Socialization

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

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33

Organizational Influences
Offer unusually high rewards

Encouraging
Encouraging
Unethical
Unethical
Behavior
Behavior

Threaten unusually severe
punishments

Chapter 3

Emphasize results

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

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44

Importance of Organizational
Controls
Unifying
Ethics

Code of Ethics

Compliance Programs

Chapter 3

Commitment of Top Management

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

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44

Commitment of Top
Management
Establish
Establish aa code
code of
of ethics
ethics

Training
Training and
and oversight,
oversight,
reward
reward ethical
ethical behavior
behavior

Chapter 3

Discouraging
Discouraging
Unethical
Unethical
Behavior
Behavior

Punish
Punish wrongdoers
wrongdoers

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

10


Codes of Ethics

44

Characteristics
Characteristics

 Visible guidelines for behavior
 Unchallengeable basis for firing an
unethical employee

 Protect all personnel from market
pressures

 Remind employees to look beyond the

Chapter 3

bottom line

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

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44

Compliance Programs

Chapter 3

Ethics
Ethics Training
Training

Compliance
Compliance Training
Training

alerts
alerts people
people to
to policies,
policies,
regulations,
regulations, and
and laws
laws

Cognitive
Cognitive Thinking
Thinking

develops
develops skills
skills to
to allow
allow
people
people to
to think
think through
through
“moral
“moral mazes”
mazes”

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

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Chapter 3

55

Legal Constraints

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66

Ethical Dilemmas
Suggestions
Suggestionsfor
forEthical
EthicalDilemmas
Dilemmas

 When in doubt, don’t
 Don’t try to find out “how far is too far”
 Superiors who push you to do things

Chapter 3

better, faster, cheaper will turn on you
when you when you cross the line
between right and wrong

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

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Guidelines for Acting Ethically

Chapter 3

77






Consider other people’s well-being






Obey moral rules

Think as a member of the business community
Obey, but do not depend solely on, the law
Think of yourself and your company as part of
society
Think objectively
Ask “What sort of person would do such a thing?”
Respect the customs of others, but not at the
expense of your own ethics

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

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77

Guidelines for Acting Ethically
Is it legal?

The
The Ethical
Ethical
Test
Test

Is it balanced?

Chapter 3

How will it make me feel
about myself?

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

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77

Dimensions of Reputation
Emotional
EmotionalAppeal
Appeal
Products
Products and
and Services
Services
Financial
FinancialPerformance
Performance
Vision
Vision and
and Leadership
Leadership

Chapter 3

Workplace
WorkplaceEnvironment
Environment
Social
SocialResponsibility
Responsibility
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

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88

Approaches to Social
Responsibility
Resistance
Resistance
Approach
Approach

Reactive
Reactive
Approach
Approach

Chapter 3

Proactive
Proactive
Approach
Approach

Businesses actively fight to
eliminate, delay, or fend off
demands being made of them
Businesses wait for demands to
be made and then react to them,
choosing a response by
evaluating alternatives
Businesses continually look to
the needs of constituents and try
to find ways to meet those needs

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

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Chapter 3

99

Responsibilities to Stakeholders

Owners
Ownersand
and
Stockholders
Stockholders

Employees
Employees

Customers
Customers

Suppliers
Suppliers

Communities
Communities

Society
Society

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

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10
10

Government Regulation: Pros and
Cons
Social
Social Responsibility
Responsibility to
toPrevent
PreventPollution
Pollution

Chapter 3






Redesigning of processes and products
Recycling and repackaging for reduced waste
Anticipating needs
Facing problems up front

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

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11
11Managing

for Social Responsibility

Making
MakingOrganizations
OrganizationsProactive
Proactive

 Top-level commitment and support
 Corporate policies that integrate
environmental issues

 Effective interfaces between corporate and
business-unit staff

 High degree of employee awareness and
training

Chapter 3

 Strong auditing programs
 Establishment of responsibility for
dealing with environmental problems
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

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