2010 SouthWestern Cengage Learning Inc All rights reserved

© 2010 South-Western, Cengage Learning, Inc. All rights reserved. Student Version Power. Point Presentation by Charlie Cook The University of West Alabama

Individual Ethics In Organizations • Ethics Ø An individual’s personal beliefs regarding what is right and wrong or good and bad. • Ethical Behavior Ø “Eye of the beholder” or behavior that conforms to generally accepted social norms. • Examples of Unethical Behavior Ø “Borrowing” office supplies for personal use. Ø Surfing the Internet on company time. Ø Filing falsified or inflated business expense reports. © 2010 South-Western, Cengage Learning, Inc. All rights reserved. 2

Determinants of Individual Ethics Family Values and Morals Individual Ethics Peers Individual Experiences An individual’s ethics are determined by a combination of factors. © 2010 South-Western, Cengage Learning, Inc. All rights reserved. 3

Ethics in Organizations Individual Values Managerial Values © 2010 South-Western, Cengage Learning, Inc. All rights reserved. Organizational Values 4

Ethics in Organizations (cont’d) Managing Ethical Behavior Top Management Involvement Train Employees Written Code of Ethics Individual Issues: Behavior, Conscience, Privacy © 2010 South-Western, Cengage Learning, Inc. All rights reserved. 5

Applying Ethical Judgments • Model for deciding whether or not a particular action or decision is ethical Ø Gather relevant factual information. Ø Determine the most appropriate moral values. Ø Make a judgment. • Ethical Norms Affecting Actions Ø Utility Ø Rights Ø Justice Ø Caring © 2010 South-Western, Cengage Learning, Inc. All rights reserved. 6

Maintaining Organizational Justice Forms of Organizational Justice Distributive justice Procedural justice © 2010 South-Western, Cengage Learning, Inc. All rights reserved. Interpersonal justice Informational justice 7

Emerging Ethical Issues in Organizations Emerging Ethical Issues Ethical leadership Corporate governance © 2010 South-Western, Cengage Learning, Inc. All rights reserved. Information technology 8

Social Responsibility and Organizations • Organizational Stakeholders Ø People and organizations directly affected by the behaviors of an organization and that have a stake in its performance. • Social Responsibility Ø The set of obligations an organization has to protect and enhance the societal context in which it functions. • Areas of Social Responsibility Ø Stakeholders Ø The natural environment Ø The general social welfare © 2010 South-Western, Cengage Learning, Inc. All rights reserved. 9

Managing Social Responsibility Formal Organizational Dimensions Informal Organizational Dimensions Legal compliance Organization leadership and culture Ethical compliance Whistle Blowing Philanthropic giving © 2010 South-Western, Cengage Learning, Inc. All rights reserved. 10

Evaluating Social Responsibility (cont’d) Corporate Social Audit Clearly define social goals Analyze resources applied Determine if goals are being met Recommend changes for improvement © 2010 South-Western, Cengage Learning, Inc. All rights reserved. 11

Key Terms • • • unethical behavior managerial ethics code of ethics Sarbanes-Oxley Act of 2002 social responsibility organizational stakeholder obstructionist stance defensive stance accommodative stance proactive stance © 2010 South-Western, Cengage Learning, Inc. All rights reserved. • • regulation lobbying legal compliance ethical compliance philanthropic giving whistle blowing corporate social audit 12