2b80b0ed_ethics, social responsibility, and diversity

7/23/2019 2b80b0ed_Ethics, Social Responsibility, And Diversity

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Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000

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Ethics, SocialResponsibility,

and Diversity

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Ethics and StakeholdersStakeholders:people or !ro"ps that have aninterest in the or!ani#ation$ Stakeholders include employees, customers, shareholders,

suppliers, and others.

Stakeholders often want different outcomes and managersmust work to satisfy as many as possible.

Ethics:a set o% belie%s abo"t ri!ht and wron!$ Ethics guide people in dealings with stakeholders and

others, to determine appropriate actions. Managers often must choose between the conflicting

interest of stakeholders.


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Ethics

It is di%%ic"lt to 'now when a decision isethical$ Here is a !ood test(

Managerial ethics( I% a )ana!er)a'es a decision %allin! within "s"alstandards, is willin! to personallyco))"nicate the decision to

sta'eholders, and believes %riendswo"ld approve, then it is li'ely anethical decision$


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Ethical Models

Social Ethics(

+e!al r"les, c"sto)s

ro%essional Ethics(ro%essional Ethics(

al"es in wor'placeal"es in wor'placeIndivid"al Ethics(Individ"al Ethics(

.a)ily in%l"ence.a)ily in%l"ence

r!ani#ation0sr!ani#ation0s

ode o% Ethicsode o% Ethics

Figure 5.2


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Ethical Origins

Societal Ethics:standards that )e)bers o%society "se when dealin! with each other$Based on values and standardsfound in societys legal

rules, norm, and mores. Codified in the form of lawand society customs.Norms dictate how people should behave.

Societal ethics vary based on a !iven society$ Strong beliefs in one country may differ elsewhere. Eample! bribes are anaccepted business practice in

some countries.


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Ethical Origins

Professional ethics:val"es and standards"sed by !ro"ps o% )ana!ers in the wor'place$ "pplied when decisions are not clear#cut ethically.

Eample! physicians and lawyers have professionalassociations that enforce these.

Individual ethics:val"es o% an individ"alres"ltin! %ro) their %a)ily3 "pbrin!in!$ $f behavior is not illegal, people will often disagree on if

it is ethical. Ethics of top managers set the tone for firms.


7/22Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000

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Ethical %ecisions 'ey ethical iss"e is how to disperse har) andbene%its a)on! sta'eholders$ $f a firm is very profitable for two years, who should receive

the profits& Employees, managers and stockholders all want a

share. Should we keep the cash for future slowdowns&

What is the ethical decision?

6hat abo"t the reverse, when %ir)s )"st layo%%wor'ers$

.inal point( stoc'holders are the le!al owners o%the %ir)7


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Ethical %ecisions

So)e other iss"es )ana!ers )"st consider$ Shold !o hold pa!ment to sppliers as lon" as

possi#le to #ene$it !or $irm?

'his will harm your supplier who is a stakeholder. Shold !o pa! se%erance pa! to laid o$$ wor&ers?

'his may decrease the stockholder(s return.

Shold !o #! "oods $rom o%erseas $irms that hire

children?$f you dont the children might not earn enough

money to eat.


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)hy *ehave Ethically&

Mana!ers sho"ld behave ethically to avoidhar)in! others$ Managers are responsible for protecting and nurturing

resources in their charge.

:nethical )ana!ers r"n the ris' %or loss o%rep"tation$

'his is a valuable asset to any manager+ eputation is critical to long term management

success. "ll stakeholders are -udged by reputation.


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Social esponsibility

Social Responsibilit:the )ana!er0s d"ty ton"rt"re, protect and enhance the wel%are o%sta'eholders$


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"efensive response:)ana!ers stay within the

law b"t )a'e no atte)pt to e=erciseadditional social responsibility$ ut shareholder interest above all other stakeholders. Managers say society should make laws if change is

needed.#ccommodative response:)ana!ers reali#ethe need %or social responsibility$

'ry to balance the interests of all stakeholders.Proactive response:)ana!ers activelye)brace social responsibility$ /o out of their way to learn about and help stakeholders.


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0evels of esponsibility

bstr"ction

response

De%ensive

responsecco))odativecco))odative

responseresponse

roactiveroactive

responseresponse

'ow Hi"hSocial responsibilit

Figure 5.3


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)hy be esponsible&Mana!ers accr"e bene%its by bein!responsible$ )orkers and society benefit.

1uality of life in society will improve. $t is the right thing to do.

$histleblowers:a person reportin! ille!al or"nethical acts$

)histleblowers now protected by law in most cases.Social audit:)ana!ers speci%ically ta'e ethicsand b"siness into acco"nt when )a'in!decisions$


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'he Social "udit

ro%itability

>e!ative>e!ative +ow+ow Medi")Medi") Hi!hHi!h

>e!ative>e!ative

+ow+ow

Medi")Medi")

Hi!hHi!h

.avored

Strate!iesSocia

lRet"rns

Figure 5.4


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romoting Ethics


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Managing %iverse )orkforces


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'ypes of %iversityFigure 5.5

apabilitiesapabilities

DisabilitiesDisabilities

Socioecono)icSocioecono)icbac'!ro"ndbac'!ro"nd

Se="alSe="al

orientationorientation

Reli!ionReli!ionEthnicityEthnicity

RaceRace

GenderGender

!e!e


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Manage %iversity"istributive &ustice:dictates )e)bers betreated %airly concernin! pay raises,pro)otions, o%%ice space and si)ilar iss"es$ 'hese rewards should be assigned based on merit and

performance. " legal re4uirement that is becoming more prevalent in

"merican business.

Procedural &ustice:Mana!ers sho"ld "se %airpractices to deter)ine how to distrib"teo"tco)es to )e)bers$ 'his involves how managers appraise worker

performance or decide who to layoff.


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%iversity Makes *usiness Sense

Diverse e)ployees provide new, di%%erentpoints o% view$ 5ustomers are also diverse.

Still, so)e e)ployees )ay be treated "n%airly$Biases(systematic tendencies to use information in ways

that result in inaccurate perceptions. eople often view those like themselves positively and

have biases about others. Social status is a type of bias conferred to people of

differing social position.Stereotpes(inaccurate beliefs about a given group.


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6ow to Manage %iversity

Increase diversit awareness:)ana!ers needto beco)e aware o% their own bias$

'nderstand cultural differencesand theiri)pact on wor'in! styles$

Practice effective communicationwithdiverse !ro"ps$

@e s"re top management is committedtodiversity$


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Seual 6arassment

Da)a!es both the person bein! harassed andthe or!ani#ation$ *oth men and women can be victims.

(uid pro %uo harassment:victi) is re?"estedto per%or) se="al %avors to 'eep a Aob or winpro)otion$

)ostile work environment harassment:So)e)e)bers are %aced with a hostile,inti)idatin! wor' environ)ent$ 0ewd -okes, pornographic displays and remarks.


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"voiding 6arassment

Develop and co))"nicate a se*ualharassment polic+ oint out that these actions are unacceptable.

Set "p afair complaint sstemto investi!atealle!ations$ $f there are problems, correct them at once.

rovide harassment trainingto e)ployeesand )ana!ers$

2b80b0ed_ethics, social responsibility, and diversity

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