Chapter Four
description
Transcript of Chapter Four
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Chapter Chapter FourFour
Demonstrating Demonstrating Ethical Behavior &Ethical Behavior &
Social Social ResponsibilityResponsibility
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Ethics Check Questions:
Is It Legal?
Is It Balanced?
How Will It Make Me Feel About Myself?
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Factors That Cause WorkersTo Act Unethically
• Pressure to meet sales, budget or profit goals
• Lack of recognition• Personal financial worries• Balancing work & family• Poor communication
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Top Five Unethical/IllegalBehaviors of Workers
Cut corners in quality controlCovered up incidentsAbused or lied about sick daysLied to or deceived customersPut inappropriate pressure on
others
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Fostering Ethical Behavior
• Leadership• Codes of Conduct
– Compliance-based– Integrity-Based
• Social Audits• Whistle Blowing
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Factors Influencing Managerial Ethics
IndividualIndividual OrganizationalOrganizational EnvironmentalEnvironmental
ValuesValuesWork Work BackgroundBackground
Family StatusFamily Status
PersonalityPersonality
Top Level Top Level Mgmt. PhilosophyMgmt. Philosophy
The Firm’s The Firm’s Reward SystemReward System
Job DimensionsJob Dimensions
CompetitionCompetition
Economic Economic ConditionsConditions
Social/Cultural Social/Cultural InstitutionsInstitutions
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Business Mission Statement
• Why?• What?• How?
“Our mission is to show people how they can use the power of their bodies and minds to make their lives better. ‘You can do it,’ we say on every page of our magazines and books.-Ardath Rodale, Rodale Publishing
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Business Mission Statement
Our mission is to be the world leader in Customer Service, innovation and product value in the Hand Tool industry. We will accomplish this by fostering an environment that allows our people to produce quality hand tools on time and meet business growth needs through employee excellence and development.- Western Forge
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Business Ethics & Social Responsibility
• Ethics- Values/Principles
• Responsibility- Consequences of Actions
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Ethical Decision Resolved Through:
• Religious Teachings
• Individual Rights
• Legislation
• Court Decisions
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Classifying Classifying Business Business DecisionsDecisions
EthicalEthical
UnethicalUnethical
IllegalIllegal LegalLegal
Unethical Unethical and and
IllegalIllegal
Ethical Ethical and and LegalLegal
Unethical Unethical but but
LegalLegal
Ethical Ethical but but
IllegalIllegal
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Steps to Improve U.S. Business Ethics
1. Top Management
2. Employees
3. Managers
4. Ethics Office
5. Outsiders
6. Enforcement
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Three Levels of Three Levels of Social ResponsibilitySocial Responsibility
Societal ResponsibilitySocietal Responsibility
Stakeholder ResponsibilityStakeholder Responsibility
Profit ResponsibilityProfit Responsibility
Owners/StockholdersOwners/Stockholders
GeneralGeneral
PublicPublicCustomersCustomers EmployeesEmployees
Suppliers/DistributorsSuppliers/Distributors
EcologicalEcological
EnvironmentEnvironment
Public Interest GroupsPublic Interest Groups
Source: Source: MarketingMarketing, 5/E by Berkowitz, Kerin, Hartley, and Rudelius., 5/E by Berkowitz, Kerin, Hartley, and Rudelius.
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Responsibility to Employees
• Working Conditions• Equal Employment
Opportunity• Affirmative Action• Diversity Training
• Economic Security
• Child Care/Parental Leave
• Employee Dignity• Conflict of Interest
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What Concerns WorkersMost on the Job?
• Hazardous Materials 23%• Injury 20%• Repetitive job motions 10%• Poor ventilation 7%• HIV/Aids 6%
PercentPercent
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Responsibility to Customers/Environment
• Right To Safety
• Right To Be Informed
• Right To Choose
• Right To Be Heard
• Quality Of Life
• Ecology/Pollution
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Responsibility to Society, Investors, & Suppliers
• Fairness• Honesty• Timely Action• Appropriate Compensation• Philanthropy
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Why People Why People VolunteerVolunteer
0 20 40 60 80 100
Help People
Be With People They Enjoy
Learn Issues/Problems
Percent of RespondentsPercent of Respondents
Total is more than 100% because respondents could give more than one reason.
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Contributions to Charity(In Billions of Dollars)
$9$10
$120
$12 IndividualsFoundationsBequestsCorporations
Source: Forbes Dec. 15, 1997
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New Economy & New Economy & New PhilanthropyNew Philanthropy
Foundation Donation
Bill & Melinda Gates Foundation $21.8*
Ford Foundation 13.1
Packard Foundation 13.0
Lilly Foundation 11.2
Robert Wood Johnson Foundation 8.3**In BillionsIn Billions
Source: Source: Business WeekBusiness Week, Mar. 13, 2000, Mar. 13, 2000
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Corporate Annual GivingMerckJohnson & JohnsonPfizerEli LillyIBMMicrosoftIntelBank of America
$221.0* 176.2 123.9 121.4 116.1 104.7 101.0 91.5
Source: The Taft Group * In Millions* In Millions
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Most Admired Companies by Industry
Apparel Levi-StraussAirlines SouthwestFood Services McDonald’sFood Products Campbell’sBeverages Coca-ColaElectronics Intel
IndustryIndustry CompanCompanyy
Source: Fortune Magazine
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International Ethics &Social Responsibilities
• U.S. not unique– Japan/S. Korea/China = influence peddling– Mexico = child labor
• Leaders being held to new/higher standards– Chinese prison labor– McDonald’s using rain forest land for cattle
grazing