Managerial role and ethics slides ppt
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The document discusses managerial ethics and factors that influence ethical behavior in organizations. It defines ethics and presents four main views of ethics: utilitarian, rights-based, justice-based, and integrative social contracts theory. It also examines how individual characteristics like moral development and personality, organizational structure, and issue intensity can affect ethical decisions. Additionally, it provides recommendations for improving ethics in organizations like establishing codes of conduct and providing ethics training.
Managerial role and ethics slides ppt
- 2. Managerial Ethics 5–2 Ethics Defined The rules and principles that define right and wrong conduct. Four Views of Ethics The utilitarian view The rights view The theory of justice view The integrative social contracts theory
- 3. Managerial Ethics (cont’d) 5–3 Utilitarian View Ethical decisions are made solely on the basis of their outcomes or consequences such that the greatest good is provided for the greatest number. Encourages efficiency and productivity and is consistent with the goal of profit maximization. Rights View Concerned with respecting and protecting individual liberties and privacy. Seeks to protect individual rights of conscience, free speech, life and safety, and due process.
- 4. Managerial Ethics (cont’d) 5–4 The Theory of Justice Organizational rules are enforced fairly and impartially and follow all legal rules and regulations. Protects the interests of underrepresented stakeholders and the rights of employee. Integrative Social Contracts Theory Ethical decisions should be based on existing ethical norms in industries and communities in order to determine what constitutes right and wrong. Based on integration of the general social contract and the specific contract between community members.
- 5. Factors That Affect Employee Ethics5–5 Moral Development A measure of independence from outside influences Levels of Individual Moral Development Preconventional level Conventional level Principled level Stage of moral development interacts with: Individual characteristics The organization’s structural design The organization’s culture The intensity of the ethical issue
- 6. Factors That Affect Ethical and Unethical Behavior5–6 Exhibit 5.7
- 7. Factors That Affect Employee Ethics (cont’d)5–7 Moral Development Research Conclusions: People proceed through the stages of moral development sequentially. There is no guarantee of continued moral development. Most adults are in Stage 4 (“good corporate citizen”).
- 8. Individual Characteristics Affecting Ethical Behaviors5–8 Values Basic convictions about what is right or wrong on a broad range of issues Stage of Moral Development A measure of an individual’s independence from outside influences
- 9. Stages of Moral Development 5–9 Exhibit 5.8
- 10. Individual Characteristics 5–10 Personality Variables Ego strength A personality measure of the strength of a person’s convictions Locus of Control A personality attribute that measures the degree to which people believe they control their own life. Internal locus: the belief that you control your destiny. External locus: the belief that what happens to you is due to luck or chance.
- 11. Structural Variables 5–11 Organizational characteristics and mechanisms that guide and influence individual ethics: Performance appraisal systems Reward allocation systems Behaviors (ethical) of managers An organization’s culture Intensity of the ethical issue Good structural design minimizes ambiguity and uncertainty and fosters ethical behavior.
- 12. Determinants of Issue Intensity 5–12 Exhibit 5.9
- 13. Ethics in an International Context5–13 Ethical standards are not universal. Social and cultural differences determine acceptable behaviors. Foreign Corrupt Practices Act Makes it illegal to corrupt a foreign official yet “token” payments to officials are permissible when doing so is an accepted practice in that country.
- 14. The Global Compact 5–14 Exhibit 5.10 Human Rights Principle 1: Support and respect the protection of international human rights within their sphere of influence. Principle 2: Make sure business corporations are not complicit in human rights abuses. Labor Standards Principle 3: Freedom of association and the effective recognition of the right to collective bargaining. Principle 4: The elimination of all forms of forced and compulsory labor. Principle 5: The effective abolition of child labor. Principle 6: The elimination of discrimination in respect of employment and occupation. Environment Principle 7: Support a precautionary approach to environmental challenges. Principle 8: Undertake initiatives to promote greater environmental responsibility. Principle 9: Encourage the development and diffusion of environmentally friendly technologies.
- 15. Code of Ethics 5–15 A formal statement of an organization’s primary values and the ethical rules it expects its employees to follow. Be a dependable organizational citizen Don’t do anything unlawful or improper that will harm the organization Be good to customers
- 16. Effective Use of a Code of Ethics5–16 Develop a code of ethics as a guide in handling ethical dilemmas in decision making. Communicate the code regularly to all employees. Have all levels of management continually reaffirm the importance of the ethics code and the organization’s commitment to the code. Publicly reprimand and consistently discipline those who break the code.
- 17. How Managers Can Improve Ethical Behavior in An Organization 5–17 1. Hire individuals with high ethical standards. 2. Establish codes of ethics and decision rules. 3. Lead by example. 4. Delineate job goals and performance appraisal mechanisms. 5. Provide ethics training. 6. Conduct independent social audits. 7. Provide support for individuals facing ethical dilemmas.
- 18. The Value of Ethics Training 5–18 Training in ethical problem solving can make a difference in ethical behaviors. Training in ethics increase employee awareness of ethical issues in business decisions. Ethics training clarifies and reinforces the organization’s standards of conduct. Employees become more confident that they will have the organization’s support when taking unpopular but ethically correct stances.
- 19. Ethical Leadership 5–19 Managers must provide a good role model by: Being ethical and honest at all times. Telling the truth; don’t hide or manipulate information. Admitting failure and not trying to cover it up. Communicating shared ethical values to employees through symbols, stories, and slogans. Rewarding employees who behave ethically and punish those who do not. Protecting employees (whistleblowers) who bring to light unethical behaviors or raise ethical issues.
- 20. Business Practices and Social Issues5–20 Social Impact Management The field of inquiry at the intersection of business practice and wider societal concerns that reflects and respects the complex interdependency of those two realities. The question of how to go about increasing managers’ awareness within their decision- making processes of how society is impacted by the conduct and activities of their firms.