Managerial Ethics

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Chapter 2 Managerial Ethics

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

FOM 2.1

Learning Outcomes






Define social responsibility and ethics List at least six main arguments for at at least four main arguments against businesses being socially responsible Explain the importance of demonstrating social responsibility in today’s business world (continued)

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

FOM 2-2

Learning Objectives (continued)








Describe the concerns people have about business ethics Explain the relationship between social responsibility and managerial ethics Identify the seven factors that influence ethical behaviour Describe ways an organization can improve ethical behaviour FOM 2-3

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Society’s Expectations from Organizations and Managers




Managers regularly make decisions about issues with a social dimension In competitive environment, organizations cannot afford to be seen as socially irresponsible

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

FOM 2-4

Arguments Supporting Businesses Being Socially Responsible



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Public expectations Long-run profits Ethical obligation Public image Better environment Discouragement of further government regulation Balance of responsibility and power Shareholder interests Possession of resources Superiority of prevention over cures FOM 2-5

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Arguments Against Businesses Being Socially Responsible


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Violation of profit maximization Dilution of purpose Costs Too much power Lack of skills Lack of accountability Lack of broad public support FOM 2-6

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Demonstrating Social Responsibility


 

Social responsibility Social obligation Social responsiveness

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

FOM 2-7

Relationship Between Social Responsibility and Economic Performance 



Research studies show positive relationship General public perception that companies who behave in a socially responsible way have better business performance

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

FOM 2-8

Managers Becoming More Socially Responsible




It is the collective behaviour and actions of managers that make a company socially responsible Managers who make the right decisions are described as being or behaving ethically

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

FOM 2-9

Managerial Ethics




Ethics  Rules and principles that define right and wrong conduct Three Views of Ethics  Utilitarian view - ethical decisions are made on the basis of their outcomes or consequences (continued)

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

FOM 2-10

Managerial Ethics (continued)


Three Views of Ethics (continued)  Rights view - respects and protects individual liberties and privileges  Theory of justice view - managers impose and enforce rules fairly and impartially

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

FOM 2-11

Moral Development




Is a measure of an individual’s independence as his/her moral judgment becomes less and less dependent on outside influences Stages start with making a choice between right and wrong based on personal...
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