Ethics Sustainability and Stakeholder Management Eighth Edition Archie B Carroll Ann K Buchholtz 2012 SouthWestern a part of Cengage Learning 1 Chapter 7 Business Ethics Fundamentals ID: 163854
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Slide1
Business & Society
Ethics, Sustainability, and Stakeholder ManagementEighth Edition
Archie B. Carroll Ann K. Buchholtz
© 2012 South-Western, a part of Cengage Learning
1Slide2
Chapter 7
Business Ethics
Fundamentals© 2012 South-Western, a part of Cengage Learning
2Slide3
Learning Outcomes© 2012 South-Western, a part of Cengage Learning
Describe how the public regards business ethics.
Define business ethics and appreciate the complexities of making ethical judgments.Explain the conventional approach to business ethics.
Analyze economic, legal, and ethical aspects by using a Venn Model.
Enumerate and discuss the four important ethics questions.
Identify and explain three models of management ethics.
Describe Kohlberg’s three levels of developing moral judgment.
Identify and discuss the elements of moral judgment.
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Chapter Outline
The Public’s Opinion of Business Ethics Business Ethics: Meaning, Types, Approaches
Ethics, Economics and Law: A Venn ModelFour Important Ethics QuestionsThree Models of Management Ethics
Making Moral Management ActionableDeveloping Moral Judgment
Elements of Moral Judgment
Summary
Key Terms
Discussion Questions
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© 2012 South-Western, a part of Cengage LearningSlide5
Business Ethics
The public’s interest in business ethics is at an all-time high, spurred by headline-grabbing scandals.The Enron scandal impacted business to greatly it is called “The Enron Effect.”
Business will never be the same.
© 2012 South-Western, a part of Cengage Learning
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Inventory of Ethical Issues in Business
6© 2012 South-Western, a part of Cengage Learning
Employee-Employer Relations
Employer-Employee Relations
Company-Customer Relations
Company-Shareholder Relations
Company-Community/Public
InterestSlide7
Business Ethics: Meaning, Types, ApproachesEthics
The discipline that deals with moral duty and obligation.Moral ConductRelates to principles of
right, wrong, and fairness in behavior.Business Ethics
Concerned with morality and fairness in behavior, actions,
and
practices
that take place
within a business context.
Is
the study of practices in organizations and
is a
quest to determine whether these practices are acceptable or
not.
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Business Ethics: Meaning, Types, Approaches (continued)
Descriptive EthicsInvolves describing, characterizing, and studying morality.Focuses on what is occurring.Normative Ethics
Concerned with supplying and justifying a coherent moral system of thinking and judging.
Focuses on what ought or should be
occurring
.
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© 2012 South-Western, a part of Cengage LearningSlide9
Three Approaches to Business EthicsConventional Approach
Based on how common society today views business ethics and on common sense.Principles ApproachBased
upon the use of ethics principles to justify and direct
behavior, actions, and policies.
Ethical Tests Approach
Based
on short, practical
questions to
guide ethical decision making
and behavior and practices.
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© 2012 South-Western, a part of Cengage LearningSlide10
Ethics and the LawThe law and ethics can overlap in many respects.
The law is a reflection of what society thinks are minimal standards of conduct and behavior.Research focuses on two questions:Why do firms do illegal things?
What are the consequences of engaging in illegal behavior?
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© 2012 South-Western, a part of Cengage LearningSlide11
The Conventional Approach to Business Ethics
What is the true nature of the practice, behavior, or decision that occurred?What are society’s (or business’s) prevailing norms
of acceptability?
What value judgments are being made by someone about the practice or behavior, and what are that person’s
perceptions
of applicable norms
?
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Ethical RelativismEthical Relativism
Picking and choosing which source of norms one wishes to use based on what will justify current actions or maximize freedom.
A
serious danger of the conventional approach to making ethical judgments.
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Four Important Ethical Questions
What is?What ought to be?How
do we get from what is to what ought to be?
What is our motivation in all this?
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Five Levels for Questions
Level of the individualLevel of the organization
Level of the industry or professionSocietal
level
Global or international
level
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What Is?
What are your personal ethics?What are your organization's ethics?What are
the ethics practice in your industry?What
are society’s ethics?
What
global ethics
are
in practice today?
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© 2012 South-Western, a part of Cengage LearningSlide16
What Ought to Be?
How ought we treat our aging employees?How safe ought we make this product?
How clean an environment should we aim for?
Should we outsource aspects of
production
to China or India
?
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© 2012 South-Western, a part of Cengage LearningSlide17
Three Models of Management Ethics
Immoral ManagementAn approach devoid of ethical principles and an active opposition to what is ethical.The operating strategy of immoral management is focused on exploiting opportunities for corporate or personal
gain.Moral ManagementConforms to high standards
of ethical behavior or professional standards
of
conduct.
Amoral Management
Intentional
: Does
not consider
ethical factors.
Unintentional
: Casual
or careless
about
ethical
factors.
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© 2012 South-Western, a part of Cengage LearningSlide18
Characteristics of Immoral Managers
Intentionally do wrongSelf-centered and self-absorbedCare only about self or organization’s profits/successActively oppose what is right, fair, or just
Exhibit no concern for stakeholdersAn
ethics course probably would not help them
The “bad guys”
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© 2012 South-Western, a part of Cengage LearningSlide19
Characteristics of Moral ManagersConform to high level
of: Ethical or right behaviorPersonal and professional standards
Ethical leadership is commonplace
Goal is to succeed within confines of sound ethical precepts
High integrity is
displayed
Embrace letter and spirit of the law
Possess an acute moral sense and moral maturity
T
he
“good guys
”
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Habits of Moral LeadersThey
have a passion to do right.They are morally proactive.They consider all stakeholders.They have a strong ethical character.They have an obsession with fairness.
They undertake principled decision making.They integrate ethics wisdom with management
wisdom.
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© 2012 South-Western, a part of Cengage LearningSlide21
Integrity StrategyRelated to moral management; is
characterized by a conception of ethics as the driving force of an organization.Guiding values and commitments make sense and are clearly communicated.Company leaders are personally committed, credible, and willing to take action on values.
Espoused values are integrated into normal channels of management decision making.
The organization’s systems support and reinforce its values.
All managers have the skills, knowledge, and competencies to make ethically sound decisions
daily.
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Characteristics of Amoral ManagersIntentionally Amoral
Managers Don’t think ethics and business should “mix.”Business and ethics exist in separate spheres.
A vanishing breed.Unintentionally Amoral
Managers
Don’t consider the ethical dimension of decision
making.
Don’t “think
ethically.”
Have no “ethics
buds.”
Well-intentioned, but morally casual or
unconscious.
Ethical gears are in
neutral.
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Hypotheses Regarding Moral Management ModelsPopulation
hypothesisThe distribution of the three models approximate a normal curve, with the amoral group occupying the large middle part of the curve and the moral and immoral categories occupying the tails.
Individual hypothesis
Within the individual manager,
these three models may operate at various times and under various
circumstances.
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Why Managers and Employees Behave Ethically
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Most of Us
Many of Us
Very Few Of Us
1. To avoid some punishment
2. To receive some reward
3. To be responsive to family, friends,
or superiors
4. To be a good citizen
5. To do what is right, pursue some idealSlide25
External Sources of a Person’s Values
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© 2012 South-Western, a part of Cengage Learning
Philosophical values
Cultural values
Legal values
Religious values
Professional values
The Web
of ValuesSlide26
Internal Sources of a Person’s Values
Norms prevalent in business includeRespect for the authority structureLoyalty to bosses and the organization Conformity to principles and practices
Performance counts above all elseResults count above all else
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© 2012 South-Western, a part of Cengage LearningSlide27
Key TermsAmoral managementBusiness
ethicsCompliance strategyConventional approach to business ethicsDescriptive ethicsEthical egoismEthical relativism EthicsImmoral management
Integrity strategyIntentional amoral management
Kohlberg’s levels of moral developmentMoral development
Moral management
Normative
ethics
Unintentional amoral management
© 2012 South-Western, a part of Cengage Learning
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