2015 Cengage Learning MGMT7 2015 Cengage Learning 41 identify common kinds of workplace deviance 42 describe the US Sentencing Commission Guidelines for Organizations and explain ID: 719901
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Slide1
Chapter 4Ethics and Social Responsibility
© 2015 Cengage Learning
MGMT7Slide2
© 2015 Cengage Learning
4-1 identify
common kinds of workplace
deviance
4-2
describe
the U.S. Sentencing Commission
Guidelines
for Organizations and explain
how
they both encourage ethical behavior
and
punish unethical behavior by
businesses
4-3
describe
what influences ethical decision
making
4-4
explain
what practical steps managers can
take
to improve ethical decision makingSlide3
© 2015 Cengage Learning
4-5 explain
to whom organizations are socially
responsible
4-6
explain
for what organizations are socially
responsible
4-7
explain
how organizations can choose to
respond
to societal demands for social
responsibility
4-8
explain
whether social responsibility hurts
or
helps an organization’s economic
performanceSlide4
Workplace DevianceEthical behavior
conforms to a society’s accepted principles of right and wrong. Workplace devianceunethical behavior that violates organizational norms about right and wrong.
© 2015 Cengage Learning
4-1Slide5
Types of Workplace Deviance
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4-1Slide6
Who, What, and Why
Whonearly all companies: nonprofits, partnerships, labor unions, unincorporated organizations, incorporated organizations, pension funds, trusts, joint stock companiesWhat offenses defined by federal laws: invasion of privacy, price fixing, fraud, theft, embezzlement, etc.
Why
The purpose of the guidelines is not just to punish companies after violations, but to encourage companies to prevent violations before they happen.
© 2015 Cengage Learning
4-2Slide7
Offense Levels, Base Fines, Culpability Scores, and Possible Total Fines under the US Sentencing Commission Guidelines for Organizations
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4-2Slide8
Compliance Program Steps from the US Sentencing Commission Guidelines for Organizations
4-2
©
2015
Cengage LearningSlide9
Influences on Ethical Decision Making
Ethical intensityMoral developmentEthical principles
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4-3Slide10
Ethical Intensity
The degree of concern people have about an ethical issue.Magnitude of consequences
Social consensus
Probability of effect
Temporal immediacy
Proximity of effect
Concentration of effect
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4-3Slide11
Kohlberg’s Stages of Moral Development
4-3
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2015
Cengage LearningSlide12
Principles of Ethical Decision Making
Principle of long-term self interestPrinciple of personal virtuePrinciple of religious injunctionsPrinciple of government requirementsPrinciple of utilitarian benefitsPrinciple of individual rights
Principle of distributive justice
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4-3Slide13
Selecting and Hiring Ethical
EmployeesOvert integrity testsPersonality-based integrity tests
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4-4Slide14
Codes of EthicsA company must communicate its code inside and outside the company.
Management must develop practical ethical standards and procedures specific to the company’s line of business. © 2015 Cengage Learning
4-4Slide15
Objectives of Ethics TrainingDevelop employees’ awareness of ethics
Achieve credibility with employeesTeach employees a practical model of ethical decision making
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4-4Slide16
A Basic Model of Ethical Decision Making
4-4
© 2014 Cengage Learning
© 2015 Cengage LearningSlide17
Ethical Climate
Organizational culture is key to fostering ethical decision making.Management needs to be active in and committed to the ethics program. Encourage managers and employees to report ethical violations (
whistleblowing
)
© 2015 Cengage Learning
4-4Slide18
To Whom Are Organizations Socially Responsible?
Shareholder model the only social responsibility that businesses have is to maximize profitsStakeholder model management’s most important responsibility is not just maximizing profits, but the firm’s long term-survival.
© 2015 Cengage Learning
4-5Slide19
Stakeholder Model of Corporate
Social ResponsibilityPeople or groups who are interested in and affected by the organization’s actions.
Primary stakeholders
Secondary stakeholders
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4-5Slide20
Stakeholder Model of Corporate Social Responsibility
4-5
© 2014 Cengage Learning
© 2015 Cengage LearningSlide21
For What Are Organizations Socially Responsible?
Economic responsibilityLegal responsibilityEthical responsibilityDiscretionary responsibility
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4-6Slide22
Responses to Demands for Social Responsibility
Social responsiveness: a company’s strategy for responding to stakeholders’ expectations concerning economic, legal, ethical, or discretionary responsibility.
© 2015 Cengage Learning
4-7Slide23
Social Responsiveness StrategiesReactive
DefensiveAccommodativeProactive
4-7
© 2015 Cengage LearningSlide24
Social Responsibility and Economic Performance
There is no tradeoff between being socially responsible and economic performance. It usually does pay to be socially responsible. There is no guarantee that socially responsible companies will be profitable.
© 2015 Cengage Learning
4-8Slide25
Theo Chocolate
1. Which of the four strategies for responding to social responsibility best reflects Theo Chocolate?2. How does Theo Chocolate’s business practices reflect the stakeholder model of social responsibility? 3. What would happen if fair trade goals conflicted with a company’s primary responsibility to be profitable?
© 2015 Cengage Learning