Ethics Final
Challenges of followers:
Followers are charged with carrying out the work and implementing the directives of leaders. They have less power and status than leaders do.
Challenges of followers: Challenge of obedience
Followers must routinely obey orders and directives, even the ones they don't like. Deciding when to disobey is the challenge. - Milgrim Study
Servant (exemplary) followership: Pragmatic follower
Pragmatists often have been victimized by frequent layoffs, restructurings, and leadership changes. They are *more interested in surviving than in serving.*
CSR
We care about more than just making money- citizens, etc. describes the efforts of companies and other organizations to actively improve the welfare of society.
Servant (exemplary) followership: Conformist follower
are more enthusiastic than their passive coworkers but still depend on leaders to tell them what to do. They follow exactly what the leader says and only tell the leader what he or she wants to hear. Not surprisingly, insecure leaders prefer this type of subordinate.
Servant leadership
based on the premise that leaders should put the needs of followers before their own needs.
Organizational citizenship
best describes what society expects from businesses, governments, and nonprofits. Good citizens acknowledge their obligations to their communities. They use their influence to improve society.
Whistleblowers
bringing wrongdoing to the attention of outsiders. Not only will you need courage to be a whistle-blower, but you'll also have to engage in careful moral reasoning, weighing the relative benefits of going public, breaking loyalties, and publicly accusing others.
Consumer sovereignty
comes closest to the caveat venditor position but places some responsibility on the consumer to, say, follow safety guidelines when using a product. (Is essential to capitalism and honors individual autonomy and freedom of choice)
Stages of Corporate citizenship: elementary
companies don't understand corporate citizenship. Only interested in complying with lay and industry standards. These companies have a problem with their reputation and credibility.
CSR: Economic responsibilities
form the base of Carroll's CSR Pyramid. Be profitable *Businesses have a duty to be profitable so they can provide goods and services, pay employees, and reward investors.* If they go bankrupt, they cannot carry out the duties to follow.
Alienated follower
highly independent thinkers who are only minimally committed to their roles and organizations. Highly cynical - fighting organization vs. reaching shared goals
Servant (exemplary) followership: Exemplary follower
ideal servant followers. The best followers score high in two dimensions: independent, critical thinking and active engagement. They think for themselves and, at the same time, take initiative.
Stages of Corporate citizenship: innovative
implement creative ways to improve and measure social performance. Engage in dialogue with stakeholders and develop new citizenship opportunities. - data collection, monitoring of environmental friendly activity. Challenge: creating coherence.
CSR: Philanthropic responsibilities
the top of the CSR pyramid. Be s good global corporate citizen. At this level businesses voluntarily give back to the community through making contributions, donating goods and services, employee volunteerism, partnering with nonprofits.
Caveat Emptor ("buyer beware")
"buyer beware," school. Firms operate within the law while maximizing profits.
Caveat venditor ("seller beware")
"seller beware," is at the other extreme of the marketing ethics continuum from the caveat emptor stance. According to this position, customer satisfaction is the primary ethical standard.
Courageous followership
(Acting courageously is easier if followers recognize that their ultimate allegiance is to the purpose and values of the organization and not to the leader) courage to - assume responsibility - to serve - to challenge - to participate in transformation - to leave
Primary/secondary stakeholders
*Primary - customers, investors, employees, suppliers— have a direct interest in company.* Have a stake in the organization's success or failure and thus exert significant influence. Their interests generally are given priority. Secondary stakeholders— neighboring companies, — *have an indirect stake in the organization.*Accountability to these groups is therefore less.
Transformational Leadership: Individualized consideration
- act as coaches and mentors continually encouraging follower development - tailored to personal concerns of each follower
Transformational Leadership: Idealized influence
- admired role models for followers - set high standards, look for good in followers ( leaders serve as role models, put the needs of others first, set high standards, look for the good in others)
Transformational Leadership: Intellectual stimulation
- fosters creativity and innovation - embraces failure -leader questions assumptions - they OUGHT to be asked - challenge the status quo
Transformational Leadership: Inspirational motivation
- provide meaning and challenge to the work of followers -enthusiastic and arouse team spirit - have the courage to take risks - paints a vision and shows followers hot they can contribute
Challenges of followers: Challenge of obligation
- we all owe people things - employees shouldn't rip off employers (show up late, etc) - Do everything to further the success of the company - BUT don't give into excessive demands
Challenges of followers: Challenge of dissent (and the least effective way to express dissent)
1. Direct factual appeals (#1 most effective) 2. Solution presentation 3. Repetition 4. Circumvention means taking dissent to someone above an immediate supervisor. 5. Threatening Resignation Threatening resignation is the riskiest tactic, and supervisors and organizational members rate this strategy as *least competent.*
Ethical issues in human resource management
1. treating members as commodities(using people) 2. exploitation(exploiting people because you are focused on the bottom line) 3. viewing people in economic terms.(people should have intrinsic value not be treated like money) - Employment discrimination, favoritism in hiring and promotion, biased performance and appraisal systems.
Avoiding toxic followership (overcoming unhealthy motivations)
Beware of fear, anxiety, the need to belong, and other forces that can make you dependent on toxic leaders. Learn to live with anxiety, and don't be afraid to act independently. Demand leaders who tell the truth; avoid those with grandiose visions.
The ABC's of marketing - beyond the bottom line
Beyond the bottom line. Ethical marketers think beyond financial results. They consider the environmental, social, and safety impact of their decisions. (Applied (marketing professionals apply ethical theories to specific problems) Above the law (ethical marketers go beyond what is required by law) Aspirational (marketing executives should always aspire to do their ethical best) Beneficial (ethical marketing benefits the firm or nonprofit over the long run) Beyond the bottom line (ethical marketers think beyond financial results) Breaking new ground (moral imagination is critical to solving difficult problems) Compliance (marketers must comply with gov't guidelines & ethical codes) Consequences (possible negative consequences need to be considered) Contributions (ethical marketing executives want to make contributions to their customers and to society))
Escalation of CEO's salaries (case study 8.1)
CEOs earn 295 times what a typical worker makes -median pay for S&P 500 - $10.5 million -Dodd Frank Act says ceo pay must be voted on every 3 years - CEOs are worth every penny VS. CEO pay has spun out of control
Ethical issues in finance/accounting
Fraud, etc.
The triple bottom line
In addition to providing traditional financial data, companies should supply information on how well they are meeting their three social and environmental responsibilities: *profit, people, and planet.*
Challenges of followers: Challenge of bad news
It is hard to tell your boss what he doesn't want to hear - take the environment into the situation - timing, etc - sometimes you don't want to speak out, but people get hurt
Servant (exemplary) followership
Kelley uses the term exemplary to describe ideal servant followers. - Outstanding followers contribute innovative ideas and go beyond what is required. Leaders can count on them to take on new challenges, to follow through on projects without much supervision, to disagree constructively, and to think through the implications of their actions. (Seeking to be a follower rather than a leader reduces the destructive competition and conflict that occur when individuals compete against each other for leadership positions)
Managing up/ managing your manager
Manage the relationship, ask what's expected of you. Figure out who your boss is and what you can do to please them.
Prepare for one essay question regarding Christianity and business ethics.
Mark 8:36 For what does it profit a man to gain the whole world and forfeit his soul? - The Bible is our greatest source, as christians, it is our built in "code" of ethics. - Honesty, industry, integrity—we know that the Christian has no corner on these particular virtues. These virtues are significant in every realm of business and, most important, how we treat people in the realm of business. Do we treat them with dignity? That is a top priority of Christian ethics, that we treat our customers, our employees, our personnel with dignity.
Ethical issues in marketing (product, price, place, promotion)
Product (product safety, product quality, packaging, labeling) Price (price fairness, price fixing, price discrimination, misleading pricing) Place (exclusive distribution rights, channel control, slotting allowances) Promotion (advertising, product placement, direct marketing, sales promotion)
Stages of Corporate citizenship: engaged
These companies have been awakened to the need for social responsibility. Begin to adopt policies that help their reputation. Corporations begin to participate in CSR efforts. Challenge - developing capacity.
Stakeholder theory
Thinking about customers and everyone who has a stake in your business - make the best decisions for ALL of those people
Toxic leadership
Toxic leaders engage in the destructive behaviors and demonstrate dysfunctional characteristics - cause harm to leaders, groups, organizations and societies.
Agency theory
Traditionally, corporate executives were viewed as agents who acted on behalf of the company's owners. According to this perspective, *the manager's primary ethical obligation is to promote the interests of stockholders.* - if your business does well you are creating wealth and jobs and business will do well
Industry practice
a step beyond buyer beware. Marketers who take this position *follow general industry standards*, such as refusing to make "commission payments," which are widely viewed as a form of bribery.
The challenge of power - negative outcomes of too much power
abuse of power bullying concentration of power - power is seductive in nature think they are god-like
Transformational Leadership: Transactional leadership
is based on leader-member exchange. Leaders emphasize values that make routine transactions go smoothly (responsibility, fairness, honesty)(take a utilitarian approach to ethical decision making, judging the morality of choices based on their outcomes.)
The challenge of responsibility
leaders have more responsibility - they are accountable for the whole group/organization whereas followers are in charge of their own actions - leaders must be aware of arising ethical problems and take the necessary steps in avoiding them.
transformative
make citizenship central to their mission and reputation. Consumers buy their products in part because of their citizenship activities. Transformative organizations hope to create new markets by merging their social commitment with their business strategies. - willing to loose money in the short term - have visionary leaders - often partner with nonprofits. Challenge: learning how to balance alliances and stake holder interest.
CSR: Legal responsibilities
make up the next level of the CSR pyramid. Obey the law Corporations and small businesses must obey employment laws, follow environmental regulations, honor contracts, make good on warranties and guarantees, and so on. However, the law only outlines minimum acceptable behavior.
Sustainability
means preserving the natural environment while at the same time creating long-lasting economic and social value. Sustainable organizations want to meet their current needs, but they want to do so in a way that doesn't reduce the ability of future generations to meet their needs.
Transformational leadership
more powerful and inspiring. Transformational leaders speak to higher-level needs— the need to belong, to feel good about oneself, and to reach one's full potential. They spotlight values that are more likely to mobilize and energize followers, like equality, liberty, justice, and freedom.
Stages of Corporate citizenship: integrated
organizations take a more unified approach to citizenship than their counterparts in Stage 3. They try to incorporate citizenship concerns throughout every level and unit of the firm, making CSR part of the business plan. Report findings. Challenge: Deepening commitment.
CSR: Ethical responsibilities
third level of the pyramid - Be ethical corporations must live up to the ethical values and standards of society, which include being fair and just and doing the right thing.