Organizational behavior chapter 2 -organizational justice, ethics and corporate social responsibility

Why should companies care about Ethical behavior?

A company's values, what it stands for, competitive success, financial benefits as well as legal regulations

Ethical relativism

Adopting the ethics whatever country in which one does business - no international standards of right or wrong

Utilitarianism

An action is considered ethical to the extent that maximizes happiness among the stakeholders. An act is considered ethical when it does greatest good and least harm to the greatest number of people.

Madison Avenue mentality

Anything is right if the public can be made to see it as right

Descriptive orientation

Approach adopted by social scientist, interest in what people perceive as ethical and how the practice being ethical

Pyramid corporate social responsibility

Base -financial , legal, ethical, philanthropic-top

Managerial values undermining integrity?

Bottom line mentality, exploitative mentality, Madison Avenue mentality

Components of corporate ethics program

Code of ethics, ethics training, ethics audits, ethics committee, ethics officer, and mechanism for communicating and clarifying ethical standards"hotline"

What is the brain's response to procedural injustice?

Cognitive, and people need to process information in what's going on to assess the extent to which varies procedural rules have or have not been followed

What are the three forms of organizational justice?

Distributive justice, procedural justice, and interactional justice

Types of ethics in international arena

Ethical relativism, ethical imperialism

Bottom line mentality

Financial success is only valid, despite longer-term effects

Interactional justice

Form of organization organizational justice, when people perceive fairness not only in terms of the outcomes they receive in the procedures used to determine those outcomes but also in terms of the way these outcomes in procedures are explained. Informational/interpersonal justice

Distributive justice

Form of organizational justice that focuses on peoples believes that they get what they deserve. Example pay recognition

Procedural justice

Form of organizational justice, People's perceptions of fairness of the procedures used to determine the outcomes received. Example formal performance appraisals

Natural rights

John Locke, ethical idea, that all people are entitled to rights for life, liberty and property

Fair process effect

Negative outcomes that lead you to be concerned about the procedures and to ensure procedures used to determine were fair, in procedural justice

What are the suggestions for promoting organizational justice?

Pay workers what they deserve: distributive justice - this enhances motivation by demonstrating that the company does not want to cheat. Offer workers a voice:procedural justice- This helps workers feel excepted by there organizations as valued individuals. train managers to treat others with dignity and respect: interactional justice -this establishes that company officials value their employees by showing that they are worthwhile individuals.

Moral value

Peoples fundamental beliefs on what is right/wrong or good/bad - religious beliefs

What are the neurological responses to injustice?

Procedure injustice, distributive injustice

Exploitative mentality

Selfish perspective, sacrificing others concerns for one's own immediate interest

Virtuous Circle

Socially responsible companies perform well financially because they are supported by customers and investors. As a result they become wealthier making it easier for them to become even more philanthropic

Prescriptive orientation

Something is ethical certain conditions exist "what is ethical?" Used in utilitarianism and natural rights

ethics

Standards of conduct that guide people's decisions - example-not stealing

Ethical imperialism

The ethical standards of one's own country are considered most appropriate - what is different maybe consider wrong

organizational justice

The study of people's perceptions of and their reactions to fairness in organizations.

What are the approaches of ethical behavior?

To utilitarianism, natural rights, prescriptive orientation, and descriptive orientation

Interpersonal justice

Used in Interactional justice: dignity/respect shown

Informational justice

Used in interactional justice: the degree/accuracy of information

What is the brains response to distributive injustice?

emotion, people get angry when they believe that someone has not given them what they deserve