302 QL ch4

Criteria of Corporate Social Performance

-Discretionary Responsibility contribute to the community. be a good corporate citizen. -Ethical Responsibility be ethical do what is right. acoid harm. -Legal Responsibility obey the law -Economic Responsibility be profitable

justice approach

The justice approach holds that moral decisions must be based on standards of equity, fairness, and impartiality.

If your manager is honest, fair, and kind and enforces that behavior in others, then you have _________ manager.

an ethical manager

Compensatory Justice

argues that individuals should be compensated for the cost of their injuries by the party responsible.

moral-rights approach

asserts that human beings have fundamental rights and liberties that cannot be taken away by an individual's decision. Thus, an ethically correct decision is one that best maintains the rights of those affected by it

dells computers provided computer recycling in europe because it was required by law by the european. dell did not offer this same practice in the US. which part of the triple bottom line did this impact?

environmental performance

Utilitarian Approach

espoused by the nineteenth century philosophers Jeremy Bentham and John Stuart Mill, holds that moral behavior produces the greatest good for the greatest number

a company has ___ when its managers are honest, treat customers and employees fairly, and serve as role models.

ethical leadership

under which of the following conditions will codes of ethics be less effective?

if people who violate the codes are not punished

Ethical Responsibility

includes behaviors that are not necessarily codified into law and may not serve the corporation's direct economic interests

we live in a democratic and capitalistic society. our fundamental freedoms include the freedom to persue happiness, just like the declaration of independance says, and that often means persuing money. no one has a right to take that away. ethical approach?

moral-rights approach

legal responsibility

Legal responsibility defines what society deems as important with respect to appropriate corporate behavior.

Triple Bottom Line

Refers to measuring the organization's financial performance, social performance, and environmental performance. sometimes called the three P's people, planet, profit

chief ethics officer

Some organizations have ethics offices headed by a chief ethics officer, a manager who oversees all aspects of ethics and legal compliance.

Joe is expressing ______________________ when he says that it's important for Theo Chocolate to "create lasting change" in people's lives and the environment.

a philosophy of sustainability

organizational virtousness

a principle in which an organization persues a positive human impact moral goodness and unconditional society betterment for its own sake.

suppose professor quinn did tell students that he would be writing his own test questions, and then he used questions from a standardizsd test bank. his actions would indicate that there was a flaw in the _______ for the university.

ethical leadership

your moral principles and values, or _____ , determine what you view as right and wrong and how you behave accordingly.

ethics

if a decision is deemed immoral because it violates someones rights to freedom of speech or freedom of movement, the _________ approach to ethics has been used.

moral-rights

when a company writes a policy handbook and insists that each policy be administered the same way to all employees, the company is using ______

procedural justice

Nike, now a triple bottom line company, had previously come under fire for the low wages that factory workers in Indonesia were paid. These low wages had an impact on which part of the triple bottom line?

social performance

Ethics

the code of moral principles and values that governs the behaviors of a person or group with respect to what is right or wrong

moral agent

the individual who must make an ethical choice in an organization

four types of ethical manager behavior

1. Display honesty and integrity 2. Communicate and enforce ethical standards through their behavior 3. Fair in their decisions and the distribution of rewards 4. Show kindness and concern for others

three domains of human action

1. Domain of Codified Law (Legal Standard) 2. Domain of Ethics (Social Standard) 3. Domain of Free Choice (Personal Standard) amount of explicit control high at 1 low at 3

Stakeholder

Any group or person within or outside the organization that has some type of investment or interest in the organization's performance and is affected by the organizations actions (employees, customers, shareholders, and so forth).

the corporate environmental performance rating is a measure of sustainability. select the best definition for a sustainable organization.

an organization that meets the needs of current and future generations by protecting the environmemt

the ______ of an organization leads to the full time staff of the ethics office and oversees all aspects of ethical and legal compliance.

chief ethics officer

individualism approach

contends that acts are moral when they promote the individual's best long-term interests

Remember this

different stakeholders have different interests in the organization and thus different criteria for social responsiveness shareholders, employees, customers, and suppliers arw considered primary stakeholders, without whom the organization could not survive

a level of corporate social performance that is completely voluntary is ________, which includes actions that benefit the commumity and may not have any measurable benefit for the organization.

discretionary responsibility

whistle-blowing

employee disclosure of illegal, unethical, or illegitimate practices on the employer's part

Henry and Shirley Rose have run their small corner grocery store for over twenty years, and many of their customers have been coming since they opened. However, as part of their ____________ , they give every customer the same high level of service, whether they know the customer well or have never met the person before

ethical responsibility

Starbucks elected to pay higher prices to coffee growers who meet a list of quality standards that impact social, environmental, and economic standards. Which part of the triple bottom line does this impact?

financial performance

you need to understand that I am a manager at a company in a very competitive industry. if I dont look out for my company and me, no one else will, so I need to do whatever is best for facebook and that will eventually be best for the whole industry and society in general. ethical approach?

individualism approach

your organization is planning to open several new stores in a community you have never served before. you and your team are mapping the organizations stakeholders, thinking about the nature and stregnth of their interest in this expansion. which of the following stakeholders are primarily concerned with profitability?

investora

ethical leadership

means that managers are honest and trustworthy, fair in their dealings with employees and customers, and behave ethically in both their personal and professional lives.

I'm interviewed by news organizations like The New York Times all the time, and I'm completely comfortable explaining Facebook's policies to them and to their readers.

practical approach

Sustainability

sustainability refers to economic development that generates wealth and meets the need of the current generation while preserving the environment and society so future generations can meet their needs as well

organizations with a high corporate environmental performance rating are likely to have high

sustionability

ethical dilemma

technological, ecomomic, political/ legal, and sociocultural dimmensions that affect a firms external environment

staleholder mapping

there is a growing interest in a technique callwd stakeholder mapping, which basically provides a systematic way to identify the expectations, needs, importance, and relative power of various staleholders, which may change over time

when a company like fedex kinkos measures its performance in terms of impact on people, impact on the planet, and profitability, it is using the _______ to evaluate social. environmental, and financial performance.

triple bottom line

a ceo wants to make the argument that his company should put policies and structures in place to ensure adherence to the highest possible standard of ethics. which of the following statememts could he correctly use to make his argument?

employees prefer to work for highly ethical organizations research has shown a correlation between organizations commitment to ethics and profitability most consumers would prefer to buy products made by a company that demonstrates ethical behavior

to be effective codes of ethics must be supported and ___ by senior management.

enforced

the _______ has rapidly become part of the culture in the united states and elsewhere, as people increasingly consider the impact that an organization has on the environment when deciding whether to buy its products and services.

green movement

i understand that some people who use facebook would like more privacy but my company makes money by selling users information. if the ability to profit from personal information were taken away, how would the company and all our staleholders be compensated for the service we provide? ethical approach?

justice approach

the fact that there was a criminal investigation pending against johnson and johnson suggests that regulators felt that the company was not meeting its obligations at _______ level of corporate responsibility.

legal

Corporate Social Responsibility (CSR)

management's obligation to make choices and take actions that will contribute to the welfare and interests of society, not just the organization

Remember this

most ethical dilemmas involve a conflict between the interests of different groups or between the needs of the individual versus the needs of the organization -recent study found that organizational factors such as an unethical corporate culture and pressure from superiors and colleagues can induce employees to behave unethically

unethical behavior

occurs when decisions enable an individual or company to gain at the expense of other people or society as a whole

procedural justice

requires that rules be administered fairly. Rules should be clearly stated and consistently and impartially enforced.

an energy company is seeking to build a pipeline across multiple canadian provinces, through ________, managers identify the people interested in the companys activities and prioritize them by their impact on and interest in the pipeline project.

stakeholder mapping

Managerial Ethics

standards that dictate the conduct of a manager operating within a workplace

competitive intelligence (CI)

the process of gathering and analyzing publicly available information about rivals

three levels of personal moral development

Level 1: Preconventional follows rules to avoid punishment. acts in own interest. obediance for its own sake. self interest leader style: autocratic/ coercive employee behavior: task accomplishment Level 2: Conventional lives up to expectations of others. fulfils duties and obligations of social system. upholds laws. social expectations leader style: guiding/encouraging, team oriented employee behavior: work group collaboration Level 3: Postconventional follows self-chosen principles pf justice and right. aware that people hold different values and seeks creative solutions to ethical dilemmas. balance concerns for individual with concerns for common goods. internal values leader style: transforming or servant leadership employee behavior: empowered employees, full participation ​

ethics committee

a group of executives appointed to oversee company ethics

which of the following statements are consistent with the findings of slater and dixon fowler?

people with MBAs are more likely to lead a sustainable organization sustainability is positively related to CEO education

code of ethics

a formal statement of the companys values concerning ethics and social issues; it communicates to employees what the company stands for. codes of ethics tend to exist in two types principle-based statements and policy-based statements

practical approach

sidesteps debates about what is right, good, or just and bases decisions on prevailing standards of the profession and the larger society, taking the interests of all stakeholders into account

as a manager, I have to think about the interests of a large number of staleholders. whild a few individuals may be concerned about facebooks privacy policies, far more people benefit from those same policies becauss they dont have to see a bunch of ads that arent relevent to them. ethical approach?

utilitarian approach

you say there are people who are angry about facebooks privacy policies. but have you considered that far more people benefit from those practices than are harmed by them? there are millions of people in the world who want to see ads for things they care about, not irrelevent ads. we have to do what is right for the majority of people, not just for a small group. what ethical approach?

utilitarian approach

Joe tells you, "I'm concerned that if a Theo Chocolate manager is doing something unethical, I'm not going to hear about it." He asks, "What can I do to encourage employees to speak up if they see something wrong?" What advice would you give him? Check all that apply.

view whistle blowinv as beneficial to the company because it allows ethical lapses to be addressed establish a hotline so that employees can confidentially report wrong doing make sure there is no retalliation against whistle blowers

in handling the ethics problem in his class, professor quinn acted as an ethical leader by supporting and enforcing the ethical statement in his syllabus. but professor quinn alao made some mistakes in helping his students to act ethically. which of the following helped to reduce the liklihood that professor quinns students would act ethically in the future?

punishing the entire class when an ethical violation occured providing ethical training only to students who admitted to cheating

Remember this

managers face many pressures that can sometimes tempt them to engage in unethical behavior just because managers arent breaking the law doesnt necessarily mean that they are being ethical ethical managers display honesty and integrity, act in a way that communicates and enforces ethical standards, are fair in their decisions and the distribution of rewards, and show kindness ans concern for others unethical managers seek to serve their own needs and interests at the expense of stakeholders confidence in business managers and leaders in all walks of life is at an all time low one hot button ethical issue concerns excessive executive compensation companies that are ethical and socially responsible perform as well as - often even better than -those that are not socially responsible

Remember this

organizational pressures can influence people to go against their own sense of right or wrong personality characteristics, family influence, religious background, and other factors influence a managers ability to make ethical choices one important factor is whether a manager is at a preconventional, conventional, or postconventional level of moral developmemt most managers operate at a conventional level, conforming to standards of behavor expected by society only about 20% of adults reach the postconventional level and are able to act in an independant, ethical manner, regardless of the expectations of others studies show that people work harder and more effectively when managers put the interests of others above their own

Distributive Justice

requires that different treatment of people not be based on arbitrary characteristics. for example men and women should not receive different salaries if they have the same qualifications and are performing the same job

descretionary responsibility

purely voluntary and is guided by a companys desire to make social contributions not mandated by economics, laws, or ethics. discretionary activities include generous philanthropic contributions that offer no payback to the company and are not expected

johnson & johnson has a reputation for being a company with high levels of corporate social responsibility to all of its stakeholders. which of the following arguments also supports the need for companies to adopt positioms of social responsibiliy?

organizations have more power than most underprivileged people, so they are responsible for helping those people get ahead in life organizations have the knowledge and resources to do good in the community, so they are responsible for helping others.