Chapter 04: Managing Ethics and Social Responsibility

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

ethics

Someone who says, "Concepts like what's 'good' or what's 'right' are too abstract for me. I just look at how others in my position behave and make sure I could explain my actions to my kids," is using the xxx approach to ethics.

practical

Some people view Edward Snowden, who in 2013 revealed ethically questionable surveillance programs by the U.S. government, as a heroic xxx , while others view him as a traitor to national security.

whistle-blower

Companies should view whistleblowers as xxx

assets to be valued .

If there is low amount of explicit control

Domain of free choice

Despite broad regulatory reforms after the Enron scandal over a decade ago, corporate boards still are not providing the oversight necessary to prevent ethical lapses, according to an article in the Harvard Business Review. Which of the following are likely areas of concern for corporations? Check all that apply.

-Executives' pay exceeds their value to the organization, as indicated by historical measures. -Corporations place too much emphasis on pleasing shareholders and not enough on meeting the needs of other stakeholders such as customers, employees, and members of the public. -Corporations focus on meeting short-term earnings goals rather than on creating long-term value.

Your organization is planning to open several new stores in a community you have never served before. You and your team are mapping the organization's stakeholders, thinking about the nature and strength of their interest in this expansion. Which of the following stakeholders are primarily concerned with the new stores' location and prices of goods in the stores?

Customers

If there is high amount of explicit control

Domain of codified law

If there is medium amount of explicit control

Domain of ethics

Level 1:preconventional

Follows rules to avoid punishment. acts in own interest. obedience for its own sake Leadership style: autocratic/coercive Employee behavior: Task accomplishment

Level 3:postconventional

Follows self-chosen principles of justice and right. aware that people hold different values and seek creative solutions to ethical dilemmas. balances concerns for individual with concern for common good Leadership style: Traansforming leadership Employee behavior: empowered employees, full participation

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

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

an ethical manager

If you sue your company because you should have been paid overtime and were not, and the court awards you back pay, this is an example of xxx.

compensatory justice

Ethical leadership for the University of Central Florida is provided by the university's xxx

ethics committee .

When a company like FedEx Kinko's measures its performance in terms of impact on people, impact on the planet, and profitability, it is using the xxx to evaluate social, environmental, and financial performance.

triple bottom line

Which of the following statements are consistent with the findings of Slater and Dixon-Fowler? Check all that apply.

-People with MBAs are more likely to lead a sustainable organization than people without MBAs. -CEO education is positively related to an organization's sustainability.

On November 8, 2010, over 600 students in an MBA capstone course at the University of Central Florida sat down to take a midterm exam. By November 10, it was clear to Richard Quinn, the professor of the class, that many of those students had cheated on the exam. Research showed that approximately 200 of the students had access to the test bank from which the exam questions were drawn. Quinn was extremely disappointed in his class, especially since he had a special section in his syllabus that contained a set of ethical guidelines related to student behavior. He announced that all of the students in the class would have to retake the midterm exam, which would contain an entirely new set of questions. In addition, he told the class that although he was very close to finding out exactly who had cheated on the exam, he was willing to make them the following offer: If the cheating students would turn themselves in, they would not be punished, as long as they were willing to take a four-hour course on ethics. Quinn had arrived at this solution after discussing the matter with the university ethics committee. When asked about the incident, several of the students in the class said that they heard Professor Quinn say that he would be preparing the tests for the class himself. They assumed that this meant he would not be using a prepublished test bank. Thus, when they received the test bank, they thought that it was a study guide. When they found out that Professor Quinn had used a test bank, they questioned Professor Quinn's ethics. The way Professor Quinn chose to handle this situation illustrates the difficulty of dealing with ethics violations. Listed as follows are several ways that corporations try to encourage ethical behavior in their employees. Which of these techniques do you see used in this scenario?

-Providing ethics training for employees -Establishing a code of ethics -Referring ethical dilemmas to an ethics committee

The United States, and indeed almost all nations, holds that businesses have the right to make money if there's a market for their products and services. It would not be right for the government to take the ability to earn a profit away from me or my company.

Justice approach

We live in a democratic and capitalistic society. Our fundamental freedoms include the freedom to pursue happiness, just like the Declaration of Independence says, and that often means pursuing money. No one has the right to take that freedom away from me.

Moral-rights approach

For the last two school years, Juanita has shared a house near campus with several of her friends. The arrangement has been great, especially because her parents cover her rent payments. Her boyfriend recently suggested they get an apartment together. After weighing the pros and cons, she agrees but says that they can't ever let her parents find out or they'll cut her off financially. Is Juanita making the right choice? Tim's reaction to this scenario is: "No. In general, you shouldn't lie to your folks. Sometimes you can lie about little things such as parties in order to spare them the gory details. This, however, is huge." Which of Kohlberg's levels of development does this response represent?

Postconventional

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

Organizations with a high corporate environmental performance rating are likely to have high xxx

sustainability .

At the end of each day, Panera Bread restaurants donate leftover bread and baked goods to food banks and local charities. The company is practicing xxx by helping to advance the social conditions of the communities in which it operates.

conscious capitalism

Level 2:conventional

lives up to expectation of others. fulfills duties and obligations of social system. uphold laws Leadership style: Guiding/encouraging Employee behavior: work group collaboration

An energy company is seeking to build a pipeline across multiple Canadian provinces and U.S. states. Though xxx , managers identify the people interested in the company's activities and prioritize them by their impact on and interest in the pipeline project.

stakeholder mapping