chapter 3 MAN 3025
Distinguish among the four approaches to deciding ethical dilemmas.
1. The utilitarian approach: In this approach ethical behavior is guided by what will be the outcome in the highest benefit for highest number of people. The manager of the organization is using this approach to measure the financial performance such as profit and efficiency 2. The individual approach : In this approach ethical behavior is guided by what will be the outcome in the single person's finest long-term interests that ultimately become the self-interest of the person . If the person behaves ethically in the short-run , they may avoid the problems in the long -run. 3. The moral-rights approach: In this approach ethical behavior is guided by esteem for the basic human beings right. The basic rights of the A country citizens is listed in the U.S. constitution's bill of rights." 4. Justice approach: In this approach ethical behavior is guided by esteem for the essential standards of equity and fairness. The individuals ' consideration in this approach is whether the policy of the organization is implemented faitly
Describe the levels in Carroll's corporate social responsibility pyramid. Where does trying to achieve sustainability fIt in?
Corporate Social Responsibility (CSR): The company is responsible to carry out its activities, with the goal of attaining social, environmental and economic development and it is termed as corporate social responsibility The corporation can behave as socially responsible in the following ways: 1. Company should have strong policies in order to help the community. That is, human rights and employment standards in the workplace . 2. Acting to reduce the negative impact a company has on the environment That is Environmental health and safety concerns . 3. Company should be truthful with consumers in its market . That is, community and good neighbor policies should be used . C's CSR pyramid and its levels: According to C, CSR places in the top on the company's obligation pyramid and others are "economic , legal , and ethical obligations . " Most of the people think that making profit and satisfying their stakeholders are most important duty of the organization . However , C suggests that profit is fundamental and CSR is citizenship of corporate and its take place in the top. The following are the levels in C's CSR pyramid : Company should be a good corporate citizen global wide, which is determined by expectation of host country Company must be act ethically in its business practice . Here, considering the global standard and host-country expectation are important . . The company should obey the domestic and international laws are also one among the obligations of the organization Earning profit and continuing the business to satisfy the international customers .
How would you explain the concept of corporate governance?
Corporate governance refers to the method that contains certain process and list of rules, which helps to decide how to manage the organization . The interests of various stakeholders in the company such as shareholders , creditors , employees, customers , suppliers and community often conflict with each other All decisions related to the conflict are taken based on the listed rules. It helps to lead the company in a positive way. However, the decision should be ethical in the favor of stakeholders, and the wealth maximization of organization
Of the 11 groups in the task environment, which five do you consider most important, and why?
Customer- key function to generate revenue Suppliers- If the supply has been affected company cannot serve their customers Distributor- The product will not reach the customer without the distributor Financial institution- Provides loans, banking services, letter of and credit facilities Media- promotional activities
Of the six groups in the general environment, which one do you think has the least importance, and why?
Demographic forces are least important, because most of the organizations are doing business worldwide . Further, the people in the particular demographic also start using multinational products
How would you explain the difference between internal and external stakeholders?
Internal stakeholders are those who have the direct and regular relationship and interest on the organization. The internal stakeholder are owners, employees, and board of directors The external stakeholders are those who have indirect interest and affect the organizations growth positively or negatively. The external stake holders are divided into two types. One is task environmental and general environment. Task environmental stakeholders are customers, suppliers, distributors, unions, media, government, interest group, strategic allies, local communities, lenders, bankers, and competitors. General environmental stakeholders are political, legal, cultural, international, environmental, and demographic forces. Internal stakeholders are badly affected by the loss of the organization. The external stakeholder are affected naturally
How would you summarize Kohlberg's levels of personal moral development?
K's theory helps to learn ethics. There is some argument among the employees, managers, and employer whether some of the manager's activity is ethical. This theory will help to avoid these kinds of confusions . Level 1: Pre-conventional (follows rules): People should obey the government and general rules to avoid the unethical consequences. In this level, managers ' sort-tend looks coercive or autocratic Level 2: Conventional (follow the others expectations ): People who complete level one and reached this level are conformist and not slavish Generally in this level people adhere others expectations . Managers lead their subordinates by cooperationencouragement , and are team oriented . Level 3: Post-conventional ( directed by internal values): The level three managers are independent . They follow their own standards , values, and mainly focus on employees needs, and they help in empowering employees . Most of the managers struggle to reach level 3.
Among external stakeholders, what's the difference between the task environment and the general environment?
The external stakeholders are those who have indirect interest and affect the organizations growth positively or negatively. The external stake holders are divided into two types. One is task environmental and general environment. Task environmental stakeholders are customers, suppliers, distributors, unions, media, government, interest group, strategic allies, local communities, lenders, bankers, and competitors. General environmental stakeholders are political, legal, cultural, international, environmental, and demographic forces.
What are four ways that organizations can promote ethics?
The following are the four ways to promote ethics: Ethics is the day-to-day affair and not just one-day activity. The following are ways that organization promotes the high ethical standards. Creating a strong "ethical climate: The employees ' believe about the degree to which an organization and work environment support the ethical behavior of an individual . Manager should create confidence among the employees . The company always supports the ethical behavior . Screening prospective employees: The organization should filter the irresponsible dishonest, and illegal activities of the employees by verifying the personal characteristics , resumeand reference. Most of the employer runs the background verification through the outside clients. It will give the clear picture of the employee . Instituting code of ethics and training programs: The written guideline for the ethical standards that should be followed in the organization is known as code of ethics. This should be clears how to treat the employees, customers , suppliers, and all other stakeholders . Rewarding the ethical behavior: (protecting whistle-blowers): Most of the companies only punish the bad behavior, but forget to reward the ethical behavion Management should reward good ethical behavior particularly the whistle blowers or the organization at least avoid discouraging the good ethical behavior. Whistle -blower is a person who report the organizations ' wrongdoing or illegal activities to public.
What's the difference between insider trading and a Ponzi scheme?
Trading the stock illegally by individuals using the " confidential information of the organization is known as insider trading. The organizational employees who are aware of the organization's future decisions do these kinds of activities A fake investing-scam that declares it will provide high rates of return" under the low risk to the investors is known as Ponzi scheme . These kinds of scammers collect amount from investors and refuse to pay back at the time of maturity