Chapter 4
Demanding Ethical and Socially Responsible Behavior
McGraw-Hill/Irwin
Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter Four
NAME that COMPANY
This company has a program it calls Social Service Leave that allows employees to take up to a year off to work for a nonprofit organization while earning their full salary and benefits, including job security. Name that company!
Xerox
4-5
Ethics is More Than Legality
LIFE AFTER SCANDAL
LG1
• Scandals have shaken the real estate, mortgage and banking industries. • How do we restore trust in the free market system? -
Punish those who have broken the law.
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Make accounting records more transparent.
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Consider what is ethical, not just what is legal.
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Making Ethical Decisions
WHAT is a PONZI SCHEME?
• A fraud by paying returns to existing investors from funds contributed by new investors. • New investors are promised opportunities claimed to generate high returns with little or no risk. • Fraudsters focus on attracting new money to make promised payments. Source: Securities and Exchange Commission, www.sec.gov, accessed October 2012. 4-8
Ethical Standards are Fundamental
WHAT are ETHICS?
LG1
Ethics -- The standards of moral behavior. Behaviors that are accepted by society as right versus wrong. These are judgments – often fickle
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Ethical Standards are Fundamental
BASIC MORAL VALUES
LG1
Right:
Wrong:
• Integrity
• Cheating
• Respect for human life
• Cowardice
• Self-control
Crueltyvalues? What do you think are good•moral • Honesty • Deception How about bad ones? • Courage
• Selfishness
• Self-sacrifice
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Ethics Begins with Each of Us
FACING ETHICAL DILEMMAS
LG2
• Ask yourself these 3 questions: - Is it legal? - Is it balanced (fair)? - How will it make me feel about myself?
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Managing Businesses Ethically and Responsibly
ETHICS START at the TOP
LG3
• Organizational ethics begin at the top. • Managers can help instill corporate values . • Trust between workers and managers must be based on fairness, honesty, openness and moral integrity. • Did you ever work at a company where the boss in NOT ethical (or nice)? Share . . . 4-16
Managing Businesses Ethically and Responsibly
ETHICS SCENARIO FOR YOU
LG3
At a conference you’re at dinner, socializing and networking. Later in the evening, a person approaches you – he is slightly drunk. and says 'Listen to me. You and I are competitors, but I think we could be on the same side'. He then explains that he's disgusted with the way he has been treated, that he has been refused a merited promotion and that he is now 'at the beck and call’ of this inexperienced manager. He feels he’s been treated unfairly by his employer. Then he says, ‘I've got something for you. I have a copy of our marketing plan for the next financial year. Don't ask me how I got it. But I want you to read it. I'll leave it for you at Reception in a little while. Read it. Return it to Reception and I'll get it in the morning. There will be no charge’, he concluded, 'but if I do apply for a job with you, remember where you got the information that will get you your promotion.‘ Would you pick up the plan and read it? Assume you read it . Would you use the information in the plan to help your company? Assume it helped you. Would you hire the man that gave it to you, if he applies?
Managing Businesses Ethically and Responsibly
FACTORS INFLUENCING MANAGERIAL ETHICS
LG3
Individual • Values • Work Background
Organizational Environmental • Top Level Management Philosophy
• Family Status
• Firm’s Reward System
• Personality
• Job Dimensions
• Competition • Economic Conditions • Social/Cultural Institutions
Often there is conflict among these … 4-18
Setting Corporate Ethical Standards
ETHICS CODES
LG4
An increasing number of companies have adopted written codes of ethics: • Compliance-Based Ethics Code – Increasing control and by penalizing wrongdoers.
• Integrity-Based Ethics Code – An environment that supports ethically sound behavior and stress a shared accountability.
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Corporate Social Responsibility LG5
CORPORATE SOCIAL RESPONSIBILITY
• Corporate Social Responsibility (CSR) -- The concern businesses have for the welfare of society.
• Based on a commitment to integrity, fairness, and respect. • What do you think – does it pay?
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Corporate Social Responsibility
GENEROUS FOLK World’s Biggest Givers
LG5
Who?
How Much?
What For?
Bill Gates
$28B
Malaria, public health, education
Warren Buffett
$8.3B
Gates Foundation
George Soros
$8B
Human rights, democracy
Gordon Moore
$6.8B
Environment
Carlos Slim
$4B
Education, healthcare
Eli Broad
$2.6B
Education, arts
Azim Premji
$2.1B
Education
James Stowers
$2B
Genetic research
Michael Bloomberg
$1.8B
Antismoking, transportation
Li Ka-Shing
$1.6B
Education, healthcare
Source: Forbes, www.forbes.com, accessed October 2012.
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Responsibility to Employees LG5
RESPONSIBILITY to EMPLOYEES
• Create jobs and provide a chance for upward mobility. • Treat employees with respect. • Offer salaries and benefits that help employees reach their personal goals.
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Social Auditing
LG5
CAREER Interviewing & Networking
Bring TEXTBOOK Chapter 5 to next class VIDEO – Interviewing & Networking (26 min) Career Development Paper: What are the 4 steps to successful interviewing? (list and describe each)
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