Chapter 5 - Managing business ethics

What is business ethics management?

the direct attempt to manage ethical issues through specific policies, practices and programmes

what is a code of ethics ?

A voluntary statement that commits an organization to specific values, actions, and standards of conduct.

4 main types of ethical codes

1. organizational or corporate codes of ethics 

2. professional codes of ethics

3. industry code of ethics 

4. programme or group codes of ethics 

what are critiques of codes of ethics?

• Lack of flexibility

• vague obligations

• used as PR

• questionable control

What makes a code of ethics effective?

the implementation and administration

• how the codes are written - should be tailored to the organization

• how codes are supported - supported by management / training

• how codes are enforced - violations should be communicated

What is stakeholder management?

Process of understanding and balancing stakeholder interests while aligning with company goals.

What 3 attributes determine stakeholder importance?

Power, legitimacy, urgency.

What is social accounting?

Voluntary assessment of organizational impacts on social, ethical, and environmental issues.

What areas are included in social accounting?

• Ethical (internal systems)

• environmental (natural impact)

• social (stakeholders)

• sustainability (triple bottom line)

Why do organizations engage in social accounting?

• Internal/external pressure

• risk identification

• better stakeholder management

• improved accountability/transparency

What is the cultural change approach to ethics?

A managed transformation of organizational values to create a more ethical culture

What is the cultural learning approach?

It promotes moral imagination by focusing on smaller subcultures and encouraging learning through dissent.

what is moral imagination?

imagining different ways to act ethically in tough situations