MAN 3025 Lecture 3: Changing Environment and Ethical Responsibilities

Organization's Environment: Organization’s Environment ⭐

All internal and external forces and stakeholders that can affect an organization’s decisions and performance.

Organization's Environment: Internal Stakeholders ⭐

People or groups inside the organization who have an interest in its performance, such as employees, owners, and the board of directors.

Organization's Environment: External Stakeholders ⭐

People, groups, or forces outside the organization that can affect or are affected by the organization.

Task Environment: Task Environment ⭐

External groups that directly affect an organization’s ability to operate and achieve its goals, such as customers, competitors, suppliers, and regulators.

Task Environment: Customers — Task Environment

People or organizations that purchase or use a company’s products or services.

Task Environment: Competitors — Task Environment

Organizations that compete for the same customers or resources.

Task Environment: Suppliers — Task Environment

Organizations or individuals that provide the materials, products, or services a company needs to operate.

Task Environment: Distributors — Task Environment

Organizations that help deliver or sell a company's products to customers.

Task Environment: Strategic Allies — Task Environment ⭐

Organizations that work together for mutual benefit while remaining separate organizations.

Example: Starbucks and Target working together to operate Starbucks locations inside Target.

Task Environment: Employee Organizations — Task Environment

Groups such as labor unions and professional associations that represent employees’ interests.

Task Environment: Local Communities — Task Environment

Communities in which an organization operates that can affect or be affected by the organization.

Task Environment: Financial Institutions — Task Environment

Organizations such as banks and lenders that provide businesses with financial services or funding.

Task Environment: Government Regulators — Task Environment ⭐

Government agencies that create, enforce, or oversee rules and regulations affecting organizations.

Example: OSHA inspecting a manufacturing facility.

Task Environment: Special-Interest Groups — Task Environment ⭐

Groups that try to influence organizations or public opinion about particular issues.

Example: An environmental advocacy group encouraging consumers to boycott a company.

General Environment: General Environment ⭐

Broad external forces that affect organizations indirectly, including economic, technological, sociocultural, demographic, political-legal, and international forces.

General Environment: Economic Forces ⭐

Changes in the economy that affect organizations, such as inflation, interest rates, unemployment, and economic growth.

Example: Inflation causes supply costs to increase.

General Environment: Technological Forces ⭐

Changes in technology and innovation that affect how organizations operate.

Example: Generative AI automating work previously performed by employees.

General Environment: Sociocultural Forces ⭐

Changes in society’s values, attitudes, beliefs, behaviors, and expectations.

Example: Consumers increasingly expecting companies to be environmentally responsible.

General Environment: Demographic Forces ⭐

Changes in the characteristics of a population, such as age, gender, education, or population composition.

Example: The percentage of Americans over age 65 increasing.

General Environment: Political-Legal Forces ⭐

Changes in laws, regulations, government policies, and political conditions that affect organizations.

Example: A new federal law requiring employers to change hiring practices.

General Environment: International Forces ⭐

Events and changes occurring in other countries or the global economy that affect organizations.

Example: An overseas political conflict disrupting global shipping.

Sustainability & Triple Bottom Line: Triple Bottom Line ⭐

An approach that evaluates organizational success using three areas: People, Planet, and Profit.

Sustainability & Triple Bottom Line: People — Triple Bottom Line

The social impact of business decisions on employees, customers, and communities.

Sustainability & Triple Bottom Line: Planet — Triple Bottom Line

The environmental impact of an organization’s decisions and activities.

Sustainability & Triple Bottom Line: Profit — Triple Bottom Line

The organization's financial performance and long-term economic viability.

Sustainability & Triple Bottom Line: Sustainability ⭐

Balancing People, Planet, and Profit so an organization can succeed over the long term.

Sustainability & Triple Bottom Line: Social Audit

A systematic evaluation of an organization’s social and ethical performance and impact.

Ethics: Ethics ⭐

The standards of right and wrong that influence behavior.

Ethics: Ethical Behavior ⭐

Behavior considered “right” rather than “wrong” according to prevailing standards.

Ethics: Values ⭐

Relatively permanent, deeply held beliefs and attitudes that help determine a person’s behavior.

Ethics: Ethical Misconduct ⭐

Unethical workplace behavior, including conflicts of interest, abusive behavior, health and safety violations, corruption, discrimination, and sexual harassment.

Four Approaches to Ethical Dilemmas: Four Approaches to Ethical Dilemmas ⭐

Utilitarian, Individual, Moral-Rights, and Justice approaches.

Four Approaches to Ethical Dilemmas: Utilitarian Approach ⭐

Choose the action that produces the greatest overall good or least harm for the greatest number of people.

Think: Greatest good for the most people.

Four Approaches to Ethical Dilemmas: Individual Approach ⭐

Choose the action that best serves your long-term self-interest, recognizing that long-term success depends on relationships, reputation, and trust.

Think: What benefits me in the long run?

Four Approaches to Ethical Dilemmas: Moral-Rights Approach ⭐

Choose the action that respects the fundamental rights of everyone affected, even if violating those rights could produce desirable consequences.

Think: Are people's basic rights being respected?

Four Approaches to Ethical Dilemmas: Justice Approach ⭐

Choose the action that is fair and impartial, treating people in similar situations similarly unless there is a legitimate reason for different treatment.

Think: Is this fair?

Promoting Ethics: How Organizations Can Promote Ethics ⭐

Organizations can promote ethics by creating a strong ethical climate, screening prospective employees, establishing ethics codes and training, rewarding ethical behavior/protecting whistleblowers, and using a multifaceted approach.

Promoting Ethics: Whistleblower ⭐

An employee who reports illegal, unethical, or improper behavior within an organization.

Corporate Social Responsibility: Corporate Social Responsibility (CSR) ⭐

The idea that organizations have responsibilities to society and stakeholders beyond simply earning a profit.

Corporate Social Responsibility: Carroll’s Pyramid of Corporate Social Responsibility ⭐

Four levels of corporate responsibility: Economic → Legal → Ethical → Philanthropic.

Corporate Social Responsibility: Economic Responsibility — CSR

A business’s responsibility to be profitable and financially viable.

Corporate Social Responsibility: Legal Responsibility — CSR

A business’s responsibility to obey laws and regulations.

Corporate Social Responsibility: Ethical Responsibility — CSR

A business’s responsibility to do what is right, fair, and expected by stakeholders, even beyond legal requirements.

Corporate Social Responsibility: Philanthropic Responsibility — CSR

A business’s responsibility to voluntarily contribute to society and be a good corporate citizen.

Corporate Social Responsibility: Philanthropy

Voluntary actions or donations intended to improve society or support communities.

Corporate Social Responsibility: Natural Capital

The world’s natural resources and ecosystems that provide economic and environmental value.