chapter `13 - management environment (managerial ethics & corporate social responsibility)

issue: how managers use ethical approaches in organization, why must managers be ethical, how organization can return benefits to communities.

Utilitarian perspective

• best outcome for majority

• consequence good = action correct

• consequence bad = action wrong

• AIRBNB

  • reduced salaries and pause project

  • did not want to layoff large portion of workers - project job

Right view/ Theory of Justice view

• individual rights and fairness

• STARBUCKS

  • healthcare benefits - part time workers

  • fairness and dignified treatment

Virtue Standards

• moral action + core value

• BODY SHOP

  • ethical sourcing - sustainable and community-based project

  • animal rights advocacy - refuse animal testing

Integrative Social Contract

• unwritten rules - respect local norms and culture

• balance ethical practice and local practices

• UNILEVER

  • “Sustainable living plan”

  • respect local custom while upholding universal ethical standard

Create ethical behavior

1. ethical leader - set the tone

2. selection - individual preference

3. code of ethics

   • rules - exact, enforced

   • principles - responsibilities, professional judgement

4. training program

5. independent social audit - evaluate decision and management practices in terms of ethical practices

Economic responsibilities

• make product society wants

• maximize profit

• APPLE

  • profit generation

  • create job locally

Legal responsibilities

• appropriate corporate behavior

• fulfil economic goal by following the law

• VOLKWAGEN

  • regulatory standard - emission and invest in EV technology

Ethical responsibilities

• moralistic manner

• outside of law

• STARBUCKS - C.A.F.E. (coffee and farmers equity practice program)

  • fair wage and & sustainable farming practice

  • pay fair price for coffee

  • prioritize ethical sourcing - supply chain sustainability

Philanthropic/ Discretionary responsibilities

• social contribution

• promote welfare of society - give back to society

• charitable donation and sponsorship programs

• MICROSOFT

  • free access and skill training for students in low-income communities and non-profit organization

Sustainability

• business operates in a fashion that protects environment

• use resources responsibilities - future generations can meet its needs

• long term > short term profit

• PATAGONIA

  • “Worn wear” program

  • use sustainable materials like organic cotton and recycled polyester

  • donate portion of profits to environment preservation