CHAPTER 2

CHAPTER 2 

Ethics in the Workplace 

• 62- Ethics

• beliefs of what’s right and wrong, good or bad, when and where 

• 63- Business ethics

• ethics, job context 

• 64- Ethical Behavior 

• behavior that conforms to individual and social. ethics

• 65-Unethical behavior

• defined as wrong and bad 

• 66- Managerial ethics 

• guide individual managers in their work

Behavior toward employees 

• 67- Hiring and firing practices 

should be solely based on an individuals ability to perform a job. 

• 68- Questionable hiring decisions

• its not prohibited to hire friends or relatives who are qualified but there’s ethical concerns 

• 69- Wages and Working condition 

• managers exploiting the financial vulnerabilities of employees, preventing them from complaining or quitting 

• 70- Financial manipulation and employee impact 

• encouraging them to invest in companies stock and then restricting their ability to sell during financial difficulties 

Behavior toward the organization 

• 71- Employee behavior toward employers 

• conflicts of interest, confidentiality, and honesty 

• 72- Conflict of interest 

• benefits the individual to the detriment of the employer. ex. prohibiting gifts from suppliers to buyers 

• 73- Safeguards in competitive industries 

• implement safeguards to prevent issues like designers selling company secrets. Ex. Disney’s illustrator’s. drawing’s all belong to disney. 

• 74- Honesty concerns 

• stealing supplies, padding expense accounts, abusing sick leave for personal reasons, and using business resources for personal matters 

Behavior toward other economic agents 

• 75- Ethics in business relationship 

• customers, comp6etitors, stockholders, suppliers, dealers, and unions (everyone involved basically)

• 76- pharmaceutical industry and pricing 

• debates between critics arguing profit at the expense of customers and the industry defending high prices as necessary to cover research and development costs for new drugs

• 77-Assessing Ethical Behavior

• gather relevant info, analyze facts to determine most appropriate moral values, make ethical judgement 

Ethical norms 

• 78- Utility 

• does it optimize benefits? 

• 79- Rights 

• does it respect the rights of all individuals involved? 

• 80- justice 

• is it fair

• 81- responsibility

• consistent with people’s responsibilities to each other? 

• 82- Company practices and Business Ethics 

• written codes and ethics programs 

Social responsibility 

• 83- Social responsibility 

• how well a business attempts to balance its commitments to relevant groups and individuals in its social environment 

• 84- Organizational stakeholders 

• those affected by the practices of an organization, stake ≠ stock 

Major Corporate stakeholders 

• 85- 

• employees, investors, communities, customers, suppliers 

• 86- stakeholder Model of responsibility 

• customers, employees, investors, suppliers, local communities, where they do business 

• 87- Customers 

• treat the, fairly and honestly

• 88- Employees 

• treat the, fairly and respect basic human needs 

• 89- Investors

• provide info to shareholders about financial performance

The stakeholder Model of responsibility 

• 90- Suppliers

• create mutually beneficial partnership arrangements 

• 91- Local and international communities 

• Involvement in programs and charities 

• 92- Concept of accountability 

• expectation of an expanded role for business in protecting and enhancing the general welfare of society 

• 93- Responsibility toward the environment 

• Air pollution, water pollution, land pollution, toxic waste disposal, recycling 

Responsibility towards customers 

• 94- Consumer rights 

• Consumerism- form of social activism to protect rights of consumers 

• 95- Unfair pricing 

  • collusion- illegal agreement between 2+ companies to commit a wrongful act 

  • Price gauging- overly steep price increases. Increaded demand 

• 96- Consumer bill of right 

• Safe [products 

• Informed relevant aspects 

• Right to be heard 

• Right to choose what they buy 

• Educated about purchases 

• Courteous service

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Responsibility towards Employees 

• 97- Balance work and life, help keep job skills, treat terminated employees with respect 

• 98- Equal oportunities 

Responsibility towards investors

• 99- Insider trading 

• using confidential info to gain from stocks 

• 100- Misrepresentation of finances 

• to make company seem ore successful 

• 101- Sarbanes-Oaxley Act 

• Requires chief financial officer to personally guarantee financial reportings. 

• 102- Approaches to social responibility 

• obstructionist, defensive, accommodative, and proactive stance 

• 103- Obstructionist stance 

• doing as little as possible regarding responsibility 

• 104- Defensive stance 

• only minimal legal requirements 

• 105- Accommodative stance 

• If asked to do so exceeds government minimums 

• 106- Proactive stance 

• seeks opportunities to contribute to the public well being 

Social responsibility in the small business 

• 107- Small business ethics are 

• individual ethics 

The government and social responsibility 

• 108- Regulation 

• laws and rules of what can and cannot be done

How organizations influence government 

• 109-Political action committees 

• solicit money and then distributed to political candidates 

• 110- Lobbying 

• use of persons to formally represent organizations to the gov to help causes 

Formal organizational dimensions 

• 111- Legal compliance 

• extent to which the org conforms to all laws 

• 112- Ethical compliance 

• extent to which members of the org follow ethical and legal standards of behavior 

• 113- Philanthropic giving 

• awards or gifts to charities 

Informal organizational dimensions 

• 114- Organizational leadership in culture 

• define social responsibility stance of an org 

• 115- Whistle Blowing 

• employee who detects unethical actions 

Evaluating social responsibility 

• 116- Corporate social audit 

• systematic analysis of an firm success in using funds for social responsibility