A Manager’s Guide to Business Ethics and Social Responsibility

Posted on Jun 17, 2024 in Economy

Chapter 3

1. What are the 4 Views of Ethics?

  • Individualism View
  • Moral Rights View
  • Justice View
  • Utilitarian View

2. What is the Difference Between Cultural Relativism and Universalism?

Cultural Relativism

  • Is it ethical in the cultural context?
  • Yes…then OK
  • There is no one right way to behave
  • Ethical behavior is always determined by cultural context
  • So long as local laws/customs are followed, child labor is OK

Universalism

  • Not ethical in Canada?
  • No…then not OK anywhere or Is this cultural imperialism?
  • If a behavior is unacceptable in one’s own home environment, it shouldn’t be acceptable anywhere else

3. What are Five of the Most Important Ethical Dilemmas Managers Face?

  • Conflicts of Interest – taking bribes or gifts to make a favorable decision – e.g., tickets to games, trips, money
  • Discrimination – denying job opportunities due to gender, age, socio-cultural background, religion, or other non-job-related criteria
  • Sexual Harassment – making inappropriate sexual comments or asking for sexual favors in return for favorable job treatment
  • Customer Confidence – giving customer information to another party
  • Use of Organizational Resources for personal gain – stationery, using company resources for personal communications/gain

Ethical dilemmas involve superiors, customers, & subordinates

4. What are Three Progressively Advanced Levels of Moral Development We Can All Strive For?

  • Preconventional – Self-Centered Behavior (Stage 1 & 2)
  • Conventional – Social-Centered Behavior (Stage 4 & 5)
  • Post-Conventional – Principle-Centered Behavior (Stage 5 & 6)

5. What are the Four Rationalizations for Unethical Behavior?

  • Convincing yourself the behavior is not really illegal
  • Convincing yourself that the behavior is in everyone’s best interest
  • Convincing yourself that nobody will ever find out what you’ve done
  • Convincing yourself that the organization will “protect” you

6. What are Six Ways Managers & Leaders Can Maintain High Ethical Standards in the Workplace?

  1. Make sure you thoroughly understand what is happening & that your allegation is absolutely correct
  2. Do not assume the law automatically protects you
  3. Talk to an attorney to ensure that your rights will be protected & proper procedures are followed
  4. Do not talk first to the media
  5. Keep accurate records to document your case; keep copies outside your office
  6. Do not expect a big financial windfall if you are fired

7. What is the Difference Between an Immoral, Amoral, or Moral Manager?

  • An immoral manager chooses to behave unethically for only personal gain
  • An amoral manager fails to consider the ethics of their behavior or decisions, but does so unintentionally
  • A moral manager makes ethical behavior a personal goal

8. What is Corporate Social Responsibility?

  • The obligation of organizations to serve their own interests (profit) & the interests of society at large (social/environmental)
  • Organizations following ethical & socially responsible practices are viewed favorably by potential employees/consumers supporting their products/services in the marketplace

Research shows high performance in social responsibility is associated with strong financial performance or at worst has no adverse financial impact

9. What is the Difference Between the Classical View of Corporate Social Responsibility and the Socio-Economic View?

Arguments against Corporate Social Responsibility

Classical View

  • Reduced business profits
  • Higher business costs
  • Dilution of business purpose (profit/production)
  • Gives too much social power to businesses…it’s not their area

Arguments in Favor of Corporate Social Responsibility

Socio-Economic View

  • Will add long-run profits for businesses
  • Improve public image of businesses
  • Help businesses to avoid more governmental regulation
  • Businesses have the resources and ethical obligation to act responsibly

10. What are Four Social Responsibility Strategies Companies Use? (Progress from Least to Most Advanced)

  1. The Obstructionist Strategy – denies wrongdoing
  2. The Defensive Strategy – wrongdoing is usually denied
  3. The Accommodative Strategy – prevailing norms/values are adhered to, e.g., an oil company cleans a spill without government law
  4. The Proactive Strategy – identifies emerging trends, preventative action to avoid adverse social impacts

11. What Does a Sustainable Company Look Like? (Hint – There are 7 Ways)

  • Leadership & all levels of the company must support sustainable initiatives
  • Sufficient resources (money & people) are allocated to initiate sustainability programs
  • Initiatives are proactive, not reactive
  • Long/short-term goals are public, measured, & reported publicly