Core Concepts of ManagementSchermerhorn :Schermerhorn - Chapter 4 1 Core Concepts of ManagementSchermerhorn Prepared by Cheryl Wyrick California State Polytechnic University Pomona John Wiley & Sons, Inc


COPYRIGHT :Schermerhorn - Chapter 4 2 COPYRIGHT Copyright 2003 © John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that named in Section 117 of the 1976 United States Copyright Act without the express written consent of the copyright owner is unlawful. Request for further information should be addressed to the Permission Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her owner use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, cause by the use of these programs or from the use of the information contained herein.


Chapter 4Ethical Behavior and Social Responsibility :Schermerhorn - Chapter 4 3 Chapter 4Ethical Behavior and Social Responsibility Planning Ahead What is ethical behavior? How do ethical dilemmas complicate the workplace? How can high ethical standards be maintained? What is corporate social responsibility?


What is Ethical Behavior? :Schermerhorn - Chapter 4 4 Ethical behavior what is accepted as “good” and “right” in the context of the governing moral code Values broad beliefs about what is or is not appropriate behavior What is Ethical Behavior?


What is Ethical Behavior? :Schermerhorn - Chapter 4 5 What is Ethical Behavior? Examples of Values Equality Fairness Honesty Responsibility Harmony


JCAHO Standards :JCAHO Standards RI 2.10 The hospital respects the rights of patients: Elements of Performance 2. Each patient has the right to have his or her cultural, psychosocial, spiritual and personal values, beliefs and preferences respected 4. The hospital accommodates the right to pastoral and other spirituals services for patients. RI 2.220 (LTC only) Residents receive care that respects their personal values, beliefs, cultural and spiritual preferences, and life-long patterns of living


Slide 7:Schermerhorn - Chapter 4 7 If we are to comply with JCAHO standards, how important is it to understand the differing worldviews on which our patients base their values and spiritual beliefs as well as knowing our own?


Five Questions about WV :Schermerhorn - Chapter 4 8 Five Questions about WV 1. What is ultimately the prime reality? (...such as "God", or Matter/Energy) 2. What is the basic nature of the universe? 3. What is the basic nature and condition of man? 4. What happens to man at death? 5. What is the reason or basis of ethics and morality?


Conflicting world views? :Schermerhorn - Chapter 4 9 Conflicting world views? “I am aware that no one….is neutral on such emotionally charged issues. None of us can tolerate the notion that our worldview may be based on a false premise and, thus, our whole life headed in the wrong direction.” Dr. Armand M. Nicholi Jr.


Slide 10:Schermerhorn - Chapter 4 10 “Most of us make one of two basic assumptions: we view the universe as a result of random events and life in this planet is a matter of chance; Or we assume an Intelligence beyond the universe who gives the universe order, and life meaning.” Dr. Armand M. Nicholi Jr.


The basis for an approach to ethics :Schermerhorn - Chapter 4 11 The basis for an approach to ethics Worldview establishes the foundation that individuals rely on to form their approach to ethics. There are two fundamental worldviews from which ethics and values manifest in behavior and decision-making: A belief that humans are created beings accountable to a creator. A belief that humans evolved from the result of a chance event.


Alternative Views of Ethical Behavior :Schermerhorn - Chapter 4 12 Alternative Views of Ethical Behavior Utilitarian - greatest good to the greatest number of people Individualism - primary commitment is to one’s long tem self-interests Moral-rights - respect the fundamental rights of people Justice - ethical decisions treat people fairly according to rules


Cultural Issues in Ethical Behavior :Schermerhorn - Chapter 4 13 Cultural Issues in Ethical Behavior Cultural Relativism ethical behavior is always determined by cultural context


Cultural Issues in Ethical Behavior :Schermerhorn - Chapter 4 14 Cultural Issues in Ethical Behavior Ethical Imperialism attempt to externally impose one’s ethical standards on others


Ethics in the Workplace :Schermerhorn - Chapter 4 15 Ethics in the Workplace What is an Ethical Dilemma? Situation that requires choosing a course of action offers potential for personal and/or organizational benefit may be considered unethical


Examples of Ethical Dilemmas :Schermerhorn - Chapter 4 16 Examples of Ethical Dilemmas Should I support my bosses incorrect views? Should I sign a false document? Should I accept a gift from a client? Should I give special treatment to a friend or boss’ friend?


Ethics in the Workplace :Schermerhorn - Chapter 4 17 Ethics in the Workplace Rationalizations for Unethical Behavior Convincing oneself that: behavior is not really illegal behavior is really in everyone’s best interests nobody will ever find out the organization will “protect” you


Preventing Rationalization for Unethical Behavior :Schermerhorn - Chapter 4 18 Preventing Rationalization for Unethical Behavior Question 1 “How will I feel about this if my family finds out?” Question 2 “How will I feel about this if it is printed in the local newspaper?”


Ethics in the Workplace :Schermerhorn - Chapter 4 19 Ethics in the Workplace Factors Influencing Ethical Behavior Person Organization Environment


Factors Affecting Ethical Behavior :Schermerhorn - Chapter 4 20 Factors Affecting Ethical Behavior Person family influences religious values personal standards and needs


Factors Affecting Ethical Behavior :Schermerhorn - Chapter 4 21 Factors Affecting Ethical Behavior Organization policies, codes of conduct behavior of supervisors, peers organizational culture


Factors Affecting Ethical Behavior :Schermerhorn - Chapter 4 22 Factors Affecting Ethical Behavior External Environment government regulations norms and values of society ethical climate of industry


Maintaining High Ethical Standards :Schermerhorn - Chapter 4 23 Maintaining High Ethical Standards Ethics Training structured programs that help participants to understand ethical aspects of decision making


Slide 24:Schermerhorn - Chapter 4 24 Where do pressures for unethical acts come from? BOSSES LOWER LEVELS Sometimes, perhaps too often Bosses may ask: “support an incorrect view” “sign a false document” “overlook a wrong doing” “do business with my friends” Who hold a lot of power Who depend on them for raises, promotions, etc.


Maintaining High Ethical Standards :Schermerhorn - Chapter 4 25 Maintaining High Ethical Standards Whistleblower Protection Whistleblowers expose misdeeds of others to preserve ethical standards protect against wasteful, harmful, illegal acts


Maintaining High Ethical Standards :Schermerhorn - Chapter 4 26 Maintaining High Ethical Standards Whistleblower Protection Barriers to whistleblowing strict chain of command strong work group identities ambiguous priorities State laws protecting whistleblowers vary Federal laws protect government workers


Maintaining High Ethical Standards :Schermerhorn - Chapter 4 27 Maintaining High Ethical Standards Top management support model appropriate ethical behavior Formal codes of ethics official written guidelines on how to behave


Corporate Social Responsibility :Schermerhorn - Chapter 4 28 Corporate Social Responsibility Obligation of the organization to act in ways that serve both its own interests and that of stakeholders


Social Responsibility in Action :Schermerhorn - Chapter 4 29 Social Responsibility in Action Social Audits Evaluate corporate social performance by asking Is the organization’s Economic responsibility met? Legal responsibility met? Ethical responsibility met? Discretionary responsibility met?


Social Responsibility and the Legal Environment :Schermerhorn - Chapter 4 30 Social Responsibility and the Legal Environment Governmental agencies that monitor compliance with government mandates Federal Aviation Administration (FAA) Environmental Protection Agency (EPA) Occupational Safety & Health Administration (OSHA) Food & Drug Administration (FDA)


Complex Legal Environment :Schermerhorn - Chapter 4 31 Complex Legal Environment Areas of government intervention occupational safety and health fair labor practices consumer protection environmental protection