This is a 5-6 pages eassy about management called Interview Experience and Synthesis Paper.

Ethics and Social Responsibility

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LEARNING OUTCOMES

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1 Identify common kinds of workplace deviance 2 Describe the US Sentencing Commission

Guidelines for Organizations and explain how they both encourage ethical behavior and punish unethical behavior by businesses

3 Describe what influences ethical decision making

4 Explain what practical steps managers can take to improve ethical decision making

LEARNING OUTCOMES

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5 Explain to whom organizations are socially responsible

6 Explain for what organizations are socially responsible

7 Explain how organizations can respond to societal demands for social responsibility

8 Explain whether social responsibility hurts or helps an organization’s economic performance

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Types of Workplace Deviance

• Unethical behavior that hurts the quality and quantity of work produced

Production deviance

• Unethical behavior aimed at the organization’s property or products

Property deviance

• Using one’s influence to harm others in the company

Political deviance

• Hostile or aggressive behavior toward others

Personal aggression

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US Sentencing Commission Guidelines for Organizations

• Companies can be prosecuted and punished for their unethical behavior

• Cover offenses defined by federal laws • Encourage companies to take proactive

steps that will discourage white-collar crime • Give companies an incentive to cooperate

and disclose illegal activities to federal authorities

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Determining the Punishment

• Guidelines impose smaller fines on companies that take proactive steps to encourage ethical behavior

• Base fine is computed by determining the level of offense • Culpability score of the company is computed by

a judge • Total fine is calculated by multiplying the

base fine by the culpability score

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Factors Influencing Ethical Decision Making

• Ethical intensity of the decision • Ethical intensity: Degree of concern people have

about an ethical issue • Moral development of the manager

• Phases • Preconventional level of moral development • Conventional level of moral development • Postconventional level of moral development

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Exhibit 4.5 Kohlberg’s Stages of Moral Development

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Factors Influencing Ethical Decision Making

• Ethical principles used to solve the problem • Long-term self-interest • Religious injunctions • Government requirements • Individual rights • Personal virtue • Distributive justice • Utilitarian benefits

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Practical Steps to Ethical Decision Making

• Selecting and hiring ethical employees • Overt and personality-based integrity tests

• Establishing a specific code of ethics • Training employees to make ethical

decisions • Creating an ethical climate

• Managers should act ethically • Top management should be active and

committed to the company ethics program • Establish a reporting system

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Social Responsibility of Organizations

• Shareholder model • Organization’s overriding goal should be profit

maximization for the benefit of shareholders • Stakeholder model

• Management’s most important responsibility is long-term survival • Achieved by satisfying the interests of

multiple corporate stakeholders

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Social Responsibility of Organizations

• To make a profit by producing a valued product or service

Economic responsibility

• To obey society’s laws and regulations

Legal responsibility

• To abide by accepted principles of right and wrong when conducting business

Ethical responsibility

• Social roles that a company fulfils beyond its economic, legal, and ethical responsibilities

Discretionary responsibilities

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Responses to Demands for Social Responsibility

• Company does less than society expects

Reactive strategy

• Company admits responsibility for a problem but does the least required to meet societal expectations

Defensive strategy

• Company accepts responsibility for a problem and does all that society expects to solve that problem

Accommodative strategy

• Company anticipates a problem before it occurs and does more than society’s expectations

Proactive strategy

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Social Responsibility and Economic Performance

• No trade-off between being socially responsible and economic performance

• Relationship becomes stronger when a company has a strong reputation for social responsibility

• Socially responsible companies experience the same ups and downs in economic performance that traditional businesses do

SUMMARY

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• US Sentencing Commission Guidelines for Organizations give companies an incentive to cooperate and disclose illegal activities to federal authorities • Total fine is calculated by multiplying the base

fine by the culpability score • Steps to ethical decision making

• Selecting and hiring ethical employees • Establishing a specific code of ethics • Training employees to make ethical decisions • Creating an ethical climate

SUMMARY

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• Social responsibilities of organizations • Economic, legal, ethical, and discretionary

• Responses to demands for social responsibility • Reactive, defensive, accommodative, and

proactive strategies • No trade-off between being socially

responsible and economic performance

KEY TERMS

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• Ethics • Ethical behavior • Workplace deviance • Production deviance • Property deviance • Employee shrinkage • Political deviance • Personal aggression • Ethical intensity • Magnitude of

consequences

• Social consensus • Probability of effect • Temporal immediacy • Proximity of effect • Concentration of effect • Preconventional level

of moral development • Conventional level of

moral development • Postconventional level

of moral development

KEY TERMS

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• Principle of long-term self-interest

• Principle of personal virtue

• Principle of religious injunctions

• Principle of government requirements

• Principle of utilitarian benefits

• Principle of individual rights

• Principle of distributive justice

• Overt integrity test • Personality-based

integrity test • Whistleblowing • Social responsibility • Shareholder model • Stakeholder model

KEY TERMS

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• Stakeholders • Primary stakeholder • Secondary

stakeholder • Economic

responsibility • Legal responsibility • Ethical responsibility • Discretionary

responsibilities • Social responsiveness

• Reactive strategy • Defensive strategy • Accommodative

strategy • Proactive strategy

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