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Chapter 4 - Ethics and Social Responsibility
Transcript of Chapter 4 - Ethics and Social Responsibility
Ethics and Social Responsibility
What do you think?
Section 1 and 2
Encouraging Ethical Decision-Making
Social Responsibility...The Who
Social Responsibility...The What
Module 1 Test!
28% of employees feel their organization's leadership is ethical
Over 41% of those surveyed have witnessed unethical behavior (60% by management) and 9% have felt pressured to be unethical.
Good news~63% of those seeing unethical behavior did report it.
Cheating on an expense account
Faked injuries for worker's comp
Calling in sick when not sick
(cc) image by anemoneprojectors on Flickr
Leaving early, excessive
breaks, working slowly,
accepting kickbacks, lying on timecards, shrinkage
Sexual harassment, verbal abuse, stealing or endangering coworkers
Since 1991, companies can be prosecuted and punished even if management is unaware of unethical behavior
Nearly all businesses are subject to consequences for ethical standard violations - including nonprofit organizations, labor unions, and pension funds. Guidelines include: invasion of privacy, price fixing, fraud, antitrust violations, civil rights violations, theft, money laundering, conflicts of interest, embezzlement, dealing in stolen goods, copyright infringement and extortion.
While you do not need to know how to calculate penalties and fines, understand that the more serious the offense (i.e dollar amount or scheming) = higher fine
Also important to note, good faith "Compliance Programs" can be in an organization's best interest!
Six Factors of Ethical Intensity
Magnitude of consequences - total harm or benefit
Social consensus - how many agree the behavior is okay or not okay
Probability of effect - how likely will the decision harm others
Temporal immediacy - time between the action and the consequences
Proximity of effect - how close you are with the people affected (socially, culturally, physically)
Concentration of effect - how much affect the decision would have on the average person
by psychologist Lawrence Kohlberg
Preconventional: decisions based on selfish worries
Conventional: decisions based on societal expectations
Postconventional: decisions based on morals and beliefs
Long-term self interest
Select and hire ethical employees
Establish a code of ethics
Foster an ethical climate
Making a profit on a product or service valued by society
Obeying society's laws and regulations
Adhering to what is right and wrong in society
Philanthropy, Going Green, etc.