18067 ethics lec1
TRANSCRIPT
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CHAPTER ONE
Bus iness Ethics , The
Chang ing Env ironment,
And Stakeholder
Management
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Environmental Dimensions
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Economic Factors
Increasingly global context for trade, markets,
resources
Business expansion, product expansion
Stock & bond market volatility and
interdependency across international regions
The rise of China and India
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Technological Environment
Internet and telecommunication innovations
Change in jobs, financial transactions, marketoperations
Access to information
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Political Environment
Rise of global terrorism
Change in international coalitions
Increased awareness of issues via electronic
technology
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Governmental and Regulatory
Environment
Constantly changing/updating laws andprocedures
Changing standards for products, processes
(e.g., ISI approval)
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Legal Environment
Judicial actions against anticompetitive
practices(MRTP act, competition act)
Consumer protection (tobacco )
Corporate copyright protection
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Demographic Environment
Globalization
Workforce diversity and accompanying issues
Sexual harassment
Discrimination
Downsizing and outsourcing work force
Aging workforce
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Stakeholders
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Secondary Stakeholders
Local community groups
Special Interest groups
Consumer groups
Environmental groups Media
Society-at-large
Should managers pay attention to the needs of thesegroups?
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What is Business Ethics?
Laura Nash has defined business ethics as the
study of how personal mora l norms apply to
the act iv i t ies and goals of commercia l
enterpr ise, as dealing with three basic areasof managerial decision making:
1. Choices about what the laws should be and
whether to follow them
2. Choices about economic and social issues outsidethe domain of law
3. Choices about the priority of self-interest over the
companys interests
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Unethical Business Practices
Showing respect to those who act unethically
Abusive or intimidating behavior
Misrepresentation of hours worked
Lying
Withholding information
Sexual harassment
Invasion of privacy on the internet
Employee rights and issues
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Why does business ethics
matter?
Financially and Economically
Relationships and Reputation
Morale and Productivity
Integrity and the Common Good
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Five Levels of Business Ethics
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Key Questions if Faced with an Ethical
Dilemma
What are my core values and beliefs?
What are the core values and beliefs of myorganization?
Whose values, beliefs, and interests may be at risk
in this decision? Why? Who will be harmed or helped by my decision or by
the decision of my organization?
How will my own and my organizations core values
and beliefs be affected or changed by this decision? How will I or my organization be affected or by the
decision?
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Figure 1.5:
5 Business Ethics Myths
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Why Use Ethical Reasoning In
Business?
Laws are insufficient
Free-market and regulated-market
mechanisms are insufficient Complex moral problems require an
intuitive or learned understanding
and concern for fairness, justice,
and due process to people, groups,and communities
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Kohlbergs Levels and Stages Of
Moral Development
Level 1: Preconventional level (self-orientation) Stage 1: Punishment
Stage 2: Reward seeking
Level 2: Conventional level (othersorientation) Stage 3: Good person
Stage 4: Law and order
Level 3: Postconventional level(universal, humankind orientation) Stage 5: Social contract
Stage 6: Universal ethical principles
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Stakeholder management
approach
Ethical principles can result in significant
competitive advantage
Provides a framework that enables users to
map and, ideally, manage corporationrelationships (present and potential) with
groups to reach win-win collaborative
outcomes.
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Stakeholder Management
Approach
Six Steps to developing win/win strategies:
1. Identifying and prioritizing issues, threats, oropportunities
2. Mapping who the stakeholders are
3. Identifying their stakes, interests, and power sources
4. Showing who the members of coalitions are or maybecome
5. Showing what each stakeholders ethics are and shouldbe
6. Developing collaborative strategies and dialogue from ahigher ground perspective to move plans andinteractions to the desired closure for all parties