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Short review – org. cultureShort review – org. culture (Ch.3) (Ch.3) & global environment (Ch. 4)& global environment (Ch. 4)
Ch.5 – social responsibility and Ch.5 – social responsibility and managerial ethicsmanagerial ethics
Tutorial – video, group Tutorial – video, group discussion (start your group work discussion (start your group work as early as possible!)as early as possible!)
Class ends on 4:00pm today! Class ends on 4:00pm today!
Ch.5 Social Responsibility Ch.5 Social Responsibility and Managerial Ethicsand Managerial EthicsLearning objectives:Learning objectives:
1.1. UnderstandUnderstand the classical and the classical and socioeconomic views of social responsibility.socioeconomic views of social responsibility.
2.2. Understand social obligation, social Understand social obligation, social responsiveness, and social responsibilityresponsiveness, and social responsibility
3.3. Contrast the four views of managerial ethicsContrast the four views of managerial ethics4.4. Discuss the fDiscuss the factors actors tthat hat aaffect ffect mmanagerial anagerial
eethicsthics5.5. Discuss various ways organizations can Discuss various ways organizations can
" Many energy companies have invested in closed or repressive countries – arguing that their investment would help develop the local economy and thereby improve the human rights situation.”
What are ethical problems?
环境污染致人死——癌症村与夺命 GDP
“The manager of a Mexican firm bribes several high-ranking government officials in Mexico City to secure a profitable government contract....is a standard business practice in Mexico.” (textbook)
SocialSocial Obligation Obligation,, ResponsivenessResponsiveness, and , and ResponsibilityResponsibility • Social Obligation
The obligation of a business to meet its economic and legal responsibilities and nothing more.
• Social ResponsivenessThe capacity of a firm to adapt to changing societal conditions through the practical decisions of its managers in responding to important social needs.
• Social ResponsibilityA firm’s obligations as a moral agent extends beyond its legal and economic obligations, to the pursuit of long-term goals that are good for society.
An approach to managing in which An approach to managing in which managers establish and uphold managers establish and uphold an organization’s shared valuesan organization’s shared values..
ValuesValues reflect what the reflect what the organization stands for and what organization stands for and what it believes init believes in
The Purposes of Shared ValuesThe Purposes of Shared Values
Utilitarian ViewUtilitarian View Ethical decisions are made solely on the basis Ethical decisions are made solely on the basis
of their outcomes or consequences such that of their outcomes or consequences such that the greatest good is provided for the greatest the greatest good is provided for the greatest number.number.
Encourages efficiency and productivity and is Encourages efficiency and productivity and is consistent with the goal of profit maximization.consistent with the goal of profit maximization.
Rights ViewRights View Concerned with respecting and protecting Concerned with respecting and protecting
individual liberties and privacy.individual liberties and privacy. Seeks to protect individual rights of conscience, Seeks to protect individual rights of conscience,
free speech, life and safety, and due process.free speech, life and safety, and due process.
The Theory of JusticeThe Theory of Justice Organizational rules are enforced fairly and Organizational rules are enforced fairly and
impartially and follow all legal rules and impartially and follow all legal rules and regulations.regulations.
Protects the interests of underrepresented Protects the interests of underrepresented stakeholders and the rights of employee.stakeholders and the rights of employee.
Integrative Social Contracts TheoryIntegrative Social Contracts Theory Ethical decisions should be based on existing Ethical decisions should be based on existing
ethical norms in industries and communities in ethical norms in industries and communities in order to determine what constitutes right and order to determine what constitutes right and wrong.wrong.
Based on integration of the general social contract Based on integration of the general social contract and the specific contract between community and the specific contract between community members.members.
OrganizationOrganizational Characteristics al Characteristics Affecting Ethical BehaviorsAffecting Ethical Behaviors
Performance appraisal systemsPerformance appraisal systems Reward allocation systemsReward allocation systems Behaviors (ethical) of managersBehaviors (ethical) of managers OOrganizationrganizationalal culture culture
Good structural design minimizes ambiguity and uncertainty and fosters ethical behavior.
• true story: Parable on ethics. During a climbing expedition in Nepal, a man encounters a dying pilgrim - a sadhu, an Indian holy man. Members of several groups do what they can - food, warm clothes, etc. - but none made sure that he would be safe. Should someone have stopped to help the sadhu to safety? Would it have done any good? Was the group responsible?
• characters: Wall Street New York Banker Buzz McCoy, good-hearted mountain climber Steven, the “Sherpa” (local guide) and the Sadhu (a Monk, a Holy man)
• Some strange English:“Mate”: Australian/ New Zealander for friend“Good Samaritan” (from Samaria) helped victim (Bible story)altitude sicknessNepal (country at top of Himalayas)32 degrees is freezing in Fahrenheit scale
• put yourself in other person’s shoes – the dilemma, what did they do, what should they do, and what would you do?
• Enron“The downfall of Enron Corporation is one of the most
infamous and shocking events in financial world in the whole history of the mankind, and its reverberations were felt on global scale.”
• Anderson (Textbook page 125)• Search information about the cases of Worldcom, Tyco
International, Imclone...what were the ethical issues involved?
• HK cases?? • http://www.businessethics.ca/enron/• http://articles.pointshop.com/ethics/Read more articles in google, searching with key works like “Business Ethics”,
“managerial ethics”, and “Enron”, “Anderson”, etc. Tons of articles!
Homework Homework (remember, this course is (remember, this course is to to HELPHELP you to think critically you to think critically, but i, but it is t is
YOUYOU who who THINK THINK):): Think about social responsibility Think about social responsibility
and ethics issues in your life – and ethics issues in your life – (un)ethical things that you (un)ethical things that you observed/encountered/did? Why observed/encountered/did? Why and in what sense it is (un)ethical?and in what sense it is (un)ethical?
How HKUST can improve campus How HKUST can improve campus ethical behavior?ethical behavior?
Plan ahead ! – mid-term exam, Plan ahead ! – mid-term exam, group movie projectgroup movie project