Ethics problems in organizations focus on stakeholders
Download
1 / 15

ETHICS PROBLEMS IN ORGANIZATIONS Focus on Stakeholders - PowerPoint PPT Presentation


  • 68 Views
  • Uploaded on

ETHICS PROBLEMS IN ORGANIZATIONS Focus on Stakeholders. referencing Chapter 8 Trevino & Nelson, Managing Business Ethics . NY: Wiley, 1999. Understand the “stakeholder approach” to classifying ethical performance of firms.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' ETHICS PROBLEMS IN ORGANIZATIONS Focus on Stakeholders ' - john-curtis


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Ethics problems in organizations focus on stakeholders

ETHICS PROBLEMS IN ORGANIZATIONS Focus on Stakeholders

referencing

Chapter 8

Trevino & Nelson, Managing Business Ethics. NY: Wiley, 1999.


Objectives

Understand the “stakeholder approach” to classifying ethical performance of firms.

Identify categories of ethical problems at the organizational-level based on internal and external stakeholders.

3. Appreciate the concept of “escalation” in which matters starting as small issues become crises.

Objectives


8 steps to sound ethical decision making chapter 4 pp 85 90
8 Steps to Sound Ethical Decision-Making ethical performance of firms.(Chapter 4, pp. 85-90)

  • Gather the Facts of the Situation

  • Define the Ethical Issues

  • Identify the Affected Parties (Stakeholder Analysis)

  • Identify the Consequences (Long v. Short-term, Symbolic Consequences)

  • Identify the Obligations

  • Consider Your Character and Integrity

  • Think Creatively About Potential Actions

  • Check Your Gut.


A stake
A “Stake” ethical performance of firms.

  • A “Claim”

  • A right to something

  • A demand for something due or perceived to be due.


Stakeholder analysis also called constituent analysis see pg 86
Stakeholder Analysis ethical performance of firms.(also called “Constituent Analysis”) see: pg. 86

  • Identify the parties affected (both harm & benefits) by your decisions.

  • Being able to see the situation through others’ eyes is a key moral reasoning skill.

  • “Role taking” (Kohlberg)

  • Start with those most immediately affected and work outward to include those who potentially may feel ‘collateral effects’.


Stakeholders include

Employees ethical performance of firms.

Mangers

Owners (Shareholders)

Customers

Suppliers

Community

Stakeholders Include

~ Internal ~

~ External ~


Classifying stakeholders

Groups or individuals with whom the organization has a ethical performance of firms.contractual relationship.

Customers, employees, shareholders, vendors & suppliers and government

Groups or individuals to whom the organization has obligations, but who are not contractual partners.

Community groups, citizens, other businesses, professional entities.

Classifying Stakeholders

~ Primary ~

~ Secondary ~


Factors that affect ethical behavior
Factors that Affect Ethical Behavior ethical performance of firms.

Issue

Intensity

Individual

Characteristics

MODERATORS

Ethical

Dilemma

Stages of

Moral

Development

Ethical/

Unethical

Behavior

Structural

Characteristics

of Organization

Organizational

Culture


Issue escalation
Issue Escalation ethical performance of firms.

  • Through mismanagement, denial, or malevolence, small problems mushroom into huge ethical, legal and public relations nightmares.


Ethics and consumers
Ethics and Consumers ethical performance of firms.

Marketing : an exchange-based function in which relationships, trust and norms play critical roles.

As a consequence, the marketing function is fundamentally intertwined with ethical issues.


Consumer ethics
Consumer Ethics ethical performance of firms.

Few laws protecting consumers before 1960’s.

Pure Food & Drug Act (1906) prohibited adulteration of food & drugs.

McPherson v. General Motors gave the right to sue auto mfgs. For defective vehicles.

1962 Kennedy Principles: 4 Consumer Rights

  • Right to Safety

  • Right to be Heard

  • Right to Choose

  • Right to be Informed


Due care theory consumer products services
“Due Care” Theory ethical performance of firms.Consumer Products & Services

  • Design:meet gov’t regs & specs; be safe under all foreseeable conditions, including misuse.

  • Materials:meet govt regs; be durable to withstand reasonable use.

  • Production:products made without defects.

  • Quality Control:products inspected regularly.

  • Packaging, Labels, Warnings:safely packed; clear directions for use; clear description of hazards.

  • Notification: manufacturers should have system to recall dangerous products after distribution.


Share holder ethics
Share ethical performance of firms.holder Ethics

  • Clear ethical obligation to “owners”

  • Serve the interest of owners & try to perform well economically over time.

  • Perform well in long term, not just short run.


Community obligations
Community Obligations ethical performance of firms.

  • Companies are citizens in their communities.

  • Because of their size and complexity of relationships w/ community, they can have a disproportionate impact.

  • The most common issues are environmental.


Corporate social responsibility
Corporate Social Responsibility ethical performance of firms.

INSTITUTIONALIZATION

PARTNERSHIPS

VOLUNTARISM

PHILANTHROPY


ad