MGT 250 Lecture Notes - Lecture 13: Whistleblower, Mckinsey & Company
15 May 2018
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• Ethical Climate:
➢ Steps in Establishing Ethical Climate:
1. Managers (esp. top managers) have to act ethically themselves.
2. Top management has to be active in & committed to company ethics
program.
3. Put in place a reporting system that encourages managers & employees to
report potential ethics violations.
o Whistleblowing: reporting others’ ethics violations to
management/legal authorities.
4. Management has to fairly & consistently punish those who violate
company’s code of ethics.
➢ Statistics:
o In large companies w/out effective compliance program:
â–Ş 62% of workers have observed unethical behavior.
â–Ş 32% have reported the misconduct.
â–Ş 59% of those who reported unethical behavior experienced some kind
of retaliation.
• Social Responsibility:
➢ A business’s obligation to pursue policies, make decisions, & take actions that
benefit society.
o There are strong disagreements over to whom & for what in society
organizations are responsible.
o It’s difficult for managers to know what is or will be perceived as socially
responsible corporate behavior.
â–Ş Statistics:
âť– In a McKinsey & Company study of 1,144 top global executives:
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
A business"s obligation to pursue policies, make decisions, & take actions that: it"s difficult for managers to know what is or will be perceived as socially organizations are responsible. responsible corporate behavior, statistics: In a mckinsey & company study of 1,144 top global executives: 79% predicted at least some responsibility for dealing w/ future social & political issues would fall on corporations. Only 3% said they themselves do a good job of dealing w/ these issues: q: what should managers & corporations do to be socially responsible, shareholder model: only social responsibility that businesses have is to maximize profits. By maximizing profit, firm maximizes shareholder wealth & satisfaction. As profits rise, company stock owned by shareholders generally increases in value: stakeholder model: management"s most important responsibility is firm"s long-term survival (not just maximizing profits). Achieved by satisfying interests of multiple corporate stakeholders (not just shareholders): stakeholders: persons/groups w/ legitimate interest in the company.
