MGMT 5 Lecture Notes - Lecture 2: Procedural Justice, Distributive Justice, Cultural Relativism
Document Summary
Managerial ethics concerned with morality and standards of business conduct; top executives must establish codes of ethics, implement ethics training for employees, and reward ethical behaviors. Ethical dilemma making a choice between two competing but arguably valid options. Ethical lapse understanding how other people approach ethical dilemmas, and avoid a de(cid:272)isio(cid:374) that is (cid:272)o(cid:374)trary to o(cid:374)e"s stated (cid:271)eliefs a(cid:374)d (cid:272)o(cid:373)pa(cid:374)y poli(cid:272)ies. Corporate social responsibility concerned with obligation that corporations have to constituencies; includes shareholders, customers, employees, communities in which firm operates, society, and different levels of government. Something bad happens before changes are made. Externalities events unplanned by the firm: based on adam smith (1776) (cid:862)i(cid:374)(cid:448)isi(cid:271)le ha(cid:374)d(cid:863) of the (cid:373)arketpla(cid:272)e e(cid:374)sures (cid:272)o(cid:373)pa(cid:374)ies pro(cid:448)ide le(cid:448)el of so(cid:272)ial responsibility required by society. Society can actually factor in all costs no externalities. Co(cid:374)su(cid:373)er de(cid:373)a(cid:374)d fully refle(cid:272)ts so(cid:272)iety"s (cid:374)eeds: milton friedman (1970) Moral responsibility of managers is to maximize returns to owners.
