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MGM102H5 (200)
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ETHICS AND SOCIAL RESPONSIBILITY.docx

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Department
Management
Course
MGM102H5
Professor
Dave Swanston
Semester
Fall

Description
ETHICS AND SOCIAL RESPONSIBILITY  Legality is more narrow. It refers to laws we have writ- ten to protect ourselves from fraud, theft, and violence. Many immoral and unethical acts fall well within our laws.  Ethics reflects people’s proper relations with one another ETHICS  Ethics is more than legality.  It is not just obeying the law; it is “doing the right thing.” EHICAL STANDARDS ARE FUNDAMENTAL  We define ethics as the standards of moral behaviour; that is, behaviour that is accepted by society as right versus wrong.  In a country like Canada, with so many diverse cultures, you might think it would be impossible to identify common standards of ethical behaviour.  all of the world’s major religions support a version of the Golden Rule: Do unto others as you would have them do unto you. Sometimes there is no desirable alternative. Such situations are called ethical dilemmas because you must choose between equally unsatisfactory alternatives. It can be very difficult to maintain a balance between ethics and other goals such as pleasing stakeholders or advancing in your career Ethical Checklist  Is It Legal?  Is It Balanced?  How Will It Make Me Feel About Myself? Managing Businesses Ethically and Responsibly Organizational ethics begin at the top.  The leadership and example of strong top managers can help instil corporate values in employees.  Some managers think that ethics is a personal matter—that individuals either have ethical principles or they don’t.  Formal corporate ethics codes are popular these days.  Although ethics codes vary greatly, they can be classified into two major categories: compliance-based and integrity-based. A business should be managed ethically for many reasons: to maintain a good reputation; to keep existing customers; to attract new customers; to avoid lawsuits; to reduce employee turnover; to avoid government intervention (the passage of new laws and regulations controlling business activities); to please customers, employees, and society; and simply to do the right thing Compliance-based ethics codes emphasize pre- venting unlawful behaviour by increasing control and by penalizing wrongdoers. Whereas compliance-based ethics codes are based on avoiding legal punishment, integrity-based ethics codes define the organization’s guiding values, create an environment that sup- ports ethically sound behaviour, and stress a shared accountability among employees. Setting Corporate Ethical Standards  Whistleblowers: people who report illegal or unethical behaviour among employees.  Whistleblowing Legislation in Canada • Bill C-11: The Public Servants Protection Disclosure Act • there is no provision to protect private-sector whistleblowers Six Steps to Improve Ethics 1. Top management support 2. Expectations begin at the top 3. Ethics imbedded in training 4. Ethics office set up 5. External stakeholders informed 6. There must be enforcement This last step is perhaps the most critical. No matter how well intended a company’s ethics code is, it is worthless if it is not enforced Strategies for Ethics Management Both codes have a concern for the law and use penalties as enforcement. Integrity-based ethics codes move beyond legal compliance to create a “do-it-right” climate that emphasizes core values such as honesty, fair play, good service to customers, a commitment to diversity, and involvement in the community. These values are ethically desirable, but not necessarily legally mandatory. COMPLIANCE BASED ETHICS IDEAL: conform to outside standards( laws and regulations) Objective: avoid criminal misconduct Leaders- lawyers Methods- education , reduced employee discretion , controls and penalties INTEGRITY BASED ETHICS CODE IDEAL: CONFORM TO OUTSIDE AND CHOSEN INTERNAL STANDARDS OBJECTIVE: ENABLE RESPONSIBLE EMPLOYEE CONDUCT LEADER: MANAGER WITH AID OF LAWYERS AND OTHERS METHODS: EDUCATION , ACCOUNTABILITY,, LEADERSHIP , DECISION PROCESSES, CONTROLS AND PENALTIES An important factor in the success of enforcing an ethics code is the selection of the ethics officer. The most effective ethics officers set a positive tone, communicate effec- tively, and relate well with employees at every level of the company. They are equally comfortable serving as counsellors or as investigators. While many ethics officers have backgrounds in law, it is more important that they have strong communication skills than a background in specific rules, regulations,
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