M A N AG E M E N T F U N DA M E N TA L S E T H I C S ... -...

M A N A G E M E N T F U N D A M E N T A L S E T H I C S & S O C I A L R E S P O N S I B I L I T Y

G R A D U A T E D I P L O M A I N M A N A G E M E N T

5/7/2016 GDM 401 PB: HDM

BUSINESS ETHICS

5/7/2016 GDM 401 PB: HDM

INTRODUCTION TO MANAGERIAL ETHICS

• Code of moral principles and values that governs the behaviours of right or wrong.

• Standards about good or bad

• People within organisations have divergent views about right or wrong.

Domains of Human Action

5/7/2016 GDM 401 PB: HDM

Domain of Codified Law

(Legal Standard)

Domain of Ethics

(Social Standard)

Domain of Free Choice

(Personal Standard)

Amount of Explicit ControlHigh Low

ETHICAL MANAGEMENT TODAY

5/7/2016 GDM 401 PB: HDM

BENEFITS OF ETHICAL BEHAVIOUR

• Build customer loyalty

• Ability to retain good employees

• Avoid legal problems

• Positive work environment

• Public image

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CRITERIA FOR ETHICAL DECISION MAKING

• Utilitarian Approach – moral behavior produces the greatest good for the greatest number

• Individualism Approach – acts are moral if they promote the individual’s long-term interest

• Moral-Rights Approach – humans have fundamental rights and liberties that cannot be

taken away by an individual’s decision

• Justice Approach – moral decisions must be based on standards of equity, fairness, and

impartiality

• Virtue Ethics Approach – moral behavior stems from personal virtues

• Practical Approach – bases decisions on prevailing standards, society, and all stakeholders

5/7/2016 GDM 401 PB: HDM

A MANAGER’S ETHICAL CHOICES

• Individuals bring their own personality and traits to organisations

• Personal needs, family influence, and religious background shape individuals

• Personality characteristics such as ego, confidence, and independence may enable

managers to make ethical choices

5/7/2016 GDM 401 PB: HDM

C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y

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SOCIAL RESPONSIBILITY

• The obligation of an organisation’s management towards the welfare and interests of the

society and environment in which it operates.

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DANE ANITA RODDICK : THE BODY SHOP

“The business of business should not be about money, it should be about

responsibility. It should be about public good, not private greed”

5/7/2016 GDM 401 PB: HDM

5/7/2016 GDM 401 PB: HDM

BUSINESS RESPONSIBILITIES EXAMPLES

Stakeholder group Responsibility

Employees Workplace safety

Work life balance

Equal opportunities

General public Public health issues

Protecting the environment

Recycling

Corporate philanthropy

Customers Quality of products and services

Avoidance of misleading advertising

Ability of the customers to express legitimate complaints to the appropriate

parties

BENEFITS OF CSR TO ORGANISATIONS

• Longer run profit maximisation

• Competitive advantage

• Enhance labour relations & employee commitment

• Attraction of investors

• Enhanced brand image

THANK YOU!

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