Organizational Ethics - Week 3

Business Ethics & Social ResponsibilityMGMT 447

Business Ethics

•Differ from general ethics▫Stakeholders vested in the ethical

performance of the organization▫Your work environment may provide

situations that clash with your personal value system

Organizational Culture•The values, beliefs, norms shared by

employees of the organization•Sums up the policies and procedures of

the functional departments within the organization

Value Chain

•R & D•Manufacturing•Marketing•Sales•Customer Service

Value Chain cont…

•Human Resource Management•Finance•Information Systems•Management

R & D

•Create new products▫Incorporate customer feedback▫Competitive feedback▫Strategic input

•Ethical Dilemma▫Creating products of the highest quality,

safety, & reliability all within a predetermined manufacturing cost

Manufacturing

•Build the designs created by R&D•Ethical Dilemmas

▫Build it fast or build it right?

Marketing

•Includes▫Advertising▫PR▫Sales

•Ensures the product reaches satisfied customers

•Ethical Dilemmas▫Do customers really “need” these products▫Is this manipulation or placing a product in

the hands of customers to better the customers’ lives?

Marketing cont…

•So who does a company owe responsibility to?▫Stockholders▫Customers

•AMA Code of Ethics▫http://

www.marketingpower.com/AboutAMA/Pages/Statement%20of%20Ethics.aspx

•DMA Code of Ethics▫http://www.dmaresponsibility.org/guideline

s/

Human Resources

•Job description•Recruitment/Selection of “right”

candidate•New employee orientation•Payroll and benefits management•Performance review documentation•Disciplinary/training documentation•Career Development Program Plan•Final Paperwork/Benefit Severance/Exit

Interview

HR Cont…

•Ethical Dilemmas▫Arise when there’s a failure to plan ahead

•Should HR be at center of corporate code of ethics as its voice of reason?▫Ensure ethics is a top priority▫Ensure leadership selection & development▫Ensure proper programs & policies are in

place▫Aware of ethical issues (legislation, etc)

Finance

•Financial transactions•Accounting function•Auditing function

▫Internal▫Conflict of Interest