Unit 3: Business and Managerial Ethics 101
Management sets the tone not only for a corporate climate; it also sets the standard for personal behavior. In this unit you will learn about the importance of ethics - that is, "doing what is right" or "doing the right thing." In light of recent major business scandals borne out of unethical behavior, almost all business schools have devoted aspects of their curricula to the study of ethics. In order to understand how to apply ethics to different circumstances, you must understand how ethics can vary based on differences in society, culture, and politics. There are a number of different philosophies purporting to explain how to apply ethics to decision-making, but none of them are absolute. However, understanding these various philosophies can help you reach workplace decisions that are more ethically grounded.
Completing this unit should take you approximately 9 hours.
3.1: Defining Business Ethics
Read the introduction and section 2.1, which describe managerial duties in the workplace. Managers have a number of responsibilities when they take on the role of overseeing the resources of a company. As they carry out their tasks, managers must be ready and able to apply the core elements of ethics in the workplace.
3.2: An Individual Approach to Ethics for Managers
Read this section, which describes a variety of ethical approaches that managers can utilize in the workplace. In this reading, you will learn the necessary steps that a manager must use when making an ethical decision, as well as how to solve a particular ethical dilemma or ethical lapse. Be sure to carefully review all the information presented in this section, especially the "Key Takeaways" presented at the end of the reading.
3.3: Identifying Ethical Issues
Read this section, which describes how ethical issues affect managerial decisions. Many business scandals revolve around individuals in powerful management positions who have made decisions laced with unethical behavior. In this section of the reading, you will learn how to analyze ethical behavior in order to appropriately address potential concerns as they may arise. Focus in particular on concepts such as integrity and bribery, which help provide an ethical framework on which to base your managerial decisions.
Read the section and then review table on business ethics issues. After thoroughly studying these two resources, consider the following questions: Of the twelve ethical lapses mentioned in the article and table, which one is the most frequently broken in your own workplace? What actions might an organization take to fix these unethical behaviors? Do you think unethical behaviors are becoming more common in the workplace? If so, why?
3.4: Understanding Corporate Social Responsibility
Read this section, which defines corporate social responsibility and provides an introductory discussion about the numerous responsibilities that corporations carry out in service to their stakeholders.
3.5: What Is Environmentalism?
Read this section, which highlights various ways in which companies have adopted green environmental manufacturing processes. Managers are often responsible for working alongside engineers and scientists in order to establish and implement improvements that lead to a more environmentally friendly mode of output. New movements toward sustainability and clean energy have pushed corporations and small businesses to minimize the negative effects of production on their surrounding environments.
3.6: Responsibilities to Stakeholders
- Read this section, which introduces the five stages of corporate responsibility.
Read this article and consider the following questions: Who are the shareholders and stakeholders of a business that you are familiar with? What is the primary source of conflict between shareholders and stakeholders? Why is stakeholder responsibility so important? How does following the five stakeholder principles lead to stakeholder satisfaction?
3.7: Making CSR Work for All Stakeholders
Read this article and consider the following questions: How important is CSR to you as a consumer and a business professional? How can CSR positively and negatively impact a company? Do the benefits of CSR activities outweigh the drawbacks? If so, why?
3.8: Ethical Issues and Considerations
Read this section, which describes how unique business cultures help to shape the professional lives of managers and employees. Codes of conduct and verbalized expectations are of tremendous importance in the 21st century, as they help raise awareness about the issues and business practices that are of greatest concern to an organization. In this section of the reading, you will learn how companies use a variety of means in order to promote ethical leadership. You will also see how a clear and concise code of conduct can act as a significant asset to an organization.
Read this article and consider the following questions: What is values-based leadership? How is values-based leadership different from other leadership styles? Do you know any values-based leaders? If so, do they apply the key values-based leadership qualities noted in this article? In what ways do these leaders apply these qualities?
Watch these two short videos featuring Carly Fiorina, the former CEO of Hewlett-Packard (HP). Fiorina introduces some important points to consider when approaching company ethics, including the long-term advantages gained by a company that emphasizes ethically based work.
Read this article and think about examples of ethical companies you are familiar with. How do these companies compare with the companies discussed in this reading? If you work for a company with strong ethics and values, how do you feel about working for this organization? Does your company have a code of conduct or code of ethics? Next, think about how you feel when you purchase products or services from companies with good ethical reputations. Also consider companies you are aware of that have exhibited poor ethical behavior; as a consumer, how do you feel about purchasing products or services from those organizations?
Read this article and answer the following questions: Does corruption exist in society today? If so, where? How widespread a problem do you consider corruption to be? Does the organization you work for, or one you are familiar with, implement any of the anti-corruption actions noted in this article? How can you make a difference in the war against corruption?
Read this article and consider how international laws and US courts provide jurisdictions over human rights violations. What position do you think the US Supreme Court should take on this issue? How can international entities, such as the United Nations Global Compact and the Office of the High Commissioner for Human Rights, continue to have a positive impact on corporate global human rights policies?