Organizational Justice, Ethics, and Corporate Social Responsibility

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OrganizationalJustice, Ethics,and
CorporateSocial Responsibility

• Chapter 2

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Learning Objectives

1. Identify four different forms of organizational
   justice and the organizational impact of each.
2. Describe strategies that can be used to promote
   organizational justice.
3. Explain what is meant by ethical behavior and why
   organizations should be concerned about ethics.

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Learning Objectives

1. Explain ways of behaving ethically when
   conducting business internationally.
2. Describe the individual and situational factors
   responsible for unethical behavior in
   organizations and methods for minimizing such
   behavior.
3. Explain what is meant by corporate social
   responsibility, the forms it take, and the nature
   of the relationship between responsible behavior
   and financial profitability.

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Procedural Justice Criteria
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Organizational Justice Promotion Strategies

• Pay Workers What They Deserve
• Follow Open and Fair Procedures
• Offer Workers a Voice
• Meet Regularly and Invite Input
• Conduct Employee Surveys
• Keep an Open Door Policy
• Use Suggestion System

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Organizational Justice Promotion Strategies

• Explain Decisions Thoroughly in a Manner
  Demonstrating Dignity and Respect
• Train Workers to Be Fair
• Organizational Citizenship Behaviors

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Ethics Enforcement Policies

• Federal Sentencing Guidelines
• Sarbanes-Oxley Act
• Limited Acceptance of Entertainment and Gifts by
  Employees
• Increased Accurate Company Performance
  Documentation Standards

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Global Ethics Guiding Principles

• Show Respect for Core Human Values
• Demonstrate Sensitivity to Local Traditions
• Recognize That Context Matters

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Unethical Behavior Situational Determinants

• Managerial Values Sometimes Discourage Ethical
  Behavior
• Bottom Line Mentality
• Exploitative Mentality
• Madison Avenue Mentality
• Subordinates Emulate Managers Unethical Behavior

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Corporate Ethics Programs Components

• Code of Ethics
• Ethics Training
• Official Bodies Formally Responsible for Ethics
• Mechanisms for Communicating Ethical Standards
• Ethics Audits

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Socially ResponsibleBehavior Forms

• Make Charitable Contributions
• Preserve the Environment
• Invest Socially Responsibly
• Promote Employee Welfare