Ch' 3 Ethics

1
Ch. 3 Ethics

• Managements Social Responsibilities
• Social responsibility is managements obligation
  to make choices and take actions that contribute
  to the welfare and interests of society as well
  as to those of the organization

2
Organizational Stakeholders

• A stakeholder is any group inside or outside the
  organization that has a stake in the
  organizations performance
• Stakeholders may have similar or different
  interests in the organization

• CCC GOMES

3
Exhibit 3-2 Major Stakeholders in the
Organizations Performance
4
Exhibit 3-3 An Organizations Main
Responsibilities
5
What Influences Ethical Behavior?

• The Individuals Role
• Level one Preconventional
• A few operate here
• Level two Conventional
• Most people operate here
• Level three Principled
• Less than 20 reach level three
• The Organizations Role
• At best, most employees in firm operate at level
  two

6
Exhibit 3-4 What Is Your Level of Moral
Development?

• Principled - What is the right thing to do?

• Conventional - What am I legally required to do?

• Preconventional - What can I get away with?

7
Are There Any Ethical Guidelines?

• What Does The Research Say?
• American adults said by a 3-to-1 margin that
  truth is always relative to a persons situation
• People are most likely to make their moral and
  ethical decisions based on
• whatever feels right or
• comfortable in a situation

8
Is Your Conscience Reliable?

• If a persons values are at Level 2, they may
  make decisions based on the situation and what
  others say and do
• Many people are so accustomed to doing things
  unethically that they think nothing about it

9
Are There Ethical Guidelines?

• Sources of Significant Influence
• Do factors influencing our decisions include your
  friends, family, or things you see on television
  or in the movies?
• Barna has found that the leading influences on
  American ethics are

10
To Have Ethical Guidelines You Need

• A point of reference that

11
Will The Golden Rule Help?

• The Golden Rule concept is present in virtually
  all faith-based principles
• The Golden Rule does not involve reciprocity
• Could the Golden Rule serve as a universal,
  practical, helpful standard for the
  businesspersons conduct?
• Would you consider your faith a fixed point that
  is separate from you and never changes?

12
Exhibit 3-7 Examples of World Religions Which
Embrace the Golden Rule

• Hindu - Do naught unto others what you would not
  have them do to you.
• Confucius - Do not do to others what you would
  not like yourself.
• Buddhist - Hurt not others in ways that you
  yourself would find hurtful.
• Rabbi Hillel - That which is hateful to you do
  not do unto your neighbor.
• Jesus Christ - Do to others as you would have
  them do to you.

13
Managements Ethical Responsibilities

• Ethics is the code of moral principles and values
  that govern the behaviors of a person or a group
  with respect to what is right or wrong
• Ethical behavior refers to treating others fairly

14
What is an Ethical Dilemma?

• A situation where each alternative choice or
  behavior has some undesirable elements due to
  potentially negative ethical or personal
  consequences

15
Ethics in Dealing with Salespeople

• Five ethical considerations faced by sales
  managers
• termination-at-will
• privacy
• sexual harassment

16
Benefits of Respecting Employees Rights

• Productive employees
• Attracting
• Reducing
• Reducing

17
Salespeoples Ethics in Dealing with Their
Employers

18
Ethics in Dealing with Customers

• Bribes
• Misrepresentation
• Price discrimination
• Robinson-Patman Act
• Selling the same quantity of the same product to
  different buyers at different prices
• Tie-in sales
• To buy a particular line of merchandise, a buyer
  may
• Clayton Act

19
Ethics in Dealing with Customers

• Exclusive dealership
• Reciprocity
• Sales restrictions

20
The International Side of Ethics

• Guidelines for conducting international business
  may be different or even nonexistent
• Despite laws in other countries, U.S. firms are
  subject to U.S. laws
• It is important to keep up to date on the law and
  be aware of how authorized representatives are
  conducting business