lecture 12 & 13 : ethics and corporate social responsibilities

Question 1

8 moral disengagement mechanisms

Answer 1

1. advantegous comparison –> comparing a misconduct with a more frightful action –> it can be worse, everyone is doing it
2. distortion of consequences –> because what can happen didn’t happen, you say its not a big deal
3. displacement of responsibility –> my boss asked me to do it
4. diffusion of responsibilities –> someone else is going to take care of it or it is not my responsibility
5. moral justification –> this is a moral thing to do –> steal but give it to the poor
6. euphamistic labelling –> label something so it sounds good even though it is not what it actually is
7. dehumanization –> the victims are not human because they are bad
8. attribution of blame –> blame the victim

Question 2

examples of ethical dillemas

Answer 2

• truth vs loyalty –> answering a question honestly may compromise confidentiality
• individual vs community –> compromising the rigths of an individual for the good of the community
• short term vs long term –> balancing time for kids vs for career
• justice vs mercy –> excusing a person’s behavior because of extenuating circumstances

Question 3

kidder’s principle to resolving ethical dillema

Answer 3

• ends-based thinking –> do whats best for the greatest number of people (utilitarianism)
• rule-based thinking –> following the highest principle or duty (deontology)
• care-based thinking –> do what you want other people to do to you (the golden rule)

Question 4

how can managers improve ethical behaviors in organizations

Answer 4

• hire individuals with high standards of ethics
• establish code of ethics and decision rules
• lead by example
• set realistic goals and include ethics in performance appraisals
• provide ethic training
• provide independent social audits
• provide support for people going through ethical dillemas

Question 5

power

Answer 5

control over critical resources
- the potential to influence via rewards, coercion, expertise, legitimacy, and individual characteristics
- mobilize resources

Question 6

power and justice towards others

Answer 6

• power liberates people from social and normative pressure, leading them to shift their focus inward towards their goals and disposition
• people with power are less attentive and less likely to individuate others
• power corrupts self-interest
• moral identity : the extent to which a person holds morality as their self-concept
• moral awareness : the concious understanding of moral implications
  power + moral identity = moral awareness –> self-interested behavior

Question 7

from obligations to responsiveness to responsibility

Answer 7

a business’ intention, beyond the legal and economic obligations of a company is to do the right things and act in a way that is good for society
- the classical view –> management’s social responsibility is only to make profits by operating the business in the best interest of the stockholders
- the socioeconomic view –> management’s social responsibility goes beyond making profits to include protecting and improving society’s welfare

Question 8

should organizations be socially involved?

Answer 8

arguments for :
- public expectation
- ethical obligation
- public image
- long-run profits
- better environment
- discouragement of further government regulation

arguments against :
- dilution of purpose
- violation of profit maximization
- lack of skill
- lack of accountability
- costs

Question 9

how organizations go green

Answer 9

1. legal approach
   - firms simply follow what is legally required by obeying rules, laws, and regulations willingly and without legal challenge
2. market approach
   - firms respond to the preferences of their customers for environmentally friendly products
3. stakeholders approach
   - firms work to meet the environmental demands of their multiple stakeholders - employees, suppliers, and the community
4. activist approach
   - firms look for way to respect and preserve the environment and be actively socially responsible