Managment

CHAPTER Managerial Ethics and

Corporate Social

Responsibility

CHAPTER OUTLINE

What Is Managerial Ethics?

Criteria for Ethical Decision

Making

Utilitarian Approach

Individualism Approach

Moral Rights Approach

Justice Approach

Factors Affecting Ethical

Choices

The Manager

The Organization

What Is Social Responsibility?

Organizational Stakeholders

The Ethic of Sustainability and

the Natural Environment

Evaluating Corporate Social

Performance

Economic Responsibilities

Legal Responsibilities

Ethical Responsibilities

Discretionary Responsibilities

Managing Company Ethics and

Social Responsibility

Ethical Individuals

Ethical Leadership

Organizational Structures

and Systems

Ethical Challenges in Turbulent

Times

Economic Performance

Social Entrepreneurship

LEARNING OBJECTIVES

After studying this chapter, you should be able to do the

following:

1 Define ethics and explain how ethical behavior relates to

behavior governed by law and free choice.

2 Explain the utilitarian, individualism, moral rights, and

justice approaches for evaluating ethical behavior.

3 Describe how individual and organizational factors

shape ethical decision making.

4 Define corporate social responsibility and how to

evaluate it along economic, legal, ethical, and

discretionary criteria.

5 Describe four organizational approaches to

environmental responsibility, and explain the philosophy

of sustainability.

6 Discuss how ethical organizations are created through

ethical leadership and organizational structures and

systems.

7 Identify important stakeholders for an organization and

discuss how managers balance the interests of various

stakeholders.

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Manager’s Challenge

119

Timberland is known for great shirts

and solid climbing boots. The company

has had a good financial history

with decent revenues and profits.

But CEO Jeffrey Swartz wanted

something more. In the early 1990s,

he began transforming Timberland

into a company known as...