OMM 640: BUSINESS ETHICS AND SOCIAL RESPONSIBILITY

COURSE DESCRIPTION

This course analyzes organizational, professional and personal ethics and

creates a framework for exploring the social responsibilities of managers

and organizational leaders. Case studies and scenario presentations will

be used to explore ways to encourage ethical development and moral

behavior within organizational culture and to resolve business ethical

issues and dilemmas.

COURSE LEARNING OUTCOMES Upon successful completion of this course, students will be able to:

1. Interpret the impact of business ethics on stakeholder relationships.

2. Analyze the relationship between individual and societal ethics.

3. Evaluate the role of ethical decision-making in business

organizations.

4. Develop standards for ethical and moral conduct in an organization.

5. Assess the implementation of business ethics in global strategic

planning.

OMM 640 TEXTBOOK

Gonzalez-Padron, T. (2015). Business ethics and social responsibility for

managers. San Diego, CA: Bridgepoint Education.

This is a Constellation

textbook

1. Examine the function of business ethics in a global business

environment.

2. Summarize the modern history of organizational ethics that has

shaped business practices.

3. Define the social responsibilities of business.

WEEK ONE LEARNING OBJECTIVES

WHAT ARE ETHICS?

• Ethics: The study of right and wrong “in action”

Business Ethics The standards of conduct and moral values governing actions and decisions in the work environment.

Social responsibility. Balance between what’s right and what’s profitable. Often no clear-cut choices. Often shaped by the organization’s ethical climate.

TOP BRANDS: MOST ETHICAL LEADERSHIP

• http://www.forbes.com/pictures/efme45gjij/1- hershey/

WHAT IS AN ETHICAL DILEMMA?

• Choice to be made

• Implicates competing values, rights, & goals

• Potential harm to decision maker?

• Potential harm to others?

• “Ripple effect:” long-term, far reaching implications of decision to

be made

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ETHICAL ISSUES IN THE LAST 3 DECADES

Era Major Ethical Dilemmas Business Ethics

Developments 1980s Bribes and illegal contracting practices influence

peddling

Deceptive advertising

Financial fraud

Transparency issues

Defense Industry Initiative established (1986)

Some companies create ombudsman

positions in addition to ethics officer roles

1990s Unsafe work practices in third world countries

Increased corporate liability for personal damage

(cigarette companies, Dow Chemical, etc.)

Financial mismanagement and fraud

Federal Sentencing Guidelines for

Organizations (1991)

Ethics Officer Association (1992)

Transparency International (1993)

Caremark Decision (1996)

Global Sullivan Principles (1999)

Gonzalez-Padron, 2015, Chapter 1, Table 1.2

ETHICAL ISSUES IN THE LAST 3 DECADES (CONT’D)

Era Major Ethical Dilemmas Business Ethics

Developments 21st

century

Financial mismanagement

Cyber crime

Privacy issues (data mining)

Loss of privacy—employees versus employers

Intellectual property theft

International corruption

Sarbanes-Oxley Act of 2002

Dodd-Frank Wall Street Reform and

Consumer Protection Act (2010)

Amendments to the U.S. Sentencing

Commission Guidelines (2004 and 2010)

Anticorruption regulation extends beyond

the United States:

OECD Anti-Bribery and Anti-Corruption

Convention (2009)

OECD Good Practice Guidance on Internal

Controls, Ethics, and Compliance (2010)

UK’s Bribery Act 2010

Brazil, Mexico, Italy and other countries

establish anticorruption legislation (2012)

Gonzalez-Padron, 2015, Chapter 1, Table 1.2

CONSIDERING MANAGERIAL ETHICS IN THE WORKPLACE

Zwilling, 2013, para. 1

Zwilling (2013) believed…

“Many people seem to have the sense that ethics are spiraling

downward in business, yet most business professionals and

entrepreneurs I know don’t believe they can make a difference. They

don’t realize that if they don’t take an active role in the solution, they

really become part of the problem.” (para. 1)

BENEFITS OF MANAGING ETHICS AT WORK Attention to ethics improves your community

and society as a whole

Ethics programs cultivate teamwork and

productivity

Ethics programs support employee growth

Ethics programs support the legal aspects of the

organization

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CONSIDER THIS…

You are the manager for Big-Mart, a large discount retailer. You

recently fired Robert, a sales clerk, after Robert punched a customer

during a dispute in the store (Robert admitted this after the customer

complained).

Janine, the manager of your competitor, Mega-Mart, calls you to tell you

that Robert has applied for a job at Mega-Mart, and to ask you whether

Robert is “good with customers.”

WHAT DO YOU DO ?

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• What behaviors are acceptable in the corporate world?

• Corporate corruption?

• Government corruption?

• Environmental wrongdoings?

Contemporary Ethical Issues

Nearly all men can stand adversity. But if you want to test a man's character,

give him power. Abraham Lincoln

• Individuals make the difference in ethical expectations and behavior

• Poor decisions lead to:

– Putting own interest ahead of the organization

– Lying to employee

– Misrepresenting hours

– Safety violations

– Internet abuse

• Technology has the potential to expand unethical behavior

Individuals Make A Difference

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CODE OF CONDUCT

• Formal statement that defines how the organization expects and requires employees to resolve ethical questions.

• Codes of conduct cannot detail a solution for every ethical situation, so corporations provide training in ethical reasoning.

FIVE SOLUTIONS TO ETHICAL PROBLEMS 1. Identify the ground rules of the all parties. 2. Reason backward to find the interests. 3. Face the relevant facts. 4. Stand in the shoes of affected parties. 5. Use the global benefit approach to rate possible

outcomes.

“Real agreement in ethics only exists when what your ethics eye shows to be the right action matches what the ethic eyes

of others see as the right action at the same time.”

Zwilling, 2013, paras. 5 - 8

WEEKLY READINGS

 Snider, J., Hill, R. P., & Martin, D. (2003). Corporate social responsibility in the 21st century: A view from the world's most successful firms. Journal of Business Ethics, 48(2), 175-187.

 Zwilling, M. (2013, November 11). How to make an ethical difference in your business. Forbes. Retrieved from http://www.forbes.com/sites/martinzwilling/2013/11/17/how- to-make-an-ethical-difference-in-your-business/

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FSB APA GUIDANCE Please use the FSB APA Guidance located in your classroom.

ANY QUESTIONS?

Please post your questions in the Ask the Instructor thread.

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