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Review Notes on   CO:  Organizational Ethics & Social Responsibility
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Organizational Ethics   
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         The History of Orgl Ethics   
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         Ethical Management   
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         Ethical Dilemmas   
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         Motivations for Ethical & Unthical Behavior   
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         Ethical Compliance   
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    Organizational Culture   
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         Ethics & Organizational Culture   
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         Codes of Ethics   
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         Ethics & the Law   
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         Ethical Action Guidelines   
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                  Ethical Decision Making:  Boundary Dilemmas   
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                  Options for Dealing w/ Unethical Behavior   
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Social Responsibility   
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         The Resistant Approach to Social Responsibility   
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         The Reactive Approach to Social Responsibility   
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         The Proactive Approach to Social Responsibility   
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Orgl Actors   
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         Responsibilities to Stakeholders   
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         Responsibilities to Owners & Stockholders   
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         Responsibilities to Employees   
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         Responsibilities to Customers   
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         Responsibilities to Suppliers   
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         Responsibilities to Communities   
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The Public Policy Process   
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Govt Regs & Soc Responsibility   
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         Market Failures   
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Top Management & Soc Responsibility   
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The Social Audit   
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The Implementation of Orgl Ethics & Social Responsibility Policies   
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The Future of Orgl Ethics & Social Responsibility   

 
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 Outline on Organizational Ethics 
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BECAUSE THE CONSEQUENCES OF ORGL DECISIONS ARE GREATER THAN EVER BEFORE, THE DUTY OF MGRS TO ACT ETHICALLY IS INCREASINGLY SIGNIFICANT 
 
 
Ethical transactions & behaviors should be an essential aspect of life for all: professionals & lower level employees alike 
 
  The basic idea of maintaining ethical orgl practices is to be able to determine right from wrong when it comes to making decisions & choosing the right decision   
  There are myths about business ethics such as ethics meaning simply to do what's right, when there is much more involved in an ethical lifestyle   
  Many orgs are  holding workshops & having training programs to teach their wkrs about ethics   
 
Mgrs balance diverse & contradictory & demands of multiple constituencies, eg owners, customers, suppliers, the community, & more 
 
 
Balancing the needs of constituencies must be done while allocating & managing limited resources 
 
  The consequences of orgl decisions affect more people & environments (physical & social) than ever before   
  ORGS MUST BALANCE THE INTERESTS OF MANY ORGL ACTORS, CONSTITUENTS, STAKEHOLDERS, COMMUNITIES, & MORE   
 
Never have so many conflicting demands confronted mgrs, orgs, govts & societies 
 
  Powerful interests, ie special interests, include constituencies such as the construction industry, cigarette corps, the military, environmentalists, the nuclear industry, teachers, school boards, the Baby Boomers, etc 
 
  Less powerful interest include constituencies such as children, the poor, the homeless, the disadvantaged minorities, the undereducated, the elderly, etc 
 
  With accelerating social change & the explosion of the availability of info & tech, the pace of life & orgl events is relentless; almost too fast to manage 
 
  Typical pressures on orgs, which may lead to unethical behavior, are to 
-  improve qual of products & ops 
-  increase productivity 
-  stay close to suppliers & customers 
-  value diversity 
-  react swiftly to global changes 
 
  Ethical issues include the rights & duties btwn a company & its wkrs, suppliers, customers & neighbors, its fiduciary responsibility to its shareholders 
 
  Issues concerning relations btwn different companies include hostile take overs &  industrial espionage 
 
  Related issues include corp govt; corp soc entrepreneurship; political contributions; legal issues such as the ethical debate over introducing a crime of corp manslaughter; & the marketing of corps' ethics policies 
 
  ETHICS, VIEWING ACTIONS IN LIGHT OF STANDARDS OF HONESTY & HONORABLE CONDUCT, AFFECT COUNTLESS ORGL DECISIONS   
 
Orgl ethics is a form of applied ethics or professional ethics that examines ethical principles &  moral or ethical problems that arise in an orgl or business env 
 
  Orgl ethics applies to all aspects of orgl  conduct &  is relevant to the conduct of individuals as well as the entire org   
  Ethics is the branch of philosophy concerned w/ human values & conduct, moral duty & obligations   
  Morals are values concerned w/ what is right or wrong, or beyond righteousness to virtuousness   
  Ethics is concerned w/ what constitutes right & wrong human conduct, including actions & values   
  Business ethics address the issue  of right & wrong in the context of commerce & orgl conduct   
  A person's or grp's ethics are influenced by the morality of individuals   
  Religious beliefs, training, education, political beliefs, econ beliefs, socialization from family, peers grps, work experience all produces a person's moral code of ethical values   
  Ethical provides two principles that may guide ethical conduct:  consequential principles & non consequential principles   
  Consequential principles make judgments based on the consequences of that action   
  Utilitarianism advocates that people & orgs should strive to achieve the greatest good for the greatest number; the needs of the many compared to the needs of the few   
  Consequential ethics determines the 'rightness' or 'wrongness' of an action by determining the ratio of good to evil that the action produces   
  The 'right' action is that action that produces the greatest ratio of good to evil or any of the alternatives   
  Some temper this w/ basic or fundamental rights & / or minority rights   
  Non consequential principles tend to focus on the concept of duty   
  A person is ethical, regardless of consequences, if they fulfill their duty   
  The greatest good occurs because the duty of the individual is carried out   
  If each person carries out her or his duty, society knows what to expect from each individual   
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The Survey on Personal Ethics & Commitment to Social Responsibility emphasizes that understanding one's own ethics & commitment to soc resp is necessary to  functioning in an ethical & socially resp manner   
  Danny Cox complied a list of 10 characteristics common to great leaders & one of those characteristics is that one should cultivate a high standard of personal ethics   
  At the core of any personal ethics is the declaration of personal responsibility   
  Many business leaders agree that good business begins w/ ethics   
  Successful people & orgs take ethics seriously   
  Ethical attitudes determines how one treats wkrs, suppliers, stockholders, & consumers, competitors, the govt, other members of the community   
  Ethical orgs suffer less resentment, inefficiency, litigation, & govt interference   

 
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Survey on Personal Ethics & Commitment to Social Responsibility
The following questions are designed to determined to your personal ethics & commitment to acting in a socially responsible manner.  Answer each honestly o get an accurate picture of where you stand 
 
Always
Sometimes
Never
1.  I like to approach problem solving w/ a consideration of how my solution will affect others       
2.  When an action is legal,, it is acceptable to engage in it       
3.  When making decisions, I like to bounce  my thinking off of others       
4.  When considering actions, I think about their impact on society       
5.  One test for determining if decisions are acceptable is to ask how I would feel if my thinking were known to friends & family       
6.  I think that when a decisions hurts one party so that another can benefits, it is an unethical decision       
7.  When I see someone at work stealing from the org, I let those in authority know about it       
8.  I think that if the org does not care about ethics or soc responsible behavior, doing so personally is not important to my career       
9.  When I see litter in the office at work, I clean it up       
10.  I feel good about my actions       
The Survey on Personal Ethics & Commitment to Social Responsibility emphasizes that understanding one's own ethics & commitment to soc resp is necessary to  functioning in an ethical & socially resp manner 

 
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 Outline on the  History of Orgl Ethics
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ORIGINALLY ORGS WERE ONLY CONSIDERED TO BE PROFIT ENGINES, & WHILE THEY WERE LEGALLY LIABLE FOR THEIR ACTIONS, THEY WERE NOT CONSIDERED ETHICAL, MORAL, OR SOCIALLY RESPONSIBLE ACTORS 
 
 
Orgl ethics reflects the philosophy of  an org / business, one of whose aims is to determine the fundamental purposes of an org 
 
  One of the early debates  or roadblocks to the development of orgl ethics & soc responsibility was that it was believed that if an org's purpose is to maximize shareholder returns, then sacrificing profits to other concerns is a violation of its fiduciary responsibility  
  An opponent of orgl ethics & soc responsibility, economist Milton Friedman writes that corp execs' "responsibility... generally will be to make as much money as possible while conforming to their basic rules of the society, both those embodied in law & those embodied in ethical custom"   
  Friedman also said, "the only entities who can have responsibilities are individuals ... A business cannot have responsibilities.  So the question is, do corp execs, provided they stay w/in the law, have responsibilities in their business activities other than to make as much money for their stockholders as possible?  And my answer to that is, no, they do not"   
  A multi country 2011 survey found support for Freidman's anti  orgl ethics & soc responsibility view among the "informed public" ranging from 30 to 80%  
  In opposing orgl ethics & soc responsibility, author & business consultant Peter Drucker observed, "There is neither a separate ethics of business nor is one needed," implying that standards of personal ethics cover all business situations   
  However, Drucker's view is less anti  orgl ethics & soc responsibility than Friedman in that he observed that the ultimate responsibility of an org is not to harm owners & stakeholders   
  CORPS WERE GRANTED MANY OF THE BENEFITS OF 'PERSONHOOD' W/ FEW OF THE LIABILITIES / RESPONSIBILITIES  
  Corp entities became legally considered as persons in the US in the mid 1860s   
  As a matter of interpretation of the word "person" in the Fourteenth Amendment, US, 1868, courts have extended certain constitutional protections to corps   
  Opponents of corporate personhood seek to amend the U.S. Constitution to limit these rights to those provided by state law and state constitutions  
 
While the 'corporate person' is legally entitled to the rights & liabilities due to citizens as persons, it has only recently become clear that corps can & should be ethical, moral, & socially responsible actors 
 
 
ORGL ETHICS & CORP SOC RESPONSIBILITY (CSR) BEGAN TO BE INFLUENTIAL AS EARLY AS THE 1970s
 
  Thus, the anti orgl ethics & soc responsibility view has not prevailed & today most orgs at least give verbal acknowledgment, & most have put some form of it into practice   
  The term 'business ethics' came into common use in the US in the early 1970s   
  The idea of business ethics caught the attn of academics, media &  business firms by the end of the Cold War   
 
Interest in orgl ethics accelerated dramatically during the 1980s &  1990s, both w/in major corps & w/in academia 
 
 
Today most major corps promote their commitment to non econ values under headings such as ethics codes & social responsibility charters 
 
 
Govts use laws & regs to direct orgl behavior in what they perceive to be beneficial directions 
 
 
Ethics implicitly regulates areas & details of behavior that lie beyond govt control 
 
 
The emergence of large corps w/ limited relationships & sensitivity to the communities in which they operate accelerated the development of formal ethics regimes 
 
 
Orgl ethical norms reflect the norms of each historical period & thus as time passed, those norms evolved, &  many behaviors that were once generally accepted became objectionable 
 
 
ORGL ETHICS & CORP SOC RESPONSIBILITY (CSR) HAS BECOME MAINSTREAM AS IT BECAME INSTITUTIONALIZED IN BUSINESS & ACADEMIA 
 
 
Orgl ethics & the resulting behavior evolved as well as the development of norms & values 
 
 
By the mid 1980s at least 500 courses in business ethics reached 40,000 students, using some twenty textbooks, at least ten casebooks, & was supported by professional societies, centers &  journals of business ethics 
 
 
The Society for Business Ethics was started in 1980 
 
 
European business schools adopted business ethics after 1987 commencing w/ the European Business Ethics Network (EBEN)   
 
In 1982 the first single authored books in the field or orgl ethics appeared   
 
Firms started highlighting their ethical stature in the late 1980s & early 1990s, possibly trying to distance themselves from the business scandals of the day, such as the savings &  loan crisis 
 
 
Legitimate criticism of business practices was attacked for infringing the "freedom" of entrepreneurs & critics were accused of support from communists 
 
 
This scuttled the discourse of business ethics both in media & academia only for a while 
 
 
THROUGHOUT HISTORY ORGL MALFEASANCE, EXPANSION OF RESPONSIBILITY OF ORGS, & BUSINESS MORALITY ARE SEEN AS THE MAJOR JUSTIFICATIONS FOR ORGL ETHICS & CORP SOC RESPONSIBILITY (CSR) 
 
 
Orgs need to self police & prevent & punish white collar corp crime 
 
 
If orgs do not practice orgl ethics & soc responsibility, then govt, activist consumers, unions, NGO, & others will act to enforce standards of orgl ethics & soc responsibility 
 
 
Orgs have more responsibility than just econ obligation to the stockholders given that they have such large impacts on many sectors of society
 
 
Stakeholders have demanded, & successfully passed some laws & regs, related to orgl ethics & soc responsibility 
 
 
Orgl ethics & soc responsibility builds good will & thus creates a favorable env for org practices, ie it is good business sense 
 
 
The ethical argument is that orgl ethics & soc responsibility are just the right thing to do 
 

 
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 Outline on  Ethical Management
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LACK OF ORGL ETHICS & ETHICAL MGT IS A REOCCURRING PROBLEM
 
 
Org crime & ethical lapses are rampant throughout history & in the modern world 
 
  Business was involved in slavery, colonialism, genocide, war, & the cold war & much more   
  Recent scandals include the Savings & Loan collapse of the 1970s, World Com, Enron, & the 2008 Bush Recession bank & housing mkt collapses, & more   
 
While few people endorse cheating, stealing, telling lies, breaking rules, & overcharging customers, the reality is that people & orgs (businesses & govt orgs) do this every day 
 
  In a climate of downsizing, retrenching, etc, the  people who remain feel threatened & insecure 
 
  In the modern env of competition & globalization, the corp  message is often: 'reaching objectives is what maters & how you there isn't that important' 
 
  One survey of mid mgt found that 20 to 30% of them have written reports that are deceptive 
 
  Mgrs & wkrs who act unethically are often motivated by a fear of losing their job, or the necessity to create some benefit for the org at any cost 
 
  In business, the bottom line & self interest are the driving forces 
 
  The moral dilemma comes at crunch time & at that time there seems to be little choice btwn ethics & profit 
 
  But many orgs do act ethically 
 
  for example a small firm called Just Deserts believes that they need to mix social goals w/ business goals & thus the bottom line becomes not only whether you made a profit but also whether you hired more people, improved your product, improved your workplace, & improved your community 
 
  MGT LEADS BY WORDS & EXAMPLES IN EVERYDAY MATTERS & ORGL ETHICS & CORP SOC RESPONSIBILITY (CSR)   
  The role of mgt in orgl ethics is to offer frequent declarations of the importance of orgl ethics & CSR & to teach through example   
  Mgrs, leaders, wkrs, all orgl actors teach through example   
  Ethical & soc responsible standards will not be met in an org until they are part of mgt's phil & backed by commitments of money & time   
  Leaders instill in all members of the org the importance of ethical behavior   
  Measuring something makes it important even if it wasn't before   
  The US Army embraces the dictum:  don't expect what you don't inspect   
  The corp embraces the dictum: what the boss watches well gets done well   
  Ethics only become important if & when it's measured   
  MGRS SHOULD STRIVE TO KEEP EACH ORGL ACTORS' CONSCIENCE AWAKE THROUGH WORDS, POLICIES, OVERSIGHT, & EXAMPLE  
  The first line of defense against unethical conduct is each person's conscience   
  Leader, & all orgl actors have to do everything they can to keep the conscience awake   
  The second line of defense against unethical conduct is to eliminate or minimize the circumstances that can overwhelm a conscience, or deceive it, or put it to sleep   
  Gellerman observed policies & practices which discourage unethical behavior, including:   
  1.  Draw a clear line btwn the behavior you will tolerate & behavior you have to punish   
  Drawing clear lines btwn acceptable & unacceptable behavior means estbing a code of ethics or conduct that the org is will to commit to & enforce   
  2.  Invest time & money in making sure ethical distinctions / lines are understood & remembered   
  Training, oversight, & estb of rewards for ethical beh keeps the conscience awake   
  3.  Put the fear into would be violators by conspicuously raising the risk of exposure  
  Punish wrong doers fairly & swiftly   
  People learn from each example of misbehavior & how it is handled   

 
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 Outline on  Ethical Dilemmas
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  ETHICAL DILEMMAS ARISE WHEN PEOPLE ARE UNSURE, BECAUSE OF ETHICAL REASONS, OF WHAT COURSE OF ACTION TO FOLLOW   
  Ethics is not prescriptive in that no simple set of rules tells us how to behave morally or ethically in all situations   
  Codes of conduct are written in the manner of orgl policies, as brief, general guidelines & interpretation varies   
  Like policies, codes are meant to give freedom of action w/in boundaries & require interpretation   
  The safest route for following policies or codes is to not even move in the direction of violating the policy or code   
  In playing it safe w/ ethical dilemmas, there is the risk of being considered inefficient   
  IT IS BEST TO CONFRONT AN ETHICAL DILEMMA BEFORE DECIDING ON A COURSE OF ACTION   
  See also Dysfunctions of Bureaucracy  
  Mgrs, wkrs, suppliers, customers, et al sometimes face dilemmas:  a situation that requires a choice btwn options that are or seem equally unfavorable or mutually exclusive   
  An ethical dilemma is uncertainty about which course of action is ethical, or the most ethical 
 
  Example:  unprofitable plant
 
  Mgrs consider three alternatives
 
  1.  shut the plant down & outsource the work to subcontractors
 
  2.  Invest in computerization that will eliminate half the jobs 
 
  3.  Seek wage & benefit concessions from all wkrs
 
  Any of these choices impose hardship of the wkrs, their families, local merchants, the community services, & others 
 
  Gellerman (1986) when in doubt, don't
Don't try to find out 'how far is too far'
Superiors who push you to do things better, faster, cheaper will turn on you when you cross the line btwn right & wrong 
 
  Gellerman:  When your action is questionable, let the decision rest on someone paid to make the tough decisions  
  See Also:  The Dysfunctions of Bureaucracy   

 
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 Outline on Motivations for Ethical & Unethical Behavior 
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  THE MOTIVATIONS FOR ETHICAL & UNETHICAL BEHAVIOR ARE HIDDEN, THUS THEY REQUIRE SCIENTIFIC KNOWLEDGE & SELF EXAMINATION FOR REVELATION 
 
  The motivations of behavior are beginning to be understood by the social sciences   
  An ethical person cultivates an understanding of their own personal priorities, goals, values, needs, feelings & assumptions as well as those of the people & orgs around them, ie their social env   
  Self awareness allows a person to assess the motivations underlying choices & actions   
  Decisions result from a combination of apparent influences & underlying factors   
  For Henderson mgrs & execs who are unaware of motivates are ethical accidents searching for a place to happen   
  For Henderson when colleagues, a boss or co wkr, recommend a course of action, we must consider their motives as well as our own   
  In understanding our motivations, we must watch for rationalizations which are self satisfying but incorrect reasoning for one's behavior that excuse & bury subtle warnings form our conscience   
  See Also:  CW Mills:  The Sociological Imagination 
 
  Motives should be known to everyone on a team 
 
  RATIONALIZATIONS FOR UNETHICAL BEHAVIOR ARE THAT A BEHAVIOR IS REASONABLE; IS IN THE ORG'S BEST INTEREST; CAN'T BE FOUND OUT; WILL BE CONDONED BY THE ORG   
  In 1986 Gellerman outlined four types of rationalization for unethical behavior including a belief that:
 
  1.  the activity is w/in reasonable ethical & legal limits; that it is not 'really' illegal 
 
  2.  the activity is in the individual's or the org's best interest
 
  The individual would be expected to undertake the activity 
 
  3.  the activity is 'safe' because it will never be found out or publicized 
 
  The classic crime & punishment issue is discovery 
 
  4.  because the activity helps the org, the org will condone it & even protect the person who engages in it   
  FEARS, PRESSURES, AMBITION & ORGL CULTURE ARE AMONG THE MOTIVES THAT LEAD TO UNETHICAL CONDUCT   
  Some motives for stepping over the line of ethical behavior include:  
  1.  a fear of losing one's job   
  2.  the pressures from time & superiors to produce results   
  3.  the ambitions to excel & advance one's career   
  4.  revenge for a perceived wrong   
  5.  a tendency to ignore the consequences of one's actions   
  UNETHICAL BEHAVIOR IS FACILITATED BY HIGH REWARDS, PUNISHMENT FOR FAILURE, & EMPHASIZING RESULTS AT ANY COST   
  Gellerman believes that orgs can encourage, overtly or covertly, ethical or unethical behavior   
  Unethical behavior is facilitated by:   
  1.  offering unusually high rewards   
  Huge bonuses & commissions can distort one's values in much the same way that too much power can corrupt one's standards of decency   
  People can be motivated w/o corrupting them by keeping rewards w/in the bounds of reason   
  See Also:  Enron, Wall Street  
  2.  threatening unusually severe punishments for failure   
  People will go to whatever lengths they must to avoid calamity   
  One's conscience is anesthetized by terror   
  3.  emphasizing results & avoiding concern for the means employed by subordinates to achieve results   
  SETTING EXAMPLES IS THE MOST POWERFUL FORM OF PEER PRESSURE, FOR GOOD OR ILL   
  Mgrs teach more about ethics by establishing examples for subordinates   
  Examples are more powerful than words or what is written in the org's ethics code   
  A wkr who is expected to turn a blind eye to a superior's unethical behavior receives the message loud & clear that ends are more important than means   
  ENVL FACTORS CAN BE IMPORTANT MOTIVATORS FOR ETHICAL OR UNETHICAL BEHAVIOR   
  Many orgs are assessing the envl factors that can lead wkr to engage in unethical conduct   
  A competitive business env may call for unethical behavior   
  Lying has become expected in fields such as trading   
  An example of this are the issues surrounding the unethical actions of the Solomon Brothers   

 
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 Outline on  Ethical Compliance 
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  KEYS TO ORGL ETHICAL CONDUCT ARE COMPLIANCE W/ NORMS OF BEHAVIOR, MAKING CONTRIBUTIONS TO SOCIETY, RECOGNIZING THE CONSEQUENCES OF ONE'S ACTIONS, & TRAINING
 
  Most people are honest & are able to resist serious temptations, esp if they are helped by others   
  Everyone has a conscience, a warning voice inside that tells one that an action might be wrong   
  Guilt, shame, fear, remorse, & dread are but a few of the emotions one experiences when faced w/ the temptation or ramifications of improper conduct   
  See Kohlberg:  Stages of Moral Development   
  Solomon & Hanson, 1985, business ethics is nothing less than the full awareness of what one is doing, its consequences & complications   
  1. COMPLIANCE IS THE YIELDING OR CONSENTING TO THE LAW, ORGL POLICY, & A CODE OF ETHICS   
  Compliance is living & behaving according to the law, corps code of ethics, orgl rules, principles of morality, community expectations, & such general concepts s equity & fair play   
  Orgl actors must go further than simple obedience to what the law demands   
  Shortcuts in quality which lead to customer dissatisfaction may be legal, they are discourage repeat business 
 
  Treating wkrs w/ respect & fairness is essential to building trust & a productive, stable wkforce 
 
  To promote ethics, orgl actors must forge credibility which is the power to elicit belief 
 
  2.  CONTRIBUTIONS ARE WHAT ORGS GIVE BACK TO SOCIETY   
  Contributions are what orgs give back to society   
  Typical orgl contributions might include a valuable product, employment, meeting needs of people & society, improving the quality of life for wkrs & the community, & charitable contributions   
  In 1990 US corps gave $7.8 bb to charities   
  Gifts can include cash, goods, services   
  Gifts of time can help communities, charities, non profits, etc w/ talent, expertise & willing hands   
  Gifts of inventory & depreciated property can cut costs for non profits   
  Each yr American's vie over $100 bb to non profits, not including the hours donated to help others   
  3.  IT IS ONLY THROUGH ORGL SELF AWARENESS, RECOGNIZING THE CONSEQUENCES OF ONE'S ACTIONS, THAT ETHICAL BEHAVIOR IS POSSIBLE   
  The social dynamics are the same for people & orgs:  to achieve a level of moral development one must become self aware   
  Awareness of the self is only possible in the context of an awareness of others   
  A child gains a self of self just as it gains a sense of others   
  An org can only attain ethical behavior & soc responsibility through an awareness of itself as an actor in a context or env of their actors & that it's & the others' actions have consequences for each other   
  A child is often, at first, unaware that it's actions may harm a pet; orgs are often unaware how & where it's actions harm, or help, other orgs or social actors   
  HISTORICALLY ORGS HAVE EITHER BEEN UNAWARE OR UNCARING ABOUT THEIR IMPACT ON OTHERS & SO THE GENERAL RECOURSE WAS A LEGAL SUIT  
  Inventor Robert W. Kearns was awarded $11.3 mm, or 90 cents / vehicle, from Chrysler Corp or infringing on his patent for his intermittent windshield wipers   
  Ford awarded Kearns $10.2 mm, or 30 cents / vehicle, on his patent for his intermittent windshield wipers   
  Rockwell Intl Corp paid $ $18.5 mm in criminal fines because it violated federal waste disposal & clean water laws at its Rocky Flats nuclear weapons plant in Colorado   
  4.  TRAINING IS NECESSARY FOR AN ORG TO GAIN COMPLIANCE, TO BE ABLE TO CONTRIBUTE, & TO RECOGNIZE THE CONSEQUENCES OF IT'S ACTIONS   
  Without some way to communicate & enforce codes of ethics, the law, policies, orgl rules, etc. they will be just words on paper   
  Madsen, 1992, director at Carnegie Melon University's Center for Advancement of Applied ethics separates ethics training into compliance training & cognitive thinking exercises   
  Compliance training alerts people to policies, regs, & laws that establish acceptable behavior w/in a company   
  Cognitive thinking exercises that develop skills to allow people to think through various moral mazes that may occur in the wkplace   
  Ethics & legal compliance programs should estb  culture & peer pressure system that spells out what is acceptable & isn't & why should  involve training, ed, follow up & inspection   
  Orgl leaders should devote time & resources to estb commitment to ethics programs   
  Orgl leaders should assert expectations through clearly written & communicated codes & conduct surveys to monitor compliance   
  GE, Citicorp, the Forest Service, Walmart, et al are typical examples of orgs doing ethics training   

 
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 Outline on  Organizational Culture
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  Culture may be defined as the shared content of society & thus organizational culture is the shared content of an org 
 
  The content of a society or org is it's shared knowledge, beliefs, values, & norms ( K B V N ) & the physical & abstract manifestations of that content 
 
  Org culture is the shared knowledge, beliefs, values, & norms of an org 
 
  Org culture is the interaction of the formal & informal structures of an org w/ the goals & objectives of the org leaders   
  Org culture is a special type of subculture that is unique to the network that includes & surrounds an org 
 
  An org culture includes all of an org's stakeholders or constituencies including customers, suppliers, govt regulators, families, similar orgs, etc. 
 
  All orgs have an org culture which is based on the social relationships, as organized by the formal org structure, that emerge among the people who work in or w/ the org 
 
  Lauer & Handel, 1983, found that all orgs have an org culture, a negotiated order   
  W/in an org, there are frequently org subcultures among the different org constituencies, such as employees in a dept, employees at a particular level of the org such as blue collar workers, middle mgt, & upper mgt 
 
  An example of a slice of an org culture is where two workers in an engineering firm may become friends & help each other w/ their work which a third worker may be excluded from this friendship & thus not have help w/ her/his work 
 
  Org culture has a impact on how the bureaucracy of the org actually operates, in contrast to how it operates "on paper" 
 
  Org culture & the groups w/in an org, each of which who may possess it's own org subculture, often called a workplace culture 
 
  Org culture & workplace culture may facilitate or hinder the attainment of stated org goals 
 
  The org, w/ it's org culture & workplace culture may even develop their own goals, which may be inferior or superior to the org's stated goals, depending on one's perspective 
 
  Org & workplace cultures are sometimes known as the org's "negotiated order" in recognition of their emergence from the ongoing informal negotiations among different members of the org (Fine, 1984, Ouchi, & Wilkins, 1985, Miller, 1991) 
 
  Scott, 1992, holds that regardless of the formal structure, people ultimately make the org 
 
  The negotiated order is the aggregation of the org's members needs, objectives, & experiences of others in the org 
 
  People in orgs push to get what they want, try things out, test the limits of the rules 
 
  Anselm Strauss, et al, 1964, found that the nature of the hospital they studied at any given time was the outcome of pressures, actions, & reactions of the people who made up the org 
 
  The doctors, attendants, nurses, administrators, patients, & others each has their own objectives, understandings or reality, and ideas about mental illness, which governed his or her behavior & relationships to others   
  Compromises, "looking the other way" & "agreements to disagree" were abundant in the hospital & were always subject to change as the situation changed or as new people entered the org   
  Strauss held that the hospital on one day is not the same as the hospital at a later time even though the formal structure stayed the same   
  Org culture is unique to each org & cannot be understood by examining the org's formal structure (Fine, 1984, Ouchi, & Wilkins, 1985)   
  As w/ any culture, new members must be socialized into the org culture & new employees who do not become socialized or accept the org culture experience conflict   
  The grapevine is the informal communication structure of the org culture   
  The national culture of a nation impacts the org & it's org culture   

 
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 Outline on Ethics & Organizational Culture
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  OPTIMAL ORG ETHICS & SOC RESPONSIBILITY ARE ACHIEVED WHEN ORGL CULTURE IS SYNCHRONIZED W/ ORG PROCLAMATIONS & POLICY  
  Org culture is the shared knowledge, beliefs, values, & norms of an org   
  Org culture is perhaps the most important conduit for the creation, maintenance, & functioning of policies & practice of orgl ethics & soc responsibility   
  In general, orgl culture is more resilient than mgt direction or proclamations & thus the strongest orgl ethics & soc responsibility should be grounded in an org's culture   
  Org culture is the interaction of the formal & informal structures of an org w/ the goals & objectives of the org leaders  
  Proclamations & policies of orgl ethics & soc responsibility by mgt is the formal structure of an org   
  The informal structure is comprised of the orgl culture, the grape vine & other orgl customs & informal practices   
  When formal & informal orgl are synchronized on orgl ethics & soc responsibility, or any policy, the org will function optimally in that arena   
 
ONE DIMENSION OF ORGL SUBCULTURES IS THEIR SUPPORT OR OPPOSITION OF ORGL ETHICS & SOC RESPONSIBILITY
 
 
Orgl cultures sustain values & beliefs that influence how people related to one another   
  Several cultures exist in any one or:  the corp culture, promoted & exemplified by mgt action   
  Subcultures, reflecting different work grps or discrete ethnic grps, arise from the wkforce   
  Subcultures may display differing & ideally complimentary sets of values & perceptions, & unity can be achieved   
  In a pluralistic society, org life is one place where different cultures & personal values are forced to cooperate & compromise   
  Org life is the place where a single & unifying ethic is essential (Henderson, 1992)   
  More often than not, the wkplace ethic relates to internal work ethics & other practices & not to external or orgl ethics & soc responsibility   
  However, when wkrs, mgrs, staff, & orgl actors in general encounter an ethical dilemma, then an orgl ethic beyond the work ethics manifests itself & comes into play   
  Corp cultures & subcultures can support orgl ethics & soc responsibility or oppose them   
  All orgl cultures & subcultures re influenced by national, regional, & local subcultures 
 
Link
The Checklist on Orgl Culture Support of Ethics & Soc Responsibility shows that orgl culture support is a complex factor as well as an important factor in fostering orgl ethics & soc responsibility 
 
  Checklists for determining if a corp culture supports ethical behavior & soc responsibility are a common tool for orgs today   
  Some of the self questioning on orgl culture support of ethics & soc responsibility examines the org's ethics & reputation w/ it's internal actors   
  Some of the self questioning on orgl culture support of ethics & soc responsibility examines the org's ethics & reputation w/ stakeholders   
  Some of the self questioning on orgl culture support of ethics & soc responsibility examines the org's processes for creating, maintaining, & operation of orgl ethics & soc responsibility   

 
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Checklist on Orgl Culture Support of Ethics & Soc Responsibility
A checklist for determining if an orgl culture supports ethical behavior & social responsibility 
Questions to ask to determining if an orgl culture supports ethical behavior & social responsibility include: 
Yes
No
1.  Is the org concerned about quality in its services, products, & operations?     
2.  Is the org concerned about its wkrs quality of life?     
3.  Is the org proud of its reputation in the industry?     
4.  Is the org focused on the needs of its community?     
5.  Is the org focused on the needs of its outcomes?     
6.  Is the org honest in its dealings w/ you?     
7.  Is the org honest in its dealings w/ customers?     
8.  Is the org honest in its dealings w/ others?     
9.  Is the org fair & equitable in the ways in which it decides on promotions?     
10.  Is the org fair & equitable in the ways in which it compensates wkrs?     
11.  Is the org open in its communications?     
12.  Is the org trusting in its relationships w/ wkrs?     
13.  Is the org concerned w/ developing & keeping its employees?     
14.  Is the org actively promoting ethical conduct in all the ops & wkrs?     
15.  Is the org actively searching for ways to better serve it stakeholders?     
16.  Is the org carefully monitoring how decisions are made & checking them for their concern for ethical behavior?     
The Checklist on Orgl Culture Support of Ethics & Soc Responsibility shows that orgl culture support is a complex factor as well as an important factor in fostering orgl ethics & soc responsibility 

 
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 Outline on  Codes of Ethics
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  CODES OF ETHICS ARE VISIBLE GUIDELINES FOR ETHICAL BEHAVIOR AT ALL LEVELS OF THE ORG 
 
  Increased pressure from more stakeholders, coupled w/ decreasing time to make decisions, means that guidelines to facilitate ethical decision making & behavior are esp important for orgs today   
  Codes of ethics usually appear in conjunction w/ or as an integrated part of an orgs mission statement  
  CODES OF ETHICS MUST BE AT THE MIDDLE LEVEL OF SPECIFICITY & TAKE INTO CONSIDERATION THE ETHICAL CODE OF THE PROFESSION  
  Codes of ethics must be specific enough to give concrete guidance & must be reinforced by examples set by key orgl actors   
  Codes of ethics must be written to give clear understanding of orgl values & commitment to ethical behavior both inside the org & in relation to key outside stakeholders   
 
Depending on the size of the org, one could either have a single set of ethics codes or one may have a overall code then have a separate code for different depts & / or agencies 
 
  When creating a code of ethics an org has to take into consideration values, laws, regs & past practices   
  To begin writing a code of ethics, an org must ensure they are following governmentally set guidelines   
  An org should include what is considered ethical practice in the profession & / or the dept this code is written for   
  Included in the code should be some characteristics that are standard ethical procedure for all professions   
  Any code of ethics should be updated at the least, yearly   
  Developing policies & procedures also help a company to remain ethical in practices   
  If there is a policy for every possible occurrence, then an org is less likely to fall pray to favoritism or some other unethical practice/procedure   
  CODES OF ETHICS CAN SERVE AS BOTH REGS WHICH ARE SANCTIONABLE & LEGAL BULWARKS FOR THE ORG   
  Codes of ethics are an unchallengeable basis for firing an unethical wkr, even when her or his action is not against either to law or the specific terms of  the job   
  Codes of ethics protect all personnel from the pressures of the mkt, which tend to incite desperation & unethical behavior   
  Codes of ethics remind orgl actors to look beyond the bottom line & provide a touchstone for appeals through the hierarchy   
  Codes of ethics can insulate the org from legal action, ie a legal bulwark, if they have a code, in harmony against a behavior, eg insider trading, & then if an employee violates this, they are breaking the org's code & the law   
  There is no general code of ethics for business   
  The Conference Board, a business funded research grp found that in 1992 codes of conduct were increasingly sophisticated   
  Nearly 1/3 of 264 CEOs survey had issued a personal statement or engaged in a formal discussion of ethics issues in 1991   

 
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 Outline on  Ethics & the Law
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  ORGS FACE LEGAL CONSTRAINTS ON THEIR ACTIONS, BUT ETHICS CONSTITUTE MORE THAN JUST LEGAL CONCERNS
 
  Mgrs cultivate an awareness of the role of law in orgl & individual conduct   
  In a nation of laws, presumptions influence decision making at many levels   
  From the broad context of constitutional rights to municipal regs, orgs & their leaders are witting & unwitting creatures of the law   
  The relationship of the law to ethics is that there are no fixed boundaries or guidelines to follow   
  There is no formal codes of ethics which sets the standards   
  The legal profession has a Code of Professional Responsibility   
  The med profession has its Hippocratic Oath   
  The accting profession has a code of ethics 
 
  The real estate industry has a code of conduct 
 
  Other professions have codes to guide them 
 
  But business has no 'road map' of ethical conduct 
 
  The closest thing business has is the law 
 
 
If a business obeys the law, it is acting legally, & it is seemingly meeting its minimum social requirements 
 
 
The minimum requirement of the law offers only a structure; however, void of content & context 
 
 
Laws & polices from an ethical foundation 
 
 
The law is a moral minimum   
 
No law or policy is going to cover every situation   
  Sooner or later orgs must use people, not rules, guidelines, codes, strats, etc, to make decisions when there is no on point law or policy to follow  
  The best ethics training goes beyond legal compliance   
  Although the law is useful in alerting us to moral issues & informing us of our rights & responsibilities, laws cannot be taken as an adequate standard of moral conduct   
  Conformity w/ law is neither requisite nor sufficient for determining moral behavior any more than conformity to rules of etiquette is   
  Non conformity w/ law is not necessarily immoral, because a law may be unjust / immoral   
 Link
The Table of the Legal / Ethical Types of Behavior shows that orgl behavior can be ethical (ie have  positive outcomes for stakeholders), unethical (ie have  negative  outcomes or stakeholders), legal (in compliance w/ the law), or illegal (in violation of the law)   
  Corps & their wkrs take actions every day that affect the lives of countless people from their constituents to their stakeholders   
  Laws form boundaries & a basis for human & corp conduct   
  Law & ethics together define acceptable behavior   
  Ethics comprises more than legalities   
  Ethics should protect & promote the interests of society in general & the corps's constituents in particular   
  Good ethics strengthens the bonds of personal & social relationships   
  The CA education system has stayed ahead of legal demands in the area of pollution control by focusing on the best interest of its customers & of society as a whole   
  In four combinations of ethics & legalities, one can sort out alternative resolutions of any issue posing an ethical dilemma   
  An unambiguously positive resolution occurs only w/ alternative qualifying for quadrant 1 (ethical / legal ) which poses no potentially negative consequences for decision makers, org or constituents   
  All other quadrants present a legal & / or ethical dilemma   
  SOME ORGL LEADERS BELIEVE ORGS SHOULD ONLY FOLLOW THE LAW, & NOT DEVELOP A CODE OF ETHICS OR SOC RESPONSIBILITY  
  Very often it is held that business is not bound by any ethics other than abiding by the law   
  The economist Milton Friedman is a lead advocate of the view that only the law should constrain corps   
  Friedman held that corps have the obligation to maximize profit w/in the framework of the legal system, nothing more:  no orgl ethics nor any soc responsibility should constrain the corp   
  Friedman made it explicit that the duty of the business leaders is, "to make as much money as possible while conforming to the basic rules of the society, both those embodied in the law & those embodied in ethical custom"   
  Ethics for Friedman is nothing more than abiding by 'customs' &  'laws'   
  The reduction of org ethics to abidance of laws & customs, however, has drawn serious criticisms   
  ORG LEADERS WHO EMBRACE ORGL ETHICS & SOC RESPONSIBILITY NOTE THAT THE LAW IS A MINIMUM STANDARD & THAT THERE ARE MANY ADVANTAGES TO ORGL ETHICS & SOC RESPONSIBILITY   
  Counter to Friedman's logic, it is observed that legal procedures are technocratic, bureaucratic, rigid & obligatory where as ethical act is conscientious, voluntary choice beyond normativity   
  Law is retroactive whereas crime precedes law   
  For a law to be passed, the crime must have already happened   
  Laws are blind to the crimes undefined in it   
  Further, as per law, conduct is not criminal unless forbidden by law which gives advance warning that such conduct is criminal   
  Law presumes the accused is innocent until proven guilty & that the state must establish the guilt of the accused beyond reasonable doubt   
  As per liberal laws followed in most of the democracies, until the govt prosecutor proves the firm guilty w/ the limited resources available to her, the accused is considered to be innocent   
  Though the liberal premise of law is necessary to protect individuals from being persecuted by govt, it is not a sufficient mechanism to make firms morally accountable   
  FOLLOWING ORGL ETHICS & SOC RESPONSIBILITY INSULATES AN ORG AGAINST THE SLIPPERY SLOPE OF LAW BREAKING  
  A corp that embraces policies based on orgl ethics & soc responsibilities avoids the weaknesses a corp policy based on or contained only by law   
  Orgl ethics & soc responsibility have an advantage over the law in that orgs following orgl ethics & soc responsibility are less likely to test the limits of the law & so slide down the slippery slope to criminality   
  While the law is retroactive & a crime may precede the law orgl ethics & soc responsibility is proactive in that an org will try to consider legal & ethical implications of a policy or behavior before the fact   
 
While laws are blind to the crimes undefined in it, orgl ethics & soc responsibility attempt to discern all transgressions across legal or ethical boundaries   
  While it is difficult to prove someone has broken a law, any degree of guilt as far as breaking orgl ethics & soc responsibility is liable to sanctions; that is while legal guilt is all or nothing; partial guilt or responsibility is recognized under policies of orgl ethics & soc responsibility   
 
AN EFFECTIVE CODE OF ETHICS & SOC RESPONSIBILITY MAY HAVE PREVENTED SEVERAL CORP SCANDALS & ECON COLLAPSES
 
  During the Savings & Loan crisis of the 1980s, then FBI director William Sessions said :Experience demonstrates that insider abuse is a major factor in almost all of our investigations involving failed financial institutions"   
 
William Black, former director of the now defunct Fed Savings & Loan Insurance Corp said, "Evil triumphed because too many good men & women did nothing to stop the looting of thrifts [savings & loans banks'." 
 
  World Com   
  Enron   
  Billionaire investor   
  Collapse of banks & Wall Str investment firms Lehman Bros, Goldman Sachs   
  WHILE THE LAW IS GETTING MORE EFFECTIVE W/ WHITE COLLAR CRIME, IT IS STILL NO SUBSTITUTE FOR ORGL ETHICS & SOC RESPONSIBILITY  
  Legal sanctions against individual & corp criminal behavior can be significant   
  Since 1909 when the Sup Ct held that corps can be held liable, as individuals can be, for crimes involving intent corp liability has translated into fines & jail terms for corp  officials   
  More than half of the 50 states have some form of corp criminal liability laws under which business owners can be prosecuted for criminal negligence   
  The trend is toward escalating criminal penalties that can be drastically reduced if the org can show it has a place a legal compliance program   
  In Nov 1991 the trend toward harsh penalties for white collar crime continued, as new fed guidelines went into effect   
  Offenses include those that are committed by wkrs w/o a org owner's knowledge to those of misrepresenting a product,  bribery of a public official   
  If an orgs has taken steps to ensure compliance w/ the law, an org could pay as little as 5% of the base fine   
  On the other hand, if mgrs have encourages or taken part in law breaking, fines can reach 400% of the base rate   
  Some believe that corp ethics policies are primarily rooted in utilitarian concerns, & that they are mainly to limit the company's legal liability, or to curry public favor by giving the appearance of being a good corp citizen   
  Ideally, the company will avoid a lawsuit because its wkrs will follow the rules   
  Should a lawsuit occur, the company can claim that the problem would not have arisen if the wkr had only followed the code properly   
  While some see the use of orgl ethics & soc resp policies to avoid liability, the outcome remains that orgs are holding themselves & wkrs to a standard higher than the minimum requirements of the law   

 
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Table of the Legal / Ethical Types of Behavior 
1.  Ethical / Legal 
A decision to allow orgl actors to engage in a behavior w/ positive effects for stockholders or minimally  no negative effects, & is in compliance w/ the law 
2.  Ethical / Illegal 
A decision to allow orgl actors to engage in a behavior w/ positive effects for stockholders or minimally  no negative effects, but is a violation of the law 
3.  Unethical / Legal 
A decision to allow orgl actors to engage in a behavior w/o positive effects for stockholders, but is in compliance w/ the law 
4.  Unethical / Illegal 
A decision to allow orgl actors to engage in a behavior w/o positive effects for stockholders, & is a violation of the law 
The Table of the Legal / Ethical Types of Behavior shows that orgl behavior can be ethical (ie have  positive outcomes for stakeholders), unethical (ie have  negative  outcomes or stakeholders), legal (in compliance w/ the law), or illegal (in violation of the law) 

 
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 Outline on  Ethical Action Guidelines 
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  ORGL ETHICS & SOC RESPONSIBILITY MUST BE IMPLEMENTED THROUGH GUIDELINES WHICH PROVIDE TACTICAL LEVEL DIRECTION, BUT NOT PROGRAMMED PATHS OF ACTION 
 
  Someone struggling w/ a decision, torn btwn alternatives, may be confronting an issue that involves ethics   
  The time to consider the ethical dimensions of oneself, an org, a code of ethics, an act, is before acting   
  People & orgs should strive to make ethics a priority in the processes by which they make their decisions   
  Even if using the same ethical background, the same code of ethics, different people, orgs, societies invoke different criteria for determining if an intended action, or inaction, is ethical   
  It is the nature of the human condition that people will disagree, esp on the ethics of actions, & thus healthy, open, communication / discussion & debate are necessary   
  THERE ARE THE 'CLASSIC' ETHICAL GUIDELINES, BUT GENERALLY EACH ORG SHOULD DEVELOP IT'S OWN GUIDELINES   
  One ancient ethical action guideline is the Golden Rule which states that we should treat others as we ourselves want to be treated   
  Perhaps an even higher ethical guideline than the Golden Rule is to do to others what they want you to do to them   
  Utilitarianism, which came into popularity in the early industrial age, circa the 1700s, guides one to do the greatest good for the greatest number of people 
 
  Utilitarianism was found to have the weakness that it only works well when both the circumstances surrounding the act, as well as the consequences of the act are fully foreseen & understood 
 
  TRAINING ON ORGL ETHICS IS NOW STANDARD OPERATING PROCEDURES IN MOST MAJOR ORGS TODAY 
 
 
Developing standard operating procedures, guidelines, policies, & procedures help an org to remain ethical in practice 
 
 
Many companies are instituting ethics training for their wkrs' training or sending wkrs to workshops on ethics 
 
 
Ethical training ensures that upon arrival into the org new members know what is expected of them & old members are kept up to date w/ ethics code changes & policy changes 
 
 
The Business of Social Responsibility is the leading research & consulting firm in the world & they have over 250 companies in their membership 
 
 
Orgs who focus on ethical training have found effective ways of solving business problems through research   
  Orgs who focus on ethical training consult member orgs on how to avoid unethical policies & procedures & maintain ethical practice   
  ORGL THEORISTS HAVE OFFERED GENERAL DIRECTION FOR ETHICAL ACTION GUIDELINES  
  Solomon & Hanson, 1985, offer the following guidelines for ethical action:   
  1.  Consider other people's well being, including the well being of non participants   
  2.  Think as a member of an orgl community & not as an isolated individual   
  3.  Obey, but do not depend solely on, the law   
  4.  Think of yourself, & the org, as part of society   
  5.  Obey moral rules   
  6.  Think objectively   
  7.  Ask the question, 'what sort of person would do such a thing?'   
  LIKE CODES OF ETHICS, ETHICAL GUIDELINES ENCOMPASS THE NEEDS OF ALL STAKEHOLDERS, & SHOULD PROVIDE GUIDANCE, TESTS,PROCEDURES, ETC. TO GENERALLY OPERATE ETHICALLY, ADDRESS DILEMMAS, & FOLLOW THE SPIRIT OF THE LAW  
  Guidelines should remind us that we are all part of a larger community   
  Guidelines should remind us that our actions affect others whose interests should be considered   
  Guidelines should remind us to analyzed the consequences of our actions before we take any steps   
  When one makes decisions w/o guidelines, & this applies to ethical guidelines & all guidelines, then one is adrift & may rely solely on self interest & economics   
  People w/o a moral foundation put themselves, their org, & others at risk   
  Orgl leaders are paid to perform risk analyses to determine which risks are worth taking   
  Mgt professors Kenneth Blanchard & noted cleric Norman Vincent Peale, author of The Power of Positive Thinking, wrote The Power of Ethical Management   
  For Blanchard & Peale the tests for ethical action are:   
  1.  Is it legal?  Will I be violating either civil law or company policy?   
  2.  Is it balanced?  Is it fair to all concerned in the short term as well as the long term?  Does it promote win win relationships?   
  3.  How will it make me feel about myself?  Will it make me proud?  Would I feed good if my decision were published in a newspaper?  Would I feel good if my family knew about it?   
  Guidelines allow one to examine intentions in private & w/ complete objectivity   
  To make any critical judgment, one must take ample quiet time, away from pressures & the biases of others   

 
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 Outline on Ethical Decision Making: Boundary Dilemmas
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  TO MAKE ETHICAL DECISIONS, KNOW YOUR VALUES, GOALS, ALTERNATIVES, INFO, OUTCOMES, & ACTIONS   
  Because the future is unpredictable, there is no such thing as a perfect choice 
 
  Some options are better than others & finding the right choice for each situation can make life less stressful & more successful 
 
  In relation to ethics & boundaries, essentials factors in decision making include: 
 
  1.  knowing your values 
 
  2.  establishing your goals 
 
  3.  expanding your alternatives 
 
  4.  seeking info on each alternative 
 
  5.  predicting outcomes for the alternative 
 
  6.  taking action 
 
  The values one chooses depend upon the situation one faces 
 
  Values should be the things important to the person, not those important to significant others 
 
  When estbing values, one must be honest w/ oneself 
 
  Evaluate goals according to how it satisfies values 
 
  Good decisions move one closer to their goals 
 
  Short term goals should lead toward long term goals   
  Alternatives developed to address problems/ goals are the heart of the decision making process   
  The more alts developed w/ which to address problems, the better the chances of making a good & ethical decision   
  Identify the factors in a situation & devise alts to address each of the factors   
  Collect as much info about each alt   
  Keep an open mind as info is gathered & note that other alts may develop   
  Info sources often lead to other sources  
  The more facts, the better the chances of being aware of all the alts   
  In relation to dec mking, the more facts the better, so don't make assumptions   
  Separate facts from opinion by being a critical listener   
  In dec mking, in choosing an alt, there is no perfect alt, so settle for the best choice   
  Predict outcomes for the various alts, considering the desirability, probability & weaknesses of each alt   
  Consider each alt before narrowing the list   
  In dec mking, any choice is risky & the future is unpredictable   
  In dec mking, involve the emotional, intuitive, imaginative right side of your being   
  After the choice of the best alt, for a plan of action & prepare to see that choice through to the end   

 
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 Outline on the  Options for Dealing w/ Unethical Behavior 
External
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-  Project:  Options for Dealing w/ Unethical Behavior 
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  -  Reading:  What Can Mgt Do About Unethical Behavior Nielson 1987 
Link
  THE OPTIONS FOR DEALING W/ UNETHICAL BEHAVIOR INCLUDE: 
1.  DON'T THINK ABOUT IT 
2.  GO ALONG & GET ALONG 
3.  PROTEST 
4.  CONSCIENTIOUSLY OBJECT
5.  LEAVE 
6.  SECRETLY BLOW THE  WHISTLE 
7.  PUBLICLY BLOW THE WHISTLE 
8.  SECRETLY THREATEN TO BLOW THE WHISTLE 
9.  SABOTAGE 
10.  NEGOTIATE & BUILD CONSENSUS FOR CHANGE 
 
  In 1985 there were over 1300 scholastic articles in print in the area of ethics in administration, mgt, business & public admin, business etc., focusing on what was ethical or unethical in typical business practices 
 
  Richard Nielson (1987) focuses on what people in orgs can actually do when they believe behaviors / practices are unethical 
 
  While it is important to know what is or is not ethical, it is just as important to know what to do when confronted w/ unethical behavior 
 
  1.  DON'T THINK ABOUT IT 
 
  Not thinking about unethical beh avoids a zero sum game btwn superiors & peers 
 
  Not thinking about, not engaging in a zero sum game avoids getting into the situation where someone has to win & someone has to lose 
 
  Not thinking about one path of action makes one more susceptible to go down the wrong path, strategically or otherwise 
 
  One risks becoming similar to the good Nazi as one tries to make the best of a bad situation, but participating in the evil policy / practices 
 
  The bad Nazi may be kind, even reluctant, but ultimately they are involved in evil policy / practices   
  The ability of people to compartmentalize, to not think about what is going on, questions the validity of assuming that all mgrs naturally understand what is right or wrong; there are powerful pressures to obey orders & not think about what is going on   
  2.  GO ALONG & GET ALONG 
 
  Going along has the same advantage as not thinking about unethical behavior:  one avoids the situation where someone has to win & someone has to lose 
 
  Going along means that one must think about the unethical beh at least for a while 
 
  Thinking about & going along unethical beh has the quality of an injury or illness as it slowly bleeds the individual conscience or as guilt consumes one like a cancer 
 
  Under constant pressure, mgrs & wkrs simply give in & become good 'organization people' 
 
  Conforming might affect areas of dec mking & action unrelated to the unethical beh as it reigns in thinking, initiative, enthusiasm, etc. & deprive mgrs & wkrs of info   
  3.  PROTEST   
  An advantage of protesting is that one can feel good about making an effort to stop the unethical beh   
  The disadvantage of protesting is that the org can usually disregard objections & punish those who objected   
  4.  CONSCIENTIOUSLY OBJECT 
 
  Conscientiously objecting to unethical beh means that one refuses to participate in it in any shape, manner, or form   
  Conscientiously objecting makes a clear statement to the org that at least one person considers the beh unethical & refuses to participate in it   
  Like protesting, conscientiously objecting makes one feel good about oneself as one stands up for what they believe   
  Consc obj may encourage others by example   
  If the org recognizes the right to consc obj, then one may also be able to keep one's job   
  Because very few orgs recognize the right to consc obj, one is likely to lose one's job, & thus the org loses an important voice against the unethical beh   
 
By protesting or consc objecting one often loses the ability to advance   
  5.  LEAVE   
  Leaving gives a signal that it will lose good people if it continues unethical beh  
  If we leave & work for a competitor we help a more ethical org gain mkt share  
  We feel better because we had the courage not to cooperate w/ unethical beh  
  The disadvantage of leaving is that most wkrs are very replaceable & so the org loses an ethical voice when we leave  
  If the situation was a zero sum game, then mgt might see wkrs / mgrs leaving as a victory; the opposition has retreated / surrendered   
  If we leave & someone else cooperates, we have only helped ourselves   
  The example one sets is that if one encounters unethical beh & leaves, that is the only / best option   
  Leaving sets up the 'love it or leave it' mentality in the org   
  At some point we may realize that we did not have the courage to stay & fight   
  "The courage to be is the ethical act in which man affirms his own being in spite of those elements of existence which conflict w/ his essential self affirmation" 
Tillich, 1952
 
 
Leaving cuts off dialogue & thus the org & even the person loses the chance to learn more about the situation   
  There are limits to dialogue in a zero or negative sum game in that everything one says can be used against one if people are not interested in transforming the situation into a positive sum situation   
  Dialogue has little utility unless one is solely focused on the phil / spiritual transformation that can be a part of peacemaking as an end in itself (Brinton, 1973; Buber, 1965)  
  6.  SECRETLY BLOW THE  WHISTLE   
  Blowing the whistle can be very effective if the org is likely to react to publicity, public pressure, govt intervention, profl accreditation orgs, the courts, etc. 
 
  An advantage of blowing the whistle is that the whistle blower cannot be retaliated against   
  A disadvantage of blowing the whistle is that one might feel dishonest, cowardly, traitorous, paranoid of being caught, etc.   
  Secretly blowing the whistle can create an atmosphere of distrust in the org & create a 'witch hunt' mentality w/in the org   
  Because many orgs investigate leaks, the secret whistle blower may have to face additional ethical questions bout whether to tell the truth in the leak investigation   
  If the secret whistle blower is discovered, they may be fired, or they may find it difficult to be trusted by other mgrs, wkrs, clients, etc.   
  7.  PUBLICLY BLOW THE  WHISTLE   
  Publicly blowing the whistle can be just as effective as secretly blowing the whistle  
  People who publicly blow the whistle are often treated both as heroes as well as pariahs   
  The major disadvantage of publicly blowing the whistle is that the org may retaliate w/ a legal suit, firing, transfer, smear campaign, etc.   
  Publicly blowing the whistle makes it difficult to interact w/ the people one is criticizing   
  Publicly blowing the whistle makes colleagues feel betrayed, attached, harmed it   
  Publicly blowing the whistle does not help the reputation of the org, & may even put it out of business   
  8.  SECRETLY THREATEN TO BLOW THE WHISTLE   
  Secretly threatening to blow the whistle has all the advantages of secretly blowing the whistle w/ the additional advantage that, when it works, i.e., when the org changes its unethical beh, the org doesn't have to be hurt by bad publicity & / or sanctions that could follow   
  Secretly threatening to blow the whistle has the disadvantage of secretly blowing the whistle in that it does not permit dialogue btwn the unethical people & the whistle blowers   
  9.  SABOTAGE   
  Sabotage in the face of unethical beh usually entails hurting or destroying the larger program in which the beh is found so that mgt shuts it down   
  The advantage of sabotage is that it can be effective & ones identity is protected   
  The disadvantages of sabotage are that one may be caught, one may feel guilty, there is often an investigation, innocent people may be hurt, etc.   
  The biggest disadvantage of sabotage is that there is no dialogue so there is no opportunity for real change   
  10.  NEGOTIATE & BUILD CONSENSUS FOR CHANGE  
  Because in general when one person opposes a group of people in cooperate beh, that one person is likely to lose, it is difficult for one person in an org to bring about change   
  The advantages to building consensus for change are that 
-  there is strength in numbers 
-  the org is less likely to retaliate against a grp
-  it builds a cooperate climate 
 
  The best negotiation strat for change is the tit for tat ( TFT ) strat where the change agents respond to positive moves by the other side w/ positive moves, and response to negative move w/ negative moves   
  The difficulty of the TFT strat is that the change agents might not have positive or negative responses available, while the org has nearly unlimited options   
  It is not uncommon for people who are pursuing bad / unethical goals to use bad / unethical methods to cover them up or punish those that threaten them   
  Negotiating & building consensus are more likely to be successful when the org is accustomed to positive sum solutions to problems   
  Unfortunately many mgrs are only accustomed to negative sum solutions where they attempt to win & punish the loser   
  It is only natural to have the 'fight or flight' reaction, even in orgs wherein when one is confronted w/ a threat at work, one often wants to leave or attack rather than calmly negotiate & build consensus   
  An additional reward to negotiating & building consensus is that for many, these activities are in themselves satisfying; negotiating & peacemaking can be empowering, transformative, & satisfying   

 
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 Outline on  Social Responsibility
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  ORGS MUST INTEGRATE INTO THEIR CULTURES, PLANNING, DECISION MAKING, & OPS A CONCERN FOR ETHICS & SOC RESPONSIBILITY
 
  Davis, 1975, holds that social responsibility is the principle that people & orgs have certain obligations, in addition to their orgl interests, to protect & benefit others & to avoid actions that could harm them   
  Social responsibility is an ethical ideology or theory that an entity, be it an organization or individual, has an obligation to act to benefit society at large   
  Social responsibility can be passive, by avoiding engaging in socially harmful acts, or active, by performing activities that directly advance social goals   
  The principle of soc resp first began to take hold in the developed nations major corps in the 1980s   
  Western nations corps have tremendous power & thus people, grps, other orgs, societies themselves rely on them to meet various individual & societal needs   
  At one time, orgs did only what they had to, & many still operate on this principle, eschewing the principle of soc resp  
  SOC RESPONSIBILITY ENTAILS SOLVING SOCIAL PROBLEMS, MAKING ETHICAL DECISIONS THAT BALANCE NEEDS, & MAKING DONATIONS  
  Most orgs are open systems & most of what they do generates direct benefits & costs for their societies   
  Today society demands that orgs join in the urgent task of solving societies' problems   
  Some political philosophies go so far as to hold that private orgs, eg businesses, non profits, non governmental orgs (NGOs), private charities, etc are all better, or could be better than govt in addressing soc problems if society & it's laws, regs, & structure were reformed   
  Being soc resp does not mean making everyone happy; it means making ethical decisions that balance costs & benefits among many, if not all stakeholders   
 
Orgs face conflicting demands & at times a socially responsible action puts the needs of one grp of stakeholders ahead of the needs of others , such as donating money to charity rather than giving stockholders a larger dividend or giving wkrs a raise 
 
 
Orgs make these difficult decisions based on past practices, policies, codes of conduct, ethical guidelines, & more 
 
  WHILE SOC RESPONSIBILITY TOOK HOLD OF CORP AM IN THE 80s, IT'S ROOTS GO BACK TO THE EARLY INDL REV  
  Ben Franklin may have been the first to advocate a socially responsible business  
  Franklin believed that "public service & philanthropy were legitimate concerns... because it is god business to improve the health of the communities from which wealth is derived & because public problems can benefit from private solutions."  
 
Buchholz, 1989,  expresses the need for businesses to act in a soc resp manner:  'corps are more than econ instit & have a resp to devote some of their resources to helping solve some of the pressing soc problems, many of which corps help to create'
 
  Haas, CEO of Levi Strauss notes that corps can be short sighted but believes corps will discover the price they pay for such behavior   
  For Haas when corps ignore the needs of others, they are ignoring their own needs in the long run   
  Corps may need the good will of a neighborhood to expand, they may need instits of higher learning to train wkrs, they may need adequate community health care to curb absenteeism, they may need fair taxes to build infrastructure & compete in the world econ  
  SOC RESP STRATS INCLUDE DENIAL, RESISTANCE, REACTION, & ANTICIPATION  
  Orgs adopt different strats & structures in relation to their goals, the env, their resources, & the demands placed upon them   
  Some orgs vehemently resist the accommodation to societal needs, whereas others eagerly seek ways to accommodate societal needs   
  Orgs can adopt any of three primary strats to manage the issue of social resp, ranging from resistance, to reaction, to anticipation   
  Individual orgs may choose resistance, reaction, or anticipation from the days of their founding, or they may embrace one strat to find that another appears more suitable & thus shift such strats   
  Some orgs may choose resistance, reaction, or anticipation for different parts of their op & thus appear to have inconsistencies   
  Thus orgs may appear to be a complicated, chaotic conglomeration of strats related to soc resp; no one approach dominates today although the resistance strat appear to be losing momentum while anticipation strat has been gaining ground since the 1980s   
  SOC RESPONSIBILITY IS ESSENTIALLY 'SELF REGULATION' W/ THE LAW & A CODE OF ETHICS AS THE STANDARDS OF REG   
  Businesses can use ethical decision making to secure their businesses by making decisions that allow for government agencies to minimize their involvement with the corporation   
  If an org is proactive &  follows govt guidelines for a particular issue such as pollution or labor regs & even goes an extra step to get involved in the community & address those concerns that the public might have; they would be less likely to have the govt investigate them for these or any other concerns   
  Soc Resp stresses "self regulation" rather than mkt or govt mechanisms for following the law & ethical, or responsible standards   
  Most rules &  regs are formed due to public outcry, if there is nt outcry there often will be limited reg   
  CRITICS OF SOC RESP HOLD THAT:  ORGS SHOULD PURSUE ONLY ECON GOALS; IT IS SUPERFICIAL; IT IS OBFUSCATING; IT IS AVOIDANCE OF REGS BY THE GOVT   
  Critics of social responsibility argue that it distracts from the fundamental economic role of businesses & thus should be denied or avoided   
  Critics of social responsibility argue that it is nothing more than superficial window dressing   
  Critics of social responsibility argue that it is an attempt to pre empt the role of govts as a watchdog over powerful multinational corps though there is no systematic evidence to support these criticisms   
  A significant number of studies have shown no negative influence on shareholder results from soc resp but rather, a slightly positive correlation w/ improved shareholder returns   

 
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 Outline on the  Resistance Approach to Social Responsibility
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  THE EARLY INDUSTRIAL REVOLUTION WAS CHARACTERIZED BY ORGS DOMINATING & EXPLOITING SOCIETY IN A MANNER THAT WAS RESISTIVE TO SOCIAL RESPONSIBILITY
 
  Orgs adopt the resistance approach to soc response when they actively fight to eliminate, delay, or fend off the demands being made on them   
  In the days of the Industrial Rev (circa 1700-1910) orgs were relatively unaffected by govt regs   
  Unions & the Labor Mvmt only emerged toward the end the Ind Rev & thus labor was cheap & easily exploited   
  Businesses did as they wanted, exerting tremendous influence over their wkrs, town, industries, & govts   
  The era of the Ind Rev is characterized by robber barons, 'the best of times.... the worst of times,' The Jungle, & no social responsibility   
  The early phase of ind development was marked by resistance to govt interference & active opposition to demands from those actors inside the org as well as those outside the org   
  The prevailing attitude was that mgrs owed their allegiance to owners only   
  In a 1919 decision, a Michigan court refused to let Henry Ford, the first, divert stockholder dividends to certain socially beneficial programs 
 
  The courts held that directors had an obligation to stockholders & could not renege on that duty 
 
  Govt regulatory agencies were virtually non existent & since the Labor Mvmt was just emerging there were no checks on the power of corps 
 
  No laws protected wkrs, consumers, the community, or the env & all suffered as a consequence 
 
  MANY CORPS TODAY STILL EMBRACE  THE RESISTIVE APPROACH TODAY BY OPPOSING GOVT REGS, COMMUNITY INVOLVEMENT, ORGANIZED LABOR, & ANY WKR EMPOWERMENT  
  Many corps not only still embrace the resistance approach to soc resp today, they use all their power & influence to return society to that stage of dev by   
  Resistive orgs oppose all regs in court & in reg agency rule writing, by lobbying for laws supporting no soc resp, by supporting politicians who advocate no soc resp, by funding ed against soc resp, & by funding research against soc resp, etc   
  The societal, all encompassing conflict among those who oppose soc resp & those who support it results in inconsistency & stalemate in govt policy, law, & action & this conflict may be seen as indeed, one of the major conflicts of our times   

 
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 Outline on the  Reactive Approach to Social Responsibility
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  REACTIVE ORGS WAIT FOR DEMANDS & THEN CHOOSE WHETHER TO RESIST OR ACCOMMODATE, BASED ON VARIOUS CRITERIA OF EXPEDIENCY
 
  Orgs taking the reactive approach wait for demands to be made & then respond to them by evaluating alternatives   
  In essence these orgs are taking the resistant approach, but then rather than standing on that principle, they find it expedient to move toward accommodation rather than resistance   
  The reactive org, embraces resistance, but when resistance seems futile, they embrace soc resp in a minimalist manner   
  THE MAJOR WEAKNESSES OF THE REACTIVE APPROACH ARE THAT IT IS SLOW TO REACT, & SLOW REACTIONS ARE OFTEN PERCEIVED BY THE PUBLIC AS RESISTANCE  
  Weakness of the reactive approach is that orgs often react too slowly & thus harm their own reputation   
  The weakness of a slow reaction to social demands is particularly detrimental to consumers; retail businesses may suffer a serious blow to their reputation, & this often translates into real declines in sales   
  REACTIVE APPROACHES CAN RESULT IN POSITIVE OR NEGATIVE OUTCOMES   
  In 1992 in Chicago's Lincoln Park area, neighbors complained about too many restaurants & bars in their neighborhood being open too late, & whose patrons repeatedly caused disturbances   
  When complaints went unheeded by the business orgs, ie the resistance approach to soc resp, neighborhood grps petitioned to place a referendum on the ballot to ban the sale of alcohol   
  The success of the petition drive caused the business orgs to resist soc resp by mounting their own campaign by going door to door to get people to remove their signatures from the petition   
  Eventually a compromise was reach:  the business orgs agreed to hire off duty police to patrol in the evening to curtail the problems   
  It was not until it appeared that resistance was futile that these business orgs embraced the accommodation strat of soc resp   

 
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 Outline on the  Proactive Approach to Social Responsibility
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THE PROACTIVE APPROACH HOLDS THAT IT IS ADVANTAGEOUS TO THE ORG, IT'S ACTORS, IT'S STAKEHOLDERS, & SOCIETY FOR ORGS TO BE SOCIALLY RESPONSIBLE 
 
  The proactive approach to soc resp holds that an org must exhibit orgl social responsibility   
  Soc resp is an umbrella term indicating that an ethical org must act as a responsible citizen of the communities in which it operates even at the cost of profits or other goals   
  In the US & most other nations, corporate entities are legally treated as persons in some respects   
  Corps today can hold title to property, sue & be sued & are subject to taxation, although their free speech rights are limited   
  Advocates of the proactive approach can be interpreted to imply that they have independent ethical responsibilities   
  Duska argues that stakeholders have the right to expect a business to be ethical   
  PROACTIVE ORGS SCAN THEIR ENV TO FIND OPPORTUNITIES OF SOC RESPONSIBILITY   
  The proactive approach entails orgs continually looking to the needs of orgl stakeholders, ie the constituents   
  The proactively socially responsible org stays in touch, sensing the needs of the stakeholders, trying to find ways to assist them   
  Soc resp orgs assist ed w/ donated cash, services & goods   
  Southern CA ed  
  Just Desserts   
  Prudential Ins Co   
  The techniques used by soc resp orgs to understand the needs of stakeholders are the same techniques used in everyday ops; eg envl scanning, surveys, networking, meetings, etc   
  PROACTIVE ORGS INTEGRATE SOC RESP INTO THEIR STRAT, POLICIES, TACTICS & CULTURE   
  Orgs that proactively embrace soc resp typically have integrated related policy into their org from the strat level to day to day ops 
 
  Soc resp related policies often include an orgl discussion / statement of orgl ethics, a code of ethics written w/ the participation of all orgl actors, statements discussing & explaining the org's view of soc resp, participation in soc resp activities by org actors, etc 
 
  The proactive soc resp approach, as opposed to resistive or reactive approaches, looks to the advantages of soc responsibility such as community & customer good will, an expanded, friendly network, access to opportunities, teamwork w/ stakeholders, etc 
 

 
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 Outline on  Organizational Actors
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Being 'social animals who prefer to run in packs,' humans naturally form into SIX basic types of human formations including: 
1.  Aggregate
2.  Social Group
3.  Formal Orgs
4.  Institutions
5.  Social Structures
6.  Networks
 
 
Orgl actors is that set of human formations that exist in any type of human formation at or above the formal orgl type, thus org actors exist in formal orgs, institutions, social structures, & networks 
 
 
Orgl actors as recognized by the people in the orgs include upper mgt, professionals, mid level mgt, lower level mgt, lower level employees, & others 
 
           a.  Upper management   
           b.  Professionals   
           c.  Mid level management   
           d.  Lower level management / supervisors   
           e.  Lower level employees   
  Various social scientists have determined that it is useful to view orgl actors along various analytical dimensions thus viewing actors as including the dominant coalition, power brokers, cliques & coalitions, stakeholders, change agents, & others   
 
         a.  The dominant coalition   
 
         b.  Power brokers   
 
         c.  Cliques & coalitions
 
 
         d.  Stakeholders 
 
           e.  Change agents   
 
The Amended Taft Hartley Act of 1974 definitions Employers, Employees, Supervisors, & Professionals as applied to union organizing   
 
Orgl actors usually operate in a hierarchy, though some hierarchies are more closed than others 
 
 
Orgl actors have social relations of both cooperation & conflict 
 

 
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 Outline on the  Responsibilities to Stakeholders
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  ORGS BEAR INHERENT OBLIGATIONS TO WKRS, OWNERS, STAKEHOLDERS, & SOCIETY
 
  Orgs hold the best interests of their society in trust; society grants the right of enterprise to all orgs   
  Stakeholders are those who have an interest in or who are affected by how a business conducts its ops   
  Stakeholders in most businesses include their owners & stockholders, wkrs, customers, suppliers, & communities   
  Society as a whole can be considered a stakeholder as well if the business is large enough to affect people & en beyond its physical location   
  The new org is characterized as having stakeholders as opposed to the old org structure & strat that excluded a consideration of anyone but owners  
  Problems occur in new, changing orgs because they consist of multiple stakeholders carrying out multiple but overlapping activities   
  It is clear that the situation is not simply one of the soc resp firm deciding to embrace a broader array of stakeholders   
  The situation is that today more & more stakeholders are striving to be recognized as having legit connections to a wide range of orgs   
  Thus the rise of stakeholder power is an important factor in the development of the new org, the modern org, the soc resp org 
 
  Orgs & stakeholders are now keenly aware that any orgl change may or may not be compatible w/ the goals & needs of various stakeholders 
 
  For 'old orgs,' they had many SOP's that allowed them to maintain stability such as concentration, closed mkts, standardized tech, commitment of wkrs, stakeholders, et al 
 
  Today in a climate of instability / change, commitments of  customers,  wkrs, & other stakeholders are fragile & short lived 
 
  THE STAKEHOLDERS INCLUDE THE INTERNAL & EXTERNAL STAKEHOLDERS   
  INTERNAL STAKEHOLDERS INCLUDE THE DOMINANT COALITION, PROFESSIONALS, CLIQUES, COALITIONS, LOWER LEVEL EMPLOYEES, & OTHERS   
  The dominant coalition includes upper level mgrs, directors, major stockholders, & other powerful actors   
  The ethical & soc resp needs of the dominant coalition primarily relates to econ goals of maximizing profits, but given their place of leadership, the dom coalition is responsible for directing the org to the ethical & soc resp needs of other internal & external actors as well as any favored needs of the dominate coalition itself   
  Professionals in an org include those higher level employees who meet the general criteria of professionals including a high level education or specialized knowledge, autonomy, a unique evaluation (done by other professionals, not mgrs), high rewards sometimes unrelated to traditional measures of productivity, & membership in a prof assoc   
  The ethical & soc resp needs of professionals relate to the large view of the org & society that they may often have, eg believe that the org should limit pollution even though it may lower profits, or even though the level or effects of the pollution is indeterminate   
  Cliques & coalitions include any spontaneously formed subculture w/in an org such as women, the night shift, a group formed to deal w/ a safety issue, a party group, etc.   
  The ethical & soc resp needs of cliques & coalitions can be as wide ranging as the types of cliques & coalitions   
  The ethical & soc resp needs of cliques & coalitions might include activism in the org or community related to  the knowledge, beliefs, values, & norms of the subculture at the center of the clique or coalition, eg women organizing around pay equity in the org or even the community   
  Lower level employees usually include the vast majority of the actors in an org, but those actors have little authority, low pay, low status, & little chance for advancement   
  The ethical & soc resp needs of lower level employees are often related to quality of work life in the org, job security, safety, respect, etc.   
  The ethical & soc resp needs of lower level employees are often related to charitable work in the community such as clean up, feeding the poor, assisting the elderly, literacy, & more   
  EXTERNAL STAKEHOLDERS INCLUDE CUSTOMERS, SUPPLIERS, COMMUNITIES, THE GOVT, & OTHERS   
  The govt becomes a stakeholder in the sense that it is an independent actor who is charged w/ representing the legal rights as well as the ethical & soc responsibilities of other stakeholders   
  The ethical & soc resp needs of external stakeholders, like lower level employees, are wide ranging, including activism in the org or community, quality of work life in the org, job security, safety, etc.   

 
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 Outline on the  Responsibilities to Owners & Stockholders
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  THE FIRST FUNCTION OF BUSINESS ORGS IS TO CREATE A PROFIT; & W/O PROFIT ALL OTHER SOC RESP GOALS WITHER
 
  A business & its wkrs owe their best efforts to owners   
  Assets must be conserved & used effectively & efficiently   
  Wkrs must do their best to max the return on investments (ROI) & to generate profits   
  Owners & employers should have the right to hire, train, reward, promote, discipline, & remove employees in accordance w/ ethical, moral, & legal restraints   
  Owners & employers should have the right to expect ethical, moral, & legal conduct from their wkrs   
  The conflict among those who resist the soc resp approach & those who embrace a proactive soc response approach often has as a central pivot pt the duty of orgs related to profit generation   
  A MAJOR QUESTION REMAIN:  HOW MUCH PROFIT; SOME SAY 'NO LIMIT' WHILE OTHERS MAINTAIN  HIGH PROFITS MAY BE 'GOUGING,' ETC.   
  Authors such as Plunket & Attner continually emphasize that profits should be 'reasonable' but many business experts advocate that an org should, ie even has a duty to, generate the maximum amt of profits available 
 
  Perhaps one of the main voices in the conversation over profits & soc resp is noble prize willing economist Milton Friedman
 
  Friedman resists all approaches for soc resp orgs, maintaining that orgs have a duty solely to generate max profits for owners 
 
  Friedman's view is popular w/ many corporatists, but is opposed by many new org leaders 
 
  Thus the range of opinion on the issue of profits & soc resp runs the gamut from max profits to reasonable profits 
 
  Even those who advocate reasonable profits fully understand that profitability is the life blood of an org 
 
  For the soc resp firm, a question that often becomes an important pt of discussion is what is a reasonable profit for owners & stockholders? 
 

 
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 Outline on the  Responsibilities to Employees
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  WKRS HAVE MANY RIGHTS ESTBED LARGELY BY THE LABOR MVMT, AS WELL AS NEWER RIGHTS ESTBED IN THE MODERN WKPLACE IN A CLIMATE OF SOC RESP
 
  Employees should enjoy equal access to the rights, responsibilities & privileges afforded by employers   
  Wkrs need to receive fair & equitable compensation, to be dismissed only for just cause, & to be treated w/o discrimination   
  Wkrs should experience a quality of work life that provides satisfying jobs   
  Wkrs should receive competent guidance & direction in their work & be accorded due process in disputes   
  Wkrs hold certain rights to freedom of expression, safety, adequate info & privacy & confidentiality of personal info   
  An area of contention relates to what wkrs do off the job, such as:  Should health practices such as smoking or obesity impact employability?   Should credit worthiness impact employability?  Should sexuality or sexual tastes, esp as displayed on social media impact employability?  Should body art, eg tattoos, affect employability?   
  JUST AS OWNERS HAVE A RIGHT TO PROFITS, WKRS HAVE A RIGHT TO A WAGE, BUT THE LEVEL OF A FAIR WAGE IS IN CONTENTION & CAN BE PROBLEMATIC IF IT IS NOT A LIVING WAGE, OR IF IT IS TOO EXORBITANT AS IT IS FOR SOME TOP MGT   
  The rise of the Labor Mvmt in the late 1800s & following has created numerous wkr rights that are now mostly accepted by socially responsible orgs & other types of orgs   
  One issue that has often been central to the Labor Mvmt & corps is the level of compensation   
  While soc resp firms advocate reasonable compensation, ie fair & equitable, the issue of compensation often revolves around the two poles of the living wage & the exorbitant salary   
  First is the idea of a living wage; does an org have a duty to pay only what the mkt will bear, or do they have the duty to provide compensation that allows one to live a mid class life style?   
  The other pole of the compensation debate relates of exorbitant salaries & stock bonuses:  whether one can be paid too much or not   
  For some owners & even employees compensation may run into the millions or hundreds of millions of dollars   
  Advocates of soc resp note that such exorbitant levels of compensation often breed corruption, or at the least, socially irresponsible behavior   

 
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 Outline on the  Responsibilities to Customers
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  WHILE CONSUMERS ARE MORE WELL PROTECTED THAN EVER BY CONSUMER PROTECTION LAWS, CONSUMER ADVOCATES & MANY CONSUMERS RECOGNIZE THAT MORE COULD BE DONE & THUS SOC RESP ORGS GO BEYOND THE LAW
 
  Orgs, businesses, mgrs, & their wkrs owe fair & honest representation of their products & services to their customers   
  Such products & services should encompass quality of design, manufacture, distribution, & sales   
  Consumers have a right to be warned of any hazards they may encounter while using a product or receiving a service   
  Customers have a right to be treated fairly & w/ respect   
  Laws have been passed to protect consumers that include such protections as govt inspection of food, drugs, cosmetics, credit, product safety, warranty, & more   
  While consumer protection laws have been passed, the soc responsible org would go well beyond these laws since they set a minimum floor of consumer protection   
  A consumer protection agency was estbed by Obama in 2010 & many corps sought to block its creation   
  Because of irresponsible orgs & the weakness of consumer protection laws, our courts are flooded w/ consumer complaints 
 
  Many consumer complaints are mediated, yet corps choose to fight many more 
 

 
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 Outline on the  Responsibilities to Suppliers
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  A MAJOR RESPONSIBILITY TO SUPPLIERS IS TO RECOGNIZE THEIR DEPENDENCE ON THE ORG FOR ORDERS, & THUS JOBS
 
  Suppliers & orgs should build relationships based on mutual trust   
  Suppliers deserve to receive needed info in time to render quality service & supplies   
  Like all parties to contracts, suppliers have the legal right to be treated according to the terms of their agreements   
  In 1993 GM signed a contract w/ suppliers to provide paid wkrs & leased factories for them to build parts with & savings from this initiative would be shared w/ the supplier corps & GM   
  Like many issues of social responsibility, relationships w/ suppliers should go beyond the legal minimums   
  One important issue for suppliers is job security & the continuation of services in that what appears to be a simple changing of suppliers to the parent corp, may prove devastating to the supplier org   
  Parent corps can work w/ suppliers treating them more as part of the org than as a disposable workforce   

 
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 Outline on the  Responsibilities to Communities 
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  ORGS HAVE COSMETIC RESPONSIBILITIES TO COMMUNITIES, ESP RELATED TO POLLUTION, WASTE, TRASH, APPEARANCE, ETC 
 
  Those environments & their govts that are affected by an org's ops constitute it's community   
  The quality of life in a community, it's air, land water, flora, fauna, it's specific needs can all be impacted by the op of a org or business in the area   
  All an org's constituents, many of who may be customers & workers in a community, deserve ethical, legal & moral treatment   
  Pollution & toxic waste are growing concerns around the world & thus there is mounting pressure to produce green products which minimize energy consumption & pollutive by products   
  Auto makers, as pushed by higher govt fuel standards, develop more fuel efficient & cleaner burning engines   
  Most fed regs on mileage & auto emissions have been pushed by CA's regs which were the toughest in the nation   
  CA's regs were the impetus for the Clean Air Act of 1990 & the latest CAFE (Corp Average Fleet Economy) standards by the Obama Admin in 2010 
 
  The music recording industry once packaged CDs in oversize containers to prevent shop lifting, but after pressure from env grps, they agreed to package all CDs in the smaller 'jewel box' 
 
  McDonald's reduced it's packaging for all it's food products & switch from toxic styrofoam to biodegradable cardboard 
 
  ORGS HAVE ECON RESPONSIBILITIES TO COMMUNITIES, ESP JOBS & THE USE OF LOCAL SUPPLIES, RESOURCES, & UTILITIES, & INFRASTRUCTURE  
  Often the relationship that overshadows all others btwn orgs & communities is jobs for local wkrs  
  The issue of jobs is closely related to the usage of local supplies & resources since these also provide jobs & income for the community   
  Another job related issue that affects communities is that of the tax base:  communities receive tax income from wkrs as well as directly from orgs in the form of property & other types of taxes   
  The magnitude of the econ relationships btwn orgs  & communities can result in 'company towns' which are characterized by the communities willingness to do almost anything to support & keep the org   
  The company town is an example of 'organization capture' whereby an org controls other orgs or  entities almost as if they were part of the org   
  The soc resp org avoids org capture of communities, w/ it's paternalistic overtones, & establishes an equitable relationship btwn orgs & communities   
  Orgs can put a burden on a community in the form of the provision of utilities & infrastructure   
  When communities put up the capital to supply utilities & infrastructure, they are hurt if an org simply closes up & moves on   

 
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  Outline on the  Public Policy Process
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  -  Project:  Policy Actors 
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  -  Project:  The Public Policy Process, Domhoff's Analysis, & Reform of Campaign Financing & Lobbying 
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SUMMARY 
 
  Industry & interest group lobbying has influence at all stages of the public policy process, & beyond   
  Congress passes laws   
  Lobbyists, industry, government agencies, the Public, et al offer "advice" ( lobbying & influence )   
  The prospective law is signed or vetoed, or line item vetoed by the President   
  The law given to the appropriate government agency for implementation   
  Agencies make draft rules which are printed in Federal Register for public approval   
  Agencies review public comments & write final rules   
  Agencies implement rules   
  During implementation, rules must be interpreted & decisions must be made   
  Courts interpret laws & rules   
  THE UPPER CLASS   
  The upper class directly shapes govt policy by impacting the public policy process   
  Govt. policy & the public policy process is the least recognized by the general public, but it is the area where the public could have great influence   
  Several types of policy are "routine" in that they are specified in the Constitution or law & occur regularly   
  FISCAL POLICY   
  Fiscal policy is perhaps the most visible govt policy   
  Fiscal policy is the most open to the democratic process & thus highly influenced by the upper class, the corporate class & the upper middle class   
  Fiscal Policy includes primarily fed law on taxing & spending   
  MONETARY POLICY   
  Monetary policy is "insulated from politics" which results in almost no input from the general public & great power by the President   
  Broad monetary policy issues include unemployment & interest rates which are “insulated from politics” by independent boards   
  The Federal Reserve Board's members appointed for 7 yr. terms during which they set major interest rates & the money supply   
  Federal Reserve Board members are very difficult to remove, so a President picks them carefully   
  DOMHOFF ON GOVERNMENT POLICY 
 
  1.  Domhoff believes that the upper class, the corporate class & the upper middle class provide most of the money in the political process   
  2.  Domhoff believes that the upper class, the corporate class & the upper middle class provide most of the money to fund think tanks, foundations, university research, etc   
  3.  Domhoff believes that the info from think tanks, foundations, university research, etc. is funneled into the policy process as evidence/data   
  4.  Domhoff believes that the info from think tanks, foundations, university research, etc. is funneled directly to the government to influence the policy making process   
  5.  Domhoff believes that the info from think tanks, foundations, university research, etc. is funneled directly to the media to influence policy & public opinion   
 
The policy formation process is seen as increasingly important in our information age society 
 
  THE ACTORS IN THE POLICY FORMATION PROCESS   
  There are many "players' or actors in the policy formation process, that lobby & produce policy documents, including: 
1.  corporations 
2.  the upper class (i.e. those w/ personal fortunes) 
3.  foundations 
4.  universities  ( granting agencies ) 
5.  policy planning groups ( think tanks ) 
6.  govt. commissions, councils, etc. 
7.  national news media 
8.  executive agencies, president, congressional committees, courts 
9.  social movements (conservative, liberal, centrist, etc.) 
 
  Each of the players in the policy formation process has a direct role in making policy, & lobbying the other players   
  Miscellaneous interest groups (e.g. environmental groups, gun groups, anti- & pro- abortion, etc.) & the general public (& organized publics) have input into the public policy process through letters, phone, email, direct contact: spontaneous or "solicited"   
  Interest groups & the general public (& organized publics) sometimes produce policy documents as do the "players" discussed above, but more often they simply lobby by voicing their opinion   
Link
See Also:  Policy Formation Process  ( Making Law )   
  See Also:  Participants in the Env Debate   
  EXAMPLES OF POLICY PLANNING GROUPS   
  Brookings Institute   
  American Enterprise Institute   
  Cato Business Council   
  Heritage   
  Council on Foreign Relations   
  Committee on Economic Development   
  RAND Corporation   
  University boards are influenced & staffed by members of the upper class   
  Profs & other researchers understand that there are political implications to their work & that policy planning grps will line up for or against them   
  Blue ribbon panels are  "independent," temporary committees which are tasked w/ examining special problems such as riots, the CIA, energy, corruption, accidents, etc   
  The media is often said to be liberal, but it is becoming increasingly focused on info-tainment, centralized, controlled by major corps, & big money oriented   
  Turner vs. Murdock; Time, Newsweek, US News & World Report   
  MONEY & POLICY FORMATION   
  There are many processes for transferring money in the policy formation process, including: 
a.  gifts ( donations to politicians & the other players, gifts to universities, etc. ) 
b.  endowments 
c.  grants 
d.  contracts 
e.  direct financing of projects 
 
  INFORMATION TRANSFER   
  There are many process for transferring information in the policy formation process, including: 
1.  research findings 
2.  personal research reports 
3.  policy recommendations 
4.  reports & news items 
5.  govt. reports 
6.  think tank reports 
 

 
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 Outline on the  Govt Regs & Soc Responsibility
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  SUMMARY:  SOCIETY DEVELOPED A REGULATORY FRAMEWORK/STATE CAPITALISM IN RESPONSE TO ORGL ABUSE/MKT FAILURE 
1.  REGS PREVENT ABUSE BY ORGS 
2.  ORG ABUSE IS A BY PRODUCT OF CAPITALISM / MKT FAILURES
     SOCIETY HAS CONTROLLED MKT FAILURE BY THE DEVELOPMENT OF STATE CAPITALISM & THUS REGS
3.  TODAY'S CORPS HAVE COSTS ON SOCIETY WHICH MUST BE REGULATED/CONTROLLED
4.  REGS, IE COMPULSORY OBEDIENCE, HAS HIGH COSTS
5.  SOCIETY IS DEVELOPING PROCESSES OF VOLUNTARY COMPLIANCE
 
 
1.  LAWS, & THE REGS THEY CREATE, HELP PREVENT & PUNISH ABUSE BY ORGS 
 
 
Govt regs are formed as a result of laws passed by Congress & signed by the President 
 
 
Regs are formulated by mostly executive branch govt agencies ranging from the Dept of Ag to the Commerce Dept 
 
 Link
See Also:  The Public Policy Process 
 
 
Corps have committed acts that harm the env, consumers, communities, & society as a whole & laws & regs can help prevent, reduce, & punish such abuse 
 
 
Laws & regs now in existence were brought about largely by these abuses 
 
 
When society can't depend on the perpetrators to act appropriately, it must compel such action as laws & regs 
 
  2.  THE EXCESSES OF CAPITALISM, OF MKT FAILURES, BROUGHT ABOUT GOVT INTERVENTION IN THE MKT TO CONTROL & CORRECT EXCESSES   
 
Under laissez faire capitalism (laissez faire means 'hands off') it was thought that all of societies needs could be met by the free mkt 
 
Link
See also:  Mkt Failures   
 
The amt of abuse by industrial capitalism & robber barons created a societal demand, which govt eventually responded to, for govt intervention in the mkt 
 
 
Societal response to the excesses of capitalism has been in the form of govt intervention in the form of 'state capitalism' through the implementation of govt laws & the regs they create 
 
 
3.  WHILE NOT STRICTLY IN THE SPIRIT OF THE ABUSES OF THE ROBBER BARONS, TODAY'S CORPS HAVE COSTS ON SOCIETY SIMPLY BY THE NATURE & SCOPE OF THEIR ACTIVITIES; & MANY OUTRIGHT ABUSES & CORP CRIMES DO STILL EXIST 
 
 
Many orgs produce their products or services & do not consider the costs placed on society 
 
 
Costs that orgs frequently place on society include cleanups of all kind & the need to recycle 
 
 
The fed govt passed the Superfund law which estbed a fund to help pay for toxic waste left over from past business practices & to regulate industry so that new toxic sites are not left by business for the taxpayer to clean up 
 
 
The Superfund has spent hundreds of millions of dollars cleaning up toxic waste created by business in the past   
 
Cleaning up env hazards such as nuclear waste, toxic dumps, oil spills, toxic mine waste, & more takes yrs of commitment by govt & business & these costs are often left to the taxpayer   
 
As a result of Superfund & other legislation, govts & businesses are improving & while we are creating more toxic waste than ever, less of it is being left for the taxpayer to pay to clean up   
 
Businesses are finding that being good citizens pays off, w/ dividends that contribute to corp bottom lines   
 
Pollution prevention is better than pollution control   
 
Businesses have made profits through efforts to both prevent & reduce pollution   
 
A growing number of citizens & consumers are showing a willingness to pay for products that are environmentally friendly   
 
4.  GOVT REGS, IE COMPULSORY OBEDIENCE, HAVE HIGH ENFORCEMENT COSTS  
 
The costs of govt regs are high & getting higher   
 
Orgs in the form of businesses, non profits, NGOs & others spend billions of dollars & millions of hours report to govts & complying w/ legal mandates   
 
In 1982 the EPA estimated that the chem in spent $347 mm in capital costs & $182 mm a yr in op expenses to meet new tech requirements or cutting cancer causing emissions   
 
Some argue that govt reg have made the US less competitive globally, but such regs have also brought needed reforms   
 
Society grants business the right to operate & in return society retains the right to proper treatment & a clean env   
 
5.  ORGL ETHICS & SOC RESP MOVES SOCIETY FROM COMPULSORY OBEDIENCE TO VOLUNTARY COMPLIANCE
 
 
The enforcement of many laws depends more on individuals' commitments to social responsibility than it does on govt agencies 
 
 
Govts simply do not have enough money or people to adequately enforce their regs & so many go unenforced 
 
 
Society's best protection rests in an informed citizenry & a formed conscience in each & every owner & employee 
 
  social mvmts such as the Labor Mvmt, the Civil Rights Mvmt, the Womens' Mvmt, the Env Mvmt, & now many more, & finally orgl ethics & soc responsibility   

 
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 Outline on  Market Failures
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Market failures are built in, normal functions of the mkt in which the system produces (1) Externalities or Spillovers, (2) Public or Social Goods, (3)  Mkt Instability in the form of Booms or Busts,  (4)  Unjust Distribution of Resources, (5)  the Problem of the Commons,  (6)  Mkt Assimilation   
  (1)  An externality, aka a spillover, is a benefits or cost associated w/ the consumption or production of a good or service which is obtained by or inflicted w/out compensation on a party other than the buyer (user) or seller (producer) of the good or service   
  There are both spillover benefits & spillover costs   
 
(2) Public or social goods are mkt relationships where there is a failure to allocate any resources whatsoever to the production of certain goods & services whose output is economically justified   
 
(3)  Mkt instability is seen in the econ cycle, which is the periodic, repetitive cycle of growth, peak, decline, & trough of econ output   
  See Also:  Unemployment   
 
(4)  Unjust distribution of resources:  stratification   
  The distribution of resources is not a question economists usually discuss because it is often viewed as normal or functional   
 
(5)  The problem of the commons is the mkt failure wherein public, or common land is mis utilized because everyone may benefit from it while no one is responsible for, or pays for, it   
  The landlord tenant problem is a special case of the problem of the commons where the common property is owned by one & rented by another, who is induced to mis utilize that & not be responsible for that property   
 
(6)  Mkt assimilation, aka pacman econ, is the mkt failure whereby smaller econ enterprises are assimilated, bought up or run out of business by bigger econ enterprises, eventually leading to monopolies   

 
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 Outline on Top Management & Soc Responsibility
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  ORGS LEADERS MUST SHOW COMMITMENT THROUGH DECLARATIONS & ACTION TO INTEGRATING SOC RESPONSIBILITY INTO THEIR ORG'S WKR'S VIEWS, CULTURE, PLANNING, DEC MKING, & OPS
 
  Mgrs today must anticipate society's concerns & actively forecast & plan to meets its needs   
  Mgrs must make soc resp a priority & as w/ ethics, build a concern for it as a priority in their cultures & wkrs as well   
  Mgt in top level positions must commit the time & money necessary to make their org socially resp  
  Mgrs need to act as well as talk about soc resp because org participants are savvy & can determine when mgt is serious or not about a given project or policy such as soc resp  
  Too many orgs have a good code of ethics & a policy of soc resp, but fail to actually live up to their own rules, guidelines, policies & strats of soc resp & ethics   
  MGRS MUST LEAD THE ORG TO SOC RESP & ACTIONS SPEAK LOUDER THAN WORDS  
  Top mgt must commit the time & money necessary to make their org socially responsible   
  Mgrs need to act as well as talk 
 
  Mgrs set the tone for their entire op & estb its priorities 
 
  For a soc resp policy to be effective, mgt should estb 
 
  -  top level commitment & support 
 
  -  corp policies that integrate env issues 
 
  -  effective interfaces btwn corp & business units & staff 
 
  -  a high degree of wkr awareness & training 
 
  -  strong auditing programs 
 
  -  estb of responsibility for identifying & dealing w/ real & potential env problems   
  MGT OF SOC RESP OF AN ORG ENTAILS EVERYTHING FROM ESTBING COMMITMENT TO DEV ENV POLICY, TO PRIORITIZING TO INSPECTION, TO EVALUATION, & MORE   
  To proactively manage soc resp goals, mgrs should:   
  1.  secure top level commitment & long term funding   
  2.  develop a corp env policy statement   
  3.  assess areas of env exposure; ie conduct envl audits & legal reviews   
  4.  appoint a mgr w/ superior skills & influence w/in the org   
  5.  prioritize program goals & objectives  
  6.  revise corp org structure to maximize soc resp visibility, accessibility, & effectiveness   
  7.  develop formal reporting relationships w/in the dept & across divisions   
  8.  identify key individuals in other divisions to serve as liaisons w/ the env dept   
  9.  develop streamlined yet comprehensive mgt info & record keeping systems   
  10.  develop formalized inspection programs   
  11.  develop training & ed programs for env staff & key individuals in other divisions   
  12.  estb a career track to env professionals   
  13.  continually re evaluate program needs & design   
  LEADERSHIP CAN ONLY GO SO FAR IN ESTBING ORGL ETHICS & SOC RESP; AN ORG CULTURE SUPPORTING THESE GOALS MUST BE FOSTERED BY EACH ACTOR IN THE ORG   
  Many orgs build in safeguards to promote soc resp   
  Orgs often start w/ the commitment in words & deeds of top mgt   
  Policies are written or revised to include concerns for soc resp as well as ethics   
  Orgs create programs for active roles for the org in meeting societal needs   
  Training is given to wkrs emphasizing how they can contribute to achieving soc resp related goals   
  Orgs encourage people to participate in their communities by granting time off & other incentives   
  Most United Way campaigns, for instance, are staffed by mgrs on leave, whose salaries are paid by their employer   
  GE has a public policy committee staffed by members of its board of directors since 1970   
  GE seeks to create soc programs & keep track of their progress & achievements   
  The larger to org, the more likely it is to have a dept to plan for & oversee org efforts of soci resp & to see to it that env, fair employment, & safety & health regs are followed   
  Since mgrs are key to making ethics & soc resp function, they need fully form consciences based on sound values   
  Mgrs need to understand the motives that support their decisions & those of stakeholders   
  Mgrs need principles, rewards, examples, & other forms of guidance & support to keep their commitments to ethical & soc resp actions   
  When an org is committed to soc resp, it reflects the commitment in routine mgt decisions making & ongoing planning efforts, & it monitors to ensure compliance   

 
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 Outline on the  Social Audit 
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  THE SOCIAL AUDIT IS A REPORT ON THE SOCIAL PERFORMANCE OF AN ORG 
 
  Once initiated, programs for ethics & soc resp should be monitored & audited   
  In the soc audit, successes should be noted & meaningful efforts should be made to eliminate & prevent unethical & antisocial behaviors & attitudes   
  To be effective, soc resp needs the backing of all stakeholders; ie the owners, mgrs, wkrs, suppliers, etc   
  A program in soc resp must be considered in daily decisions, & not secondary to them   
  Mgrs & owners need to know what is being done to meet soc obligations, what is expected in the future, & what past results & contributions have been   
  No uniform format exists for the soc audit, but most proactive firms have devised some method for auditing their efforts & for disclosing the results to both insiders & outsiders   
  A soc audit summarizes the org's activities of charitable contributions, support of local community grps & activities, employment of protected grps, political contributions, pollution control & cleanup, health & safety measures, & efforts to improve the quality of work life for wkrs   
  In the soc audit, progress may be stated in terms of goals set & met, in monetary terms, or both   
  In the soc audit, those who benefit are clearly labeled, & the extent to which they benefit is quantified when possible 
 
  The results of the soc audit should be shared w/ all constituents & stakeholders so that awareness of & commitment to the programs can be reinforced 
 
  Programs that are successful should be continued & expanded if the need still persists, & programs that yield few positive results should be eliminated so that more productive ones may be implemented 
 
  In the soc audit, people who contribute to successes should be cited & rewarded 
 

 
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 Outline on the  Implementation of Orgl Ethics & Soc Resp Policy
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  POLICIES OF IMPLEMENTATION OF ORGL ETHICS & SOC RESP RUN THE GAMUT FROM GENERAL STATEMENTS TO SPECIFIC CODES OF BEHAVIOR; & EACH TYPE HAS IT'S ADVANTAGES & DISADVANTAGES 
 
  As part of more comprehensive compliance & ethics programs, many orgs have formulated internal policies pertaining to the ethical conduct of wkrs   
  Orgl ethics & soc resp policies can be simple exhortations in broad, highly generalized language (typically called a corp ethics statement), or they can be more detailed policies, containing specific behavioral requirements (typically called corp ethics codes)   
  Orgl ethics & soc resp policies are generally meant to identify an org's expectations of wkrs & to offer guidance on handling some of the more common ethical problems that might arise in the course of operations   
  It is hoped that having such a policy will lead to greater ethical awareness, consistency in application, &  the avoidance of ethical disasters   
  An increasing number of companies also require wkrs to attend seminars regarding business conduct, which often include discussion of the company's policies, specific case studies, & legal requirements   
  IMPLEMENTATION OF ORGL ETHIC & SOC RESP ENTAIL WRITING THEM, FOLLOWING PROFL CODES, OVERSIGHT, INTEGRATION INTO SOPs, TRAINING, SPECIFYING THEM IN ETHICAL ACTION GUIDELINES  
  To implement orgl ethics & soc resp policy, an org should:   
  1.  write a code of ethics, utilizing input from all stakeholders including those inside & outside the org 
 
  2.  ensure the code of ethics follows any professional or industrial codes of conduct   
 
3.  determine via oversight that all org actors are following governmentally set guidelines 
 
 
4.  integrate orgl codes & soc resp policies into everyday policies from strat, to policies, to rules, to standard operating procedures (SOPs) 
 
  5.  train all orgl actors so that they understand the code of ethics, ethical guidelines & policies that overlap w/ these   
 
Some orgs even require their employees to sign agreements stating that they will abide by the org's rules of conduct 
 
  To ensure understanding & compliance, org leaders should present frequent org communications & programs, including training, on the orgl ethics & soc resp policy   
  6.  / may decide to narrowly specify a code of ethics & soc resp policies in the form of ethical action guidelines   
  IMPLEMENTATION PROBLEMS OF ORGL ETHICS & SOC RESP INCLUDE: LACK OF SUPPORT, BELIEF IN JUDGMENT, DISCONNECT W/ PRACTICES, COST, OVER GENERALIZABILITY, OVER SPECIFICITY, MAKING THEM FORM FILLING EXERCISES, MAKING THEM TOO SIMPLISTIC, MAKING THEM MERE LIP SERVICE  
  Problems of implementation of orgl ethics & soc resp include:   
  1.  lack of support from individuals or coalitions in the org   
  2.  resistance because of a belief that that they are better dealt w/ by depending upon wkrs to use their own judgment  
  3.  a disconnection btwn the org's code of ethics & soc resp pol & the org's actual practices   
  4.  resistance because they are costly   
  5.  resistance because of a belief that general codes of orgl ethics soc resp policies are just sentimental common sense   
  6.  ineffectiveness because many manuals are too specific & are merely procedural form filling exercises unconcerned about the real ethical dilemmas   
  7.  ineffectiveness because actors or policies trivialize the subject, offering standard answers that do not reflect the situation's complexity   
  8.  inability to, or failure to formulate & implement real policies resulting in the org & actors merely paying lip service to orgl ethics & soc resp policies  

 
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 Outline on the  Future of Orgl Ethics & Social Responsibility 
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  THE FUTURE OF ORGL ETHICS & SOC RESP HINGES ON HOW WELL IT SURVIVES THE BUSH FINANCIAL CRISIS, & TECH CHANGES IMPACTING PERSONAL RIGHTS 
 
  The Bush Financial Crisis of 2008 continues into 2011 & any econ pressure brings pressure to individual & orgl ethics & soc resp policies   
  Orgl ethics & soc resp will be challenged in the form of maintaining jobs, product quality, acceptable profit rates, envl standards, & more   
  Personal privacy will remain an issue for the 2010s & will focus on such infringement aspects as  computer monitoring, genetic screening & testing for honesty, drug use & AIDS w/ more laws allowing & prohibiting surveillance of these aspects of human behavior   
  The concern over exporting jobs & downsizing US mfr ops while expanding those ops outside of the US will become greater   
  Orgs will continue to expand their efforts to be more socially responsible, & more orgs will join this trend by moving from the  reactive to the  proactive approach   
  Some forms of the electric car to emerge from major auto mfrs as they experiment w/ prototypes & blend electricity w/ gas & propane powered engines   
  Railroads will experiment w/ propane powered locomotion   
  There will be increases in the number of orgs prosecuted for crimes of personal injury, against property, against nature, & financial crime   
  Prompted by the Americans w/ disabilities Act (ADA), more orgs will become proactive in their efforts to accommodate the handicapped 
 
  Major orgs will accept gay rights & gay marriage more rapidly than the general population 
 
  Orgl expansion of personal rights is generally more rapid than that of the general population & thus orgs help socialize members of society to social changes 
 

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