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Chapter 3 - The manager’s changing work environment and ethical responsibilities. In this chapter, students will be able to understand: Who are the stakeholders important to me inside the organization? Who are the stakeholders important to me inside the organization? What does the successful manager need to know about ethics and values? Is being socially responsible really necessary. | Chapter Three The Manager’s Changing Work Environment & Ethical Responsibilities: Doing the Right Thing McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Major Questions You Should Be Able to Answer 3.1 Who are the stakeholders important to me inside the organization? 3.2 Who are the stakeholders important to me outside the organization? 3.3 What does the successful manager need to know about ethics and values? 3.4 Is being socially responsible really necessary 3.5 How can I trust a company is doing the right thing? The Community of Stakeholders Inside the Organization Stakeholders the people whose interests are affected by an organization’s activities Internal, external The Organization’s Environment Figure 3.1 The Task Environment Strategic allies describes the relationship of two organizations who join forces to achieve advantages neither can perform as well alone The General Environment Economic forces consist of the general economic conditions and trends – unemployment, inflation, interest rates, economic growth – that may affect an organization’s performance The General Environment Technological forces new developments in methods for transforming resources into goods and services The General Environment Sociocultural forces influences and trends originating in a country’s, a society’s, or a culture’s human relationships and values that may affect an organization Defining Ethics & Values Ethics standards of right and wrong that influence behavior Values relatively permanent and deeply held underlying beliefs and attitudes that help determine a person’s behavior Four Approaches to Deciding Ethical Dilemmas Utilitarian guided by what will result in the greatest good for the greatest number of people Individual guided by what will result in the individual’s best long term interest, which ultimately is in everyone’s self-interest Four Approaches to Deciding Ethical Dilemmas Moral-rights guided by respect for the fundamental rights of human beings Justice guided by respect for impartial standards of fairness and equity White-Collar Crime, SarbOx, & Ethical Training Sarbanes-Oxley of 2002 Often shortened to SarbOx or SOX, established requirements for proper financial record keeping for public companies and penalties of as much as 25 years in prison for noncompliance SOX requires a company’s CEO and CFO to personally certify the organization’s financial reports, prohibits them from taking personal loans and lines of credit, and makes them reimburse the organization for bonuses and stock options when required by restatement of corporate profits. It also requires the company to have established procedures and guidelines for audit committees. Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 6- The Social Responsibilities Required of You as a Manager Social responsibility manager’s duty to take actions that will benefit the interests of society as well as of the organization Carroll’s Global Corporate Social Responsibility Pyramid Figure 3.2 Corporate Governance Corporate governance the system of governing a company so that the interests of corporate owners and other stakeholders are protected
