What is the classical view of management?
Management’s only responsibility is to maximize profits (Create a financial return) by operating the business in the best interest of the stockholders (owners of the corporation).
Ex: Spending the firm’s resources on doing “social good” unjustifiably increases costs that lower profits to the owners and raises prices to the consumers.
What is the socio-economic view of management?
Management’s social responsability goes beyond making profits to include protecting and improving society’s welfare. Firms have a moral responsability to larger society to become involved in social, legal and political issues. #DoTheRightThing
What is the definition of ethics?
Principles, values and beliefs that define what is right and wrong.
Or
The established customs, morals and fundamental human relationships that exists throughout the world.
What is ethical behaviour?
Behaviour that is morally accepted as good and right.
Non-ethical behaviour = corruption, poor work conditions, enviromental responsability.
What is an ethical dilemma?
A situation in which a person must decide whether or not to do something that, although beneficial to oneself or the organization, may be considered as unethical or illegal.
Ex: Boss took a bribe should I tell someone?
Name 6 characteristics of ethical leadership.
- Be ethical and honest
- Telling the truth (don’t manipulate info)
- Admitting failure
- Communicate shared ethical values to
employees - Reward ethical- and punish unethical
employees - Protect whistleblowers
Name 7 ways manager’s can improve ethical behaviour in an organization?
- Hire people with high ethical values
- Establish a code of ethics
- Lead by example
- Set realistic job goals
- Provide ethics training
- Use independent audits
- Provide support for people with ethical issues
What 7 tests can be used to guide ethical decision making?
- Harm test
- Reversability test
- Colleague test
- Legality test
- Publicity test
- Common practice test
- Wise relative test
What are the 4 values of the PM Institute Code of Ethics and Personal Conduct?
- Responsability
- Respect
- Fairness
- Honestly
For what does the ECSA Code of Conduct stand?
- Competency
- Integrity
- Public Interest
- Environment
- Dignity of the Profession
