Aristotle

CHAPTER

4
CHAPTER OUTLINE
What Is Managerial Ethics?
Criteria for Ethical Decision
Making
Utilitarian Approach
Individualism Approach
Moral Rights Approach
Justice Approach
Factors Affecting Ethical
Choices
The Manager
The Organization

Managerial Ethics and
Corporate Social
Responsibility
LEARNING OBJECTIVES

After studying this chapter, you should be able to do the following: 1

Define ethics and explain how ethical behavior relates to behavior governed by law and free choice.

2

Explain the utilitarian, individualism, moral rights, and justice approaches for evaluating ethical behavior.

3

Describe how individual and organizational factors shape ethical decision making.

What Is Social Responsibility?
Organizational Stakeholders
The Ethic of Sustainability and the Natural Environment
Evaluating Corporate Social
Performance
Economic Responsibilities
Legal Responsibilities
Ethical Responsibilities
Discretionary Responsibilities
Managing Company Ethics and
Social Responsibility
Ethical Individuals
Ethical Leadership
Organizational Structures and Systems
Ethical Challenges in Turbulent
Times
Economic Performance
Social Entrepreneurship

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Define corporate social responsibility and how to evaluate it along economic, legal, ethical, and discretionary criteria.
Describe four organizational approaches to environmental responsibility, and explain the philosophy of sustainability.
Discuss how ethical organizations are created through ethical leadership and organizational structures and systems. Identify important stakeholders for an organization and discuss how managers balance the interests of various stakeholders. Manager’s Challenge
Timberland is known for great shirts and solid climbing boots. The company has had a good financial history with decent revenues and profits.
But CEO Jeffrey Swartz wanted something more. In the early 1990s, he began transforming