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Read Chapter 1, 2 & 3

in the Slides and answer the question below in

two (2) pages

using the web sites referenced below after paragraph 6. (Single spacing of answers is allowed but not mandatory.)

In the first three chapters of your textbook you were exposed to the managerial roles and responsibilities, international factors, like global trade and cultural diversity, and finally, ethics applied to corporate issues. Consider the two links listed below as historical listings of budgets and statements of earnings on a national scale. You can tell a lot about what the managers, in this case a country’s government, think is important by how they spend your money.

Starting with the Debt Clock link, you should note that across the top row are three buttons, State Debt Clocks, World Debt Clocks, and Debt Clock Time Machine. Using those, in addition to the opening screen of the Debt Clock and any supplemental data sources you want to use, develop answers to the following questions.

1. If the U.S. debt is growing, why doesn’t the government cut back on spending and can you make any recommendations on what to cut? (Hint: You should consider the list of “Largest Budget Items” listed on the Debt Clock before making recommendations.)

Your recommendations must have a reasoned explanation. Please do no

t simply submit your opinion.

2. Comparing two mid-western states, Missouri and Illinois, based solely on their finances, which state has better management and why?

Your answer must have a reasoned explanation. Please do no

t simply submit your opinion.

3. Compare the amount of debt between Greece and the U.S.. Greece has been in the news because of its debt problem and the ethical issues trying to shrink the debt has had on its citizens. With that said, the debt of the U.S. seems to be growing out of control. Is there a reason for Americans to be concerned over our current debt and what about the ethics of shrinking it based on what you see or researched?

Reasoned explanations please.

4. From an ethical perspective, more is being done than ever before to help the poor and needy in the U.S and still grow the economy. Compare the budget from 13 years ago and the projected budget four years from now; is the U.S. strategy working? In your opinion, why or why not?

(Please note that while the assignment specifies that your opinion is a valid consideration, that opinion should be based on something besides a gut feeling. The information you’ve used to form that opinion here, and in any other question or assignment for that matter, should be cited as per APA guidelines in your response.)

Moving on to world development or GDP data indicators provided in the second website listed below. You should be aware that several options are available to you that you’ll need to utilize to answer the remaining questions below.

*When you open the website, a chart will appear that should say “Gross Domestic Product” just above it on the top left hand side and the U.S. GDP should be shown starting around 1960 through at least 2011.

*To the left of the screen, you’ll see various options for charting comparisons.

*For this exercise, skip over the listings under “World Development Indicator” and go down to the list under the words “Compare by” to start with. You can use this listing to compare regions of the world, but for now, click on the drop down menu under the word “Region” and select “Country”.

5. Compare the GDP of the U.S., China, India, Germany and Japan. What are the trends toward future GDP growth indicating for each and are any of the countries likely to overtake or fall behind the others over the next 10 years?

Continuing this comparison, change the selection of “Country” back to “Region” and add the following selections to your chart without removing any of the five countries previously listed. Now add the regions North America, East Asia & Pacific, Latin America and Carribean, Europe and Central Asia, South Asia, and Sub-Saharan Africa.

6. You are in charge of developing new manufacturing facilities for the overseas markets and are charged with selecting the best option for developing the overseas production of batteries and will use nano technology in production. What region and what country will you select and why?

This is for an overseas market. If your answer indicates using U.S. markets you will lose points. If you are an international student, you can not use your country of origin, you must use a region you are not familiar with. This question requires research.

*You must use at least five sources (total) to support your analysis (in other words, we want more than just your unsupported opinion, what do the experts say) and cite them accordingly within the text. You could use these sources more than once in your analysis, but you must use a minimum of five different sources.

*Your textbook could be one source, but you will still need four more.

http://www.usdebtclock.org/

http://www.google.com/publicdata/explore?ds=d5bncp…

Several students have indicated a need to single space in order to have enough room on two pages. Single spacing is appropriate in this instance. Additionally, MS Word defaults to 1.25 inch left and right margins and you should reset them to 1 inch. Please do not use smaller than a font size of 12 and I would suggest Times New Roman as the font.

THE MANAGER’S JOB
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Who Is a Manager?
ï‚— A manager is person responsible for work
performance of group members.
ï‚— Has formal authority to commit organizational
resources.
ï‚— Management is process of using organizational
resources to achieve objectives through the
functions of planning, organizing and staffing, and
leading.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Levels of Management
1.
2.
3.
4.
Top-level managers (executives) are empowered
to make major decisions.
Term C-level manager refers to top-level manager
with “chief” in title.
Middle-level managers are layer between top- and
first-level managers.
First-level managers or supervisors manage
operatives.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Types of Managers
ï‚— Functional managers supervise workers in special
activities, such as accounting.
ï‚— General managers are responsible for groups
performing a variety of functions.
ï‚— Administrators are managers in public and nonprofit
organizations.
ï‚— Entrepreneurs and small-business owners.
ï‚— Team leaders are catalysts and facilitators.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
The Process of Management
 Managerial work is a process—a series of actions
that brings about a goal.
ï‚— To achieve that objective, the manager (a) uses four
types of resources, and (b) carries out the four
managerial functions. (See slides 6 and 7. )
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Resources Used by Managers
Managers use four types of resources:
1. Human resources (the workers)
2. Financial resources (the money)
3. Physical resources (tangible goods and real estate)
4. Information resources (data used to accomplish
the job; as knowledge workers, managers need
information resources)
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
The Four Managerial Functions
Planning is setting and attaining goals.
Organizing and staffing obtains human and
physical resources to get job done.
3. Leading influences others to achieve
organizational objectives. Leaders also execute to
accomplish goals.
4. Controlling ensures that performance conforms to
plans.
Executives plan the most; supervisors lead face-to-face
the most.
1.
2.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
The Seventeen Managerial Roles
ï‚— Planning: (1) strategic planner, (2) operational
planner.
ï‚— Organizing and staffing: (3) organizer, (4) liaison, (5)
staffing coordinator, (6) resource allocator, (7) task
delegator. (Talent management is concentrated in
staffing coordinator and resource allocator roles.)
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
The Seventeen Managerial Roles, continued
ï‚— Leading: (8) motivator and coach, (9) figurehead,
(10) spokesperson, (11) negotiator, (12) team
builder, (13) team player, (14) technical problem
solver, (15) entrepreneur.
ï‚— Controlling: (16) monitoring, (17) disturbance
handler.
Managers take on right role at right time.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Managerial Roles Currently Emphasized
ï‚— Managerial work has shifted substantially away from
the controller and director role.
ï‚— Current emphasis is on being a coach, facilitator, and
supporter.
ï‚— Many managers today work as partners with team
members to jointly achieve results.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Influence of Management Level on
Managerial Roles
 Manager’s level of responsibility influences which role
he or she is likely to engage in most frequently.
ï‚— Most important roles for top-level managers are
liaison, spokesperson, figurehead, and strategic
planner.
ï‚— First-level manager might emphasize roles of
motivator and coach, and technical problem solver.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Management as a Practice
ï‚— Management more of a practice than science or
profession.
ï‚— Managers use some systematic knowledge, but rely
also on intuition.
ï‚— Management not a profession in sense of being
licensed occupation.
ï‚— Public trust would be gained if management became
a profession that followed an ethical code.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Management as a Practice, continued
ï‚— Management would become more professionalized
with use of evidence-based management—the
systematic use of the best available evidence to
improve managerial practice.
ï‚— Would mean that managers rely on both scientific as
well as local business evidence.
ï‚— Study and research would be required.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
The Five Managerial Skills
1.
2.
Technical skill involves and understanding of or
proficiency in specific technique.
Interpersonal skill is manager’s ability to work
effectively as a team member and to build
cooperative effort in the unit. Multiculturalism is
important subset of interpersonal skill.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
The Five Managerial Skills, continued
3.
4.
5.
Conceptual skill is ability to see the organization as
total entity (the “big picture”). Needed for
strategic planning.
Diagnostic skill is investigating a problem and
choosing course of action to solve it.
Political skill is ability to acquire power to achieve
objectives. Understanding of people is required.
Should be a supplement to job competence.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Development of Managerial Skills
 Experience and education—including formal
training—both required for development of
management skills.
ï‚— Managerial skills can be learned from book or
lecture, but should then be applied using the general
learning model, as shown next.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
General Learning Model
1.
2.
3.
4.
5.
Conceptual information and behavioral guidelines
Conceptual information shown by examples
Skill-development exercises
Feedback on skill utilization from others
Frequent practice plus making adjustments from
feedback
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
The Evolution of Management Thought
ï‚—
a.
b.
The classical approach to management
encompasses scientific management and
administrative management.
Scientific management uses scientific methods to
increase worker productivity.
Administrative management focuses on structure
and management. Led to framework of planning,
organizing, leading, and controlling. Structure
should be determined by strategy.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
The Evolution of Management Thought,
continued
ï‚—
a.
The behavioral approach to management
emphasizes improving management by focusing
on understanding people. Direct cornerstones of
behavioral approach:
The Hawthorne Studies. Workers in the Hawthorne
experiments reacted positively because
management cared about them. Hawthorne effect
says people respond differently when they receive
attention.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
The Evolution of Management Thought,
continued
ï‚—
a.
b.
Theory X and Theory Y of Douglas McGregor
Theory X is traditional set of assumptions about
people, such as people disliking work, and
requiring close supervision.
Theory Y is alternative and opposite set of
assumptions emphasizing workers’ desire to
perform well and be creative.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
The Evolution of Management Thought,
continued
ï‚—
a.
b.
c.
Maslow’s Need Hierarchy
Humans are motivated by efforts to satisfy a
hierarchy of needs.
Needs range from basic physiological ones to
those for self-actualization.
Prompted managers to think about ways of
satisfying wide range of worker needs to keep
them motivated.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
The Evolution of Management Thought,
continued
ï‚—
a.
b.
c.
d.
Quantitative Approaches to Management
Group of methods for decision making based on
the scientific method.
Techniques include network analysis, decision
trees, computer simulations.
Frederick Taylor laid foundation for quantitative
approaches.
Operations research in WWII, true start.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
The Evolution of Management Thought,
continued
ï‚—
a.
b.
c.
The Systems Perspective
Way of viewing problems rather than specific
approach to management.
Organization is a system or an entity of
interrelated parts.
Organization interacts with outside world,
transforming inputs (resources) into outputs
(products and services).
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
The Evolution of Management Thought,
continued
ï‚—
a.
b.
c.
d.
The Contingency Approach
Emphasizes there is no one best way to manage
people or work.
Method that works in one situation may not work
in another.
Manager must identify key factors in the situation
that could influence results.
Common sense helps apply contingency approach.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
The Evolution of Management Thought,
concluded
ï‚—
a.
b.
c.
ï‚—
Information Technology Era and Beyond
Began in 1950s with data processing.
By 1980s, IT and Internet influenced the
management of people and work.
The Internet has had similar impact to that of
electricity in start of 20th century.
The history of management continues to be
written each year. Stay alert!
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
International Management
and Cultural Diversity
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Introductory Ideas
ï‚— Internationalization of business exerts major
influence on manager’s job.
ï‚— Many complex products are built with components
from several countries.
ï‚— Entire world has become more global.
ï‚— One management challenge is to work well with
organizations and people from other countries.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
The Multinational Corporation
ï‚— Multinational corporation (MNC) has units in two or
more countries plus its own.
ï‚— A transnational corporation operates worldwide
without one national headquarters (no “foreign
operations”).
ï‚— As result of globalization, many large companies
have merged with each other. As a result, fewer
competitors exist.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Trade Agreements Among Countries
1.
a.
b.
North American Free Trade Agreement (NAFTA)
establishes liberal trade among United States,
Canada, and Mexico.
Many companies have benefited from NAFTA yet
labor unions point to job losses.
By 10th anniversary of NAFTA, one-half million U.S.
workers were displaced.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Trade Agreements Among Countries,
continued
2.
a.
b.
c.
The Central American Free Trade Agreement
(CAFTA) facilitates trade among six countries and
the U.S.
CAFTA countries have relatively open access to
American markets.
U.S. entry to their markets is easier.
CAFTA goal is 34-nation free trade agreement
among all countries in Western Hemisphere except
Cuba.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Trade Agreements Among Countries,
continued
3. The European Union (EU) is 27-nation alliance.
a. Creates single marketplace for ideas, goods,
services, investment strategies.
b. EU trades with member nations, U.S., Canada, and
other countries in world.
c. Creates single space where EU citizens can travel,
work, invest, use euro.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Trade Agreements Among Countries,
concluded
4.
a.
b.
c.
d.
The World Trade Organization liberalizes trade
among nations across the world.
Attempts to lower trade barriers among 153
countries.
Most favored nation clause requires each country
to give all other countries its best agreement with
respect to trade.
WTO settles disputes between countries.
WTO accused of creating job cuts and downward
pressure on wages.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Global Outsourcing as Part of
International Trade
ï‚— Trade agreements facilitate sending work overseas,
or outsourcing.
ï‚— Number of industries immune to outsourcing is
shrinking.
ï‚— Major force behind outsourcing is the pressure
discounters like Wal-Mart, Target, and dollar stores
exert on manufacturers to keep their prices low.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Case for Global Outsourcing
ï‚— Can create new demand for lower-priced goods,
leading to U. S. jobs.
ï‚— Lowered production costs can help company become
more competitive.
ï‚— Can lead to reciprocity from other countries.
ï‚— Country receiving work from U.S. might hire more
American workers for its U.S. operations.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Case Against Global Outsourcing
ï‚— Could be responsible for permanent job loss and
slow job creation.
ï‚— American employers can offer low wages to domestic
employees because work can be sent overseas.
ï‚— Outsourcing call centers can result in language
barriers for customers.
ï‚— True cost savings from outsourcing are elusive.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Sensitivity to Cultural Differences
ï‚— Sensitivity to cultural differences is guiding principle
for international workers.
ï‚— Cultural sensitivity is awareness of local and national
customs, and how they affect interpersonal
relationships.
ï‚— Multicultural worker enjoys learning about other
cultures.
ï‚— Personality factors, such as emotional stability, help
expatriate be successful.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Challenges Facing the Global Managerial
Worker
ï‚— Developing global leadership skills (See slide 14.)
ï‚— Currency fluctuations (strong currency makes
exporting more difficult)
ï‚— Balance of trade problems (in general, better to
export than import)
ï‚— Human rights violations, corruption, and violence
(also, customers may object)
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Challenges Facing the Global Managerial
Worker, continued
ï‚— Culture shock (problems may develop with person
placed in another culture, including coming back
home right away)
ï‚— Differences in negotiating style (Americans may need
to be more patient and formal)
ï‚— Piracy of intellectual property rights and other
merchandise
ï‚— Coping with dangerous and defective products (may
involve product recalls)
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Developing Global Leadership Skills
ï‚— Global leadership skills focus on ability to deal
effectively with people from other cultures.
ï‚— Combination of cultural sensitivity and leadership
skills.
ï‚— Welcoming other cultures is helpful.
ï‚— Must understand how well management principles
from one’s own culture transfer to another culture.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Methods of Entry Into World
Markets
1.
2.
3.
4.
5.
6.
Exporting
Licensing and franchising
Local assembly and packing
Strategic alliances and joint ventures
Direct foreign investment
Global startup (small firm that begins by serving
an international market)
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Success Factors in the Global
Marketplace
ï‚— Think globally, act locally (focus on locals).
ï‚— Recruit and select talented nationals (need the right
people in other country).
ï‚— Hire or develop multicultural workers
(multiculturalism helps acceptance of firm by
overseas personnel and customers).
ï‚— Research and assess potential markets (get valid
information about markets)
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
The Advantages and Disadvantages
of Globalization
ï‚—
ï‚—
a.
b.
Globalization may be inevitable and desirable, yet
for many workers it has created more problems
than opportunities.
Exhibit 2-4 (text) outlines the many pros and cons
of globalization. For example:
Productivity grows with use of comparative
advantage.
Millions of Americans have lost jobs.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
The Scope of Diversity
ï‚— Valuing diversity means respecting and enjoying a
wide range of cultural and individual differences.
ï‚— To be diverse is to be different in some measurable
way.
ï‚— Working well across generations has become
important.
ï‚— Inclusion emphasized for gay, lesbian, bisexual, and
transgender (GLBT) people.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Competitive Advantage of Diversity
1.
2.
3.
4.
5.
6.
Marketing advantage, including increased sales
and profits.
Can reduce costs by lowered turnover.
Helps in recruiting talented people.
Provides useful ideas for favorable publicity and
advertising.
Helps reduce cultural bloopers, biases.
Heterogeneity may result in creativity.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Potential Problems Associated with
Diversity
ï‚— Heterogeneous groups are assembled but they may
not work harmoniously.
ï‚— When group members are supportive toward each
other, the benefits of group diversity will be
forthcoming.
ï‚— Diverse groups may be less cohesive than those with
less diverse composition.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Organizational Practices to
Encourage Diversity
ï‚— Corporate policies favoring diversity (such as
monitoring recruitment and promotion to assure that
diverse people get good jobs)
ï‚— Employee network groups (employees affiliate based
on demographic group such as race, ethnicity, or
sexual orientation)
ï‚— Diversity training (focus on harmony)
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Diversity Training
ï‚— Strive for harmony by teaching how to get along
with diverse work associates.
ï‚— Aims to minimize open expressions of racisms and
sexism.
ï‚— Increases awareness of and empathy for people who
are different than oneself.
ï‚— Diversity training leads to better retention when
linked to strategy, endorsed by CEO.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
English Language as a Force for
Unity
ï‚— To compete, international workers have to
communicate effectively with each other.
ï‚— Many European and Asian business firms are making
English their official language.
ï‚— Internet encourages use of English.
ï‚— Despite wide use of English, a second language for
North Americans can help build relationships.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Ethics and Social
Responsibility
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Meaning of Business Ethics
ï‚— Ethics is the study of moral obligation, or separating
right from wrong.
ï‚— Ethics converts values into action.
ï‚— Unethical acts can be legal or illegal.
ï‚— Moral intensity is the magnitude of an unethical act,
such as using company jet for a vacation versus
taking home a paper clip.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Philosophical Principles Underlying
Business Ethics
Focus on consequences and pragmatism (decision
is ethical if nobody gets hurt).
2. Focus on rights of individuals (deontology based
on universal principles such as honesty and
fairness).
3. Focus on integrity (virtue ethics contends that if
person has good character and genuine
motivation, he or she is ethical).
Use all three for complex ethical decision.
1.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Values and Ethics
ï‚— Values state what is critically important.
 A firm’s moral standards and values help guide ethics
in decision making.
ï‚— Values influence which behaviors we think are
ethical.
ï‚— Ethically centered management claims that the high
quality of an end product more important than
scheduled completion date.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Sources of Unethical Decisions and
Behavior
1.
a.
b.
c.
d.
Individual characteristics
Self-interest, including greed and gluttony
Unconscious bias leading to unjust treatment of
others
Rationalization, or making up good excuses for
unethical behavior
Job dissatisfaction
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Sources of Unethical Decisions and Behavior,
continued
2.
a.
b.
c.
The nature of the moral issue
Moral intensity is driver of unethical behavior.
Many people willing to behavior unethically when
issue does not appear serious.
Moral laxity—moral behavior slips because other
issues seem more important at the time.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Sources of Unethical Decisions and Behavior,
concluded
3.
a.
b.
c.
The ethical climate in the organization
Organizational climate might condone unethical
behavior, such as risk taking and illegal behavior.
Pressure from management to achieve goals can
compromise ethics.
Too much emphasis on meeting financial targets
can prompt poor ethics.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Ethical Temptations and Violations
1.
2.
3.
4.
5.
6.
Stealing from employers and customers
Illegally copying software
Treating people unfairly (discrimination and
prejudice)
Sexual harassment
Conflict of interest (judgment or objectivity is
compromised)
Accepting kickbacks or bribes for doing business
with another company
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Ethical Temptations and Violations, continued
Divulging confidential information (thereby
violating trust)
8. Misuse of corporate resources
9. Extracting extraordinary compensation from the
organization
10. Corporate espionage
11. Poor cyberethics
7.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Business Scandals as Ethical Violations
ï‚— Best-known scandals associated with infamous
executives.
ï‚— Many ethical problems also with Internet fraud,
identity theft, work-at-home scams.
ï‚— Major financial scandals have enormous financial and
personal consequences.
ï‚— Well-publicized scandals include (a) click fraud, (b)
Enron, (c) fraudulent financial documents, (d)
backdating stock options.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Guide to Ethical Decision Making
1.
2.
3.
4.
5.
6.
Is it right?
Is it fair?
Who gets hurt?
Would you be comfortable if your decision were
exposed publicly?
Would you tell your child (or young relative) to do
it?
How does it smell?
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Corporate Social Responsibility
ï‚—
ï‚—
a.
b.
c.
ï‚—
Firms have obligations to society beyond those to
owner, stockholder, and those prescribed by law or
contract.
Components of CSR:
Cognitive (thinking about relationships)
Linguistic (explaining activities)
Conative (what firm actually does)
CSR often a byproduct of sensible business
decision (e.g., teaching math).
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Stockholder versus Stakeholder
Viewpoints
 Stockholder viewpoint—business firms are
responsible only to owners and stockholders.
 Stakeholder viewpoint—firms are responsible for
quality of life of many groups affected by their
actions.
ï‚— Stakeholders can be partners in success of
organization rather than adversaries.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Corporate Social Performance
ï‚— Extent to which firm responds to demands of its
stakeholders for behaving in socially responsible
manner.
ï‚— To measure social performance, analyze annual
report in search of relevant statistical information
(e.g., donations).
ï‚— Also measure by observing how company responds
to various social issues.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Corporate Social Responsibility
Initiatives
1.
2.
3.
4.
Philanthropy (some firms seek maximum return in
terms of social impact)
Work-life programs (facilitate balancing demands
of work and personal life)
Community redevelopment projects (rebuild
distressed communities; offer job training to
residents)
Acceptance of whistle blowers (those who disclose
organizational wrongdoing)
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Corporate Social Responsibility Initiatives,
continued
5.
a.
b.
c.
Compassionate downsizing
Downsizing is slimming down operations to boost
profits or decrease expenses.
Can lead to substantial collateral damage,
including hits to charity.
Compassion includes questioning whether to
downsize, re-deploying workers, financial and
emotional support to downsized workers.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Seven Illustrative Approaches to
Environmental Protection
1.
2.
3.
4.
5.
6.
7.
Commit to low hazardous emissions.
Develop a green supply chain.
Make sustainability and eco-friendly policies part
of your business plan.
Implement a four-day workweek.
Manufacture and sell products with recycled
materials.
Invest heavily in recycling.
Plant a roof-top garden on workplace.
© 2012 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Creating an Ethical and Socially
Responsible Workplace
ï‚— Formal mechanisms for monitoring ethics (ethics
programs such as ethics committee, channels for
raising questions and voicing concerns).
ï‚— Written organizational codes of conduct (include
general and specific suggestions).
ï‚— Widespread communication about ethics and social
responsibility (executive commentary, small group
discussions).
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Creating an Ethical and Socially Responsible
Workplace, continued
ï‚— Leadership by example and ethical role models
(executives behave ethically, and other managers
also serve as models).
ï‚— Encouragement of confrontation about ethical
deviations (every employee confronts anybody
behaving unethically).
ï‚— Training programs in ethics and social responsibility
(such as executive messages, classes, e-learning,
videos).
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Benefits Derived from Ethics and Social
Responsibility
ï‚— Socially responsible behavior is usually cost effective.
ï‚— More profitable firms can better afford to invest in
socially responsible initiatives, which in turn lead to
more profits (the virtuous cycle).
ï‚— People expect managers to use resources in a way to
protect the environment.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.
Benefits Derived from Ethics and Social
Responsibility, continued
ï‚— Being green can enhance organizational efficiency
through recycling and reducing waste.
ï‚— Reducing and offsetting carbon emissions can save a
company considerable money.
ï‚— Being ethical can help avoid costs of large fines for
being unethical.
ï‚— Socially responsible acts can often attract and retain
socially responsible employees.
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole
or in part.

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