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Ethics
The inner-guiding moral principles, values, and beliefs that people use to analyze or interpret a situation and then decide what is "right" or the appropriate way to behave.
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Ethical dilemma
The quandary people find themselves in when they have to decide if they should act in away that might help another person or group, and is the "right" thing to do, even though doing so might go against their self-interest.
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What happens if you behave ethically?
Stakeholders will support them. Thus, ethical companies grow and expand over time, and their stakeholders benefit. The result of unethical behavior is the loss of reputation and resources, shareholders who sell their shares, skilled managers and employees who leave the company, and customers who turn to the products of more reputable companies.
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What are the four rules for ethical decision making?
Justice Rule, Utilitarian Rule, Moral Rights Rule, Practical Rule
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Utilitarian Rule
An ethical decision should produce the greatest good for the greatest number of people
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Moral Rights Rule
An ethical decision should maintain and protect the fundamental rights and privileges of people.
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Practical Rule
An ethical decision should be one that a manager has no hesitation about communicating to people outside the company because the typical person in a society would think the decision is acceptable.
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Justice Rule
An ethical decision should distribute benefits and harm among people in a fair, equitable, and impartial manner.
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Accomodative approach
Companies and their managers behave legally and ethically and try to balance the interests of different stakeholders as the need arises.
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Proactive approach
Companies and their managers actively embrace socially responsible behavior...and promote the interests of all stakeholders.
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Obstructionist approach
Companies and their managers choose not to behave in a socially responsible way and instead behave unethically and illegally.
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Defensive approach
Companies and their managers behave ethically to the degree that they will stay within the laws and abide strictly with legal requirements.
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Steps for ethical decision making.
- 1. What is the definition of ethics?
- 2. What is the moral dilemma?
- 3. How are the stakeholders affected?
- 4. Apply the four rules.
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What are the building blocks of national culture?
values and norms
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Values
Ideas about what a (specific) society believes to be good, right, desirable, or beautiful.
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Norms
Unwritten, informal codes of conduct that prescribe how people should act in particular situations and are considered important by most members of a group or organization.
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Hofstede's Model of National Culture
- Individualism-Collectivism
- Low power distance-High power distance
- Achievement-Nuturing
- Low certainty avoidance-high uncertainty avoidance
- Short-term orientation-long term orientation
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Individualism
A worldview that values individual freedom and self expression and holds a strong belief in personal rights and the need for persons to be judged by their achievements rather their social background.
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Collectivism
A worldview that values subordination of the individual to the goals of the group. Prevalent in communistic governments and Japan as well.
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Power distance
A society's acceptance of differences in the well being of citizens due to differences in heritage, and physical and intellectual capabilities.
Places with high power distance have wide gap between rich and poor. (Panama and Malaysia)
Low power distance (western cultures, US and Germany), the gap between rich and poor is reduced by taxation and welfare programs.
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Achievement-Oriented
Value assertiveness, performance, and success and are results-oriented. (US and Japan)
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Nurturing-Oriented
Value the quality of life, personal relationships, and service. (Sweden and Denmark)
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Uncertainty Avoidance
Societies and people differ in their tolerance for uncertainty and risk.
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Low certainty avoidance
US and Hong Kong value diversity and tolerate a wide range of opinions and beliefs.
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High uncertainty avoidance
Japan and France are more rigid and expect high conformity in their citizens' beliefs and norms of behavior.
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Long-Term Outlook
Cultures that are based on the values of saving and persistence. (Taiwan and Hong Kong)
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Short-Term Outlook
Cultures that seek the maintenance of personal stability or happiness in the present. (France and US)
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Task Environment
The set of forces and conditions that originate with suppliers, distributors, customers, and competitors, which affect your ability to obtain inputs and dispose of outputs because they influence managers on a daily basis.
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General Evironment
The wide-ranging global, economic, technological, sociocultural, demographic, political and legal forces that affect an organization and its task environment.
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Forces in General Environment
- TSDPE
- Technological
- Sociocultural
- Demographic
- Political and legal
- Economic
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Forces in Task Environment
- CDCS
- Competitors
- Distributors
- Customers
- Competitors
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