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(3) Figure 1-3: Carroll’s Global Corporate Social Responsibility
Pyramid presents the four levels of Carroll’s model of
CSR/business ethics: See Slide 1-28
(a) Level 1: make a profit consistent with expectations for
international businesses to fulfill economic responsibilities.
(b) Level 2: obey the law of host countries as well as international
law to fulfill legal responsibility.
(c) Level 3: be ethical in practices, taking host-country and global
standards into consideration to fulfill ethical responsibility.
(d) Level 4: be a good corporate citizen, especially as defined by
the host country’s expectations to fulfill philanthropic
responsibility.
(4) Each level needs to be solid if the structure is to stand and a firm
cannot pick-and-choose levels.
iii) An Erosion of Morality?
(1) Taking Local Norms and Conduct into Consideration See
Slide 1-31
(a) National culture affects how people think and act about
everything, including ethical issues.
(b) Research demonstrates that managers from different countries
hold different views of behaviors such as giving and accepting
gifts, passing blame, sharing confidential information, and
Chapter 01 - Organizational Behavior: The Quest for People-Centered Organizations and Ethical Conduct
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concealing errors.
(2) Ethical Lapses in the Workplace See Slide 1-32
(a) Unethical behavior occurs at all organizational levels, although
recent research indicates that senior executives tend to have
significantly more positive perceptions of ethics in their
organizations than do lower-level employees.
(b) Lower-level employees may regularly witness common ethical
lapses, but many job applicants have ethical lapses.
(3) Intense Pressure for Results Starts Early See Slides 1-33,
1-34
(a) Pressure to perform is common in the workplace and has many
sources, including individuals’ desire to “look good” for their
bosses and a pressure for results when individuals are
rewarded for accomplishing their goals.
(b) Managers can foster unethical behavior due to their own
motivations to perform, perceptions that such behaviors are
actually acceptable or that no consequences will occur, reward
systems that incentivize unethical behaviors, and/or the physical
environment facilitates such actions.
(c) By fostering a pressure-cooker atmosphere for results,
managers can unwittingly set the stage for unethical shortcuts
by employees who seek to please and be loyal to the company.
Chapter 01 - Organizational Behavior: The Quest for People-Centered Organizations and Ethical Conduct
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(d) Pressure to perform is planted early in life with research
demonstrating that many teens feel they’re under strong
pressure to succeed in school, no matter the cost.
iv) General Moral Principles
(1) Table 1-4: The Magnificent Seven: General Moral Principles for
Managers identifies seven general moral principles: See
Slide 1-35
(a) Dignity of human life: the lives of people are to be respected.
(b) Autonomy: all persons are intrinsically valuable and have the
right to self-determination.
(c) Honesty: the truth should be told to those who have a right to
know it.
(d) Loyalty: promises, contracts, and commitments should be
honored.
(e) Fairness: people should be treated justly.
(f) Humaneness: our actions ought to accomplish good, and we
should avoid doing evil.
(g) The common good: actions should accomplish the “greatest
good for the greatest number” of people.
(2) Managers should rely on these moral principles so their decisions
are principled, appropriate, and defensible.
(3) The Real World/Real People: Do Billionaire Businesspeople
Have an Obligation to “Give Back” to Society? profiles the
Chapter 01 - Organizational Behavior: The Quest for People-Centered Organizations and Ethical Conduct
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(4) decision of some of the country’s richest people to donate at least
half their wealth to charity.
v) How to Improve the Organization’s Ethical Climate See
Slides 1-36
(1) Behave ethically yourself: managers are potent role models
whose habits and actual behavior send clear signals about the
importance of ethical conduct.
(2) Screen potential employees: diligent action in this area can
screen out those given to fraud and misrepresentation.
(3) Develop a meaningful code of ethics: codes of ethics can have a
positive impact if they satisfy these four criteria:
(a) They are distributed to every employee.
(b) They are firmly supported by top management.
(c) They refer to specific practices and ethical dilemmas likely to be
encountered by target employees.
(d) They are evenly enforced with rewards for compliance and strict
penalties for noncompliance.
(4) Provide ethics training: employees can be trained to identify and
deal with ethical issues during orientation and through training
sessions.
(5) Reinforce ethical behavior: behavior that is reinforced tends to be
repeated, whereas behavior that is not reinforced tends to
disappear.
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(6) Create positions, units, and other structural mechanisms to
deal with ethics: ethics needs to be an everyday affair, not a one-
time announcement of a new ethical code.
(7) Create a climate in which whistle-blowing becomes
unnecessary: whistle-blowing occurs when an employee reports a
perceived unethical and/or illegal activity to a third party such as
government agencies, news media, or public-interest groups.
vi) A Personal Call to Action
(1) Organizational climate, role models, structure, and rewards all can
point employees in the right direction, but individuals must have the
individual motivation to do the right thing.
(2) Individuals must be morally attentive, meaning they faithfully
consider the ethical implications of their actions and circumstances.
(3) Individuals must also want to do the right thing and have the
courage to act.
VI. Learning about OB: Research and a Road Map
i) Five Sources of OB Research Insights See Slide 1-37
(1) Meta-analysis: a statistical pooling technique permitting general
conclusions about variables of interest through aggregating findings
across a number of different studies.
(2) Field studies: examine individual or group processes in an
organizational setting.
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(3) Laboratory studies: variables are manipulated and measured in
controlled situations.
(4) Sample surveys: samples of people from specified populations
respond to questionnaires and researchers draw conclusions about
the relevant population.
(5) Case studies: in-depth analyses of an individual, group, or
organization.
ii) A Topical Model for Understanding and Managing OB
(1) Figure 1-4: A Topical Model for What Lies Ahead is a road map
for the balance of the chapters in the book. See Slide 1-38
(2) Logically, the flow of topical coverage in this book goes from
individuals, to group processes, to organizational processes.
(3) Our destination is organizational effectiveness through continuous
improvement.
BACK TO THE CHAPTER-OPENING CASE
1. What TQM principles are embedded in http://www.Zappos.com’s values
and culture?
a. There are four common TQM principles: (1) Do it right the first time
to eliminate costly rework; (2) listen to and learn from customers
and employees; (3) make continuous improvement an everyday
Chapter 01 - Organizational Behavior: The Quest for People-Centered Organizations and Ethical Conduct
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an everyday matter. The firm is able to build teamwork, trust, and
mutual respect through its hiring process; the firm will not hire job
TQM.
2. How does http://www.Zappos.com build human and social capital?
a. Figure 1-2 identifies components of human and social capital.
When evaluating student responses, look for an understanding of
3. What evidence of a 21st-century organization, based on Table 1-3, can
you find in the http://www.Zappos.com case?
a. Table 1-3 profiles the kind of manager needed in the 21st century
and compares past managers to future managers for 12
dimensions of management. When evaluating student responses,
4. Where does http://www.Zappos.com belong on Carroll’s Corporate Social
Responsibility Pyramid in Figure 1-3? Explain.
Chapter 01 - Organizational Behavior: The Quest for People-Centered Organizations and Ethical Conduct
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a. A firm’s Level 1 responsibility is to make a profit. The fact that
Zappos merged with Amazon in 2009 when the firm had a market
value of $1.2 billion is evidence the firm meets its economic
responsibilities. A firm’s Level 2 responsibility is to obey the law.
1. What role, if any, does McGregor’s Theory Y play at Whole Foods?
Explain.
a. Theory Y contends that managers can accomplish more through
others by viewing them as self-energized, committed, responsible,
2. How does Whole Foods build human and social capital?
Chapter 01 - Organizational Behavior: The Quest for People-Centered Organizations and Ethical Conduct
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they are well trained. The company develops social capital by
3. How does this case bring the profile of the 21st- century manager (Table
1-3) to life? Explain.
a. John Mackey illustrates many of the skills of a 21st century
manager. For instance, he views his role as co-CEO as one of a
facilitator, team member, teacher, advocate, sponsor or coach,
4. Where would you locate Whole Foods on Carroll’s global corporate social
responsibility pyramid in Figure 1-3? Explain.
a. Whole Foods operates at Level 4 in Carroll’s global corporate social
5. Which of the seven moral principles in Table 1-4 appear to be in force at
Whole Foods? Explain.
a. The seven moral principles are dignity of human life, autonomy,
Chapter 01 - Organizational Behavior: The Quest for People-Centered Organizations and Ethical Conduct
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6. What appeals to you (or does not appeal to you) about working at Whole
Foods? Explain.
a. This is a personal preference question and student responses will
vary accordingly.
LEGAL/ETHICAL CHALLENGE: School Reform Advocate Michelle Rhee
Wants to Put Students First
As a parent, school board member, or school administrator, what position
would you take on this ethics-laden issue?
1. By virtue of their many years of service, senior teachers have earned the
right to be protected from a layoff. (What is your ethical reasoning for this
view?)
5. Invent other interpretations or options. Discuss.
Discussion:
Schools have several options when determining the criteria to be used to reduce
the number of teachers. Common criteria in lay-off decisions include seniority,
Chapter 01 - Organizational Behavior: The Quest for People-Centered Organizations and Ethical Conduct
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short tenure, they are the ones who are let go. In addition, just because younger
teachers may have more career mobility and would be better able to survive a
layoff does not necessarily mean that it is in the best interest of the school or the
teachers to automatically lay-off the newest or youngest teachers.
expends.
The advantage of using competencies is that the school ensures that the skills
and knowledge that it will need in the future will still be possessed by its teachers
Those teachers with valued skills and competencies are the ones who stay
employed with the school. This would allow the school to continue to be
Internet Exercise
www.sife.org
Students in Free Enterprise (SIFE) is an international network of student,
academic and business leaders devoted to helping other people achieve their
dreams by teaching them basic business and entrepreneurship skills. University
Chapter 01 - Organizational Behavior: The Quest for People-Centered Organizations and Ethical Conduct
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students from around the world work in partnership with business and academic
professionals to use the knowledge gained in their classroom training to address
real world business and economic issues in their communities. SIFE student
teams participate in outreach projects to teach fundamental business concepts
such as market structures, supply and demand, budgeting, accounting,
entrepreneurship and business ethics. The SIFE program is an excellent
example of social entrepreneurship and students who participate in the program
are able to develop their human and social capital.
Go to www.sife.org and click on “About SIFE,” then click “Media and
Publications,” and then click “Videos.” Here you will find a variety of short videos
that provide more information about the goals of SIFE and how SIFE can help
develop future business leaders. Watch as many as the videos that you want,
but be sure to watch the video clips titled “Bringing Out the Best in Our World,”
“The Power to Change Lives,” and “Doing Well by Doing Good.” Next, click on
the “Find SIFE Worldwide” link to learn if your university has a SIFE student
chapter.
Questions:
1. Discuss the business and interpersonal skills that you could enhance by
participating in the SIFE program.
2. How important does the creation of social capital appear to be to the
individuals who participate in this program?
3. Referring to Table 1-2, discuss how the SIFE program could help you
build your human and social capital.
4. What is meant by the phrase “doing well for yourself by doing good for
others?”
5. Why do you think that the university professors choose to participate in the
program?
6. If your university has a SIFE student chapter, are you interested in
becoming involved with organization? Explain.
INSTRUCTIONAL RESOURCES
1. To facilitate a conversation on modern businesses ethics, introduce this
73-80.
