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Kinicki/Williams, Management, 9e: Chapter 3 The Manager’s Changing Work Environment and Ethical
Responsibilities: Doing the Right Thing
3.2 The Community of Stakeholders Inside the Organization
POWERPOINT SLIDES:
#4 The Community of Stakeholders
#5 Internal Stakeholders
Section 3.2 discusses one of the two organizational environments that managers operate in—
internal. The internal environment consists of the following stakeholders: employees, owners,
Kinicki/Williams, Management, 9e: Chapter 3 The Manager’s Changing Work Environment and Ethical
Responsibilities: Doing the Right Thing
o In many forward-looking organizations, employees are considered the most
important resource.
● The owners of an organization consist of all those who can claim it as their legal
property.
● In a corporation, the board of directors, whose members are elected by the stockholders,
hires the chief executive.
Connect® Exercise
CLICK AND DRAG: The Organization’s Environment
Summary of Activity:
3.3 The Community of Stakeholders Outside the Organization
POWERPOINT SLIDES:
#6 External Stakeholders
#7–9 The Task Environment
#13–14 The General Environment
Section 3.3 describes the external environment, which consists of the task and general
environments. The task environment consists of customers, competitors, suppliers, distributors,
Kinicki/Williams, Management, 9e: Chapter 3 The Manager’s Changing Work Environment and Ethical
Responsibilities: Doing the Right Thing
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supplemental activity, you can have the students analyze the reasons why the customer boycott
was successful at Market Basket and explore the role of social media in increasing the bargaining
power of customers.
Topics and Tips for Discussion:
1. Discuss the elements of the task environment that are most likely to impact your
academic institution over the next 5 to 10 years. How could your school best deal with
those challenges?
2. Discuss how the forces in the general environment over the next 5 to 10 years will impact
your current employer or a company for which you want to work after graduation.
3. Discuss how companies can best harness the power of social media to keep abreast of
trends in the external environment.
Section 3.3 Key Concepts:
External Stakeholders
● The external stakeholders are people or groups in the organization’s external
environment that are affected by it.
● This environment consists of the task environment and the general environment.
Task Environment
● The task environment consists of 11 groups that present you with daily tasks to handle.
Interactive Classroom Material:
Kinicki/Williams, Management, 9e: Chapter 3 The Manager’s Changing Work Environment and Ethical
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EXAMPLE: Technology Changes Everything
This Example examines the disruption caused by technological advances. It explains the Internet
● A distributor is a person or organization that helps another organization sell its goods and
services to customers.
● The term strategic allies describes the relationship of two organizations that join forces
to achieve advantages neither can perform as well alone.
● Employee organizations such as unions and associations represent another external
stakeholder.
● Local communities are important stakeholders since they often rely on companies for
jobs, contributions to the tax base, and/or financial support.
● Financial institutions are another stakeholder.
o Financial institutions such banks, savings and loans, and credit unions provide
capital to new ventures.
● Government regulators are regulatory agencies that establish ground rules under which
organizations may operate.
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Responsibilities: Doing the Right Thing
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o Such regulators are stakeholders because they affect the activities of the
organization and are in turn affected by it.
● Special-interest groups are groups whose members try to influence specific issues, and
they are an important stakeholder.
The General Environment
● The general environment, or macroenvironment, includes six forces: economic,
technological, sociocultural, demographic, political–legal, and international.
● Technological forces are new developments in methods for transforming resources into
goods or services, for example, biotechnology.
● Political–legal forces are changes in the way politics shape laws and how those laws
affect organizations.
● International forces are changes in the economic, political, legal, and technological
global system that may affect an organization.
3.4 The Ethical Responsibilities Required of You as a
Manager
Kinicki/Williams, Management, 9e: Chapter 3 The Manager’s Changing Work Environment and Ethical
Responsibilities: Doing the Right Thing
#19-22 Four Approaches to Deciding Ethical Dilemmas
#24 The Sarbanes-Oxley Reform Act
#25 How Do People Learn Ethics?
#26 How Organizations Can Promote Ethics
One way that you could begin your coverage of these topics is to have the students watch the
video “Small Nudges Can Create Ethical Behavior.” In this 11-minute video, Dr. Sreedhari Desai
Topics and Tips for Discussion:
1. Describe the three most significant ethical dilemmas you face at your company (or faced
at a previous employer).
2. Assume that one of your colleagues has agreed to sell you a copy of all the exam
questions for your next exam in this course. Apply the four approaches to deciding
ethical dilemmas to determine if it would be ethical for you to buy the questions and use
them to study for the exam.
Section 3.4 Key Concepts:
Ethics and Values
● An ethical dilemma is a situation in which you have to decide whether to pursue a course
of action that may benefit you or your organization but that is unethical or even illegal.
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● Values are the relatively permanent and deeply held underlying beliefs and attitudes that
help determine a person’s behavior.
Four Approaches to Deciding Ethical Dilemmas:
● The utilitarian approach is guided by what will result in the greatest good for the
greatest number of people.
● The individual approach is guided by what will result in the individual’s best long-term
interests, which ultimately is considered in everyone’s self-interest.
● The moral-rights approach is guided by respect for the fundamental rights of human
beings.
● The justice approach is guided by respect for impartial standards of fairness and equity.
Connect® Exercise
CLICK AND DRAG: Four Approaches to Resolving Ethical Dilemmas
Summary of Activity:
Group Exercise: Solving an Ethical Dilemma
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This Group Exercise, available at the end of this manual, applies the four approaches to studying
ethical dilemmas.
Exercise Objective
White-Collar Crime
• At the beginning of the 21st century, U.S. business was rocked by an array of
• Insider trading is the illegal trading of a company’s stock by people using
confidential company information.
Sarbanes-Oxley Act of 2002
● The Sarbanes-Oxley Act of 2002 established requirements for proper financial record
The Work of Laurence Kohlberg
• Psychologist Laurence Kohlberg has proposed three levels of personal moral
development.
How Organizations Can Promote Ethics
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● An organization may promote high ethical standards on the job by creating a strong
ethical climate, by screening prospective employees, by instituting ethics codes and
training programs, and by rewarding ethical behavior by protecting whistle-blowers.
● An ethical climate represents employees’ perceptions about the extent to which work
environments support ethical behavior.
● A whistle-blower is an employee, or even an outside consultant, who reports
organizational misconduct to the public.
Connect® Exercise
CLICK AND DRAG: How Organizations Can Promote Ethics
Summary of Activity:
Interactive Classroom Material:
EXAMPLE: The Whistle-Blowing Photographer
SELF-ASSESSMENT 3.1 CAREER READINESS
Assessing My Perspective on Ethics
CAREER
READINESS
Kinicki/Williams, Management, 9e: Chapter 3 The Manager’s Changing Work Environment and Ethical
Responsibilities: Doing the Right Thing
Click for follow-up activity.
3.5 The Social Responsibilities Required of You as a Manager
POWERPOINT SLIDES:
#27 The Social Responsibilities Required of You as a Manager
#28 Carroll’s Global Corporate Social Responsibility Pyramid
#29-30 Types of Social Responsibility
#31 How Does Being Good Pay Off?
One way that you could begin your coverage of these topics is to have the students view the
Topics and Tips for Discussion:
1. Summarize the benefits to firms of displaying ethical behavior and high social
responsibility.
2. Assume you want to learn more about a firm’s corporate social responsibility prior to
accepting a job offer. How would you go about determining if the firm’s corporate social
responsibility (CSR) is consistent with your values?
Section 3.5 Key Concepts:
Corporate Social Responsibility
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Responsibilities: Doing the Right Thing
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● Corporate social responsibility (CSR) is the notion that corporations are expected to go
above and beyond following the law and making a profit.
Carroll’s Global Corporate Social Responsibility Pyramid
● Archie Carroll developed a global corporate social responsibility pyramid, with the levels
economic, legal, ethical, and philanthropic.
● Carroll suggests that the priorities of the organization should be to:
Connect® Exercise
CLICK AND DRAG: Carroll’s Corporate Social Responsibility
Is Social Responsibility Worthwhile? Opposing and Supporting Viewpoints
● Economist Milton Friedman argued that the only social responsibility of businesses is to
maximize profits; otherwise, they will become distracted and fail to achieve their goals.
● In contrast, economist Paul Samuelson argued that a company must be concerned for
society’s welfare, as well as for corporate profits.
● Those who support corporate social responsibility would argue:
o Because businesses create problems, they should help solve them.
Connect® Exercise
CLICK AND DRAG: How Does Being Good Pay Off?
Summary of Activity:
Kinicki/Williams, Management, 9e: Chapter 3 The Manager’s Changing Work Environment and Ethical
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Interactive Classroom Material:
EXAMPLE: Corporate Social Responsibility: Salesforce.com Wants to Change the Way
the World Works
This Example profiles how Salesforce has adopted business conduct principles and a code of
One Type of Social Responsibility: Climate Change, Sustainability, & Natural Capital
● Climate change refers to major changes in temperature, precipitation, wind patterns, and
similar matters occurring over several decades.
● Global warming refers to the rise in global average temperature near the Earth’s surface,
caused mostly by increasing concentrations in the atmosphere of greenhouse gases, such
Another Type of Social Responsibility: Philanthropy, “Not Dying Rich”
● Philanthropy is making charitable donations to benefit humankind.
● Several wealthy individuals, such as Bill Gates and Mark Zuckerberg, have signed the
How Does Being Good Pay Off?
● Research shows consumers are more apt to buy from companies that are socially
Kinicki/Williams, Management, 9e: Chapter 3 The Manager’s Changing Work Environment and Ethical
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● Findings of research on how being good can pay off can be found in Table 3.1.
SELF-ASSESSMENT 3.2 CAREER READINESS
Assessing Your Attitudes toward Corporate Social Responsibility
Connect® Exercise
CASE ANALYSIS: Blue Bell Is Accused of “Recall Creep” in Its Handling of Ice Cream
Contamination
Summary of Activity:
Follow-Up Activity:
Students should be divided into small groups of five. Ask students to discuss what happened at
Connect® Exercise
VIDEO CASE: Amy’s Kitchen
Summary of Activity:
Follow-Up Activity:
Students should be divided into small groups. They should assume they are a task force for a
CAREER
READINESS
Kinicki/Williams, Management, 9e: Chapter 3 The Manager’s Changing Work Environment and Ethical
Responsibilities: Doing the Right Thing
stakeholders to buy in to this new line of products, assuming they will have less of a profit
margin than their traditional baby formula.
3.6 Corporate Governance
POWERPOINT SLIDES:
#32 Corporate Governance
Section 3.6 discusses corporate governance. Corporate governance is the system of governing a
company so that the interests of corporate owners and other stakeholders are protected. Company
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● Corporate governance is the system of governing a company so that the interests of
corporate owners and other stakeholders are protected.
Interactive Classroom Material:
EXAMPLE: Corporate Governance: Good and Bad: HD Supply Holding, Fox News
This Example tells two very different stories. The board of directors at HD Supply Holding took
note of hacking at Equifax and used it as the spur to examine their own company, beef up
The Need for Trust
● Employees, customers, and other stakeholders must have trust in the company.
● Trust is demonstrated through:
o How likely the people you’re dealing with are to serve your interests.
o How much they have demonstrated concern for others.
3.7 Career Corner: Managing Your Career Readiness
POWERPOINT SLIDES:
Kinicki/Williams, Management, 9e: Chapter 3 The Manager’s Changing Work Environment and Ethical
Responsibilities: Doing the Right Thing
One way that you could begin your coverage of this topic is to assign the Inc. article, “Want to
Kinicki/Williams, Management, 9e: Chapter 3 The Manager’s Changing Work Environment and Ethical
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• Purchase Fair Trade items.
Career Corner Group Exercise #1: Enhancing Your Professionalism/Work Ethic
Competency
Learning Objectives
2. Students will develop practical actions aimed at increasing ethical behavior and focusing on
the greater good.
Career Corner Group Exercise #2: Boosting Positive Emotions
Learning Objectives
1. Students will explore techniques for boosting positive emotions
CAREER
READINESS
CAREER
READINESS
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MANAGEMENT IN ACTION
WHO’S TO BLAME FOR COLLEGE BASKETBALL’S “DARK UNDERBELLY”?
Problem-Solving Perspective
1. What is the underlying problem in this case from the federal government’s perspective?
The underlying problem is the illegal use of financial incentives exchanged between a
corporation (i.e., a sportswear company) and a university (which can be a state-owned
2. Why do you think assistant coaches play such a significant role in these scandals?
Assistant coaches, compared to head coaches, 1) operate more outside of the spotlight, 2)
3. How do you think the NCAA and the Commission on College basketball should move
forward to prevent these things from happening in the future?
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special NCAA department responsible for all related transactions, it is possible that the
NCAA could require university leadership to more be more closely involved and monitor
team finances as oversight of the athletic departments themselves. Another opportunity to
curtail such behavior, is to regulate the transactions more openly. There is an ongoing
debate over whether college athletes should be able to receive payments, albeit in a
fairer structure than star players versus other teammates or star teams versus others
(e.g., every college athlete getting a stipend or payment).
Application of Chapter Content
1. How do you think the basketball teams’ task environment, particularly competitors,
allies, customers, regulators, and media, played into the corruption in the NCAA?
The task environment consists of stakeholders who create tasks that must be
accomplished by the focal entity(ies). In this case, the focal entities are the individual