This is HRM 3660. class notes. BEST for the online version of the course. includes textbook notes, class notes, and a chart that includes all videos covered( which will be asked about on midterm)
3 parts – sensitivity training (identifying problems), methodology to deal with
problems(moral standards), application of moral standards to the 4 business partners
Session 1
Gladiator (uses only themselves) vs ethical leader (uses everyone around them
to fight)
4 business partners
1. EMPLOYEES,
2. CUSTOMERS,
3. ENVIRONMENT,
4. SHARE HOLDERS
Dilemmas: bribing another company to get what you want. What you want is
illegal but making the payment will get it for you. 10-million-dollar payment for a
result of a 500-million-dollar contract. Will you make the payment?
o you weigh how much you would get out of it and all the business partners
e.g. If you invest the 10 mills then all of your employees can take
vacations and you could renovate the company etc….
o you ask WHAT IF SOME ONE FINDS OUT? Where you weigh the
consequences. – they would destroy the company, and people would go to
jail. You public appearance can disarray e.g. people would not want to
support your company anymore.
Dilemma: you realize that your supplier of jeans for your company, is actually
making the jeans with forced salve labour. You spend billions of dollars and save
a lot of money using this manufacturer. Do you pull out of using them or not? 1-
billion-dollar loss if you pull out.
o How hard is it to find another jean supplier? you brand will be associated if
slaves. E.g. Nike and low paid workers- you might lose even more sales
o What are the consequences if you don’t pull out?
Ways that help us decide is reading the good and the bad about the situation,
the more good you have vs bad on a list helps you mae your choice.
Ethics: study of morality, in business it’s the right or wrong that society thinks
takes place in a workplace,
Morality: is the standards that individual or group thinks about what is right or
wrong/ good or evil.
Business ethics: is a specialize study of moral right or wrong. its concentrated on
moral business standards, polices and behaviour.
Corporate social responsibility: this is a moral evaluation of the impact and
organization has on society.
Law and ethics
Religion and ethics: eg. Euthanasia – some religions believe that you shouldn’t
kills a person but ethic may think that the right thing to do is to give a person a
choice.
Perspectives on ethics
- ethics as a business constraint eg. Costs, some think you miss opportunities or spend
more to act ethical in the public eye
- ethics pays – business advantage because the more ethical, and socially responsible
then he more profitable you will be
- ethics pinned to business- is going for a business all businesses need to have
underlying minimal ethics
throughout history businesses evolved to give things like warranty’s to
customers, for protection because this seemed right.
,Session 2&3: Ethical framework
Identify The problem: Personal gain, or help another and save a life?
Identify The stake holders: the sadhu (it’s his life ), and the manager MCcoy( he doesn’t
want to lose his ability to climb the mountain)
stake holders are any group of individuals who can affect where is affected by
the achievement of the organization purpose. Stakeholders have stakes in the
business either as an interest, right or ownership.
There are both primary and secondary stakeholders. Primary stakeholders
include Company manager, and employees, customers and, suppliers basically
anybody who deals directly with organization.
Secondary stakeholders are the government, competitors, media and the
environment, future generations. Anybody who indirectly gets affected by the
organization.
Descriptive ethics(FACTS): statement makes a claim about a case “WHAT IS “the
case eg. Canadians cheat on their taxes
Normative ethics(subjective) : statement about “what out to be” the case , what you
think . eg. Canadians ought to cheat on their taxes
Textbook on stake holders
A stake is an interest or share or undertaking. Stake holders are people who
can affect or is affected by the action, polices or goals of the organization.
3 views of the firm how its has changed over time production-----stake hodler
o production: suppliers and consumers, the groups that supplied
resources--- to the uses of the materials
o managerial: when the employees, owners, suppliers, users of products
were acknowledging as stake holders
o stakeholder: lastly the final stake holder view. Most advanced.
Acknowledges EVERYONE not just the people that interact with the
business directly. All environments like POLITICAL, ECONOMIC, SOCIAL,
TECHNOCOLOGICAL.
There are primary and secondary stakeholders: this is determined based on
their attributes of POWER( the ability of the stake holder to get something
done eg. PETA can influence the practices of fast food restaurants),
LEGITIAMCY(it’s the validity of the claim to the stake, eg. Customer have
more valid claim because they directly buy the products), URGENCY ( the
degree to which the stake holders clamin causes for immediate attention eg.
A union strike)
o Primary: Direct stakeholder and these people are the most under
influence by the actions. Consumers, employees, managers. Primary
non social stake holders: these include groups in the natural
environment eg. Future geerations and non human species.
o Secondary: extremely influential over the firms descions, indirectly
involved. Eg. Government, media, competitors. Secondary non-social
stakeholders, these are the people who SPEAK for the primary non-
social stake holders. Like NGO’S animal activists.
3 values in the stakeholder model
o descriptive: it provides language and terms used to understand,
provides fuller descriptions to aid organizations.
o instrumental: it is useful in portraying the relationship between stake
holders adnp performance goals
o normative: this is the ethical view, it emphasizes how stake holders
should be treated
, 5 KEY questions in stake holder management – critical to capturing the
essential info needed for stake holder management
o who are the stakeholders
o what are the stakeholders steaks meaning what are they’re interested
in an organization
o what are the opportunities and challenges do stakeholders present to
the firm
o what responsibilities does the firm have to its stakeholders for
example economic legal ethical and philanthropic
o what strategies action should’ve friend take to best address the
stakeholder challenges and opportunities
stke holders can provide opportunities and challenges
o cooperation
o threat
stakeholder management capability(SMC): this can effect the extent to which
the organization has effective stake holder management. This is the
incropaoration of stake holder thinking into processes. Such as (in order)
o rational: where the company identifies its stake holders
o process: planning integrativeness, because it includes the stake
holders in their descion making.
o transactional: this is actual relationships and transactions that the
organization has with the stake holders.
Stakeholder engagement
o Ladder of stake holder engagement
o Transparency
o Sustainability
Stakeholder corporation, inclusiveness, BETTERS the relationship between the
customers, employees and shareholders. Because it increases the
shareholder value because they have a lot of influence over the company.
Stakeholder symbiosis : the idea that stake holders depend on EACHOTHER
for success and financial ell-being.
Ethical analysis
Societal:
Industry:
Organizational
Individual
Identify the moral Standards: is leaving someone to die acceptable? he used the fact
that he didn’t take responsibility to save the man… this is called playing the
VICTIM(where its everyone’s fault but yours). THEREFORE, he thinks he should not be
held culpable for the man’s life. He felt he was doing his bare minimum by helping the
sadhu for a little bit before passing him onto someone else.
Applicability towards HR: IF YOU DO NOT TAKE RESPONSIBILITY, YOU CANNOT BE
SUCCESSFUL.
- questions towards behaviour being different if the person in distress was the same
race?
Descriptive vs normative ethics
Descriptive: statement makes a claim about what is the case eg. The fact that
there was limited time to make it through the mountain pass, describing and
charactierzing
Normative: statement about what ought to be the case eg. I think it might rain
tomorrow
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