Because learning changes everything.

CHAPTER 3
THE MANAGER’S WORK
ENVIRONMENT AND
ETHICAL
RESPONSIBILITIES
Doing the Right Thing

© 2022 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom.
©Olivier Renck/ Getty Images
No reproduction or further distribution permitted without the prior written consent of McGraw Hill.
 LEARNING OBJECTIVES
3-1 Describe the triple bottom line of people, planet, and
profit.
3-2 Identify important stakeholders inside the organization.
3-3 Identify important stakeholders outside the
organization.
3-4 Explain the importance of ethics and values in
effective management.
3-5 Describe the concept of social responsibility and its
role in today’s organizations.
3-6 Discuss the role of corporate governance in assessing
management performance.
3-7 Describe how to develop the career readiness
competency of professionalism/work ethic.

© McGraw Hill
 MANAGE U: BEING COURAGEOUS AT WORK

• Practice in a Low-Risk Setting

• Plan for an Endurance Event

• Rely on Self-Regulation after

the Act of Courage

© McGraw Hill
 THE GOALS OF BUSINESS: MORE THAN
MAKING MONEY

The Triple Bottom Line: People, Planet, and

Profit

Younger Workers’ Search for Meaning

© McGraw Hill
 THE TRIPLE BOTTOM LINE: PEOPLE, PLANET,
AND PROFIT

• In this view of corporate performance, an

organization has a responsibility to its
people, planet, and profit.
• Success in these areas can be measured
through a social audit.

© McGraw Hill
 YOUNGER WORKERS’ SEARCH FOR
MEANING
• Millennials (born between 1981 and 1996)
and Gen Zers (born after 1997) care about
the triple bottom line.
• Younger workers expect more from the
organizations they work for and do
business with.
• These generations want things like
meaningful work and products that
represent their personal values more than
older generations ever did.

© McGraw Hill
 THE COMMUNITY OF STAKEHOLDERS
INSIDE THE ORGANIZATION

Internal and External Stakeholders

Internal Stakeholders

© McGraw Hill 7
 INTERNAL AND EXTERNAL STAKEHOLDERS

• Managers operate in two organizational

environments, both made up of various
stakeholders.

© McGraw Hill
 INTERNAL STAKEHOLDERS

Large or small, your organization has people

in it who have both an important stake in how
it performs and the power to shape its future.
• Employees
• Owners
• Board of Directors

© McGraw Hill
 THE COMMUNITY OF STAKEHOLDERS

Figure 3.1.
Source: From Diverse
Teams at Work by Lee
Gardenswartz. Published
by the Society for Human
Resource Management. Access the text alternative for slide images.

© McGraw Hill
 THE COMMUNITY OF STAKEHOLDERS
OUTSIDE THE ORGANIZATION

The Task Environment

The General Environment

© McGraw Hill 11
 THE TASK ENVIRONMENT

Task • Customers
environment • Competitors
consists of 10 • Suppliers
groups that • Distributors
interact with • Strategic Allies
the • Employee Organizations
organization • Local Communities
on a regular • Financial Institutions
basis. • Government Regulators
• Special-Interest Groups

© McGraw Hill
 THE GENERAL ENVIRONMENT

• The general environment includes six forces:

economic, technological, sociocultural,
demographic, political–legal, and
international.
• You may be able to control some forces in
the task environment, but you can’t control
those in the general environment.
• As a manager you need to keep your eye on
the far horizon because these forces of the
general environment can affect long-term
plans and decisions.

© McGraw Hill
 THE GENERAL ENVIRONMENT:
FIGURE 3.2 STATES WHERE MARIJUANA IS LEGAL

Source: “State Medical Marijuana Laws,” National Conference

of State Legislatures, October 16, 2019, https://www.ncsl.org/
research/health/state-medical-marijuana-laws.aspx.

Access the text description for slide image.

© McGraw Hill
 THE ETHICAL RESPONSIBILITIES
REQUIRED OF YOU AS A MANAGER

Defining Ethics and Values

Four Approaches to Resolving Ethical

Dilemmas
White-Collar Crime, SarbOx, and Ethical
Training

How Organizations Can Promote Ethics

© McGraw Hill
 DEFINING ETHICS AND VALUES

Ethical standards may vary among countries and among cultures.

Six most common workplace behaviors that are considered ethical
misconduct.
• Conflicts of interest
• Abusive behaviors
• Violations of health and safety regulations
• Corruption
• Discrimination
• Sexual harassment
Values and value systems are the underpinnings for ethics and
ethical behavior.

© McGraw Hill
 DEFINING ETHICS AND VALUES:
FIGURE 3.3 GLOBAL RATES OF UNETHICAL
WORKPLACE BEHAVIOR

Source: Ethics & Compliance Initiative, “2019 Global Business Ethics Survey: Workplace Misconduct and Reporting—a Global Look,” 2019,
https://43wli92bfqd 835mbif2ms9qz-wpengine .netdna-ssl.com/wp-content/ uploads/Global-Business-Ethics- Survey-2019-Third-Report-1.pdf.

Access text description for slide image.

© McGraw Hill
 FOUR APPROACHES TO RESOLVING
ETHICAL DILEMMAS
The Utilitarian Approach:
• For the Greatest Good
The Individual Approach:
• For Your Greatest Self-Interest Long Term, Which Will
Help Others
The Moral-Rights Approach:
• Respecting Fundamental Rights Shared by Everyone
The Justice Approach:
• Respecting Impartial Standards of Fairness

© McGraw Hill
 WHITE-COLLAR CRIME, SARBOX,
AND ETHICAL TRAINING
• Executives’ deceits generated a
great deal of public outrage, and
as a result Congress passed the
Sarbanes-Oxley Act.
• Sarbanes–Oxley Act established
requirements for proper financial
record keeping for public
companies.
• It also requires companies to
have established procedures and
guidelines for audit committees.

© McGraw Hill
 HOW ORGANIZATIONS CAN PROMOTE
ETHICS
Ethics needs to be an everyday affair, not a one-time
thing.
There are several ways an organization may promote high
ethical standards:
• Creating a strong ethical climate
• Screening prospective employees
• Instituting ethics codes and training programs
• Rewarding ethical behavior: protecting whistle-blowers
• Using a multi-faceted approach

© McGraw Hill
 THE SOCIAL RESPONSIBILITIES
REQUIRED OF YOU AS A MANAGER

Corporate Social Responsibility: The Top of the Pyramid

Is Social Responsibility Worthwhile? Opposing and

Supporting Viewpoints

One Type of Social Responsibility: Climate Change,

Sustainable Development, and Natural Capital

Another Type of Social Responsibility: Undertaking

Philanthropy, “Not Dying Rich”

Does Being Good Pay Off?

© McGraw Hill
 CORPORATE SOCIAL RESPONSIBILITY:
THE TOP OF THE PYRAMID
Corporate social responsibility rests at the top of a
pyramid of a corporation’s obligations, right up there
with economic, legal, and ethical obligations.
The responsibilities of an organization in the global
economy should take the following priorities:
• Be a good global corporate citizen.
• Be ethical in its practices.
• Obey the law.
• Make a profit.

© McGraw Hill
 CORPORATE SOCIAL RESPONSIBILITY:
THE TOP OF THE PYRAMID.
Figure 3.4 Carroll’s
global corporate social
responsibility pyramid.
Source: A. Carroll,
“Managing Ethically and
Global Stakeholders: A
Present and Future
Challenge,” Academy of
Management Executive,
May 2004, p. 116.

Access text description for slide image.

© McGraw Hill
 IS SOCIAL RESPONSIBILITY WORTHWHILE?
OPPOSING AND SUPPORTING VIEWPOINTS
Against Social Responsibility:
• Unless a company focuses on maximizing profits, it will become
distracted and fail to provide goods and services, benefit the
stockholders, create jobs, and expand economic growth.

• This supports the efforts of companies to set up headquarters in

name only in offshore tax havens in order to minimize their tax
burden.
For Social Responsibility:
• A company must be concerned for society’s welfare as well as for
corporate profits.
• Beyond ethical obligation, the rationale for social responsibility is
the belief that it is good for business, morally appropriate, or
important to employees.

© McGraw Hill
 ONE TYPE OF SOCIAL RESPONSIBILITY:
CLIMATE CHANGE, SUSTAINABLE
DEVELOPMENT, AND NATURAL CAPITAL
• Nearly everyone is aware of the growing threat of climate change and global
warming.
• Scientists say global warming is a “clear and unequivocal emergency”
and that without significant changes, the world will face “untold human
suffering.
• Sustainable development, is economic development that meets the needs
of the present without compromising the ability of future generations to meet
their own needs.

© McGraw Hill
 ANOTHER TYPE OF SOCIAL RESPONSIBILITY:
UNDERTAKING PHILANTHROPY,
“NOT DYING RICH”

• “He who dies rich dies thus disgraced”

(Andrew Carnegie)
• The Bill and Melinda Gates Foundation,
has pledged to spend billions on health,
education, and overcoming poverty.
• The Gateses have been joined by 169
other billionaires from 22 countries.

© McGraw Hill
 DOES BEING GOOD PAY OFF?

• Indeed it pays to be ethical and socially

responsible.
• An organization’s commitment to CSR
may be an important factor for you to
consider during job searches.
• Supportive findings are shown in Table
3.1.

© McGraw Hill
 CORPORATE GOVERNANCE

Corporate Governance and Ethics

• Good corporate governance can contribute to more
ethical and socially responsible organizations.
• CEO accountability, board composition, and CSR
contracting are important governance factors for
organizations and their boards to consider.

Corporate Governance and Social

Responsibility
• Corporate governance is about such matters as long-term
strategies, sustainable finances, accurate reporting, and
positive work environment.

© McGraw Hill
 FIGURE 3.5 CAREER READINESS
COMPETENCIES

Access text description for slide image.

© McGraw Hill
 CAREER CORNER:
FOCUS ON THE GREATER GOOD
AND ON BEING MORE ETHICAL
Focus on the greater good and on being more ethical:
• Reduce your carbon footprint.
• Foster positive emotions in yourself and others.
• Spend time in nature.
• Get the proper amount of sleep.
• Increase your level of exercise.
• Expand your awareness of social realities.
• Fulfill your promises and keep appointments.
• Avoid people who lack integrity.

© McGraw Hill
 CAREER CORNER:
BECOME AN ETHICAL CONSUMER

Don’t purchase items

Purchase Fair Trade
that aren’t ethically
items.
made or sourced.

Bring your own

Don’t buy knockoffs.
grocery bags.

© McGraw Hill
 End of Main Content

Because learning changes everything. ®

www.mheducation.com

© 2022 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom.
No reproduction or further distribution permitted without the prior written consent of McGraw Hill.