Ethics & CSR
What are the three major ethical decision-making principles?
utilitarianism, rights, and justice
Utilitarian
Behavior is ethical if it delivers the greatest good to the greatest number of people
Focuses on outcomes; ends justify the means
NOTE: Requires proper assessment of the stakeholders of a decision
Rights
Behavior is ethical if it respects the fundamental rights shared by all human beings
e.g., Charter of Rights and Freedoms, free speech, due process, privacy, life and safety, etc.
Justice
Behavior is ethical if it is fair and impartial in its treatment of people
Impose and enforce rules fairly
Two ways: Does it affect our ability to provide inputs or the amount of outcomes they receive?
Question to ask: “Is a group being systematically disadvantaged?”
Does the group receive fewer outcomes?
Does the group have the same opportunity to provide inputs?
What kind of conflict involves disagreements about how to accomplish a task?
process conflict
Disagreements about how work should be organized and accomplished
Eg, disagreements about delegations of tasks and responsibilities
What are the four “I’s” of transformational leadership?
Idealized Influence, Inspirational Motivation, Intellectual Stimulation, Individualized Consideration
Which type of power comes from being well-liked?
referent power
Power derived from being liked by others
What are the visible elements of culture called?
artifacts
Aspects of culture that you see, hear and feel
Physical representation of a culture (tangible items)
Which ethical principle focuses on outcomes, seeking the greatest good for the greatest number?
utilitarian principle
Behavior is ethical if it delivers the greatest good to the greatest number of people
Focuses on outcomes; ends justify the means
NOTE: Requires proper assessment of the stakeholders of a decision
What type of stressor is associated with red tape and office politics?
hindrance stressor
Stressors that keep you from reaching your goals (red tape, office politics, confusion over responsibilities, etc.)
What is LMX theory based on?
The quality of the relationship between leaders and followers (based on social exchange theory).
What are the three elements of dependency in power?
Importance, scarcity, and non-substitutability
Why is organizational culture like an iceberg?
Because behaviors are visible, but values and assumptions lie beneath the surface.
What theory suggests organizations use ethical behavior to signal their trustworthiness?
signaling theory
Evolutionary theory
Applies when there is information asymmetry between sender and receiver
High cost (honest) signals communicate fitness (and survivability)
Ethical initiatives signal the fitness of the organization
Actions signal the ethical nature of the leaders and the business
Which conflict style is high in both assertiveness and cooperativeness?
collaborating
Parties try to solve the problem by clarifying differences and accommodating various points of view; High assertiveness and High cooperation
Useful in these situations:
To find an integrative solution when both sets of concerns are too important to be compromised
When your objective is to learn
To merge insights from people with different perspectives
To gain commitment by incorporating concerns into a consensus
To work through feelings that have interfered with a relationship
What type of leader gives little direction or feedback and avoids involvement?
laissez-faire leader
There is an absence of leadership
Provide limited instructions
Have limited contact with subordinates/team members
Often do not provide feedback, goals
Take the approach of “letting people do their job”
What are the four facets of political skill?
Social astuteness, interpersonal influence, apparent sincerity, networking ability
What are two suggestions for giving effective feedback?
Be specific and describe behaviors, not the person.
What is CSR and what is it positively related to in employees?
Corporate Social Responsibility, positively related to trust, job satisfaction, commitment, and OCBs.
What is the Job Demands-Resources Model’s main idea?
That resources help offset job demands, reducing strain and boosting motivation.
Interaction of demands and resources (i.e., moderation; Process #1)
Having resources to cope with demands can decrease strain (i.e., offset the negative effects of stress)
Partial model (i.e., simplified from model on previous slide)
Which Path-Goal leadership style is best when tasks are ambiguous?
directive leadership
Behaviors that clarify goals, clarify means to carry out tasks, scheduling, coordinating work, use of rewards/punishment contingent on performance (operant learning theory), etc.
What is the difference between power and authority?
Power can be informal and flows in all directions; authority is formal and flows down the hierarchy.
What are two key functions of organizational culture?
Integration and external adaptation
Integration
Culture helps members solve problems
Culture is taught to newcomers
Culture strongly influences behavior
External adaptation
Helps guide employees to meet goals
Name one personal and one situational cause of unethical behavior.
Personal: Machiavellianism
Situational: Resource scarcity or pressure to conform
“Bad Apple” – Personality causes
Need for power, Machiavellianism (part of the dark triad of personality), Risk taking, Moral identity
“Bad Barrel” – Situational causes
Gain (e.g., anticipation of reward or lack of punishment), Role conflict, Competition/Scarce Resources, Pressures to conform, Social modeling, Anonymity/Lack of accountability, Organization/Industry Culture
When is task conflict more likely to have a positive effect?
When relationship conflict is low and/or in top management teams.
Name one positive and one negative outcome of charismatic leadership taken to the extreme.
Positive: Inspiration and commitment
Negative: Overconfidence or denial of failure
Why are coercive and legitimate power considered less effective?
They may generate compliance but not commitment, and can lead to mistrust or low satisfaction.
What are two strategies for overcoming resistance to change?
Educate and involve employees
Offer incentives or desirable roles
Use transformational leadership
Communicate clearly and build trust