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2020 Prentice Hall, Inc. All rights reserved. 5–21 Structural Variables ? Organizational characteristics and mechanisms that guide and influence individual ethics: ?Performance appraisal systems ?Reward allocation systems ?Behaviors (ethical) of managers ?An organization’s culture ?Intensity of the ethical issue ? Good structural design minimizes ambiguity and uncertain and foster ethical behavior. Copyright 169。 2020 Prentice Hall, Inc. All rights reserved. 5–5 L E A R N I N G O U T L I N E (cont’d) Follow this Learning Outline as you read and study this chapter. Managerial Ethics ? Define ethics. ? Contrast the four views of ethics. ? Discuss the factors that affect ethical and uhical behavior. ? Describe the three levels of moral development. ? Define values, ego strength, and locus of control. ? Explain the structural variables and organizational culture variables that can influence the decision to behave ethically or not. ? Discuss the six determinants of issue intensity. Copyright 169。 2020 Prentice Hall, Inc. All rights reserved. 5–10 Does Social Responsibility Pay? ? Studies appear to show a positive relationship between social involvement and the economic performance of firms. ?Difficulties in defining and measuring ―social responsibility‖ and ―economic performance raise issues of validity and causation in the studies. ?Mutual funds use social screening in investment decision slightly outperformed other mutual funds. ? A general conclusion is that a firm’s social actions do not harm its longterm performance. Copyright 169。 2020 Prentice Hall, Inc. All rights reserved. 5–26 Ethical Leadership ? Managers must provide a good role model by: ?Being ethical and honest at all times. ?Telling the truth。 2020 Prentice Hall, Inc. All rights reserved. 5–16 Managerial Ethics (cont’d) ? The Theory of Justice ?Organizational rules are enforced fairly and impartially and follow all legal rules and regulations. ?Protects the interests of underrepresented stakeholders and the rights of employee. ? Integrative Social Contracts Theory ?Ethical decisions should be based on existing ethical norms in industries and munities in order to determine what constitutes right and wrong. ?Based on integration of the general social contract and the specific contract between munity members. Copyright 169。8th edition Steven P. Robbins Mary Coulter PowerPoint Presentation by Charlie Cook Copyright 169。 2020 Prentice Hall, Inc. All rights reserved. 5–15 Managerial Ethics (cont’d) ? Utilitarian View ?Ethical decisions are made solely on the basis