UNIVERSITY OF TECHNOLOGY, JAMAICA

School of Business Administration

Module: Introduction to Management Module Code: MAN1006 &

Principles of Management MAN1001

Tutorial Session 5 - Ethics and Corporate Social Responsibility

Review Questions
1. What is ethics, and how does it intersect with the realms of law and free choice?

2. What are the four approaches used to guide ethical decision making?

 Briefly describe each approach.

 Which of these approaches is most relevant to the business sector, and why?

3. What is the justice approach to ethics?

 Briefly explain its core principles and how it guides ethical decision-making.
 Identify and describe the three types of justice within this approach.

4. What are the stages of moral development?

 List and define each stage.

 According to your text and the discussion in your lecture, at which stage of moral
development do most managers typically fall? Explain why.

5. What is social responsibility, and why is it often considered a complex concept?

6. What are the key criteria of corporate social responsibility (CSR)?

 List and define each criterion.

 Explain why some companies choose to engage in CSR initiatives

7. "The utilitarian approach is the most suitable ethical framework for businesses." Do you agree
or disagree with this statement? Justify your position by discussing the strengths and
weaknesses of the utilitarian approach in the context of business decision-making.

8. What are the key steps involved in establishing and maintaining an ethical organizational
culture?

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 CASE – ETHICAL DILEMMA

Clear Skies or Cloudy Conscience?

Aisha Khan gazed out of her office window at the majestic peaks of the Blue Mountains, a sight that had always
filled her with a sense of peace and connection to her Jamaican homeland. She had always dreamed of her
children exploring these mountains just as she had as a child. But now, her very own company might be putting
that dream at risk.

Aisha was a lead software engineer at Solar Innovations, a rising star in the renewable energy sector. Despite
its promising future, Solar Innovations had been struggling financially in recent months. Aisha and her team had
developed a groundbreaking new solar panel technology that the company saw as its ticket to success.
Executives were ecstatic that they could manufacture these panels at a significantly lower cost thanks to relaxed
environmental regulations. The government had eased restrictions on waste disposal, allowing Solar
Innovations to dump manufacturing byproducts directly into a nearby river that flowed from the mountains.

Aisha was desperate for the company to succeed, but she couldn't shake the feeling that this wasn't the right
path. She voiced her concerns about the waste disposal to her project manager and her direct supervisor, David
Brown. David had always been supportive, but this time was different. The project manager dismissed her
concerns, stating, "We're complying with government regulations. It's their job to protect the environment. Ours
is to make a profit and keep the company afloat."

Disheartened and conflicted, Aisha turned away from the window. The once-inspiring view now served as a
painful reminder of her powerlessness to protect the natural beauty she cherished. She knew the company's
Chief Operating Officer was visiting the following week. Maybe she would understand the ethical implications
of polluting the river. But if she didn't, Aisha knew she'd be risking her job. Her supervisor had already hinted
that she wasn't being a team player. Should she just stay silent and let it go? After all, the company wasn't
breaking any laws.

Questions Relating to the Case: What would you do if you were Aisha?

 Talk to the Chief Operating Officer: Emphasize the responsibility Solar Innovations has as a leader in
the renewable energy sector to set a positive example. Propose that the company engage in voluntary
pollution reduction as a marketing strategy, positioning itself as a truly environmentally responsible
choice.

 Stay silent and focus on your work: The company is technically within the legal limits, and if its
financial situation doesn't improve, many people could lose their jobs.

 Contact an environmental advocacy group: Alert them to the situation and encourage them to
organize a protest the company. This is a drastic measure that Aisha should only consider if the first
option fails.

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CASE – ETHICAL DILEMMA
Case Study: The Conflicted Consultant
Nadine is a young management consultant working for a prestigious firm in Kingston. She has been assigned to
a project for a major client, a large manufacturing company that is facing financial difficulties. The client is
considering laying off a significant portion of its workforce to cut costs.
During her analysis, Nadine discovers evidence that the company's financial problems are partly due to
unethical practices by some senior executives. These practices include misreporting financial data, engaging in
bribery, and exploiting loopholes in environmental regulations.
Nadine is torn. She knows that reporting these unethical practices could jeopardize the consulting firm's
relationship with the client and potentially cost her job. On the other hand, she feels a strong sense of moral
obligation to do what is right. She also understands that the layoffs will have a devastating impact on the
employees and their families.
Discussion Questions:
1. What is the ethical dilemma that Nadine is facing? Identify the conflicting values and interests at
play.
2. Which of the four normative approaches to ethical decision making (Utilitarian, Individualism,
Moral-Rights, and Justice) would you recommend Nadine use in this situation? Explain your
reasoning.
3. Discuss the company's actions considering the criteria of corporate social responsibility (economic,
legal, ethical, and discretionary). Are they fulfilling their responsibilities?

Discussion Questions (Group Activity)

1. Which do you think would be more effective for shaping long-term behaviour in an organization: a
written code of ethics combined with ethics training or strong ethical leadership? Which would have
more impact on you? Why?

2. Imagine yourself in a situation of being encouraged by colleagues to inflate your expense account. What
factors do you think would influence your choice? Explain.

3. You discover that your company is engaging in illegal activities that harm the environment. You've
raised your concerns with your supervisor, but they have been dismissed. What factors would influence
your decision to become a whistle-blower and report the company's actions to the authorities? What are
the potential risks and rewards of such a decision?

4. You join a company known for its strong ethical culture. However, you soon realize that some of your
colleagues engage in minor ethical breaches, such as taking office supplies for personal use or padding
their work hours. How would you respond to this situation? Would you conform to the group's
behaviour, challenge it, or try to find a middle ground? Explain your reasoning.

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 True or False

1. ______ Ethics, found between the domains of law and free choice, is the code of moral principles that
governs any individual or groups.

2. ______ Free choice lies between the domains of codified law and ethics.

3. ______ An ethical dilemma arises in a situation when each alternative

or behavior is undesirable because of potentially harmful ethical consequences.

4. ______ Objective dualism is the ethical concept that argues that moral behaviors
produce the greatest good for the greatest number of people

5. ______ The ethical concept that acts are moral when they promote the individual's best
long term interests, which ultimately leads to the greater good, is known as the
moral rights approach.

6. ______ In the individualism approach, the right of free speech must be considered.

7. ______ Individuals, at the preconvention level, are concerned with external rewards and
punishments and obey authority to avoid detrimental personal consequences.

8. ______ Social responsibility is management's obligation to make choices and take

actions that will contribute to the welfare and interests of society as well as the
organization

9. ______ A formal statement of the organization's values regarding moral principles and
governing its response to social values is called a code of ethics.

10. ______ A stakeholder is any group outside the organization that has a stake in the
organization's performance.

Scenario – The Imbalance at Rainbow Hardware

The weight of expectation settled heavily on Bruce James' shoulders once more. As the Human Resource
Manager at Rainbow Hardware, Inc., he found himself inundated with requests from both internal employees
and external stakeholders, urging him to take a closer look at the company's promotion policies.

The reason? Out of the 52 middle and high-level executives within the firm, only three were women. A glaring
disparity that was hard to ignore. The pressure was mounting on Bruce to re-evaluate the policies that had
contributed to this perceived gender imbalance. If warranted, he was expected to take corrective measures to
foster a more equitable environment.

1. The decision to recruit, hire, train and promote both men and women equally is based on the ethical approach of
a. utilitarian approach.
b. individualism approach.
c. moral rights approach.
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 d. all of these provide the basis.
e. none of these.

2. Using the justice approach for ethical decision-making, the logic of promoting qualified men and women would
be supported by
a. equal rights justice.
b. distributive justice.
c. procedural justice.
d. compensatory justice.
e. all of these.

3. A(n) _______ would outline the procedures Bruce should use in this and other ethical situations.
a. principle-based statement
b. code of ethics
c. corporate credo
d. policy-based statement
e. ethics committee

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