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The three factors that influence ethical decision making are (1) the ethical intensity of the decision, (2) the moral
development of the manager, and (3) the ethical principles used to solve the problems. Since ethical intensity refers
to the degree of concern that people have about an ethical issue, it should be relatively easy for education and
training to improve ethical decision making based upon this dimension. Similarly, education and training can be
used to clarify specific ethical principles and how they might be used in decision making. Students might argue that
moral development-an individual characteristic of an employee-would be much harder to impact through education
and training. This position has merit, though the evidence does show that one's level of moral maturity can change
depending on individual and situational factors. Specifically, we know that as people age, become more educated,
or giảm giá with dilemmas high in ethical intensity, they are more likely to make ethical decisions using a higher level
of moral maturity. Thus, education and training are indeed likely to have a significant impact on this dimension.

One of the techniques that managers can use to encourage more ethical decision making in their organizations is to
carefully select and hire new employees. A large amount of research has demonstrated that managers can increase
their chances of hiring honest job applicants by using integrity tests. The two types of integrity tests currently used
include overt integrity tests, which estimate employee honesty by directly asking job applicants what they think or
feel about theft or about punishment of unethical behaviors, and personality-based integrity tests, which indirectly
estimate employee honesty by measuring psychological traits such as dependability and conscientiousness.
Research results show that companies can use these tests to selectively hire and promote people who will be more
ethical. For example, job applicants who score well on overt integrity tests are likely to participate in less illegal
activity, unethical behavior, drug abuse, or workplace violence; are likely to be better performers; and are less
likely to steal than those who score poorly. Similarly, compared to job applicants who score poorly, job applicants
who score well on personality-based integrity tests are likely to participate in less illegal activity, unethical
behavior, excessive absences, drug abuse, or workplace violence, and are likely to perform better. Thus, these
studies not only show that integrity tests can help companies reduce workplace deviance, but they have the added
bonus of helping companies hire workers who are better performers in their jobs. Such employees can be expected
to be more conscientious about ethical decision making in completing their job duties and responsibilities. While
integrity testing does not predict with certainty, the increase in the probability of ethical behavior is well worth the
cost. Under the 1991 U.S. Sentencing Commission Guidelines, unethical employee behavior can lead to
multimillion dollar fines for corporations. Moreover, workplace deviance, like stealing, fraud, and vandalism, can
cost companies an estimated $200 billion a year.

Social responsiveness is the strategy chosen by a company to respond to stakeholders' economic, legal, ethical, or
discretionary expectations concerning social responsibility. A social responsibility problem exists whenever
company actions do not meet stakeholder expectations. One model of social responsiveness identifies four
strategies for responding to social responsibility problems: (1) reactive, (2) defensive, (3) accommodative, and (4)
proactive. These strategies differ in one way: the extent to which the company is willing to act to meet or exceed
society's expectations. A company using a reactive strategy will do less than society expects and may deny
responsibility for a problem. By contrast, a company using a defensive strategy would admit responsibility for a
problem but would do the least required to meet societal expectations. A company using an accommodative
strategy would accept responsibility for a problem and take a progressive approach by doing all that was expected
to solve the problem. Finally, a company using a proactive strategy would anticipate responsibility for a problem
before it occurred, do more than expected to address the problem, and lead the industry in its approach.
A company might choose one strategy over another for financial and/or ethical reasons. There is not an inherent
relationship between social responsibility and economic performance. Sometimes it pays to be socially responsible,
and sometimes it can cost the company significantly to do so. Further, while socially responsible behavior may be
seen as the "right thing to do," it does not guarantee profitability. Therefore, if company management chooses a
proactive or accommodative strategy toward social responsibility (rather than a defensive or reactive strategy), it
should do so because it wants to benefit society and its corporate stakeholders, not because it expects a better
financial return.

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What is discretionary responsibility directly related to?

Discretionary responsibility refers to purely voluntary obligations that an enterprise assumes.It is the responsibility of the company management to safeguard the capital investment by undertaking only healthy business ventures which gives good returns on investment.It includes charitable contributions, helping people ...

Which of the following statement about social responsibility and economic performance is true?

Which of the following statements about social responsibility and economic performance is true? Social responsibility can sometimes create significant costs for a company. Tải thêm tài liệu liên quan đến nội dung bài viết Companies are not considered unethical if they do not perform their ____ responsibilities

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