chp5 ethics and social responsibility

7/27/2019 Chp5 Ethics and Social Responsibility

1/20


2/20

5-2

The four levels of Ethical

Questions in business


3/20


4/20


5/20

5-5

Ethical Models

Societal

Social Ethics:

Legal rules, customs

Internal Policy

Professional Ethics:

Values in workplace

Personal

Individual Ethics:

Family influence

Organizations

Code of Ethics

Figure 5.2


6/20


7/20


8/20


9/20


10/20


11/20

5-11

Social Responsibility

Social Responsibil i ty:the managers duty tonurture, protect and enhance the welfare ofstakeholders.

There are many ways managers respond tothis duty:

Obstructionist response:managers choose not

to be socially responsible. Managers behave illegally and unethically.

They hide and cover-up problems.


12/20

5-12

Defensive response:managers stay within the

law but make no attempt to exerciseadditional social responsibility. Put shareholder interest above all other stakeholders.

Managers say society should make laws if change is

needed.Accommodative response:managers realizethe need for social responsibility. Try to balance the interests of all stakeholders.

Proactive response:managers activelyembrace social responsibility. Go out of their way to learn about and help stakeholders.


13/20

5-13

Levels of Responsibility

Obstruction

response

Defensive

responseAccommodative

response

Proactive

response

Low HighSocial responsibil i ty

Figure 5.3


14/20

5-14

Why be Responsible?Managers accrue benefits by beingresponsible. Workers and society benefit.

Quality of life in society will improve.

It is the right thing to do.

Whistleblowers:a person reporting illegal orunethical acts.

Whistleblowers now protected by law in most cases.


15/20

5-15

Promoting Ethics

There is evidence showing that ethicalmanagers benefit over the long run.

Ethical Control System:a formal system toencourage ethical management. Firms appoint an ethics ombudsmanto monitor

practices.

Ombudsman communicates standards to all employees.Ethical cul ture:firms increasingly seek tomake good ethics part of the norm andorganizational culture.


16/20

5-16

Managing Diverse Workforces

The workforce has become much morediverse during the last 30 years. Diversity refers to dif ferencesamong people such as age,

gender, race, religion. Diversity is an ethical and social responsibility issue.

Managers need to give all workers equalopportunities.Not following this is against the law and unethical.

When all have equal opportunity, the organizationbenefits.


17/20

5-17

Types of DiversityFigure 5.5

Capabilities

Disabilities

Socioeconomicbackground

Sexual

orientation

ReligionEthnicity

Race

Gender

Age


18/20


19/20

5-19

Diversity Makes Business Sense

Diverse employees provide new, differentpoints of view. Customers are also diverse.

Still, some employees may be treated unfairly. Biases:systematic tendencies to use information in ways

that result in inaccurate perceptions.

People often view those like themselves positively and

have biases about others. Social status is a type of bias conferred to people of

differing social position.

Stereotypes:inaccurate beliefs about a given group.


20/20

5-20

"CSR: A Cornerstone of our Enduring Success"

At IndianOil, corporate social responsibility (CSR) has been

the cornerstone of success right from inception in the year

1964. The Corporations objectives in this key performance

area are enshrined in its Mission statement: "to helpenrich the quality of life of the community and preserve

ecological balance and heritage through a strong

environment conscience.

We at IndianOil have defined a set of core values forourselvesCare, Innovation, Passion and Trustto guide us

in all we do

chp5 ethics and social responsibility

Documents