copyright © houghton mifflin company. all rights reserved. 5-1 chapter 5 management’s social and...

Copyright © Houghton Mifflin Company. All rights reserved.

5-1

Chapter 5

Management’s Social and Ethical Responsibilities


5-2

Chapter Outline

Social Responsibility: Definition and Perspectives

What Does Social Responsibility Involve? What Is the Role of Business in Society? Arguments For and Against Corporate Social

Responsibility


5-3

Chapter Outline (continued)

Toward Greater Social Responsibility Social Responsibility Strategies Who Benefits from Corporate Social

Responsibility? The Future of Corporate Social Responsibility


5-4

Chapter Outline(continued)

The Ethical Dimension of Management Practical Lessons from Business Ethics

Research Personal Values as Ethical Anchors General Ethical Principles


5-5

Chapter Outline(continued)

Encouraging Ethical Conduct Ethics Training Ethical Advocates Codes of Ethics Whistle-blowing


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WHAT DOES CORPORATE SOCIAL RESPONSIBILITY INVOLVE?

Corporate social responsibility: “the notion that corporations have an obligation to constituent groups in society other than stockholders and beyond that prescribed by law or union contract.”

Voluntary action An emphasis on means, not ends


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(continued)

For Discussion:1. Why is “voluntary action” a key to corporate

social responsibility?


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(continued)

For Discussion:2. Could an “emphasis on means rather than

ends” encourage well-meaning but socially irresponsible actions? (For example, some college organizations sponsor social events on behalf of needy groups, such as disabled children, who actually get very little if any benefit after program expenses have been paid.)


5-9

ARGUMENTS FOR AND AGAINST CORPORATE SOCIAL

RESPONSIBILITY

Arguments for:1. Business is unavoidably involved in social issues.

2. Business has the resources to tackle today’s complex societal problems.

3. A better society means a better environment for doing business.

4. Corporate social action will prevent government intervention.


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RESPONSIBILITY(continued)

Arguments against:1. Profit maximization ensures the efficient use of

society’s resources.

2. As an economic institution, business lacks the ability to pursue social goals.

3. Business already has enough power.

4. Because managers are not elected, they are not directly accountable to the people.


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RESPONSIBILITY(continued)

For Discussion:Which set of arguments do you find most

convincing? Why?


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SOCIAL RESPONSIBILITY STRATEGIES

Reaction Defense Accommodation Proaction

Low High

Degree of social responsibility


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(continued)

Reactive social responsibility strategy: denying responsibility and resisting change.

Defensive social responsibility strategy: using legal maneuvering and/or public relations campaign to avoid assuming additional responsibilities.


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(continued)

Accommodative social responsibility strategy: assuming additional responsibility because of outside pressure from special-interest groups or threatened government action.

Proactive social responsibility strategy: formulating a program that serves as a model for the industry.


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Enlightened self-interest: realization that business ultimately helps itself by helping to solve societal problems.

ENLIGHTENED SELF-INTEREST


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ENLIGHTENED SELF-INTEREST (continued)

For Discussion:1. Do you personally endorse the concept of

enlightened self-interest? Why or why not?

2. Is the reality of short-term costs versus long-term benefits a fatal flaw for the concept of enlightened self-interest in the business world?


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THE ETHICAL DIMENSION OF MANAGEMENT

Ethics: The study of moral obligation involving the distinction between right and wrong.


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ETHICS SURVEY

Instructions: Based on your personal work experience, rank (from 1 = most common to 10 = least common) the following ten ethical hot spots said to be associated with unethical and illegal conduct in the workplace.

Rank1. Balancing work and family _____

2. Poor internal communications _____

3. Poor leadership _____

4. Work hours, work load _____

5. Lack of management support _____


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ETHICS SURVEY (continued)

Rank6. Need to meet sales, budget or profit goals _____

7. Little or no recognition of achievements _____

8. Company politics _____

9. Personal financial worries _____

10. Insufficient resources _____


5-20

ETHICS SURVEY (continued)

For Discussion:1. What do the results of this survey tell you about

the future of ethics in the workplace?

2. What can management do to improve the climate for ethical conduct?


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PERSONAL VALUES AS ETHICAL ANCHORS

Instrumental value: an enduring belief that a certain way of behaving is appropriate in all situations (e.g., ambitious, courageous, loving).

Terminal value: an enduring belief that a certain end-state of existence is worth striving for and attaining (e.g., an exciting life, freedom, social recognition).


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(continued)

Discussion: of value conflict based on your value profile in Table 5.2:

Intrapersonal value conflict: Will your top three instrumental values help you achieve your top three terminal values, or is there a fundamental and frustrating conflict?


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(continued)

Individual-organizational value conflict: Do your top-ranked values clash with those promoted by your organization’s culture?

Intercultural value conflict: How well do differing values explain conflict and misunderstanding between racial, gender, ethnic, religious, and cultural groups in today’s world?


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GENERAL ETHICAL PRINCIPLES

1. Self-interests

2. Personal virtues

3. Religious injunctions

4. Government requirements

5. Utilitarian benefits


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GENERAL ETHICAL PRINCIPLES(continued)

6. Universal rules

7. Individual rights

8. Economic efficiency

9. Distributive justice

10. Contributive liberty


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GENERAL ETHICAL PRINCIPLES(continued)

For Discussion:

1. Which of these ethical principles drives most of your behavior?

2. How situational are your ethical principles? Do you switch from one ethical principle to another as dictated by convenience?

3. Is “situational ethics” a problem for managers? Explain.


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HOW TO MAKE AN ORGANIZATIONAL CODE OF ETHICS EFFECTIVE

1. Refer to specific practices such as kickbacks, payoffs, receiving gifts, and falsifying records.

2. Top management must firmly support the code by communicating it broadly and role modeling appropriate behavior.

3. The code must be equitably enforced with stiff penalties for noncompliance.


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HOW TO MAKE AN ORGANIZATIONAL CODE OF ETHICS EFFECTIVE

(continued)

For Discussion: What would you say to a manager who declares corporate codes of ethics a waste of time?

copyright © houghton mifflin company. all rights reserved. 5-1 chapter 5 management’s social and...

Documents

corporate social action

u arguments

social events

managements social

social goals

social issues

u voluntary action u

perspectives u