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Copyright © 2014 Pearson Education, Ltd

MANAGING SOCIALRESPONSIBILITY

AND ETHICS

6

Copyright © 2016 Pearson Education, Ltd. 6-1

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LEARNING OBJECTIVES

1. Discuss what it means to be socia y responsib e and what!actors in! uence that decision.2. Explain green management and how organi"ations can go

green.

3. Discuss the !actors that ead to ethica and unethicabeha#ior.$ Develop your skill at creating trust in wor% groups.

4. Describe management&s ro e in encouraging ethica

beha#ior.Know how to ma%e good decisions about ethica di emmas.

5. Discuss current socia responsibi ity and ethics issues.


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FROM OBLIGATION TO RESPONSIVENESS TO RESPONSIBILITY

$ ocial !bli"ation ' the ob igation o! abusiness to meet its economic and egaresponsibi ities and nothing more.

$ #lassical view ' the #iew that management&son y socia responsibi ity is to ma(imi"epro!its.


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$ ocioecono$ic view ' the #iew thatmanagement&s socia responsibi ity goes beyondma%ing pro!its to inc ude protecting and

impro#ing society&s we !are.$ ocial responsiveness ' when a !irm engagesin socia actions in response to some popu arsocia need.

FROM OBLIGATION TO RESPONSIVENESS TO RESPONSIBILITY (CONT.)


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SHOULD ORGANIZATIONSBE SOCIALLY INVOLVED?

ocial creenin" – appl !"# $%&!al &'! '!a($&' "$) % !"* $ + " , &!$!%"$.$ SRI - ",$ $ all /!ll "% !"* $ !"

&%+pa"! $ !"*%l* , !" l!0 %'1 #a+2l!"#1%2a&&%1 " &l a' p%/ ' / ap%"$1 p'!&

34!"#1 -'a ,1 %' !" &%+pa"! $ 5a 5a*p%%' p'%, & $a- 1 +pl% ' la !%"$1a", "*!'%"+ " al 'a& ' &%',$.


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Copyright © 2014 Pearson Education, LtdCopyright © 2016 Pearson Education, Ltd. 6-%

E)*+ +- 6 1 / 3E -5 7 / 8 / /+ 5- 57C+/L

E5P7 5+ +L+-9

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&'EE( )*(*&E)E(+ *(D, +* (* / +0

$ &reen )ana"e$ent – +a"a# '$&%"$!, ' 5 !+pa& %- 5 !'%'#a"!7a !%" %" 5 "a 'al

"*!'%"+ " .

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HO8 ORGANIZATIONS GO GREEN

$ /e"al or /i"ht &reen *pproach ' !irmssimp y do what is ega y re:uired by obeying

aws, ru es, and regu ations wi ing y and

without ega cha enge.$ )arket *pproach ' !irms respond to the

pre!erences o! their customers !oren#ironmenta y !riend y products.

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HO8 ORGANIZATIONS GO GREEN(CONT.)

$ takehol er *pproach ' !irms wor% to meetthe en#ironmenta demands o! mu tip esta%eho ders;emp oyees, supp iers, and the

community.$ *ctivist *pproach ' !irms oo% !or ways to

respect and preser#e the en#ironment and beacti#e y socia y responsib e.


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E9HIBIT 6:;GREEN APPROACHES


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MANAGERSAND ETHICAL BEHAVIOR

Ethics ' p'!"&!pl $1 *al $1 a",2 l! -$ 5a , 3" '!#5 a", /'%"#2 5a*!%'.$ Ma" , &!$!%"$ +a"a# '$ +a

' 0 !' 5 + % &%"$!, ' 2% 5 5p'%& $$ a", /5%

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E9HIBIT 6:>FACTORS THAT DETERMINE ETHICAL

AND UNETHICAL BEHAVIOR


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FACTORS THAT DETERMINE ETHICALAND UNETHICAL BEHAVIOR

5tage o7 )oral Develop$ent ' 8reconvention e#e ' a person&s choice

between right or wrong is based on personaconse:uences.

' #onventional e#e , ethica decisions re y oni#ing up to the e(pectations o! others.

' 8rinciple e#e , indi#idua s de!ine mora#a ues apart !rom the authority o! the groupsor society in genera .


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E9HIBIT 6:STAGES OF MORAL DEVELOPMENT


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FACTORS THAT DETERMINE ETHICALAND UNETHICAL BEHAVIOR (CONT.)

+ndi#idua Characteristics ' 9alues ' basic con#ictions about what is right

and wrong. ' E"o tren"th ' a persona ity measure o! the

strength o! a person&s con#ictions. ' /ocus o7 #ontrol ' a persona ity attribute

that measures the degree to which peop ebe ie#e they contro their own !ate.


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7rgani"ation&s Cu ture ' 7rgani"ation&s cu ture consists o! the shared

organi"ationa #a ues. -hese #a ues re! ect what the

organi"ation stands !or and what it be ie#es in as weas create an en#ironment that in! uences emp oyeebeha#ior ethica y or unethica y.

' 9alues-base $ana"e$ent ' the organi"ation&s#a ues guide emp oyees in the way they do their

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+ssue +ntensity ' si( characteristics determineissue intensity or how important an ethicaissue is to an indi#idua = ' reatness o! harm ' Consensus o! wrong ' Probabi ity o! harm ' +mmediacy o! conse:uences ' Pro(imity to #ictim>s? ' Concentration o! e!!ect


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E9HIBIT 6:@ ISSUE INTENSITY


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ETHICS IN AN INTERNATIONALCONTE9T

$ Ethica standards a' "% "!* '$al ' S%&!al a", & l 'al ,!= ' "& $ , '+!"

a&& p a2l 2 5a*!%'$.

$ F%' !#" C%'' p P'a& !& $ A& ' I !$ !ll #al % &%'' p a -%' !#" % &!al1

% " pa + " $ % % &!al$ a'p '+!$$!2l /5 " ,%!"# $% !$ a" a&& p ,p'a& !& !" 5a &% " ' .


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E9HIBIT 6:6-*E -E P + C+PLE5 7 -*E +-E8 /-+7 5

L7 /L C73P/C-


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ENCOURAGING ETHICAL BEHAVIOR

$ E$ployee Selection – a" %pp%' "! %l a'" a2% a" !",!*!, al

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E9HIBIT 6: CODES OF ETHICS


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E9HIBIT 6: CODES OF ETHICS(CONT.)


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E9HIBIT 6:A PROCESS FOR ADDRESSING ETHICAL DILEMMAS


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ENCOURAGING ETHICAL BEHAVIOR(CONT.)

Leadership ' doing business ethica yre:uires a commitment !rom top managersbecause= ' they&re the ones who upho d the shared

#a ues and set the cu tura tone. ' they&re ro e mode s in terms o! both words

and actions. ' what they do is !ar more important than what

they say.


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@ob oa s and Per!ormance /ppraisa ' nrea istic goa s pro#ide stress which may

pressure ethica emp oyees to do whate#er isnecessary to meet those goa s.

' +! per!ormance appraisa s !ocus on y oneconomic goa s, ends wi begin to

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$ Ethics -raining ' seminars, wor%shops, and simi arethics training programs to encourage ethicabeha#ior.

$ +ndependent 5ocia /udits ' e#a uate decisions andmanagement practices in terms o! theorgani"ation&s code o! ethics.

$ Protecti#e 3echanisms ' a ow emp oyees who

!ace ethica di emmas to do what&s right without !earo! reprimand.


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SOCIAL RESPONSIBILITY ANDETHICS ISSUES IN TODAY

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SOCIAL RESPONSIBILITY AND ETHICSISSUES IN TODAY

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E9HIBIT 6:BEING AN ETHICAL LEADER


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SOCIAL RESPONSIBILITY AND ETHICSISSUES IN TODAY

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REVIE8 LEARNING OB ECTIVE 6.J

$ Discuss what it $eans to be sociallyresponsible an what 7actors in7luence that

ecision. '

5ocia ob igation ' a !irm engages in sociaactions because o! its ob igation to meet certaineconomic and ega responsibi ities.

' 5ocia responsi#eness ' when a !irm engages in

socia actions in response to some popu ar socianeed.


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REVIE8 LEARNING OB ECTIVE 6.;

$ Explain "reen $ana"e$ent an howor"ani:ations can "o "reen.

' 8i!!erent approaches

$ Light green$ 3ar%et approach$ 5ta%eho der approach$ /cti#ist or dar% green approach


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REVIE8 LEARNING OB ECTIVE 6.>

$ Discuss the 7actors that lea to ethical anunethical behavior.

' actors that a!!ect ethica and unethica beha#ior

inc ude$ an indi#idua &s e#e o! mora de#e opment$ indi#idua characteristics$ structura #ariab es$ organi"ationa cu ture$ issue intensity


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REVIE8 LEARNING OB ECTIVE 6.

$ Describe $ana"e$ent;s role inencoura"in" ethical behavior.

' -he beha#ior o! managers is the sing e most

important in! uence on an indi#idua &s decision to actethica y or unethica y. ' 7ther ways inc ude emp oyee se ection, a code o!

ethics, using means and ends !or goa s andper!ormance appraisa and ethics training.


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REVIE8 LEARNING OB ECTIVE 6.@

$ Discuss current social responsibility anethics issues.

' Ethica eaders a so are honest, share their

#a ues, stress important shared #a ues, and usethe reward system appropriate y. ' 3anagers can protect whist e b owers

>emp oyees who raise ethica issues or concerns?

by encouraging them to come !orward.

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itm 2015 c6

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