social and ethical responsibility of management
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Social and ethical responsibility of managementTRANSCRIPT
April 8, 2023 1
Social and Ethical Responsibility of Management
April 8, 2023 2
Organization’s Social Responsibilities
Don’t violate principlesof right and wrong
Obey the Law
Ethical
Legal
Economic
Discretionary
Make a Profit
Social responsibilities
April 8, 2023 3
What’s Social Responsibility? Corporate Social Responsibility
The idea that business has social obligations above and beyond making a profit.
Business has an obligation to constituent groups in society other than stockholders and beyond that prescribed by law.
Social Responsibility is … the ethical accountability framework for the industry which defines principles, policies and practices and codes of conduct designed to ensure:
the protection of stakeholders, the sustainability of industry, and quality of life improvements in the communities in which it operates.
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Stakeholder Model
Primary Stakeholders:
ShareholdersEmployeesCustomersSuppliers
GovernmentsLocal Communities
Primary Stakeholders:
ShareholdersEmployeesCustomersSuppliers
GovernmentsLocal Communities
Secondary Stakeholders:
MediaTrade Associations
Secondary Stakeholders:
MediaTrade Associations
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Responses to Demands for Social Responsibility
ReactiveReactive DefensiveDefensive Accommo-dative
Accommo-dative ProactiveProactive
Fight all the way
DO NOTHING
DO MUCH
Withdrawal
Do only what is required
Legal Approach
BargainingProblemSolving
PublicRelationsApproach
Beprogressive
Lead theindustry
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Performance
Do less than required
Do the least that is required
Do all that is required
Do more than is required
Approach
1. Reactive
2. Defensive
3. Accommodative
4. Proactive
Posture or Strategy
Deny responsibility
Admit responsibilitybut fight it
Accept responsibility
Anticipate responsibility
Approaches To Corporate Social Responsiveness
Approaches To Corporate Social Responsiveness
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Arguments Supporting Businesses Being Socially Responsible
Public expectations Long-run profits Ethical obligation Public image Better environment Discouragement of further government regulation Balance of responsibility and power Shareholder interests Possession of resources Superiority of prevention over cures
April 8, 2023 8
Arguments Against Businesses Being Socially Responsible
Violation of profit maximization Dilution of purpose Costs Too much power Lack of skills Lack of accountability
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•Stakeholders: customers, employees, and investors.
•The natural environment: environmentally sensitive products, recycling, and public safety.
•The general social welfare: charitable contributions, and support for social issues such as child labor and human rights.
Areas of Social Responsibility
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ORGANISATIONAL SOCIAL RESPONSIVENESS
‘A term referring to the development of organisational decision processes where managers anticipate, respond to and manage areas of social responsibility.’
Two aspects: Monitoring social demands and expectations
Internal social response mechanisms
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MONITORING SOCIAL DEMANDS/EXPECTATIONS
Social forecasting Opinion surveys Social audits Issues management Social scanning
April 8, 2023 12
SR Management Process Planning Leadership & People
Focus Client & Stakeholder
Focus Process Management Outcome Assessment
Plan
Act
Check
Do
April 8, 2023 13
Dilemmas in Business
A dilemma exists when you have a choice between two or more options.
A business dilemma exists when an organizational decision maker faces a choice between two or more options that will have various impacts on (a) the organization’s profitability and competitiveness and (b) its stakeholders.
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ETHICS
Ethics (also called moral philosophy), involves systematizing, defending, and recommending concepts of right and wrong behavior.
Business ethics is the application of general ethical principles to business dilemmas.
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TYPES OF MANAGERIAL ETHICS
Immoral management
Lacks ethical principles, concern for profit only
Amoral management
Ignores, or oblivious to, ethical issues
Moral management
Conscious attention to ethical standards and issues
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WHAT INFLUENCES ETHICAL
BEHAVIOR?
THE INDIVIDUAL’S ROLE
THE ORGANIZATION’S ROLE•Structure•Culture
April 8, 2023 17
Determinants of Individual Ethics
Determinants of Individual Ethics
Family Influences
Family Influences
SituationalFactors
SituationalFactors
Values andMorals
Values andMorals ExperiencesExperiences Peer
Influences
PeerInfluences
Individual EthicsIndividual Ethics
April 8, 2023 18
ETHICAL GUIDELINES FOR MANAGERS
Obey the law. Tell the truth. Show respect for people. Stick to the Golden Rule. Above all, do no harm. Participation not paternalism. Responsibility requires action.
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MECHANISMS FOR ETHICAL MANAGEMENT
Increasing awareness of diversity Top management commitment Codes of ethics Ethics committees Ethics audits Ethics hotlines Ethics training
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Process of Rationalization
Mental strategies that allow employees (and others around them) to view their corrupt acts as justified
Denial of responsibility ..no choice…everyone does it Denial of injury…no one is really injured Denial of victim…the violated party deserves it Social weighting…comparison…others do worst things Appeal to higher authorities…loyalty to boss or co. Ledger approach…accrued credits…we deserve it
April 8, 2023 21
THANK YOU