social responsibility

• In the Name of ALLAH, Most Compassionate, Ever Merciful

Group Members• Ariba Mehmood 25• Shan Shaukat 33• Amna Qayum 47•Waheed Sattar 48•Mohammad Azam 18

Social Responsibility , Green Management

And Ethics

Chapter

5

3–3

Management Stephen P. Robbins

Social Responsibility• Social responsibility is the obligation of

organization’s management to make decisions and take actions that will enhance the welfare and interests of society as well as the organization.

Distinguishing from right and wrong

Being a good corporate citizen

Social Responsibility Was:

Maximizing financial returns (PROFITS) operating business in interests of stake holders.

Primary concerns were financial

If “social good” was conducted by the organization, it used to be paid off either by consumers or stake holders.

Now Social Responsibility Is:

Working on for improvements in society’s welfare

Moving beyond than making financial returnsOrganizations have an obligation to society

on a larger scaleThe obligations to different elements of

society should be equal Selection of fair and right deeds

Responses to Demands for Social Responsibility

Obligation-Responsiveness-Responsibility

• Social Obligation Defensive ApproachMeeting the business requirements and

focusing on legal responsibilities.• Social Responsiveness Accommodative

ApproachTaking actions to fulfill social needs• Social Responsibility Proactive

ApproachActing in right way; doing good for society

Levels of Obligation

Socially Responsible to Whom?

Who are Stakeholders?

• Stakeholders –People and groups affected by the way a company

and its managers behave–Supply a company with its productive resources

and have a claim on its resourcesWhen the law does not specify how companies

should behave, managers must decide what is the right or ethical way to behave toward the people and groups affected by their actions.

Types of Company Stake Holders

Shan ShaukatRoll no.33

Managers Responsibility

• Responsible for using a company’s financial capital and human resources to increase its performance

• Have the right to expect a good return or reward by investing their human capital to improve a company’s performance

• Frequently juggle multiple interests

Employees Responsibility

• Companies can act ethically toward employees by creating an occupational structure that fairly and equitably rewards employees for their contributions

Suppliers and Distributers Responsibility

• Suppliers expect to be paid fairly and promptly for their inputs

• Distributors expect to receive quality products at agreed-upon prices

Customers

• Most critical stakeholder• Company must work to increase efficiency

and effectiveness in order to create loyal customers and attract new ones.

Community, Society, and Nation

• Community –Physical locations like towns or cities in

which companies are located–A community provides a company with the

physical and social infrastructure that allows it to operate.

• A company contributes to the economy of the town or region through salaries, wages, and taxes.

Amna QayyumRoll no.47

The Greening of Management• The recognition of the close link between an

organization’s decision and activities and its impact on the natural environment.

–Global environmental problems facing managers:

•Air, water, and soil pollution from toxic wastes

•Global warming from greenhouse gas emissions

•Natural resource depletion

How Organizations Go Green• Legal (or Light Green) Approach– Firms simply do what is legally required by obeying

laws, rules, and regulations willingly and without legal challenge.

• Market Approach– Firms respond to the preferences of their customers

for environmentally friendly products.• Stakeholder Approach– Firms work to meet the environmental demands of

multiple stakeholders—employees, suppliers, and the community.

Managerial Ethics

• The development and implementation of moral principles and values that determine what’s right and what’s wrong for an individual manager.

Nature of Ethics

Waheed SattarRoll no 48

Ethical Models

Muhammad Azam

Roll No 18

Effects of Ethical/Unethical Behavior

Principles of Ethical Decision Making

How can Organizations Promote Ethics?

Firms can promote ethics in three ways:

1. Top management needs to support a strong ethical

climate

2. Companies can adopt a code of ethics – a formal written

set of ethical standards guiding an organization’s actions

3. Companies can promote ethical behavior by rewarding

whistleblowers - employees who report organizational

misconduct to the public

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