Mohamed Ali Abukar, PhDGRAND CANYON UNIVERSITY

ETHICS & SOCIAL RESPONSIBILITY

POSITIVE THINKING Approaching positive thinking in any task

fulfillment, equipped with an appropriate model of mental process will certainly create an ability to bring together different practices under a single umbrella of practical intelligence

Openness, ability to generate ideas, sense of humor, intellectual courage and mental flexibility are the main skills that can be used as a working model of practical intelligence and positive thinking

This will allow Working productively with most of the people most of the time

HEALTHY ENVIRONMENT The healthy climate of an organization has a

direct implication for both moral and performance, which will lead to total positiveness in creating an atmosphere of approval and security in which everyone feels free to express without fear

Although peoples have some unique thinking habits, there are a certain common thought patterns used in information processing and decision-making that can be used to distinguish between different decision styles, which will be guided by an important tools of how much information has been received

MECHANISM Organization is the mechanism by which

human join together to accomplish the objectives. Particular attention should be given on how the organization is structured to accomplish particular purpose

People should ask themselves following questions in order to understand where they stand: (1) How well developed is my sense of humor? (2) How well I do maintain a positive frame of mind? (3) Am I listening with an open mind to any new ideas or information?

The challenge is to make the organization productive and achieve the goals in an efficient and effective manner

DIVERSITY People of different ethnicity and origins bring

new ideas and different ways of doing things. To work together as a team people needs to be aware of differences in style and expectations.

Tension is likely to arise in demographically diverse team with contrasting personalities, and these needs not to be destructive but constructive

An organization that may need to succeed should welcome diversity and treat it as an opportunity

POSITIVENESS Positiveness is appreciated as is tolerance

for view, opinion, orientation and capabilities and one must be able to communicate effectively and equipped with an interpersonal relations skills

Such peoples always are able to create healthy atmosphere, and by encouraging the initiative to act and learn working with other as a productive team

A positive working environment provides the organization and its employees with the opportunities to achieve high performance and productivity

INTERPERSONAL ROLE Interpersonal relation bring down

all barriers, creates appreciation and healthy environment where everyone is pleased in working together as team

An individual cannot be effective without knowing how to establish and maintain productive relation with other

ETHICS AND SOCIAL RESPONSIBILITY Refers to an organizations

obligation to maximize its positive impact and minimize its negative impact on society

Is to determine the relationships, obligation and duties that are appropriate between organization and various stakeholders

SOCIAL RESPONSIBILITY The responsibility is to conduct the

business in accordance with their desire to make profit in conformity to the basic rules of the society (Law and ethic)

Same financial institutions contributes huge amount in grants to community improvement, educational services and others

Accountability, innovation, justice, respect for the community, respect for rules and avoid illicit operations are business responsibility

LEVELS OF SOCIAL RESPONSIBILITY Following are the levels of social

responsibility: ECONOMIC LEGAL ETHICAL PHILANTHROPIC

SOCIAL RESPONSIBILITY ISSUES Organizations that fails to

provide: A return on investment or profits Create jobs for community, and Contribute to the economy

Cannot survive for long-term

CORPORATE CITIZEN Refers to the extent to which business

strategically meet the economic, legal, ethical and philanthropic responsibilities

A commitment to corporate citizenship indicates a strategic focus on fulfilling the social responsibilities to stakeholders

Includes all activities and organizational process adopted by business to meet their social responsibilities

CORPORATE CULTURE Refers to the value and

practices shared by the employees

The way that work and authority are organized

The way people are rewarded and managed

ECONOMIC ISSUES Price increases over extended period of

time, (inflation) raise on unemployment, credit restriction, low productivity, low investment and many bankruptcies (recession), and when there is a high demand in the market with a limited supply

Yes - that is when economic issues exists

Needs immediate attention and consideration, in order to be able to correct it properly

CRISES IN BUSINESS ETHICS In Government, several politicians and some

high-ranking officials have had to resign in disgrace over ethical indiscretion

Nixon Administration’s Watergate's scandal The Foreign corrupt practices Act, passed

during Carter’s Administration made illegal for US businesses to bribe government officials of other countries

Accounting fraud, documents falsification and employee theft are all problems that negatively effect ethical standards

COMPLIANCE In recent years accounting fraud

become a major ethical issue in many organizations

Compliance, usually is performed by audit and control unit

Accounting services must abide by a strict code of ethical, which defines their responsibilities

Possible question can be: Are all financial records accurate and

free from fraud?

ETHICS OFFICERS EO are responsible for managing

the organizations ethics and legal compliance program

The ethical officers association (EOA) has approximately 900 members who are at the front line of managing ethics program

BUSINESS COMMUNICATION Business communication is particularly

difficult with lot of misunderstanding The reason is that the message is most

of the time complex, conditions are difficult and differences often separate the sender and receiver

To overcome communication barriers, one must think about persuasion, clarify message, use simple and easy language, emphasize key point and provide opportunity for feedback

A POSITIVE APPROACH A successful communication can be

achieved when there is: A sincere wish to communicate A properly organized management

structure Clear lines of communication and well-

defined responsibility An understanding of the What, how,

where, When and why of communication High communication skill A willingness to explain, consult and

consider individual feeling and reaction

IMPORTANT PRINCIPLES Organizations must be: Profitable Provide high quality products Treat customer fairly and with dignity Improve living conditions for workers Ensure safety of worker while at working Communicate honestly and openly Encourage staff development Avoid discrimination and promote

competition Exercise fair pricing policies

ETHICAL ISSUES Following are some of the ethical

issues related to most business organizations:

Fraud and conflict of interest Discrimination Ethical issues related to the

technology There is evidence that people use

the organization’s technology for personal business while are working

ETHICS AS A FORCE IN SOCIAL RESPONSIBILITY Many businesspeople and scholars have

questioned the role of ethics and SR Classical theorists says – if this is well done -

profits are maximized and organization carryout their major responsibilities to society

Classical period have extended from the mid of 19th century through early 20th century. Have successfully held the balance of power in economic circles

Evidence shows that SR, including business ethics is associated with increased profits and contributes to employee commitment and customer loyalty

HIGH STANDARDS OF PERFORMANCE WILL BE GUIDED BY: HONESTY AND CREDIBILITY TALENTS AND ENERGIES MANAGE PROPERLY TIME AND ACTIVITY PROFESSIONALISM AND WORKING

KNOWLEDGE PRACTICE RATIONAL DECISIONS SUCCESS, EFFECTIVENESS AND EFFICIENCY PEOPLE NEEDS EFFECTIVE LEADER –

INDIVIDUALS OF VISION AND JUDGMENT WHO CAN GUIDE, DIRECT, MOTIVATE AND INSPIRE TO REACH HIGH STANDARDS OF PERFORMANCE

LEADERSHIP STYLES PATH-GOAL THEORY SUGGESTS

DIFFERENT LEADESHIP STYLES: DIRECTIVE SUPPORTIVE PARTICIPATIVE ACHIEVEMENT-ORIENTED PATH-GOAL’S KEY CONCEPTS: INCREASE MOTIVATION BY CLARIFYING THE

BEHAVIORS NECESSARY FOR TASK ACHIEVEMENT

Management's Characteristics Frederick Taylor’ Scientific management Max Weber’s Bureaucracy Henry Fayol’s Administrative management

(functions) Herbert Simon- Administrative behavior

with decision-making as the central focus Elton Mayo study on the concern for human

elements Chris Argyris- for integration and job

enrichment McGregor-self-fulfilling prophecies and

theory X&Y All these will have a significant bearing

on the characteristics of today’s Management

EVOLUTION OF MANAGEMENT OVERVIEWING THE MANAGEMENT

REVOLUTION COMPONENT WILL ALLOW BETTER UNDERSTANDING OF THEIR CONTRIBUTIONS TO ORGANIZATION AND MANAGEMENT

IN TODAY’S WORLD A BETTER SKILLED, KNOWLEDGED AND QUALIFIED MANAGERS BECOME A KEY FACTOR TO THE SUCCESS OF THE ORAGNIZATION

OLD VALUES KEEP THE BOSS ALWAYS HAPPY DUMP PROBLEMS ON

SOMEONE WHEN THINGS GOES WRONG

WITH LARGE SPAN FEEL MORE IMPORTANT (EMPIRE BUILDER)

NEW VALUES CUSTOMER SATISFACTION ACCEPT RESPONSIBILITY ACCEPT ACCOUNTABILITY DECENTRALIZE AUTHORITY IDENTIFY PROBLEMS BEFORE THEY

EMERGE CONTINUOUS LEARNING PROCESS

EQUITY THEORY Stacy Adam has stressed that a sense

of inequity will create and lead to discomforts and dysfunctions

People always assess the balance between their inputs and the rewards they receive

It’s very important that reward and promotion system to be fair and free of any kind of discrimination and favoritism

The system should be always legally defendable

QUESTIONS FOR DISCUSSION Identify the social responsibility

issues What are the crises in Business

ethics? Explain and discuss economic

issues What are the levels of social

responsibilities? Explain and discuss the leadership

styles