mgt 531 chapter of social responsiblity

8/9/2019 MGT 531 Chapter of Social responsiblity

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Managing with Ethics and

Social ResponsibilityWe Will

Examine the issues of managerialethics and corporate socialresponsibility;

Dene the termsloo! at the ways ofthin!ing about ethical beha"ior; and

#sses the role of the organi$ation as amember of the broader socialcommunity


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What is Ethical %eha"ior&

M'R#(SDoctrine of )onduct relating to*

dealing with* or capable of ma!ing thedistinction between right and wrong inconduct or character

E+,-)S +he system or )ode of Morals of a

particular person* religion* group* orprofession


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%eing Ethical is.

)onforming to Moral Standards;

conforming to the standards of conductof a gi"en group or profession

Ethical %eha"ior is.Doing what is accepted as /good/ and

/right/ as opposed to /bad/ and /wrong/in the context of the go"erning Moral

)ode

Ethical %eha"ior0(egal %eha"ior1/something else/


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)ontext of the 2o"erning

Moral )ode

Refers to the group*organi$ation* or broadersocietal "enue within whichthe pre"ailing norms and"alues underlying a go"erningmoral code are established


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(aws* 3alues* and Ethical

%eha"ior

#ny beha"ior considered Ethical

should also be legal in a 4ustand fair society

,owe"er(egal beha"ior is not necessarily

ethical beha"ior


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5our 3iews of Ethical

%eha"ior6tilitarian 3iew Where moral beha"ior is that

which deli"ers the greatest goodto the greatest number of people

-ndi"idualism 3iew Where moral beha"ior is that

which is best for long7term self7interest


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Moral7Rights 3iew Where moral beha"ior is thatwhich respects fundamental rightsshared by all human beings

8ustice 3iew Where moral beha"ior is that

which is impartial* fair* ande9uitable in treating people:rocedural and Distributi"e8usticeicts with superiors* customers*and subordinates


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Most )ommon 6nethical

Re9uests 5rom the %ossSupporting -ncorrect 3iewpoints

Signing 5alse Documents

'"erloo!ing %oss?s Wrongdoing

Doing %usiness with %oss?s5riend


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Rationali$ations for

6nethical %eha"iorConvincing yourself that the behavior

isnot really illegal

Convincing yourself that the behaviorisin e"eryone@s best interestConvincing yourself that nobody

will e"er !now what you?"e doneConvincing yourself that the

organi$ation will protect you


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5actors #=ecting ManagerialEthics

+he Manager as a erson5amily in>uences

Religious "aluesersonal standards* and needs

+he Employing 'rgani$ation

olicies* codes of conduct%eha"ior of super"isors

%eha"ior of peers


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5actors #=ecting ManagerialEthics

+he External En"ironment2o"ernment regulationsAorms and "alues of society

Ethical climate of the industry


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Maintaining ,igh Ethical

StandardsE+,-)#( +R#-A-A2-t is not about teaching people right

from wrongwe assume they !nowthat* and*-t is not about gi"ing people the

moral courage to do what isrightthey should be able to do that

anyhow

Ethical +raining

is about dealing with dilemmas


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# )hec!list for Ma!ing

Ethical DecisionsRecogni$e the ethical dilemma2et the facts

-dentify your options+est each option -s it legal& -s it right& -s it

benecial&

Decide which option to followDouble7chec! your decision byas!ing./,ow will - feel if my family

nds out about my decision&B

+a!e action


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Whistleblower

rotection(aws "ary from state to state* and

federal laws protect mainly

go"ernment wor!ers

Where legal protection existswhistleblowers face a number of

barriers that can ma!e it hard forthem to expose unethical beha"iorin the wor!place


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+op Management Support

+op management set the Ethical +onefor the organi$ation as a whole

+op managers ha"e the power toshape an organi$ation@s policies andset its moral tone as well

+op managers can and should ser"eas models of appropriate ethicalbeha"ior for the entire wor!force


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+op Management Support

Super"isors must becareful not to unwittinglyencourage unethicalbeha"ior by exerting toomuch pressure for theaccomplishment of diCcultgoals


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5ormal )ode of Ethics

Written and oCcial guidelines on how tobeha"e in situations prone to createethical dilemmas

#reas often addressed in written codesof ethics.

Wor!force Di"ersity

%ribes and ic!bac!s

)on>icts of -nterest

olitical )ontributions)ustomer and Supplier Relations

Misappropriation of )orporate #ssets


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)orporate Social

Responsibility#n obligation of the organi$ation

to act in ways that ser"e both its

own interests and the interests ofits many external publics

+hese publics are consideredS+#E,'(DERS* the persons andgroups who are a=ected in oneway or another by the beha"ior ofan organi$ation


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Stakeholders

EmployeesStoc!holders

)ustomersSuppliers)ompetitors(abor 6nions

5inancial-nstitutions

olitical artiesEducational

-nstitutions

)ourts and (egal-nstitutions


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)ontrasting 3iews on

Social Responsibility)lassical 3iew ,olds that management?s only

responsibility is running a businessto maximi$e prots

Socio7Economic 3iew ,olds that any organi$ation must be

concerned about the broader socialwelfare


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+he )lassical 3iew#gainst Social

ResponsibilityReduced business prots

,igher business costs

Dilution of business purpose+oo much social power for

businesses(ac! of business accountabilityto the public


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+he Socio7Economic 3iew5orB Social Responsibility

(ong7run prots for businessesublic expectations support business

social responsibility

%etter public image for businesses%usinesses may a"oid more regulation%usinesses ha"e the resources

%usinesses ha"e the ethical obligation

+he public wants it


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E"aluation of )orporateSocial erformance

+here are many action domainsin which social responsibility canbe pursued by business rms andother types of organi$ations+hey include.

)oncerns for Ecology and

En"ironmental Fuality

+ruth7in7(ending and )onsumerrotection


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E"aluation of )orporateSocial erformance

#id7to7Education and Ser"ice to)ommunity

Employment ractices #=ectingMinorities

rogressi"e (abor Relations

Employee #ssistance

2eneral )orporate hilanthropy


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)riteria for E"aluating)orporate Social

erformanceEconomic Responsibility -s fullled when it earns a prot

through the pro"ision of goods andser"ices desired by the public

(egal Responsibility -s fullled when an organi$ation

operates within the law andaccording to the re9uirements of"arious external regulations


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Ethical Responsibility -s met when its actions "oluntarily

conform not only to legal expectations*but also to the broader "alues andmoral expectations of society

Discretionary Responsibility-s met when the organi$ation"oluntarily mo"es beyond basic

economic* legal* and ethicalexpectations to pro"ide leadership inad"ancing the well7being of indi"iduals*communities* and society as a whole


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# )ontinuum of Social

Responsibility Strategies'bstruction5ight social demands

Defensi"eDo the minimum legally re9uired

#ccommodationDo the minimum ethically re9uired

roacti"e+a!e leadership in social initiati"es


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2o"ernment Regulation of

%usiness,ealth and Safety

5air (abor ractices

)onsumer rotectionEn"ironmental rotection

5## E# 'S,# -)) 5D# EE')'5)) A(R% SE):+o name a few