persp.mgmt- l-4a

8/7/2019 Persp.Mgmt- L-4A

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PerspectiveManagement

Lecture-4

Social Responsibility and Ethical

behavior


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Agenda

Social Responsibility

Stakeholder pressures

Ethical Judgments Ethical Behavior


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Social Responsibility

Social Responsibility higher due to greater

interdependence ( Farmer agitation for SEZ)

Involves all types of Organizations (CharityCommissioners office, BMC, etc)

Greater Media Coverage and fasterreporting( TV and Radio coverage of events)


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Corp. Social Responsibility

(CSR)

CSR considers the impact of the Firms

activities on the Society

Social Responsibility Proaction vs Reaction: Proaction means

deliberate and planned activity to solve social

problems Eg: Infosys Foundation


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Socially Beneficial Activities

By Voluntary contribution to the Community

( Birlas, Tatas, Infosys, Reliance)

By Legislation: Introduced and forced

compliance by the Govt ( Health warnings:

ITC, Manikchand,)


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Evaluating Social Performance

Proactive Responsibility

Broad performance criteria

Ethical norms Operation strategy

Response to social pressures

Legislative and political activities

Social Audits


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Social Audit

Commitment to systematic assessment of

socially beneficial activities of the firm

- Measures- Money spent

- Voluntary Programs conducted

- Analyzing the feedback of the stakeholders(Employees, Customers, community, public at

large)


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StakeholderSocial

Responsibility

Stakeholders are individuals or groups that

have interests, rights, or ownership in an

organization and its activities.

Stakeholder social responsibility holds that

managers and other employees have

obligations to identifiable groups that are

affected by, or can affect the achievement of

an organizations goals.


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Common Stakeholders of Organizations

MediaGovernments

(Regulatory Agencies)

Secondary Stakeholders

Political

Action

Groups/

Activists

Unions

Nongovernmental

Organizations

Primary Stakeholders

Suppliers

Customers

Shareholders

EmployeesThe

Organization


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Stakeholder Pressure

EmployeesPay and benefits

Safety and health

Rights at work/global labor

standards

Fair/ethical treatment in hiring,

reviews, promotion, and related

areas

Shareholders

Demands forefficiency/profitability

Viability (sustainability)

Growth of investment

Ethical disclosure of

financial information

CustomersCompetitive prices

Quality and safe products

Respect for customers

privacy

Concern for environmentTruthful/ethical advertising

and sales practices

SuppliersMeet commitments

Repeat business

Fair trade

practices/ethical

treatment


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Ethical Judgments and Behavior


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Basis ofEthical Judgments

Utilitarian Approach

The Moral Rights Approach

The Justice Approach


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Making Ethical Judgments

The utilitarian approach focuses on behaviors

and their results, not on the motives for such

actions. Achieving organizational goals

Efficiency

Conflicts of interest (Labour, Consumer Vs Firms)


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The moral rights approach holds that

decisions should be consistent with

fundamental rights and privileges. Life and safety

Truthfulness

Privacy

Freedom of conscience and speech


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The justice approach involves evaluating

decisions and behavior with regard to how

equitably they distribute the benefits andcosts among individuals and groups.

Distributive Justice Principle

Fairness Principle

Natural Duty Principle


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Factors Shaping Ethical

Conduct


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Shaping Ethical Conduct

Behavior

CulturalForces

Individual

Forces

Legal and

Regulatory

Forces

Organizational

Forces

Individual

Unethical

Ethical


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Fundamental personal values

include:

honesty

integri

ty

trustworthiness

respect for other people

self-respect

family

achievement reliability

fairness

loyalty

Cultural Forces

Determine

Personal Values


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Laws are societys values

and standards thatare enforceable in the courts.

Cultural Forces

Legal and Regulatory Forces

Influence the

Individuals Behavior

In Public

Influence the Behavior

Of Organizations


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Cultural Forces


Some recommended actions include

Create a formal ethics system Communicate ethical expectations

Include ethical conduct as a measure of

performance evaluations

Make it acceptable to talk about ethics

A

co

deo

f ethics statesthe principles that

employees are expected

to follow when acting

on behalfof the

organization.

Organizational Forces


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Cultural Forces

Legal & Rgulatory

Orgnl forces

Individual

Forces

Friends

Perceived

enemies

Prejudices BiasesPersonality

Traits


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Examples ofLawful and Unlawful Reasons for

Dismissing Employees

Some PermissibleReasons

Incompetence in performance

Gross or repeatedinsubordination

Civilrights violations such asengaging in harassment

Illegalbehavior such as theft orphysicalviolence

Repeatedlateness or

unexcusedabsences Drug activity ordrunkenness

on the job

Some UnacceptableReasons

Blowing the whistle about illegalconduct by the employer

Filingdiscrimination chargeswith state ormunicipalauthority

Filing unfairlaborpracticecharges with the authority underthe Labour/Employmentlaw of astate

Engaging in union activities,

provided there is no violence orunlawfulbehavior

Complaining or testifying aboutviolations of equalpay, wage, orhourlaw


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Moral Development

Whistle Blowing

Cultural Forces


Organizational Forces

Individual Forces


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How toEnsure Ethical

Conduct

PeerPressure

SuperiorPressure

Organizational Pressure Societal Pressure( Law and Order)

Whistle Blowing


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Whistle-Blowing

Anyone considering whistle-blowing should

consider the following

Is this the only way? Do I have the evidence?

Why am I doing this?

Am I ready?

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