Date post: | 03-Apr-2018 |
Category: |
Documents |
Upload: | mahmoud-fawzy |
View: | 215 times |
Download: | 0 times |
of 28
7/28/2019 ch05 Managements Social and Ethical Responsibilities
1/28
Copyright Houghton Mifflin Company. All rights reserved. 5-1
Chapter 5
Managements Social andEthical Responsibilities
7/28/2019 ch05 Managements Social and Ethical Responsibilities
2/28
Copyright Houghton Mifflin Company. All rights reserved. 5-2
Chapter Outline
Social Responsibility: Definition and
Perspectives
What Does Social Responsibility Involve?
What Is the Role of Business in Society?
Arguments For and Against Corporate SocialResponsibility
7/28/2019 ch05 Managements Social and Ethical Responsibilities
3/28
Copyright Houghton Mifflin Company. All rights reserved. 5-3
Chapter Outline(continued)
Toward Greater Social Responsibility
Social Responsibility Strategies
Who Benefits from Corporate Social
Responsibility?
The Future of Corporate Social Responsibility
7/28/2019 ch05 Managements Social and Ethical Responsibilities
4/28
Copyright Houghton Mifflin Company. All rights reserved. 5-4
Chapter Outline(continued)
The Ethical Dimension of Management
Practical Lessons from Business Ethics
Research
Personal Values as Ethical Anchors
General Ethical Principles
7/28/2019 ch05 Managements Social and Ethical Responsibilities
5/28
Copyright Houghton Mifflin Company. All rights reserved. 5-5
Chapter Outline(continued)
Encouraging Ethical Conduct
Ethics Training
Ethical Advocates
Codes of Ethics
Whistle-blowing
7/28/2019 ch05 Managements Social and Ethical Responsibilities
6/28
Copyright Houghton Mifflin Company. All rights reserved. 5-6
WHAT DOES CORPORATE SOCIAL
RESPONSIBILITY INVOLVE?
Corporate social responsibility: thenotion that corporations have an obligation toconstituent groups in society other than
stockholders and beyond that prescribed by
law or union contract.
Voluntary action
An emphasis on means, not ends
7/28/2019 ch05 Managements Social and Ethical Responsibilities
7/28
Copyright Houghton Mifflin Company. All rights reserved. 5-7
Source: Nancy C. Roberts
and Paula J. King, The
Stakeholder Audit Goes
Public. Reprinted from
Organizational Dynamics,
Winter 1989. 1989,
American Management
Association International.
Reprinted by permission of
American Management
Association International,
New York, NY. All rights
reserved.
http:/hwww.amanet.org
Figure 5.1 A Sample Stakeholder Audit
for an Automobile Company
7/28/2019 ch05 Managements Social and Ethical Responsibilities
8/28
Copyright Houghton Mifflin Company. All rights reserved. 5-8
Figure 5.2 A Continuum of Social
Responsibility Strategies
7/28/2019 ch05 Managements Social and Ethical Responsibilities
9/28
Copyright Houghton Mifflin Company. All rights reserved. 5-9
WHAT DOES CORPORATE SOCIAL
RESPONSIBILITY INVOLVE?(continued)
For Discussion:
1. Why is voluntary action a key to corporate
social responsibility?
7/28/2019 ch05 Managements Social and Ethical Responsibilities
10/28
Copyright Houghton Mifflin Company. All rights reserved. 5-10
WHAT DOES CORPORATE SOCIAL
RESPONSIBILITY INVOLVE?(continued)
For Discussion:
2. Could an emphasis on means rather than
ends encourage well-meaning but sociallyirresponsible actions? (For example, some
college organizations sponsor social events
on behalf of needy groups, such as disabled
children, who actually get very little if anybenefit after program expenses have been
paid.)
7/28/2019 ch05 Managements Social and Ethical Responsibilities
11/28
Copyright Houghton Mifflin Company. All rights reserved. 5-11
Source: Data from Mark N. Vamos and Christopher Power, A Kinder, Gentler Generation of Executives?
Business Week(April 23, 1990): 86-87.
Figure 5.3 Present and Future
Executives Support the Concept of
Corporate Social Responsibility
7/28/2019 ch05 Managements Social and Ethical Responsibilities
12/28
Copyright Houghton Mifflin Company. All rights reserved. 5-12
ARGUMENTS FOR AND AGAINST
CORPORATE SOCIALRESPONSIBILITY
Arguments for:1. Business is unavoidably involved in social issues.
2. Business has the resources to tackle todays complex
societal problems.
3. A better society means a better environment fordoing business.
4. Corporate social action will prevent government
intervention.
7/28/2019 ch05 Managements Social and Ethical Responsibilities
13/28
Copyright Houghton Mifflin Company. All rights reserved. 5-13
ARGUMENTS FOR AND AGAINST
CORPORATE SOCIAL
RESPONSIBILITY(continued)
Arguments against:
1. Profit maximization ensures the efficient use of
societys resources.
2. As an economic institution, business lacks the ability
to pursue social goals.
3. Business already has enough power.
4. Because managers are not elected, they are not
directly accountable to the people.
7/28/2019 ch05 Managements Social and Ethical Responsibilities
14/28
Copyright Houghton Mifflin Company. All rights reserved. 5-14
ARGUMENTS FOR AND AGAINST
CORPORATE SOCIALRESPONSIBILITY
(continued)
For Discussion:
Which set of arguments do you find most
convincing? Why?
7/28/2019 ch05 Managements Social and Ethical Responsibilities
15/28
Copyright Houghton Mifflin Company. All rights reserved. 5-15
Enlightened self-interest: realization thatbusiness ultimately helps itself by helping to
solve societal problems.
ENLIGHTENED SELF-INTEREST
7/28/2019 ch05 Managements Social and Ethical Responsibilities
16/28
Copyright Houghton Mifflin Company. All rights reserved. 5-16
ENLIGHTENED SELF-INTEREST(continued)
For Discussion:1. Do you personally endorse the concept ofenlightened self-interest? Why or why not?
2. Is the reality of short-term costs versus long-
term benefits a fatal flaw for the concept ofenlightened self-interest in the business
world?
7/28/2019 ch05 Managements Social and Ethical Responsibilities
17/28
Copyright Houghton Mifflin Company. All rights reserved. 5-17
THE ETHICAL DIMENSION OF
MANAGEMENT
Ethics: The study of moral obligationinvolving the distinction between right and
wrong.
7/28/2019 ch05 Managements Social and Ethical Responsibilities
18/28
Copyright Houghton Mifflin Company. All rights reserved. 5-18
ETHICS SURVEY
Instructions: Based on your personal work experience,rank (from 1 = most common to 10 = least common) the
following ten ethical hot spots said to be associated with
unethical and illegal conduct in the workplace.Rank
1. Balancing work and family _____
2. Poor internal communications _____
3. Poor leadership _____
4. Work hours, work load _____
5. Lack of management support _____
7/28/2019 ch05 Managements Social and Ethical Responsibilities
19/28
Copyright Houghton Mifflin Company. All rights reserved. 5-19
ETHICS SURVEY
(continued)
Rank
6. Need to meet sales, budget or profit goals _____
7. Little or no recognition of achievements _____
8. Company politics _____
9. Personal financial worries _____
10. Insufficient resources _____
7/28/2019 ch05 Managements Social and Ethical Responsibilities
20/28
Copyright Houghton Mifflin Company. All rights reserved. 5-20
ETHICS SURVEY
(continued)
For Discussion:
1. What do the results of this survey tell you about
the future of ethics in the workplace?
2. What can management do to improve the climate
for ethical conduct?
7/28/2019 ch05 Managements Social and Ethical Responsibilities
21/28
Copyright Houghton Mifflin Company. All rights reserved. 5-21
PERSONAL VALUES AS ETHICAL
ANCHORS
Instrumental value: an enduring belief thata certain way of behaving is appropriate in all
situations (e.g., ambitious, courageous,loving).
Terminal value: an enduring belief that acertain end-state of existence is worth striving
for and attaining (e.g., an exciting life,
freedom, social recognition).
7/28/2019 ch05 Managements Social and Ethical Responsibilities
22/28
Copyright Houghton Mifflin Company. All rights reserved. 5-22
PERSONAL VALUES AS ETHICAL
ANCHORS(continued)
Discussion: of value conflict based on your
value profile in Table 5.2:
Intrapersonal value conflict: Will your top
three instrumental values help you achieve
your top three terminal values, or is there afundamental and frustrating conflict?
7/28/2019 ch05 Managements Social and Ethical Responsibilities
23/28
Copyright Houghton Mifflin Company. All rights reserved. 5-23
PERSONAL VALUES AS ETHICAL
ANCHORS(continued)
Individual-organizational value conflict:
Do your top-ranked values clash with those
promoted by your organizations culture? Intercultural value conflict: How well do
differing values explain conflict and
misunderstanding between racial, gender,
ethnic, religious, and cultural groups intodays world?
7/28/2019 ch05 Managements Social and Ethical Responsibilities
24/28
Copyright Houghton Mifflin Company. All rights reserved. 5-24
GENERAL ETHICAL PRINCIPLES
1. Self-interests
2. Personal virtues
3. Religious injunctions
4. Government requirements
5. Utilitarian benefits
7/28/2019 ch05 Managements Social and Ethical Responsibilities
25/28
Copyright Houghton Mifflin Company. All rights reserved. 5-25
GENERAL ETHICAL PRINCIPLES(continued)
6. Universal rules
7. Individual rights8. Economic efficiency
9. Distributive justice
10. Contributive liberty
7/28/2019 ch05 Managements Social and Ethical Responsibilities
26/28
Copyright Houghton Mifflin Company. All rights reserved. 5-26
GENERAL ETHICAL PRINCIPLES(continued)
For Discussion:
1. Which of these ethical principles drives most of your
behavior?
2. How situational are your ethical principles? Do you
switch from one ethical principle to another as
dictated by convenience?
3. Is situational ethics a problem for managers?
Explain.
7/28/2019 ch05 Managements Social and Ethical Responsibilities
27/28
Copyright Houghton Mifflin Company. All rights reserved. 5-27
HOW TO MAKE AN ORGANIZATIONAL
CODE OF ETHICS EFFECTIVE
1. Refer to specific practices such as
kickbacks, payoffs, receiving gifts, and
falsifying records.
2. Top management must firmly support the
code by communicating it broadly and role
modeling appropriate behavior.3. The code must be equitably enforced with
stiff penalties for noncompliance.
7/28/2019 ch05 Managements Social and Ethical Responsibilities
28/28
Copyright Houghton Mifflin Company. All rights reserved. 5-28
HOW TO MAKE AN ORGANIZATIONAL
CODE OF ETHICS EFFECTIVE(continued)
For Discussion: What would you say to
a manager who declares corporatecodes of ethics a waste of time?