CHAPTER 5REPORTED BY.

RISTIAN CALDERONCH

A Manager's Dilemma

What Is Social Responsibility?

Social responsibility -is an ethical theory that an entity, be it an organization or individual, has an obligation to act to benefit society at large.

1. The Classical View

Two Opposing Views of Social Responsibility

The classical view holds that management's only social responsibility is to maximize profits.

2. The Socioeconomic View

It is the view that management's social responsibility goes beyond making profits to include protecting and improving society's welfare.

Arguments For and Against Social Responsibility

For AgainstPublic expectations Violation of profit maximization

Public opinion now supports businesses

pursuing economic and social goals

Business is being socially responsible only when it pursues its economic

interests

Long-run profits Dilution of purpose

Socially responsible companies tend to have

more secure long-run profits

Pursuing social goals dilutes business's primary purpose—

economic productivityEthical obligation Costs

Social obligation is the obligation of a business to meet its economic

and legal responsibilities.1. Social responsibility2. Social responsiveness

From Obligations to Responsiveness

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10 10 –social re-sponsibility

8-social re-sponsibility

18-respon-dents

1.WHAT IS THE MORE IMPORTANT?

CHOICES RESPONDENTS TOTALA.SOCIAL RESPONSIBILITY

10 10

B.SOCIAL RESPONSIVENESS

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FREQUENCY DISTRIBUTION TABLE

Social Responsibility and Economic Performance

-The majority showed a positive relationship between social involvement and economic performance.

SOCIAL SCREENING- APPLY SOCIAL CRITERIA TO

INVESTMENT DECISIONS

Values-Based Management

Values-based management is an approach to managing in which managers establish, promote, and practice an organization's shared values

Developing Shared Values

Managers are responsible for shaping the organization so that

itsvalues, norms, and ideals appeal

strongly to employees.

Purposes of Shared Valuesshared values are a way to build team spirit in organizations

Suggestions for Creating a Good Corporate Values Statement1. Involve everyone in the company.

2. Allow customizing of the values by individual departments or units.

3. Expect and accept employee resistance.

4. Keep the statement short.

5. Avoid trivial statements.

6. Leave out religious references.

7. Challenge it.

8. Live it.

Suggestions for Creating a Good Corporate Values Statement1. Involve everyone in the company.

2. Allow customizing of the values by individual departments or units.

3. Expect and accept employee resistance.

4. Keep the statement short.

5. Avoid trivial statements.

6. Leave out religious references.

7. Challenge it.

8. Live it.

The "Greening" of Management

This recognition of the close link between an organization's decisions and activities and its impact on the

natural environment is referred to as the greening of

management.

Global Environmental Problems

One "green" issue managers must deal with as they become more involved in preserving the

natural environment is recognizing the key global environmental problems and how these problems are changing

list of global environmental problems:1.global warming2.pollution (air, water, and soil), 3.industrial accidents4.toxic wastes

According to Environment watchdog EcoWaste Coalition

"Itong laruang ito ang may pinakamataas na lead content--6,000 plus parts per million, samantalang 90 parts per million lamang ang allowable," said Thony Dizon, Coordinator for Project Protect of EcoWaste Coalition,

LEAD CONTENT

906000

6,000 Parts per million

90 Parts per million

How Organizations Go Greenfour approaches organizations can take with

respect to environmental issues.

ACTIVIST APPROACH

Too much lead in the body may result in sickness and affect brain and physical development.

Summing Up Social Responsibility

The key issues in social responsibility are easier to understand if we think in terms of the people  to whom managers are responsible.

four-stage model of the progression of an organization's social responsibility

A Stage 1 manager will promote stockholders' interests by seeking to

minimize costs and maximize profits.

At Stage 2, managers will accept their responsibility to employees and focus on

human resource concerns.

At Stage 3, managers expand their responsibilities to other stakeholders in the specific

environment—that is, customers and suppliers.

Finally, Stage 4 characterizes the extreme socioeconomic definition of social responsibility.

Managerial Ethics

• The term ethics refers to rules and principles that define right and wrong conduct.3

Four Views of Ethics1.utilitarian view of ethics

2. rights view of ethics3. theory of justice view of ethics

4. integrative social contracts theory

Factors That Affect Managerial Ethics

a manager acts ethically or unethically is the result of complex

interactions between the manager's stage of moral development and several

moderating variables.

Structural VariablesAn organization's structural design helps shape whether managers 

behave ethically.-Formal rules and regulations 

reduce ambiguity

Organization's Culture

• An organizational culture most likely to encourage high ethical standards is one that is high in risk tolerance, control, and conflict tolerance.

• A strong culture will exert more influence on managers than a weak one.

Determinants of Issue Intensity

Global compact

TOWARD IMPROVING ETHICAL BEHAVIOR

Managers can do a number of things if they're serious about reducing unethical behaviors in 

their organization

Employee Selection

• —interviews, tests, background checks, and so forth—should be used to eliminate ethically questionable applicants. The selection process should be viewed as an opportunity to learn about an individual's level of moral development, personal values, ego strength, and locus of control.

Codes of Ethics and Decision Rules

• A code of ethics, a formal statement of an organization's primary values a

Ethics Training

• More and more organizations are setting up seminars, workshops, and similar ethics training programs to encourage ethical behavior. Ethics researchers estimate that over 40 percent of U.S. companies provide some form of ethics training

ETHICS TRAINING

40%PROVIDE ETHICS TRAINING ACCORDING TO U.S COMPANIES

Independent Social Audits

• Independent social audits, which evaluate decisions and management practices in terms of the organization's code of ethics, increase the likelihood of detection.

Formal Protective Mechanisms

• Our last recommendation is for organizations to provide formal mechanisms to protect employees who face ethical dilemmas so that they can do what's right without fear of reprimand

FINAL THOUGHT

   -unethical behaviors are prevalent across our society. Cheating, for instance, is a common occurrence in education. A range of studies shows that anywhere from 75 percent to 98 percent of students admit to having cheated in high school.

A survey of college students by U.S. News and World Report showed some ethically

alarming results

Believe cheaters never pay the price

someone are cheating need to cheat it is fair to cheat0

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