Business and Organization
Organization & Management Social Responsibility and Managerial Ethics Learning objectives: 0 0 0 Contrast the classical and socioeconomic views of social responsibility. Discuss the role that stakeholders play in the four stages of social responsibility. Differentiate between social obligation, social responsiveness, and social responsibility. Explain what research studies have shown about the relationship between an organization’s social involvement and its economic performance. Define social screening. Explain what conclusion can be reached regarding social responsibility and economic reference.
Describe how organizations can go green. Relate the approaches to being green to the concepts of social obligation, social responsiveness, and social responsibility. Discuss what purposes shared values serve. Describe the relationship of values-based management to ethics. Discuss the factors that affect ethical and unethical behavior. Discuss the six determinants of issue intensity. Tell what codes of ethics are and how their effectiveness can be improved. Describe the important roles managers play in encouraging ethical behavior. Explain why ethical leadership is important.
Discuss how managers and organizations can protect employees who raise ethical issues or concerns. Explain what role social entrepreneurs play. Describe social impact management. Chapter Summary What Is Social Responsibility? Contrast classical and socioeconomic views of social responsibility. Discuss the role that stakeholders play in the four stages of social responsibility. Differentiate between social obligation, social responsiveness, and social responsibility. The classical view says that management’s only social responsibility is to maximize profits.
The socioeconomic view says that management’s social responsibility goes beyond making profits to protecting and improving society’s welfare. In the fourscore stakeholder model of social responsibility, , a stage 1 manager feels responsible to only the stockholders. At stage 2, managers expand their responsibility to the employees. At stage 3, managers expand their responsibilities to other stakeholders in the specific environment, primarily customers and suppliers. Finally, at stage 4, managers feel they have a responsibility to society as a whole.
Social obligation is hen a firm engages in social actions because of its obligation to meet certain economic and legal responsibilities. Social responsiveness is when a firm engages in social octagons In response to some popular social need. Social responsibility business’s intention, beyond its economic and legal obligations, to pursue long-term goals that are good for society. Social Responsibility and Economic Performance Explain what research studies have shown about the relationship between an organization’s social involvement and its economic performance. Explain what performance.
Although the majority of the research studies have shown a positive relationship between social involvement and economic performance, it was thought that no generalize conclusions could be made because of methodological and definitional concerns. And one study showed that social involvement had a neutral impact, while another study found that social activities not related to the organization’s primary stakeholders had a negative impact on shareholder value. However, a recent reanalysis of these studies concluded that managers can afford to be socially responsible.
Considering these studies and the performance of socially responsible mutual stock funds, the most meaningful conclusion we can reach is that there is little evidence to say that a company’s social actions hurt its long-term economic performance. The Greening of Management Describe how organizations can go green. Relate the approaches to being green to the concepts of social obligation, social responsiveness, and social responsibility. Organizations can “go green” by using different approaches. The light green approach is simply doing what is required legally, or the social obligation approach.
Using the market approach, organizations respond to the environmental preferences of their customers. Using the stakeholder approach, organizations respond to the environmental demands of multiple stakeholders. Both the market and stakeholder approaches can be viewed as social responsiveness. The activist or dark green approach involves an organization looking for ways to respect and preserve the earth and its natural resources, which can be viewed as social responsibility. Values-Based Management Discuss what purposes shared values serve. Describe the relationship of values- based management to ethics.
Shared values serve four purposes ; to guide managerial decisions and actions; to shape employee behavior and communicate what the organization expects of its members; to influence marketing efforts; and to build team spirit. An organization’s values have a big influence on whether employees act ethically. Managerial Ethics Discuss the factors that affect ethical and unethical behavior. Discuss the six determinants of issue intensity. Explain what codes of ethics are and how their effectiveness can be improved. Describe the important roles managers play in encouraging ethical behavior.
The factors that affect ethical and unethical behavior include: an individual’s level of moral development (presentational, conventional, or principled – ; individual characteristics (values and two personality variables – ego strength Ana locus AT control); structural variables (structural eagles, use AT goals, performance appraisal systems, and reward allocation procedures); organizational culture (content and strength); and issue intensity which includes six elements including greatness of harm, consensus of wrong, probability of harm, immediacy of consequences, proximity to victims, and concentration of effect .
The more intense an issue is (the larger number of people harmed, the more agreement that the action is wrong, the greater the likelihood the action will cause harm, the more immediately the consequences will be felt, the closer the person feels to the victims, and the more concentrated the effect of the action on the victims), the more we should expect employees to behave ethically. A code of ethics is a formal statement of an organization’s primary values and the ethical rules it expects employees to follow.
Managers can improve their effectiveness by recognizing the role that the organization’s leaders play in setting the ethical tone, by continually reaffirming the importance of the ethics code, by publicly reprimanding rule breakers, by considering the important critical stakeholders when developing or changing the ethics code, by communicating and regularly reinforcing the code to employees, and by using decision rules in guiding managers as they handle ethical dilemmas .
Managers play an important ethical leadership role in many ways: through whom and what are rewarded with pay increases and promotions; by punishing ethical offenders and publicizing the outcome; through establishing performance appraisal yester that focus on means as well as ends; by providing ethics training; by using independent social audits; through establishing formal protective mechanisms; and most importantly, by setting a good example.
Social Responsibility and Ethics Issues in Today’s World Explain why ethical leadership is important. Discuss how managers and organizations can protect employees who raise ethical issues or concerns. Explain what role social entrepreneurs play. Describe social impact management. Ethical leadership is important because the example set by managers has a strong influence n whether employees behave ethically. Ethical leaders also are honest, share their values, stress important shared values, and use the reward system appropriately.
Managers can protect weightlessness (employees who raise ethical issues or concerns) by encouraging weightlessness to come forward; by setting up toll-free ethics hotness; and by establishing a culture where employees can complain and get heard without fear of reprisal, against which the Serbians-Cooley Act offers some legal protection. Social entrepreneurs play an important role in solving social robbers by seeking out opportunities to improve society by using practical, innovative, and sustainable approaches. Social entrepreneurs want to make the world a better place and have a driving passion to make that happen.
Social impact management attempts to get managers to understand the interdependency between business needs and wider social concerns. Thus, as managers plan, organize, lead, and control, they would ask how their decisions would work in the societal context within which they’re operating. Key leers classical blew socioeconomic blew I en blew Tanat management’s only social accessibility is to maximize profits. The view that management’s social responsibility goes beyond making profits to include protecting and improving society’s welfare.
When a firm engages in social actions because of its obligation to meet certain economic and legal responsibilities. When a firm engages in social actions in response to some popular social need. A business’s intention, beyond its legal and social obligation social responsiveness social responsibility social screening greening of management values-based management ethics values ego strength locus of control economic obligations, to do the right things and act in ways that are good for society. Applying social criteria (screens) to investment decisions.
The recognition of the close link between an organization’s decisions and activities and its impact on the natural environment. An approach to managing in which managers are guided by the organization’s shared values in their management practices. Principles, values, and beliefs that define what is right and wrong behavior. Basic convictions about what is right and wrong. A personality measure of the strength of a person’s convictions. A resonantly attribute that measures the degree to which people believe they control their own fate.
A formal statement of an organization’s primary values and the ethical rules it expects its employees to follow. Individuals who raise ethical concerns or issues to others inside or outside the organization. An individual or organization who seeks out opportunities to improve society by using practical, innovative, and sustainable approaches. An approach to managing in which managers examine the social impacts of their decisions and actions. Code of ethics whistler’s social entrepreneur social impact management