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4 Social Responsibility 1
4 Social Responsibility 1
SOCIAL RESPONSIBILITY
Continued
Two Opposing Views of Social Responsibility (continued) Socioeconomic view - businesses are not just economic institutions managements social responsibility goes beyond making profits to include protecting and improving societys welfare businesses have responsibility to a society more organizations around the world have increased their social responsibility
Continued
Social responsibility - a businesss obligation to pursue long-term goals that help society Social obligation - obligation of a business to meet its economic and legal responsibilities Social responsiveness - capacity of a firm to adapt to changing societal conditions
Social Responsibility
Social Responsiveness
Social Obligation
social screening - applying social criteria to investment a companys socially responsible actions do not hurt its long-term economic performance
Conclusion
Ethical Responsibilities being ethical; doing what is right, just, and fair; avoiding harm Legal Responsibilities obeying the law (societys codification of right and wrong); playing by the rules of the game Economic Responsibilities being profitable
Source: Adapted from Archie B. Carroll, The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders. Business Horizons 34 (July/August 1991): 42.
MANAGERIAL ETHICS
Ethics
Rules and principles that define right and wrong conduct Utilitarian view - ethical decisions are made on the basis of their outcomes or consequences
Continued
Rights view - respects and protects individual liberties and privileges Theory of justice view - managers impose and enforce rules fairly and impartially Integrative social contracts theory decisions should be based on empirical and normative factors
Ethical Dilemma
Ethical/Unethical Behaviour
Moderators
Organizational Culture
Structural Variables
Individual characteristics values - basic convictions about right and wrong ego strength - strength of a persons convictions locus of control - degree to which people believe that they control their own fate
Continued
Factors That Affect Managerial Ethics (continued) Structural variables design of organization affects ethical behaviour rules and regulations behaviour of superiors performance appraisal systems that focus on means as well as ends reward systems that punish failure to achieve ends is likely to compromise ethics
Continued
Factors That Affect Managerial Ethics (continued) Organizational culture strong culture more influential than a weak culture high ethical standards result from a culture that is high in risk tolerance, control, and conflict tolerance Issue intensity importance of an ethical issue more intense issues prompt greater ethical behaviour
social and cultural differences determine ethical and unethical behaviour Global Compact - United Nations document containing principles for doing business globally in the areas of human rights, labour, and environment
Labour
Principle 3: Freedom of association and the effective recognition of the right to collective bargaining; Principle 4: The elimination of all forms of forced and compulsory labour; Principle 5: The effective abolition of child labour; and Principle 6: The elimination of discrimination in respect of employment and occupation.
Environment
Principle 7: Support a precautionary approach to environmental challenges; Principle 8: Undertake initiatives to promote greater environmental responsibility; and Principle 9: Encourage the development and diffusion of environmentally friendly technologies.
Comprehensive ethics programs have the potential to improve an organizations ethical climate Employee selection - eliminate ethically questionable applicants Codes of ethics - formal statement of an organizations primary values and ethical rules
Toward Improving Ethical Behaviour (continued) Top managements leadership - what they do is far more important than what they say Job goals and performance appraisal - goals should be clear and realistic and must focus on ethical standards Ethics training - an increasing number of organizations use training to encourage ethical behaviour Independent social audits - evaluation of decisions in relation to code of ethics Formal protective mechanisms - protect employees who face ethical dilemmas
Social Responsibility
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