Management and Society

Motivation Things to Think About How much responsibility do organizations have to make sure that a work place is safe or that it does not pollute the environment? Should corporations ensure upper management reflects the same diversity as its workforce? Should a company have a life long loyalty to its workforce (career / retirement) Should companies be allowed to downsize their workforce in the United States and hire cheaper labor from overseas? Chapter 3 Lesson 2

Click the Show/Hide Response Display Button Quick Write Do corporate managers have a duty to pursue social goals? Or should they just focus on making money? Explain your answer. Note to Instructors: Click the Show/Hide Response Display Button Courtesy of Clipart.com

Objectives Describe the two basic positions on corporate social responsibility Describe workforce diversity List and describe three types of contingent workers List and describe three methods of changing organizational size Explain the issues that contingent workers create for managers Chapter 3 Lesson 2

Vocabulary Social Responsibility Social Obligation  Social Responsiveness Ethics Code of Ethics Chapter 3 Lesson 2

Corporate Social Responsibility Chapter 3 Lesson 2

What Society Expects from Organizations and Managers Corporate Responsibility first became a hot topic during the 1960s Did corporations have a responsibility to welcome women and nonwhites into their workforces? And maybe even into the ranks of their managers? Was it all right for the tobacco companies to keep making—and advertising—cigarettes? After all, study after study linked smoking to disease. What about Dow Corning, marketing breast implants to women, despite reports that leaking silicone could be a health hazard? Courtesy of Creatas Images

Two Views of Social Responsibility Activist View Belief that organizations need to be socially and ethically responsible Minimalist View Belief that the obligation of a business is to meet its economic and legal responsibilities, and no more Chapter 3 Lesson 2

Corporate Social Responsibility Social responsiveness, a firm’s desire to adapt and act to changing social conditions Social responsibility is a firm’s ability to go beyond what the law requires to pursue long-term goals that benefit society Social obligation, the obligation of a business to meet its economic and legal responsibilities, and no more Chapter 3 Lesson 2

Balance responsibility Shareholder interests Activist Arguments Public expectations Minimize regulation Long-term profits Balance responsibility Ethical obligation Shareholder interests Public image Resources Better environment Prevention over cure Chapter 3 Lesson 2

Minimalist Arguments Maximize profits Dilution of purpose Excessive costs Excessive power Lack of skills Lack of accountability Lack of public support Chapter 3 Lesson 2 Courtesy of Thinkstock Images

Motivation Things to Think About How much responsibility do organizations have to make sure that a work place is safe or that it does not pollute the environment? Chapter 3 Lesson 2

How Managers Become More Socially Responsible Ethics is a set of rules or principles that define right and wrong conduct A Code of Ethics is a formal statement of an organization’s core values and the ethical rules it expects managers and operatives to follow Chapter 3 Lesson 2 Courtesy of Clipart.com

Supporting a Code of Ethics What Managers Must Do Regularly affirm the content of the Code of Ethics Follow the rules of the Code themselves Call those who break the rules to account Chapter 3 Lesson 2

The belief that organizations need to be socially and ethically responsible is called the minimalist view. modern view. social view. activist view. 1 (LE400-U1C3L2:LQ3)

A firm’s desire to adapt to changing social conditions Social responsibility Social obligation Social responsiveness Ethics 1 (LE400-U1C3L2:VQ1)

A firm’s ability to go beyond what the law requires to pursue long-term goals that benefit society Social responsibility Social obligation Social responsiveness Ethics 1 (LE400-U1C3L2:VQ1)

The obligation of a business to meet its economic and legal responsibilities, and no more Social responsibility Social obligation Social responsiveness Ethics 1 (LE400-U1C3L2:VQ4)

A set of rules or principles that define right and wrong conduct Social responsibility Social obligation Social responsiveness Ethics 1 (LE400-U1C3L2:VQ3)

Workforce Diversity Chapter 3 Lesson 2 Courtesy of Clipart.com

Workforce Diversity Workers bring a diversity of cultural values and lifestyle preferences with them to work Managers are seeing a need to accommodate this diversity and celebrate the differences, rather than trying to fit each worker into the same mold Chapter 3 Lesson 2

Workforce Diversity Workforce diversity—the variety of backgrounds of an organization’s people, such as gender, race, age, and ethnicity Chapter 3 Lesson 2 Courtesy of Clipart.com

Workforce Diversity During the 1960s, Congress made it illegal to discriminate in employment against people because of their race or gender As a result of this legislation, women and African-Americans entered the workforce in much greater numbers than before Chapter 3 Lesson 2

Workforce Diversity In more recent years, the labor force has seen even greater diversity as Hispanic, Asian, and other immigrants have come to the United States to work The future workforce will be a mix: males and females, white and people of color, Hispanics, Asians, Africans, Native Americans, people with disabilities, and the elderly Chapter 3 Lesson 2

Workforce of the Future

Motivation Things to Think About Should corporations ensure upper management reflects the same diversity as its workforce? Chapter 3 Lesson 2

How Diversity Affects Organizational Management Adapted Human Resource Policies Hiring and promotion policies Diversity training Programs to encourage diversity among companies’ suppliers and vendors Chapter 3 Lesson 2

How Diversity Affects Organizationasl Management Move away from treating everyone alike in favor of responding to individual differences Avoid practices or actions that may offend Chapter 3 Lesson 2 Courtesy of Liquidlibrary Images

Corporate Loyalty Chapter 3 Lesson 2

Corporate Loyalty to Employees There once was a time was when companies only laid off employees during hard times. Today they are much more likely to lay people off even in good times. What’s behind the trend? Companies want to be more flexible to respond better to change. Emphasis on effectiveness and efficiencies in manufacturing, for instance—has led to the redesign of work processes and more automation, and the need for less people New technologies, particularly information systems, lead to rapidly changing staffing requirements and the need for people with different skills, expertise and experience.

Average Years with Same Company

Corporate Loyalty to Employees Companies want to avoid being burdened by permanent staff in case of a downturn They want workers they can say goodbye to when the holiday rush is over or the big new product rollout is complete They want to be able to respond to new opportunities without straining the human resources budget As companies try to thin the ranks of their regular employees, the contingent workforce has ballooned Chapter 3 Lesson 2

Contingent Workers Part-time employees, who work fewer than 40 hours per week and generally receive few or no benefits, are a good source for organizations to staff peak times Temporary employees work during peak production periods (e.g., the Christmas holidays in stores) or may fill in for employees who are off work for an extended period of time (e.g., someone on maternity leave) Contract workers, subcontractors, and consultants, sometimes called freelancers, are hired by organizations to work on specific projects for which they are often very skilled Chapter 3 Lesson 2

Why Organizations Lay Off Workers Downsizing—laying off people in order to create a more efficient operation Rightsizing—linking staffing levels to organizational goals Chapter 3 Lesson 2 Courtesy of Liquidlibrary Images

Why Organizations Lay Off Workers Outsourcing—using outside organizations, some in other countries, to provide necessary products and services at a lower cost Chapter 3 Lesson 2 Courtesy of Clipart.com

Issues Contingent Workers Create for Managers They may not feel their work is valued as much as core employees They may need multiple employers They may not feel any special loyalty to any company Chapter 3 Lesson 2

Motivation Things to Think About Should a company have a life long loyalty to its workforce (career / retirement) Should companies be allowed to downsize their workforce in the United States and hire cheaper labor from overseas? Chapter 3 Lesson 2

The variety of backgrounds of an organization's people, such as gender, race, age, and ethnicity Contingent workforce Outsourcing Workforce diversity Rightsizing 1 (LE400-U1C3L2:VQ5)

Part-time, temporary, and contract workers Contingent workforce Outsourcing Rightsizing Downsizing 1 (LE400-U1C3L2:VQ12)

Laying off large numbers of people in order to create a more efficient operation Contingent workforce Outsourcing Rightsizing Downsizing 1 (LE400-U1C3L2:VQ7)

Using outside organizations, some in other countries, to provide necessary products and services Contingent workforce Outsourcing Rightsizing Downsizing 1 (LE400-U1C3L2:VQ10)

Linking staffing levels to organizational goals is called outsourcing. downsizing. rightsizing. upsizing. 1 (LE400-U1C3L2:LQ7)