1. Corporate Social Responsibility and Managerial Ethics
Chapter 4
Corporate Social Responsibility and Managerial Ethics
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition
Copyright © 2009 Pearson Education Canada

2. Learning Outline After you read this chapter you should know the following learning objectives:
#1: What is corporate social responsibility?
#2: Can being socially responsible help performance?
#3: How do organizations go green?
#4: How do values influence management?
#5: What is ethics and how can ethical behaviour be encouraged?
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition
Copyright © 2009 Pearson Education Canada

3. What Is Corporate Social Responsibility?
The Classical View
Maximize profits for the benefit of the stockholders
Doing “social good” unjustifiably increases costs
Learning Objective #1
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition
Copyright © 2009 Pearson Education Canada

4. What Is Corporate Social Responsibility?
The Socio-economic View
Management should also protect and improve society’s welfare
Corporations are responsible not only to stockholders
Firms have a moral responsibility to larger society “to do the right thing”
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition
Copyright © 2009 Pearson Education Canada

5. Exhibit 4-2 Arguments For and Against Social Responsibility
Public expectations
Long-run profits
Ethical obligation
Public image
Better environment
Discouragement of further governmental regulation
Balance of responsibility and power
Stockholder interests
Possession of resources
Superiority of prevention over cure
Against
Violation of profit maximization
Dilution of purpose
Costs
Too much power
Lack of skills
Lack of accountability
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition
Copyright © 2009 Pearson Education Canada

6. Values-Based Management
Managers establish and uphold an organization’s shared values
Purposes of Shared Values
Guiding managerial decisions
Shaping employee behaviour
Influencing the direction of marketing efforts
Building team spirit
The Bottom Line on Shared Corporate Values
An organization’s values are reflected in the decisions and actions of its employees
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition
Copyright © 2009 Pearson Education Canada