1. Social and Ethical Responsibility of Management
August-5-19

2. Organization’s Social Responsibilities
Ethical
Legal
Economic
Discretionary
Social responsibilities
Don’t violate principles of right and wrong
Obey the Law
Make a Profit
August-5-19

3. What’s Social Responsibility?
Corporate Social Responsibility
The idea that business has social obligations above and beyond making a profit.
Business has an obligation to constituent groups in society other than stockholders and beyond that prescribed by law.
Social Responsibility is … the ethical accountability framework for the industry which defines principles, policies and practices and codes of conduct designed to ensure:
the protection of stakeholders,
the sustainability of industry, and
quality of life improvements in the communities in which it operates.
August-5-19

4. Primary Stakeholders: Secondary Stakeholders: Media Trade Associations
Stakeholder Model
Primary Stakeholders:
Shareholders
Employees
Customers
Suppliers
Governments
Local Communities
Secondary Stakeholders:
Media Trade Associations
August-5-19

5. Do only what is required
Responses to Demands for Social Responsibility
Reactive
Defensive
Accommo- dative
Proactive
Fight all the way
DO NOTHING
DO MUCH
Withdrawal
Do only what is required
Legal Approach
Bargaining
Problem Solving
Public Relations Approach
Be progressive
Lead the industry
August-5-19

6. Approaches To Corporate Social Responsiveness
1. Reactive
2. Defensive
3. Accommodative
4. Proactive
Posture or Strategy
Deny responsibility
Admit responsibility
but fight it
Accept responsibility
Anticipate responsibility
Performance
Do less than required
Do the least that is required
Do all that is required
Do more than is required
August-5-19

7. Arguments Supporting Businesses Being Socially Responsible
Public expectations
Long-run profits
Ethical obligation
Public image
Better environment
Discouragement of further government regulation
Balance of responsibility and power
Shareholder interests
Possession of resources
Superiority of prevention over cures
August-5-19

8. Arguments Against Businesses Being Socially Responsible
Violation of profit maximization
Dilution of purpose
Costs
Too much power
Lack of skills
Lack of accountability
August-5-19

9. Areas of Social Responsibility
Stakeholders: customers, employees, and investors.
The natural environment: environmentally sensitive products, recycling, and public safety.
The general social welfare: charitable contributions, and support for social issues such as child labor and human rights.
August-5-19

10. ORGANISATIONAL SOCIAL RESPONSIVENESS
‘A term referring to the development of organisational decision processes where managers anticipate, respond to and manage areas of social responsibility.’
Two aspects:
Monitoring social demands and expectations
Internal social response mechanisms
05/08/2019

11. MONITORING SOCIAL DEMANDS/EXPECTATIONS
Social forecasting
Opinion surveys
Social audits
Issues management
Social scanning
August-5-19

12. SR Management Process Planning Leadership & People Focus
Client & Stakeholder Focus
Process Management
Outcome Assessment
August-5-19

13. Dilemmas in Business
A dilemma exists when you have a choice between two or more options.
A business dilemma exists when an organizational decision maker faces a choice between two or more options that will have various impacts on (a) the organization’s profitability and competitiveness and (b) its stakeholders.
August-5-19

14. ETHICS
Ethics (also called moral philosophy), involves systematizing, defending, and recommending concepts of right and wrong behavior.
Business ethics is the application of general ethical principles to business dilemmas.
August-5-19

15. TYPES OF MANAGERIAL ETHICS
Immoral management
Lacks ethical principles, concern for profit only
Amoral management
Ignores, or oblivious to, ethical issues
Moral management
Conscious attention to ethical standards and issues
August-5-19

16. WHAT INFLUENCES ETHICAL BEHAVIOR?
THE ORGANIZATION’S ROLE
Structure
Culture
THE INDIVIDUAL’S ROLE
August-5-19

17. Determinants of Individual Ethics
Family Influences
Situational Factors
Values and Morals
Experiences
Peer Influences
Individual Ethics
August-5-19

18. Show respect for people. Stick to the Golden Rule.
ETHICAL GUIDELINES FOR MANAGERS
Obey the law.
Tell the truth.
Show respect for people.
Stick to the Golden Rule.
Above all, do no harm.
Participation not paternalism.
Responsibility requires action.
August-5-19

19. Increasing awareness of diversity Top management commitment
MECHANISMS FOR ETHICAL MANAGEMENT
Increasing awareness of diversity
Top management commitment
Codes of ethics
Ethics committees
Ethics audits
Ethics hotlines
Ethics training
August-5-19

20. Process of Rationalization
Mental strategies that allow employees (and others around them) to view their corrupt acts as justified
Denial of responsibility ..no choice…everyone does it
Denial of injury…no one is really injured
Denial of victim…the violated party deserves it
Social weighting…comparison…others do worst things
Appeal to higher authorities…loyalty to boss or co.
Ledger approach…accrued credits…we deserve it
August-5-19

21. THANK YOU
August-5-19