1. Textbook pages TBA Ethics & socially responsibly management AOS 2: Internal Environments of LSOs

2. Corporate Culture Definition Elements of corporate culture Real vs. Official Management’s role in developing How can it be changed or improved? Management Structures Definition Bureaucracy definition Changes in organisational structure (flat) Horizontal vs. Vertical structure Functional, divisional and matrix structures Representing structures in diagrams Pros & Cons of each structure Organic Structures Management Roles, Skills & Styles Definitions Planning SWOT Analysis Good leadership Controlling Management Styles: definitions, pros, cons, example Situational Approach Management skills: delegation, communication etc Skills & Styles Policy Development & Ethics Definition Macro pressures on policy Operating pressures on policy Internal pressures on policy Steps in policy development Policy evaluation Ethics & CSR AREA OF STUDY 2 – Internal Environments of LSOs  ☐  

3. Learning Intentions Students will be able to: 1.Define ethics & socially responsible management 2.Explain the significance of ethics to an LSO 3.Provide examples of how an organisation can exhibit ethical & socially responsible management

4. Social responsibility of organisations Refers to an organisation’s management of the social, environmental and human consequences of its actions. Social responsibility is good business – generally customers reward socially responsible organisations by purchasing more of their products. Google any public company, and they will have a link on their sites re: social responsibility. In fact Google encourages staff to be involved in charitable efforts of all kinds and routinely communicates the importance of ethics to its employees.

5. Social responsibility of organisations Ethics involves the study of moral issues and choices. They are concerned not with legal obligations but with what is morally right or wrong – and all the shades of grey in between. Management ethics refers to moral standards as applied to management behaviour. The following ethical issues occur in business: 1.Fairness and honesty – avoid giving false or misleading information 2.Respect for people – practical joke v. serious harassment/negligence 3.Conflict of interest – when a person takes advantage of a situation for his own gain rather than employers interest. 4.Financial management - auditing When a person acts ethically, their decision making shows a concern for morality and principles. In corporations it includes acting in a socially responsible manner.

6. ETHICS AND THE HUMAN RESOURCES FUNCTION Ethics issues arise in the following HR areas: 1.Recruitment and selection of staff 2.Training and promotion 3.Performance appraisals 4.Questions of work-life balance 5.Psychological and medical testing of employees 6.OHS (including bullying)

7. ETHICS AND THE OPERATIONS FUNCTION Operations is the function of dealing with the actual production of goods and services. Issues of ethics/social responsibility in this area include: Care for the natural environment, such as the treatment of waste materials, and Relationships with suppliers of inputs – See Mining Ads

8. ETHICS AND MARKETING FUNCTION ESM issues arise in: Honesty and advertising Dealing with customer complaints Price setting (petrol price fixing and oil companies)

9. Implications 1.You are less likely to have a huge ethics scandal like has hit Murdoch’s News Corp (fines & loss of customers and ultimately business) 2.Some shareholders only invest in companies that have a sold moral reputation; therefore this consideration makes good sense for the business. 3.Better quality employees are often attracted to organisations that operate with corporate social responsibility. These employees are also likely to remain loyal, therefore reducing staff turnover rate and retaining the skills of staff and knowledge base to establish a competitive edge.

10. How can you make a company more ethical? Developing and implementing a Code of Conduct or Values Statement Encouraging staff to report unethical behaviour (‘whistleblowing’) Actively seeking customer feedback on employee behaviour Building a corporate culture that values honesty and integrity Senior staff setting an example by modeling ethical behaviour Linking employee appraisal to their knowledge and implementation of the organisation’s values.