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CHAPTER 2 Environment, Social Responsibility and ethics 1
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When you finish this chapter, you should be able to: Management Environment Internal Environment related to management Concept of Corporate Culture General environment and Task environment Managerial responses to the environment Organizational setting for management Social responsibility and Corporate social responsibility Measuring social responsibility Management Ethics Approaches to management ethics 2 Learning Objectives
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3 I. Management Environment
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Managers have to understand from: Surrounding him everything (internal & external environment) Approaches how to resolve the problems Controlling those environments 4
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1.1-Internal Environment Factors that are frequently considered part of the internal environment include: Operation Staff Leadership Styles Organizational Culture Organizational Mission Statement Mission statement: guide the actions of the organization, spell out its overall goal, provide a sense of direction, and guide decision making. 5
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Concept of Corporate Culture The elements of a corporate culture Mr. Deal and Mr. Kennedy shows 5 elements of corporate culture: 1)Business environment 2)Values: -staff, coordinate between staff, leader 3)Heroes: Sample, close relationship 4)Rite and Rituals: visit, dinner 5)The culture network 1.1 - Internal Environment 6
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1.2 External Environment factors surrounding an organization that significant influence on its growth and survivals: -Competitors -Customers -Technology -Law/Regulations -Resources:.Skilled Workers.Raw Materials.Finance 7
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1.2.1- General Environment There are 5 elements: Political-Legal Environment Economics Environment Social and Cultural Environment Technological Environment International Environment 1.2 External Environment 8
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1.2.2 Task Environment Customers Competitors Suppliers Regulators 1.2 External Environment 9
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1.3 Managerial Responses to Environment Mr. P.N. Khandwalla discovered the factors of change of environment 5 types: A.Turbulence B.Hostility C.Diversity D.Technical Complexity E.Restrictiveness 10
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1.4 Organizational Setting for Management Corporation Nonprofit organizations Small businesses Family-owned businesses 11
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II. Social Responsibility Company has to be responsible to defend social healthy Water pollution Air pollution Land pollution 12
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2.1 Corporate Social Responsibility 2.1.1 The Stakeholder Concept Government Employees Customers Suppliers Creditors 13
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2.2 Measuring Social Responsibility 2.2.1 What should be measured? Analysis: People help program Fund for Scholarship: school, ministry, government Controlling on pollution 2.2.2 Social Audits: Is a process that enables an organization to assess and demonstrate its social, economic, and environmental benefits and limitations 14
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3. Management Ethics Approaches to management ethics Normative concepts: -How Should individual have behavior? Contextual Concepts: - Make decision Environment for ethical decision making Code of ethics 15
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