Tweet
Social Responsibility and Managerial Ethics
What Is Social Responsibility?
The Socioeconomic View
To Whom is Management Responsible?
Arguments For and Against Social Responsibility
From Obligation to Responsiveness to Responsibility
Social Obligation
The obligation of a business to meet its economic and legal responsibilities and nothing more.
Social Responsiveness
Social Responsibility versus Social Responsiveness
Does Social Responsibility Pay?
Studies appear to show a positive relationship between social involvement and the economic performance of firms.
Social Investing
The Greening of Management
The recognition of the close link between an organization’s decision and activities and its impact on the natural environment.
Global environmental problems facing managers:
Air, water, and soil pollution from toxic wastes
Global warming from greenhouse gas emissions
Natural resource depletion
How Organizations Go Green
Legal (or Light Green) Approach
Market Approach
Firms respond to the preferences of their customers for environmentally friendly products.
Stakeholder Approach
Firms work to meet the environmental demands of multiple stakeholders—employees, suppliers, and the community.
Activist Approach
Firms look for ways to respect and preserve environment and be actively socially responsible.
Approaches to Being Green
Evaluating the Greening of Management
Organizations become “greener” by
Using the Sustainability Reporting Guidelines to document “green” actions.
Adopting ISO 14001 standards for environmental management
Being named as one of the 100 Most Sustainable Corporations in the World.
Values-Based Management
Values-Based Management
The Purposes of Shared Values
Guiding managerial decisions
Shaping employee behavior
Influencing the direction of marketing efforts
Building team spirit
Exhibit Purposes of Shared Values
Exhibit Survey of Stated Values of Organizations
Managerial Ethics
Ethics Defined
Exhibit Factors That Affect Ethical and Unethical Behavior
Factors That Affect Employee Ethics
Moral Development
Levels of Individual Moral Development
Preconventional level
Conventional level
Principled level
Stage of moral development interacts with:
Individual characteristics
The organization’s structural design
The organization’s culture
The intensity of the ethical issue
Exhibit 5–9 Stages of Moral Development
Factors That Affect Employee Ethics (cont’d)
Moral Development
Research Conclusions:
Values
Ego strength
Locus of Control
Internal locus: the belief that you control your destiny.
External locus: the belief that what happens to you is due to luck or chance.
Other Variables
Structural Variables
Organizational characteristics and mechanisms that guide and influence individual ethics:
Performance appraisal systems
Reward allocation systems
Behaviors (ethical) of managers
Exhibit 5–10 Determinants of Issue Intensity
Ethics in an International Context
Ethical standards are not universal.
Social and cultural differences determine acceptable behaviors.
Foreign Corrupt Practices Act
Exhibit 5–11 The Global Compact
How Managers Can Improve Ethical Behavior in An Organization
The Value of Ethics Training
Can make a difference in ethical behaviors.
Increases employee awareness of ethical issues in business decisions.
Clarifies and reinforces the organization’s standards of conduct.
Helps employees become more confident that they will have the organization’s support when taking unpopular but ethically correct stances.
Exhibit 5–12 Clusters of Variables Found in 83 Corporate Codes of Business Ethics
Exhibit 5–13 Twelve Questions for Examining the Ethics of a Business Decision
Effective Use of a Code of Ethics
Develop a code of ethics as a guide in handling ethical dilemmas in decision making.
Communicate the code regularly to all employees.
Have all levels of management continually reaffirm the importance of the ethics code and the organization’s commitment to the code.
Publicly reprimand and consistently discipline those who break the code.
Ethical Leadership
Managing Ethical Lapses and Social Irresponsibility
Provide ethical leadership
Awareness of Social Issues
Social Entrepreneurs
Social Impact Management
Terms to Know
classical view
socioeconomic view
social obligation
social responsiveness
social responsibility
social screening
greening of management
values-based management
ethics
values
ego strength
locus of control
code of ethics
whistle-blower
social entrepreneur
social impact management
The Socioeconomic View
To Whom is Management Responsible?
Arguments For and Against Social Responsibility
From Obligation to Responsiveness to Responsibility
Social Obligation
The obligation of a business to meet its economic and legal responsibilities and nothing more.
Social Responsiveness
Social Responsibility versus Social Responsiveness
Does Social Responsibility Pay?
Studies appear to show a positive relationship between social involvement and the economic performance of firms.
Social Investing
The Greening of Management
The recognition of the close link between an organization’s decision and activities and its impact on the natural environment.
Global environmental problems facing managers:
Air, water, and soil pollution from toxic wastes
Global warming from greenhouse gas emissions
Natural resource depletion
How Organizations Go Green
Legal (or Light Green) Approach
Market Approach
Firms respond to the preferences of their customers for environmentally friendly products.
Stakeholder Approach
Firms work to meet the environmental demands of multiple stakeholders—employees, suppliers, and the community.
Activist Approach
Firms look for ways to respect and preserve environment and be actively socially responsible.
Approaches to Being Green
Evaluating the Greening of Management
Organizations become “greener” by
Using the Sustainability Reporting Guidelines to document “green” actions.
Adopting ISO 14001 standards for environmental management
Being named as one of the 100 Most Sustainable Corporations in the World.
Values-Based Management
Values-Based Management
The Purposes of Shared Values
Guiding managerial decisions
Shaping employee behavior
Influencing the direction of marketing efforts
Building team spirit
Exhibit Purposes of Shared Values
Exhibit Survey of Stated Values of Organizations
Managerial Ethics
Ethics Defined
Exhibit Factors That Affect Ethical and Unethical Behavior
Factors That Affect Employee Ethics
Moral Development
Levels of Individual Moral Development
Preconventional level
Conventional level
Principled level
Stage of moral development interacts with:
Individual characteristics
The organization’s structural design
The organization’s culture
The intensity of the ethical issue
Exhibit 5–9 Stages of Moral Development
Factors That Affect Employee Ethics (cont’d)
Moral Development
Research Conclusions:
Values
Ego strength
Locus of Control
Internal locus: the belief that you control your destiny.
External locus: the belief that what happens to you is due to luck or chance.
Other Variables
Structural Variables
Organizational characteristics and mechanisms that guide and influence individual ethics:
Performance appraisal systems
Reward allocation systems
Behaviors (ethical) of managers
Exhibit 5–10 Determinants of Issue Intensity
Ethics in an International Context
Ethical standards are not universal.
Social and cultural differences determine acceptable behaviors.
Foreign Corrupt Practices Act
Exhibit 5–11 The Global Compact
How Managers Can Improve Ethical Behavior in An Organization
The Value of Ethics Training
Can make a difference in ethical behaviors.
Increases employee awareness of ethical issues in business decisions.
Clarifies and reinforces the organization’s standards of conduct.
Helps employees become more confident that they will have the organization’s support when taking unpopular but ethically correct stances.
Exhibit 5–12 Clusters of Variables Found in 83 Corporate Codes of Business Ethics
Exhibit 5–13 Twelve Questions for Examining the Ethics of a Business Decision
Effective Use of a Code of Ethics
Develop a code of ethics as a guide in handling ethical dilemmas in decision making.
Communicate the code regularly to all employees.
Have all levels of management continually reaffirm the importance of the ethics code and the organization’s commitment to the code.
Publicly reprimand and consistently discipline those who break the code.
Ethical Leadership
Managing Ethical Lapses and Social Irresponsibility
Provide ethical leadership
Awareness of Social Issues
Social Entrepreneurs
Social Impact Management
Terms to Know
classical view
socioeconomic view
social obligation
social responsiveness
social responsibility
social screening
greening of management
values-based management
ethics
values
ego strength
locus of control
code of ethics
whistle-blower
social entrepreneur
social impact management