Managerial ethics and Social responsibility
•Télécharger en tant que PPTX, PDF•
12 j'aime•8,053 vues
Management’s only social responsibility is to maximize profits by operating the business in the best interests of the stockholders. WTO Expending the firm’s resources on doing “social good” unjustifiably increases costs that lower profits to the owners and raises prices to consumers.
Recommandé
Recommandé
Contenu connexe
Tendances
Tendances (20)
En vedette
En vedette (20)
Similaire à Managerial ethics and Social responsibility
Similaire à Managerial ethics and Social responsibility (20)
Plus de Sajeed Mahaboob
Plus de Sajeed Mahaboob (10)
Dernier
Dernier (20)
Managerial ethics and Social responsibility
- 1. MANAGERIAL ETHICS & SOCIAL RESPONSIBILITY GUIDED BY: DR. RAKESH KUMAR MAURYA IIT ROPAR MEL625: ENGINEERING ETHICS 1 A PRESENTATION BY: SAJEED MAHABOOB 2011ME1111
- 2. OUTLINE What is Social Responsibility Social Responsibility and Economic Performance The Greening of Management Values-Based Management Managerial Ethics Social Responsibility and Ethics in Today’s World Conclusion 6/22/2016 2
- 3. SOCIAL RESPONSIBILITY THE CLASSICAL VIEW Management’s only social responsibility is to maximize profits by operating the business in the best interests of the stockholders. WTO Expending the firm’s resources on doing “social good” unjustifiably increases costs that lower profits to the owners and raises prices to consumers. 6/22/2016 3
- 4. SOCIAL RESPONSIBILITY THE SOCIOECONOMIC VIEW Management’s social responsibility goes beyond making profits to include protecting and improving society’s welfare. WTO Corporations are not independent entities responsible only to stockholders. Firms have a moral responsibility to larger society to become involved in social, legal, and political issues. 6/22/2016 4
- 5. 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 The capacity of a firm to adapt to changing societal conditions through the practical decisions of its managers in responding to important social needs. Social Responsibility A firm’s obligations as a moral agent extends beyond its legal and economic obligations, to the pursuit of long-term goals that are good for society. 6/22/2016 5
- 6. 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 6/22/2016 6
- 7. ARGUMENTS AGAINST BUSINESSES BEING SOCIALLY RESPONSIBLE Violation of profit maximization Dilution of purpose Costs Too much power Lack of skills Lack of accountability Lack of broad public support 6/22/2016 7
- 8. RELATIONSHIP BETWEEN SOCIAL RESPONSIBILITY AND ECONOMIC PERFORMANCE Studies appear to show a positive relationship between social involvement and the economic performance of organizations. Difficulties in defining and measuring “social responsibility” and “economic performance raises the issues of validity and causation in the studies. General public perception that companies who behave in a socially responsible way have better business performance 6/22/2016 8
- 9. MANAGEMENT’S IMPACT ON THE NATURAL ENVIRONMENT The recognition of the close link between an organization’s decision and activities and its impact on the natural environment. Air, water, and soil pollution from toxic wastes Global warming from greenhouse gas emissions Natural resource depletion 6/22/2016 9 www.cengage.com/resource_uploads/.../0-324-40571-5_04_REV
- 10. HOW ORGANISATIONS GOES ECO-FRIENDLY Legal Approach Firms simply do what is legally required by region they are in by obeying laws, rules, and regulations willingly and without legal challenge. Market Approach Firms respond to the preferences of their customers for environment 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. 6/22/2016 10
- 11. VALUES-BASED MANAGEMENT An approach to managing in which managers establish and uphold an organization’s shared values. The Purposes of Shared Values Serving as guideposts for managerial decisions Shaping employee behavior Influencing the direction of marketing efforts The Bottom Line on Shared Corporate Values An organization’s values are reflected in the decisions and actions of its employees. 6/22/2016 11
- 12. MANAGERIAL ETHICS Managerial ethics is a set of principles and rules dictated by upper management that define what is right and what is wrong in an organization: Irving L. Janis Four Views of Ethics The utilitarian view The rights view The theory of justice view The integrative social contracts theory 6/22/2016 12
- 13. THE UTILITARIAN VIEW Ethical decisions are made solely on the basis of their outcomes or consequences such that the greatest good is provided for the greatest number. Encourages efficiency and productivity and is consistent with the goal of profit maximization. 6/22/2016 13
- 14. THE RIGHTS VIEW Concerned with respecting and protecting individual liberties and privacy. Seeks to protect individual rights of conscience, free speech, life and safety, and due process. 6/22/2016 14
- 15. THE THEORY OF JUSTICE VIEW Organizational rules are enforced fairly and impartially and follow all legal rules and regulations. Protects the interests of stakeholders and the rights of employee. 6/22/2016 15
- 16. THE INTEGRATIVE SOCIAL CONTRACTS THEORY Ethical decisions should be based on existing ethical norms in industries and communities in order to determine what constitutes right and wrong. Based on integration of the general social contract and the specific contract between community members. 6/22/2016 16
- 17. FACTORS THAT AFFECT EMPLOYEES ETHICS MORAL DEVELOPMENT A measure of independence from outside influences Level 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 6/22/2016 17
- 18. INDIVIDUAL CHARACTERISTICS Values Basic convictions about what is right or wrong on a broad range of issues Stage of Moral Development A measure of an individual’s independence from outside influences Personality Variables Ego strength A personality measure of the strength of a person’s convictions Locus of Control Internal locus: The belief that you can control your own destiny. External locus: The belief that what happens to you is due to luck or chance. 6/22/2016 18
- 19. STRUCTURAL VARIABLES Organizational characteristics and mechanisms that guide and influence individual ethics: Performance appraisal systems Reward allocation systems Ethical behaviors of managers An organization’s culture Good structural design minimizes ambiguity and uncertain and foster ethical behavior. 6/22/2016 19
- 20. ETHICS IN AN INTERNATIONAL CONTEXT Ethical standards are not universal Social and cultural differences determine acceptable behaviors Foreign Corrupt Practices Act Makes it illegal to corrupt a foreign official yet “token” payments to officials are permissible when doing so is an accepted practice in that country. WTO 6/22/2016 20
- 21. HOW MANAGERS CAN IMPROVE ETHICAL BEHAVIOR IN AN ORGANIZATION? Hire individuals with high ethical standards. Establish codes of ethics and decision rules. Lead by example. Delineate job goals and performance appraisal mechanisms. Provide ethics training. Conduct social audits. Provide support for individuals facing ethical dilemmas. 6/22/2016 21
- 22. EFFECTIVE USE OF 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. 6/22/2016 22
- 23. THE VALUE OF ETHICS TRAINING Training in ethical problem solving can make a difference in ethical behaviors. Training in ethics increase employee awareness of ethical issues in business decisions. Ethics training clarifies and reinforces the organization’s standards of conduct. Employees become more confident that they will have the organization’s support when taking unpopular but ethically correct stances. 6/22/2016 23
- 24. ETHICAL LEADERSHIP Managers must provide a good role model by: Being ethical and honest at all times. Telling the truth; don’t hide or manipulate information. Admitting failure and not trying to cover it up. Communicating shared ethical values to employees through symbols, stories, and slogans. Rewarding employees who behave ethically and punish those who do not. Protecting whistleblowers, who bring to light unethical behaviors or raise ethical issues. 6/22/2016 24
- 25. CONCLUSION OF THE PROJECT More and more organizations are appearing in the newspaper headlines about ethical conduct. Survey of employees shows workplace pressures are leading to more people considering acting unethically. Concerns about social responsibility are growing. Acting ethically is not always easy. However, because society’s expectations of its institutions are changing regularly. Managers must continually monitor those expectations. What is ethical today may be a poor guide in the future. 6/22/2016 25
- 26. REFERENCES https://en.wikipedia.org/wiki/Corporate_social_responsibility https://en.wikipedia.org/wiki/Business_ethics http://www.unido.org/csr.html www.cengage.com/resource_uploads/.../0-324-40571-5_04_REV www.study.com/academy/.../what-is-managerial-ethics-definition-examples.html www.bus.iastate.edu/emullen/MGMT370/MGMT370Ch5Spring11 www.faculty.salisbury.edu/~whdecker/buad320/chapter4 http://www.wto.org 6/22/2016 26
- 27. 6/22/2016 27
Notes de l'éditeur
- On one side, there is the classical or purely economic view that management’s social responsibility is to maximize profits. On the other side stands the socioeconomic position, which holds that management’s responsibility goes well beyond making profits to include protecting and improving society’s welfare
- A general conclusion is that a firm’s social actions do not harm its long-term performance. While it influences the performance of the organizations by gaining the trust and sympathies shown by organizations towards the people.
- Its management’s duty to ensure the correct functioning of the firm. And it must have not any harmful effect on the environment.
- There are four ways an organization can go eco friendly.
- Utilitarian view of ethics refers to a situation in which decisions are made solely on the basis of their outcomes or consequences. It encourages efficiency and productivity and is consistent with the goal of profit maximization. It can, however, result in biased allocation of resources.
- a situation in which the individual is concerned with respecting and protecting individual liberties and privileges, including the rights to privacy, freedom of conscience, free speech. The positive side of the rights view is that it protects individual freedom and privacy.
- The theory of justice view refers to a situation in which an individual imposes and enforces rules fairly and impartially. It Protects the interests of underrepresented stakeholders and the rights of employee.
- People who lack strong moral development are much less likely to do the wrong things if they are constrained by rules, policies, job descriptions and organization’s culture. On the other hand, highly moral individuals can be corrupted by an organizational structure and culture that permits or encourages unethical practices.
- In addition to a person’s moral development, values that a person has will also influence ethical behavior. Values are developed in early years by watching and learning from our parents, teachers, and friends.
- The structural design of an organization also shapes the ethical behavior of managers. Some structures provide strong guidance and continuously remind managers of what is ethical while others create ambiguity and uncertainty.
- It is different in different regions depending on their social and cultural differences.
- For codes to have the force and importance, a written introduction by the CEO is key. People in the organization look to top management as the benchmark of behaviors and actions.
- A survey of employees shows that workplace pressures are leading more and more people to consider acting unethically or illegally on the job. The results indicated that 56% of those surveyed felt pressure to act unethically or illegally while 48% said they had actually committed such activities.