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CHAPTER 5
REPORTED BY.
RISTIAN CALDERON
CH
A Manager's Dilemma
What Is Social Responsibility?
Social responsibility -is an ethical
theory that an entity, be it an
organization or individual, has an
obligation to act to benefit society
at large.
1. The Classical View
Two Opposing Views of Social
Responsibility
The classical view holds that
management's only social responsibility is
to maximize profits.
2. The Socioeconomic View
It is the view that management's social
responsibility goes beyond making
profits to include protecting and
improving society's welfare.
Arguments For and Against
Social Responsibility
For Against
Public expectations Violation of profit maximization
Public opinion now supports
businesses
pursuing economic and social goals
Business is being socially responsible
only when it pursues its economic
interests
Long-run profits Dilution of purpose
Socially responsible companies tend
to have
more secure long-run profits
Pursuing social goals dilutes
business's primary purpose—
economic productivity
Ethical obligation Costs
Social obligation is the obligation
of a business to meet its economic
and legal responsibilities.
1. Social responsibility
2. Social responsiveness
0
1
2
3
4
5
6
7
8
9
10
10 –social
responsibility
8-social
responsibility
18-
respondents
1.WHAT IS THE MORE IMPORTANT?
CHOICES RESPONDENTS TOTAL
A.SOCIAL
RESPONSIBILITY
10 10
B.SOCIAL
RESPONSIVENESS
8 8
N=18
FREQUENCY DISTRIBUTION TABLE
Social Responsibility and Economic
Performance
-The majority showed a
positive relationship
between social
involvement and economic
performance.
SOCIAL SCREENING- APPLY
SOCIAL CRITERIA TO
INVESTMENT DECISIONS
Values-Based Management
Values-based management is an
approach to managing in which
managers
establish, promote, and practice
an organization's shared values
Developing Shared Values
Managers are responsible for
shaping the organization so that
its
values, norms, and ideals appeal
strongly to employees.
Purposes of Shared Values
shared values are a way to build team spirit in
organizations
Suggestions for Creating a Good Corporate Values
Statement
1. Involve everyone in the company.
2. Allow customizing of the values by individual
departments or units.
3. Expect and accept employee resistance.
4. Keep the statement short.
5. Avoid trivial statements.
6. Leave out religious references.
7. Challenge it.
8. Live it.
The "Greening" of Management
This recognition of the close link
between an organization's decisions
and activities and its impact on the
natural environment is referred to
as the greening of
management.
Global Environmental Problems
One "green" issue managers must deal with as
they become more involved in preserving the
natural environment is recognizing the key
global environmental problems and how
these problems are changing
list of global environmental
problems:
1.global warming
2.pollution (air, water, and soil),
3.industrial accidents
4.toxic wastes
According to Environment watchdog
EcoWaste Coalition
"Itong laruang ito ang may pinakamataas na
lead content--6,000 plus parts per
million, samantalang 90 parts per million
lamang ang allowable," said Thony
Dizon, Coordinator for Project Protect of
EcoWaste Coalition,
LEAD CONTENT
90
6000
6,000 Parts
per million
90 Parts per
million
How Organizations Go Green
four approaches organizations can take with
respect to environmental issues.
ACTIVIST APPROACH
Too much lead in the body may result in sickness
and affect brain and physical development.
Summing Up Social Responsibility
The key issues in social responsibility are easier
to understand if we think in terms of the
people to whom managers are responsible.
four-stage model of the progression of an organization's social
responsibility
A Stage 1
manager will promote stockholders' interests by seeking to
minimize costs and maximize profits.
At Stage 2, managers will accept their responsibility to
employees and focus on
human resource concerns.
At Stage 3, managers expand their responsibilities to other
stakeholders in the specific
environment—that is, customers and suppliers.
Finally, Stage 4 characterizes the extreme socioeconomic
definition of social responsibility.
Managerial Ethics
• The term ethics refers to rules and principles
that define right and wrong conduct.3
Four Views of Ethics
1.utilitarian view of ethics
2. rights view of ethics
3. theory of justice view of ethics
4. integrative social contracts theory
Factors That Affect Managerial Ethics
a manager acts ethically or
unethically is the result of complex
interactions between the
manager's stage of moral
development and several
moderating variables.
Structural Variables
An organization's structural design
helps shape whether managers
behave ethically.
-Formal rules and regulations
reduce ambiguity
Organization's Culture
• An organizational culture most likely to
encourage high ethical standards is one that
is high in risk tolerance, control, and conflict
tolerance.
• A strong culture will exert more influence on
managers than a weak one.
Determinants of Issue Intensity
Global compact
TOWARD IMPROVING ETHICAL
BEHAVIOR
Managers can do a number of
things if they're serious about
reducing unethical behaviors in
their
organization
Employee Selection
• —interviews, tests, background checks, and
so forth—should be used to eliminate
ethically questionable applicants. The
selection process should be viewed as an
opportunity to learn about an individual's
level of moral development, personal
values, ego strength, and locus of control.
Codes of Ethics and Decision Rules
• A code of ethics, a formal statement
of an organization's primary values
a
Ethics Training
• More and more organizations are setting up
seminars, workshops, and similar ethics training
programs to encourage ethical behavior. Ethics
researchers estimate that over 40 percent of U.S.
companies provide some form of ethics training
ETHICS TRAINING
40%
PROVIDE ETHICS
TRAINING
ACCORDING TO U.S
COMPANIES
Independent Social Audits
• Independent social audits, which
evaluate decisions and management
practices in terms of the
organization's code of ethics,
increase the likelihood of detection.
Formal Protective
Mechanisms
• Our last recommendation is for organizations
to provide formal mechanisms to protect
employees who face ethical dilemmas so that
they can do what's right without fear of
reprimand
FINAL THOUGHT
-unethical behaviors are prevalent across our
society. Cheating, for instance, is a common
occurrence in education. A range of studies
shows that anywhere from 75 percent to 98
percent of students admit to having cheated
in high school.
A survey of college students by U.S. News and
World Report showed some ethically
alarming results
0
10
20
30
40
50
60
70
80
90
Believe cheaters never
pay the price
someone are cheating need to cheat it is fair to cheat
Column2
Column1
Series 1
SOCIAL RESPONSIBILITY AND MANAGERIAL ETHICS CHAPTER 5
SOCIAL RESPONSIBILITY AND MANAGERIAL ETHICS CHAPTER 5
SOCIAL RESPONSIBILITY AND MANAGERIAL ETHICS CHAPTER 5
SOCIAL RESPONSIBILITY AND MANAGERIAL ETHICS CHAPTER 5
SOCIAL RESPONSIBILITY AND MANAGERIAL ETHICS CHAPTER 5

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SOCIAL RESPONSIBILITY AND MANAGERIAL ETHICS CHAPTER 5

  • 2.
  • 4. What Is Social Responsibility? Social responsibility -is an ethical theory that an entity, be it an organization or individual, has an obligation to act to benefit society at large.
  • 5. 1. The Classical View Two Opposing Views of Social Responsibility The classical view holds that management's only social responsibility is to maximize profits. 2. The Socioeconomic View It is the view that management's social responsibility goes beyond making profits to include protecting and improving society's welfare.
  • 6. Arguments For and Against Social Responsibility For Against Public expectations Violation of profit maximization Public opinion now supports businesses pursuing economic and social goals Business is being socially responsible only when it pursues its economic interests Long-run profits Dilution of purpose Socially responsible companies tend to have more secure long-run profits Pursuing social goals dilutes business's primary purpose— economic productivity Ethical obligation Costs
  • 7. Social obligation is the obligation of a business to meet its economic and legal responsibilities. 1. Social responsibility 2. Social responsiveness
  • 8. 0 1 2 3 4 5 6 7 8 9 10 10 –social responsibility 8-social responsibility 18- respondents 1.WHAT IS THE MORE IMPORTANT? CHOICES RESPONDENTS TOTAL A.SOCIAL RESPONSIBILITY 10 10 B.SOCIAL RESPONSIVENESS 8 8 N=18 FREQUENCY DISTRIBUTION TABLE
  • 9. Social Responsibility and Economic Performance -The majority showed a positive relationship between social involvement and economic performance.
  • 10. SOCIAL SCREENING- APPLY SOCIAL CRITERIA TO INVESTMENT DECISIONS
  • 11. Values-Based Management Values-based management is an approach to managing in which managers establish, promote, and practice an organization's shared values
  • 12. Developing Shared Values Managers are responsible for shaping the organization so that its values, norms, and ideals appeal strongly to employees.
  • 13. Purposes of Shared Values shared values are a way to build team spirit in organizations
  • 14.
  • 15. Suggestions for Creating a Good Corporate Values Statement 1. Involve everyone in the company. 2. Allow customizing of the values by individual departments or units. 3. Expect and accept employee resistance. 4. Keep the statement short. 5. Avoid trivial statements. 6. Leave out religious references. 7. Challenge it. 8. Live it.
  • 16. The "Greening" of Management This recognition of the close link between an organization's decisions and activities and its impact on the natural environment is referred to as the greening of management.
  • 17. Global Environmental Problems One "green" issue managers must deal with as they become more involved in preserving the natural environment is recognizing the key global environmental problems and how these problems are changing list of global environmental problems: 1.global warming 2.pollution (air, water, and soil), 3.industrial accidents 4.toxic wastes
  • 18. According to Environment watchdog EcoWaste Coalition "Itong laruang ito ang may pinakamataas na lead content--6,000 plus parts per million, samantalang 90 parts per million lamang ang allowable," said Thony Dizon, Coordinator for Project Protect of EcoWaste Coalition,
  • 19. LEAD CONTENT 90 6000 6,000 Parts per million 90 Parts per million
  • 20. How Organizations Go Green four approaches organizations can take with respect to environmental issues.
  • 21. ACTIVIST APPROACH Too much lead in the body may result in sickness and affect brain and physical development.
  • 22. Summing Up Social Responsibility The key issues in social responsibility are easier to understand if we think in terms of the people to whom managers are responsible. four-stage model of the progression of an organization's social responsibility A Stage 1 manager will promote stockholders' interests by seeking to minimize costs and maximize profits.
  • 23. At Stage 2, managers will accept their responsibility to employees and focus on human resource concerns. At Stage 3, managers expand their responsibilities to other stakeholders in the specific environment—that is, customers and suppliers. Finally, Stage 4 characterizes the extreme socioeconomic definition of social responsibility.
  • 24.
  • 25. Managerial Ethics • The term ethics refers to rules and principles that define right and wrong conduct.3 Four Views of Ethics 1.utilitarian view of ethics 2. rights view of ethics 3. theory of justice view of ethics 4. integrative social contracts theory
  • 26. Factors That Affect Managerial Ethics a manager acts ethically or unethically is the result of complex interactions between the manager's stage of moral development and several moderating variables.
  • 27.
  • 28.
  • 29. Structural Variables An organization's structural design helps shape whether managers behave ethically. -Formal rules and regulations reduce ambiguity
  • 30. Organization's Culture • An organizational culture most likely to encourage high ethical standards is one that is high in risk tolerance, control, and conflict tolerance. • A strong culture will exert more influence on managers than a weak one.
  • 31.
  • 33.
  • 34.
  • 35.
  • 37. TOWARD IMPROVING ETHICAL BEHAVIOR Managers can do a number of things if they're serious about reducing unethical behaviors in their organization
  • 38. Employee Selection • —interviews, tests, background checks, and so forth—should be used to eliminate ethically questionable applicants. The selection process should be viewed as an opportunity to learn about an individual's level of moral development, personal values, ego strength, and locus of control.
  • 39. Codes of Ethics and Decision Rules • A code of ethics, a formal statement of an organization's primary values a
  • 40. Ethics Training • More and more organizations are setting up seminars, workshops, and similar ethics training programs to encourage ethical behavior. Ethics researchers estimate that over 40 percent of U.S. companies provide some form of ethics training
  • 42. Independent Social Audits • Independent social audits, which evaluate decisions and management practices in terms of the organization's code of ethics, increase the likelihood of detection.
  • 43. Formal Protective Mechanisms • Our last recommendation is for organizations to provide formal mechanisms to protect employees who face ethical dilemmas so that they can do what's right without fear of reprimand
  • 44. FINAL THOUGHT -unethical behaviors are prevalent across our society. Cheating, for instance, is a common occurrence in education. A range of studies shows that anywhere from 75 percent to 98 percent of students admit to having cheated in high school.
  • 45. A survey of college students by U.S. News and World Report showed some ethically alarming results 0 10 20 30 40 50 60 70 80 90 Believe cheaters never pay the price someone are cheating need to cheat it is fair to cheat Column2 Column1 Series 1