Management. Part I: Introduction Ch. 4. Social responsibility and ethics

Transcription

1 Management Part I: Introduction Ch. 4. Social responsibility and ethics Dan C. Lungescu, PhD, assistant professor

2 Course outline Management Part I: Introduction Part II: Planning Part III: Organizing Part IV: Leading Part V: Controlling

3 Part I outline Management Part I: Introduction Ch. 1. Manager s job Ch. 2. The evolution of management Ch. 3. Organizational environments Ch. 4. Social responsibility and ethics

4 Learning objectives After studying this chapter, you should be able to: Explain the three major perspectives on corporate social responsibility. Identify the six major stakeholder groups frequently mentioned in conjunction with social responsibility. Outline approaches that can be used to monitor social demands and expectations. Describe internal social response mechanisms available to organizations. Contrast the three major types of managerial ethics. Outline ethical guidelines for managers and explain actions managers can take to handle ethical situations and avoid ethical conflicts.

5 Chapter 4 outline A. Organizational social responsibility B. Organizational social responsiveness C. Being an ethical manager

6 A. Organizational social responsibility Organizational social responsibility The obligation of an organization to seek actions that protect and improve the welfare of society along with its own interests. Corporate social responsibility A term often used in reference to the concept of organizational social responsibility as applied to business organizations. Outline» A. Organizational social responsibility

7 Major perspectives on OSR Invisible hand A view that holds that the entire social responsibility of a corporation can be summed up as make profits and obey the law. Hand of government A view that argues that the interests of society are best served by having the regulatory hands of the law and the political process, rather than the invisible hand, guide the results of corporations endeavors. Hand of management A view that states that corporations and their managers are expected to act in ways that protect and improve the welfare of society as a whole as well as advance corporate economic interests. Outline» A. Organizational social responsibility» Major perspectives on OSR

8 Arguments in favor of OSR Antifreeloader argument Since business benefit from a better society, they should bear part of the costs by actively working to bring about solutions to social problems. Capacity argument The private sector, because of its considerable economic and human resources, must make up for recent government cutbacks in social programs. Enlightened self-interest argument Businesses exist at society s pleasure and, for their legitimacy and survival, businesses should meet the expectations of the public regarding social responsibility» iron law of responsibility: In the long run, those who do not use power in a manner that society considers responsible will tend to lose it. Outline» A. Organizational social responsibility» Arguments in favor of OSR

9 Social responsibilities of management Economic responsibilities Making a profit. Legal responsibilities Obeying the law. Ethical responsibilities Behaviors and activities that are expected of business by society s members. Discretionary responsibilities Voluntary beneficial activities that are not strongly expected of business by society s members. Discretionary resp. Ethical responsibilities Legal responsibilities Economic responsibilities Outline» A. Organizational social responsibility» Social responsibilities of management

10 Social stakeholders Shareholders Employees Customers Local community Society International community Outline» A. Organizational social responsibility» Social stakeholders

11 B. Organizational social responsiveness Organizational social responsiveness A term that refers to the development of organizational decision processes whereby managers anticipate, respond to, and manage areas of social responsibility. Corporate social responsiveness A term used in reference to the concept of organizational social responsiveness as applied to business organizations. Outline» B. Organizational social responsiveness

12 Monitoring social demands and expectations Social forecasting The systematic process of identifying social trends, evaluating the organizational importance of those trends, and integrating these assessments into the organization s forecasting program. Futurists: individuals who track significant trends in the environment and attempt to predict their impact on the organization. Opinion surveys Surveys of public opinion on various issues of social concern. Social audit A systematic study and evaluation of the social, rather than the economic, performance of an organization. Outline» B. Social responsiveness» Monitoring social demands and expectations

13 Monitoring social demands & expectations (2) Issues management The process of identifying a relatively small number of emerging social issues of particular relevance to the organization, analyzing their potential impact, and preparing an effective response. Social scanning The general surveillance of various elements in the task environment to detect evidence of impending changes that will affect the organization's social responsibilities. Outline» B. Social responsiveness» Monitoring social demands and expectations (2)

14 Internal social response mechanisms Individual executives Temporary task forces Permanent committees Permanent departments Combination approaches Outline» B. Social responsiveness» Internal social response mechanisms

15 C. Being an ethical manager Managerial ethics Standards of conduct and moral judgment used by managers or organizations in carrying out their business. Moral management An approach that strives to follow ethical principles and precepts. Amoral management An approach that is neither immoral nor moral but, rather, ignores or is oblivious to ethical considerations. Immoral management An approach that not only lacks ethical principles but is actively opposed to ethical behavior. Outline» C. Being an ethical manager

16 Ethical guidelines for managers Obey the law Tell the truth Show respect for people Stick to the Golden Rule: do unto others as you would have others do unto you Above all, do not harm Practice participation, not paternalism Always act when you have responsibility Outline» C. Being an ethical manager» Ethical guidelines for managers

17 Dan C. Lungescu, PhD, assistant professor