SocialResponsibilityandManagerialEthics510531

8th editionSteven P.RobbinsMary CoulterL E A R N I N G O U T L I N E Follow this Learning Outline as you read and study this chapter.What is Social Responsibility Contrast the classical and socioeconomic views of social responsibility.Discuss the role that stakeholders play in the four stages of social responsibility.List and explain the arguments for and against social responsibility.Differentiate between social obligation,social responsiveness,and social responsibility.Social Responsibility and Economic Performance Explain what research studies have shown about the relationship between an organizations social involvement and its economic performance.2Copyright 2005 Prentice Hall,Inc.All rights reserved.L E A R N I N G O U T L I N E (contd)Follow this Learning Outline as you read and study this chapter.Social Responsibility and Economic Performance(contd)Discuss the methodological concerns raised about these research studies.Define social screening.Explain what conclusion can be reached regarding social responsibility and economic performance.The Greening of Management Tell what the greening of management is and why it is important.Describe how organizations can go green.3Copyright 2005 Prentice Hall,Inc.All rights reserved.L E A R N I N G O U T L I N E (contd)Follow this Learning Outline as you read and study this chapter.The Greening of Management(contd)Relate the approaches to being green to the concepts of social obligation,social responsiveness,and social responsibility.Values-Based Management Define values-based management.Discuss what purposes shared values serve.List some of the core values held by U.S.companies.Describe the relation of values-base management to ethics.4Copyright 2005 Prentice Hall,Inc.All rights reserved.L E A R N I N G O U T L I N E (contd)Follow this Learning Outline as you read and study this chapter.Managerial Ethics Define ethics.Contrast the four views of ethics.Discuss the factors that affect ethical and unethical behavior.Describe the three levels of moral development.Define values,ego strength,and locus of control.Explain the structural variables and organizational culture variables that can influence the decision to behave ethically or not.Discuss the six determinants of issue intensity.5Copyright 2005 Prentice Hall,Inc.All rights reserved.L E A R N I N G O U T L I N E (contd)Follow this Learning Outline as you read and study this chapter.Managerial Ethics Explain the challenges of international ethics.Discuss the seven suggestions for improving ethical behavior.Tell what codes of ethics are an how their effectiveness can be improved.Describe the important roles managers play in encouraging ethical behavior.Social Responsibility and Ethics in Todays World Explain why ethical leadership is important.Describe how managers can provide ethical leadership.6Copyright 2005 Prentice Hall,Inc.All rights reserved.What Is Social Responsibility?The Classical ViewManagements only social responsibility is to maximize profits(create a financial return)by operating the business in the best interests of the stockholders(owners of the corporation).Expending the firms resources on doing“social good”unjustifiably increases costs that lower profits to the owners and raises prices to consumers.7Copyright 2005 Prentice Hall,Inc.All rights reserved.What Is Social Responsibility?(contd)The Socioeconomic ViewManagements social responsibility goes beyond making profits to include protecting and improving societys welfare.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.“To do the right thing”8Copyright 2005 Prentice Hall,Inc.All rights reserved.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 firms obligations as a moral agent extends beyond its legal and economic obligations,to the pursuit of long-term goals that are good for society.9Copyright 2005 Prentice Hall,Inc.All rights reserved.Does Social Responsibility Pay?Studies appear to show a positive relationship between social involvement and the economic performance of firms.Difficulties in defining and measuring“social responsibility”and“economic performance raise issues of validity and causation in the studies.Mutual funds use social screening in investment decision slightly outperformed other mutual funds.A general conclusion is that a firms social actions do not harm its long-term performance.10Copyright 2005 Prentice Hall,Inc.All rights reserved.The Greening of Management The recognition of the close link between an organizations decision and activities and its impact on the natural environment.Global environmental problems facing managers:vAir,water,and soil pollution from toxic wastesvGlobal warming from greenhouse gas emissionsvNatural resource depletion11Copyright 2005 Prentice Hall,Inc.All rights reserved.How Organizations Go Green Legal(of Light Green)Approach Firms simply do what is legally required by obeying laws,rules,and regulations willingly and without legal challenge.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 stakeholdersemployees,suppliers,and the community.Activist Approach Firms look for ways to respect and preserve environment and be actively socially responsible.12Copyright 2005 Prentice Hall,Inc.All rights reserved.Values-Based Management Values-Based ManagementAn approach to managing in which managers establish and uphold an organizations shared values.The Purposes of Shared ValuesServing as guideposts for managerial decisionsShaping employee behaviorInfluencing the direction of marketing efforts The Bottom Line on Shared Corporate ValuesAn organizations values are reflected in the decisions and actions of its employees.13Copyright 2005 Prentice Hall,Inc.All rights reserved.Managerial Ethics Ethics DefinedThe rules and principles that define right and wrong conduct.Four Views of EthicsThe utilitarian viewThe rights viewThe theory of justice viewThe integrative social contracts theory14Copyright 2005 Prentice Hall,Inc.All rights reserved.Managerial Ethics(contd)Utilitarian ViewEthical decisions are made solely on the basis of their outcomes or consequences such that the greatest good is provided for the greatest number.vEncourages efficiency and productivity and is consistent with the goal of profit maximization.Rights ViewConcerned with respecting and protecting individual liberties and privacy.vSeeks to protect individual rights of conscience,free speech,life and safety,and due process.15Copyright 2005 Prentice Hall,Inc.All rights reserved.Managerial Ethics(contd)The Theory of JusticeOrganizational rules are enforced fairly and impartially and follow all legal rules and regulations.vProtects the interests of underrepresented stakeholders and the rights of employee.Integrative Social Contracts TheoryEthical decisions should be based on existing ethical norms in industries and communities in order to determine what constitutes right and wrong.vBased on integration of the general social contract and the specific contract between community members.16Copyright 2005 Prentice Hall,Inc.All rights reserved.Factors That Affect Employee Ethics Moral DevelopmentA measure of independence from outside influencesvLevel of Individual Moral Development Preconventional level Conventional level Principled levelStage of moral development interacts with:vIndividual characteristicsvThe organizations structural designvThe organizations culturevThe intensity of the ethical issue17Copyright 2005 Prentice Hall,Inc.All rights reserved.Factors That Affect Employee Ethics(contd)Moral DevelopmentResearch Conclusions:vPeople proceed through the stages of moral development sequentially.vThere is no guarantee of continued moral development.vMost adults are in Stage 4(“good corporate citizen”).18Copyright 2005 Prentice Hall,Inc.All rights reserved.Individual Characteristics ValuesBasic convictions about what is right or wrong on a broad range of issues Stage of Moral DevelopmentA measure of an individuals independence from outside influences19Copyright 2005 Prentice Hall,Inc.All rights reserved.Individual Characteristics Personality VariablesEgo strengthvA personality measure of the strength of a persons convictionsLocus of ControlvA personality attribute that measures the degree to which people believe they control their own life.vInternal locus:the belief that you control your destiny.vExternal locus:the belief that what happens to you is due to luck or chance.20Copyright 2005 Prentice Hall,Inc.All rights reserved.Structural Variables Organizational characteristics and mechanisms that guide and influence individual ethics:Performance appraisal systemsReward allocation systemsBehaviors(ethical)of managersAn organizations cultureIntensity of the ethical issue Good structural design minimizes ambiguity and uncertain and foster ethical behavior.21Copyright 2005 Prentice Hall,Inc.All rights reserved.Ethics in an International Context Ethical standards are not universal.Social and cultural differences determine acceptable behaviors Foreign Corrupt Practices ActMakes it illegal to corrupt a foreign official yet“token”payments to officials are permissible when doing so is an accepted practice in that country.22Copyright 2005 Prentice Hall,Inc.All rights reserved.How Managers Can Improve Ethical Behavior in An Organization1.Hire individuals with high ethical standards.2.Establish codes of ethics and decision rules.3.Lead by example.4.Delineate job goals and performance appraisal mechanisms.5.Provide ethics training.6.Conduct social audits.7.Provide support for individuals facing ethical dilemmas.23Copyright 2005 Prentice Hall,Inc.All rights reserved.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 organizations commitment to the code.Publicly reprimand and consistently discipline those who break the code.24Copyright 2005 Prentice Hall,Inc.All rights reserved.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 organizations standards of conduct.Employees become more confident that they will have the organizations support when taking unpopular but ethically correct stances.25Copyright 2005 Prentice Hall,Inc.All rights reserved.Ethical Leadership Managers must provide a good role model by:Being ethical and honest at all times.Telling the truth;dont 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 employees(whistleblowers)who bring to light unethical behaviors or raise ethical issues.26Copyright 2005 Prentice Hall,Inc.All rights reserved.Business Practices and Social Issues Social Impact ManagementThe field of inquiry at the intersection of business practice and wider societal concerns that reflects and respects the complex interdependency of those two realities.The question of how to go about increasing managers awareness within their decision-making processes of how society is impacted by the conduct and activities of their firms.27Copyright 2005 Prentice Hall,Inc.All rights reserved.。