SocialResponsibilityandManagerialEthics5

Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,Copyright 2005 Prentice Hall, Inc. All rights reserved.,*,5,#,PowerPoint Presentation by Charlie Cook,Copyright 2005 Prentice Hall, Inc. All rights reserved.,L EAR NIN GOUT LIN E,FollowthisLearningOutline as youread andstudythis chapter,.,.,What is SocialResponsibility,Contrasttheclassical andsocioeconomic views of socialresponsibility.,Discuss therole thatstakeholders playinthe fourstages of socialresponsibility.,List andexplain theargumentsfor andagainst socialresponsibility.,Differentiate betweensocial obligation, socialresponsiveness,and socialresponsibility.,SocialResponsibilityand Economic Performance,Explain whatresearchstudieshave shown about therelationshipbetweenanorganization,ssocialinvolvementand itseconomicperformance.,2,Copyright,2005 Prentice Hall, Inc.All rightsreserved.*,L EAR NIN GOUT LIN E,(,(contd,),),FollowthisLearningOutline as youread andstudythis chapter,.,.,SocialResponsibilityand Economic Performance (contd,),),Discuss themethodologicalconcernsraisedabouttheseresearchstudies.,Definesocial screening.,Explain whatconclusioncanbereachedregardingsocial responsibility andeconomicperformance.,TheGreeningofManagement,Tell whatthe greening of managementisand whyitisimportant,.,.,Describehoworganizationscangogreen,.,.,3,Copyright,2005 Prentice Hall, Inc.All rightsreserved.*,L EAR NIN GOUT LIN E,(,(contd,),),FollowthisLearningOutline as youread andstudythis chapter,.,.,TheGreeningofManagement,(,(contd),Relatethe approachestobeinggreentothe concepts of socialobligation,socialresponsiveness, andsocialresponsibility,.,.,Values,-,-BasedManagement,Definevalues-based management,.,.,Discuss whatpurposesshared valuesserve.,List someofthe corevalues heldbyU.S.companies,.,.,Describetherelationofvalues-basemanagementtoethics,.,.,4,Copyright,2005 Prentice Hall, Inc.All rightsreserved.*,L EAR NIN GOUT LIN E,(,(contd,),),FollowthisLearningOutline as youread andstudythis chapter,.,.,Managerial Ethics,Defineethics.,Contrastthefourviewsofethics,.,.,Discuss thefactors thataffect ethicaland unethicalbehavior.,Describethethreelevels of moral development.,Definevalues,egostrength, andlocusofcontrol.,Explain thestructural variablesandorganizationalculturevariablesthatcaninfluence thedecisiontobehaveethically or not.,Discuss thesixdeterminants of issue intensity.,5,Copyright,2005 Prentice Hall, Inc.All rightsreserved.*,L EAR NIN GOUT LIN E,(,(contd,),),FollowthisLearningOutline as youread andstudythis chapter,.,.,Managerial Ethics,Explain thechallenges of internationalethics.,Discuss thesevensuggestionsforimproving ethicalbehavior,.,.,Tell whatcodesofethics areanhowtheireffectivenesscanbeimproved,.,.,Describetheimportant roles managers playinencouragingethicalbehavior.,SocialResponsibilityand EthicsinTodays World,Explain whyethical leadershipisimportant.,Describehowmanagerscan provideethicalleadership.,6,Copyright,2005 Prentice Hall, Inc.All rightsreserved.*,What Is SocialResponsibility?,TheClassical View,Managementsonlysocialresponsibilityistomaximizeprofits,(,(create afinancial return)byoperating thebusinessinthebestinterestsofthe stockholders,(,(owners of thecorporation),.,.,Expendingthe firm,sresourcesondoing,“,“socialgood”unjustifiably increasescoststhat lower profitstothe ownersandraises pricestoconsumers,.,.,7,Copyright,2005 Prentice Hall, Inc.All rightsreserved.*,What Is SocialResponsibility?,(,(cont,d),TheSocioeconomicView,Managementssocial responsibility goesbeyond makingprofits to includeprotectingandimproving society,swelfare.,Corporationsare notindependententitiesresponsibleonly to stockholders.,Firmshave amoralresponsibilitytolarger societytobecome involved in social,legal, andpoliticalissues.,“Todothe right thing”,8,Copyright,2005 Prentice Hall, Inc.All rightsreserved.*,From ObligationtoResponsivenesstoResponsibility,SocialObligation,Theobligationofa business to meetits economic andlegalresponsibilities andnothing more,.,.,SocialResponsiveness,Thecapacityofafirm to adapt to changing societal conditionsthroughthepractical decisionsofitsmanagersinrespondingtoimportantsocial needs.,SocialResponsibility,A firm,sobligationsasa moral agent extendsbeyond itslegalandeconomicobligations, to thepursuit of long,-,-termgoalsthat aregood forsociety.,9,Copyright,2005 Prentice Hall, Inc.All rightsreserved.*,Does SocialResponsibilityPay,?,?,Studies appeartoshow apositiverelationship betweensocial involvement andtheeconomicperformanceoffirms,.,.,Difficultiesindefiningand measuring,“,“social responsibility”and,“,“economic performance raise issuesofvalidityandcausation in thestudies.,Mutualfundsusesocialscreeningininvestment decision slightly outperformedothermutualfunds,.,.,A generalconclusionisthat afirms socialactions do notharm itslong-termperformance,.,.,10,Copyright,2005 Prentice Hall, Inc.All rightsreserved.*,TheGreeningofManagement,Therecognitionofthe close linkbetweenanorganization,sdecisionandactivitiesandits impactonthenaturalenvironment.,Globalenvironmentalproblemsfacingmanagers,:,:,Air, water,andsoilpollutionfromtoxicwastes,Globalwarmingfrom greenhousegas emissions,Natural resource depletion,11,Copyright,2005 Prentice Hall, Inc.All rightsreserved.*,HowOrganizationsGoGreen,Legal,(,(ofLightGreen,),) Approach,Firmssimplydowhatislegally required by obeyinglaws,rules, andregulationswillinglyand withoutlegalchallenge.,MarketApproach,Firmsrespond to thepreferencesoftheircustomersfor environmentallyfriendlyproducts.,StakeholderApproach,Firmswork to meetthe environmentaldemandsofmultiplestakeholdersemployees, suppliers,and thecommunity,.,.,ActivistApproach,Firmslook forways to respectand preserve environment andbeactivelysociallyresponsible.,12,Copyright,2005 Prentice Hall, Inc.All rightsreserved.*,Values,-,-BasedManagement,Values,-,-BasedManagement,Anapproachtomanaginginwhichmanagersestablishand upholdanorganization,ssharedvalues.,ThePurposesofShared Values,Serving as guidepostsfor managerialdecisions,Shaping employee behavior,Influencingthedirection of marketingefforts,TheBottom LineonShared CorporateValues,Anorganization,svaluesare reflectedinthedecisions andactions of itsemployees,.,.,13,Copyright,2005 Prentice Hall, Inc.All rightsreserved.*,Managerial Ethics,EthicsDefined,Therulesand principlesthatdefinerightand wrong conduct,.,.,Four Views of Ethics,Theutilitarianview,Therights view,Thetheory of justiceview,Theintegrativesocial contractstheory,14,Copyright,2005 Prentice Hall, Inc.All rightsreserved.*,Managerial Ethics,(,(contd),UtilitarianView,Ethical decisionsaremadesolelyonthe basis of their outcomes or consequencessuch thatthe greatest goodisprovidedfor thegreatestnumber,.,.,Encourages efficiencyand productivityandisconsistentwith thegoal of profitmaximization,.,.,RightsView,Concernedwithrespecting andprotecting individualliberties andprivacy.,Seekstoprotect individualrights of conscience, freespeech,life andsafety, anddueprocess.,15,Copyright,2005 Prentice Hall, Inc.All rightsreserved.*,Managerial Ethics,(,(contd),TheTheory of Justice,Organizationalrulesareenforcedfairly andimpartiallyandfollow alllegalrulesandregulations,.,.,Protectstheinterests of underrepresentedstakeholders andtherights of employee.,IntegrativeSocialContracts Theory,Ethical decisionsshouldbebasedonexistingethicalnormsinindustries andcommunitiesinordertodeterminewhatconstitutesrightandwrong,.,.,Basedonintegrationofthegeneralsocialcontractand thespecificcontractbetween communitymembers.,16,Copyright,2005 Prentice Hall, Inc.All rightsreserved.*,Factors ThatAffect Employee Ethics,MoralDevelopment,A measureofindependence fromoutsideinfluences,LevelofIndividual Moral Development,Preconventionallevel,Conventionallevel,Principled level,Stageofmoraldevelopmentinteractswith:,Individual characteristics,Theorganizationsstructuraldesign,Theorganizationsculture,Theintensity of theethical issue,17,Copyright,2005 Prentice Hall, Inc.All rightsreserved.*,Factors ThatAffect Employee Ethics,(,(contd),MoralDevelopment,ResearchConclusions:,Peopleproceedthrough thestagesofmoraldevelopmentsequentially.,Thereisnoguaranteeofcontinued moral development.,Most adultsareinStage4,(,(“goodcorporate citizen,”,”).,18,Copyright,2005 Prentice Hall, Inc.All rightsreserved.*,Individual Characteristics,Values,Basicconvictionsaboutwhat is right or wrong on abroadrangeofissues,StageofMoralDevelopment,A measureofanindividuals independencefrom outsideinfluences,19,Copyright,2005 Prentice Hall, Inc.All rightsreserved.*,Individual Characteristics,PersonalityVariables,Egostrength,A personality measureofthe strength of apersonsconvictions,LocusofControl,A personality attributethat measures thedegreetowhichpeople believetheycontrol their ownlife.,Internallocus:thebelief thatyou controlyourdestiny.,Externallocus:thebelief thatwhathappens to youisduetoluckorchance,.,.,20,Copyright,2005 Prentice Hall, Inc.All rightsreserved.*,Structural Variables,Organizationalcharacteristicsand mechanismsthatguideandinfluence individualethics:,Performanceappraisalsystems,Rewardallocationsystems,Behaviors,(,(ethical,),) of managers,Anorganization,sculture,Intensityofthe ethicalissue,Good structuraldesign minimizesambiguityand uncertainandfoster ethicalbehavior,.,.,21,Copyright,2005 Prentice Hall, Inc.All rightsreserved.*,EthicsinanInternationalContext,Ethical standardsarenot universal.,Socialand cultural differences determineacceptable behaviors,Foreign CorruptPractices Act,Makesitillegal to corruptaforeign official yet,“,“token,”,” payments to officialsarepermissiblewhendoingsoisanacceptedpracticeinthat country,.,.,22,Copyright,2005 Prentice Hall, Inc.All rightsreserved.*,HowManagersCan ImproveEthicalBehaviorinAnOrganization,Hire individuals withhighethical standards.,Establishcodesofethics anddecisionrules.,Lead by example,.,.,Delineatejob goals andperformanceappraisalmechanisms.,Provide ethicstraining.,Conduct socialaudits,.,.,Provide supportfor individuals facingethical dilemmas.,23,Copyright,2005 Prentice Hall, Inc.All rightsreserved.*,EffectiveUse of aCodeofEthics,Develop acodeofethicsasaguideinhandlingethical dilemmas in decision making.,Communicatethecoderegularlytoall employees.,Have alllevelsofmanagementcontinuallyreaffirmtheimportanceoftheethics codeand theorganization,scommitment to thecode.,Publiclyreprimandand consistentlydiscipline those whobreakthecode.,24,Copyright,2005 Prentice Hall, Inc.All rightsreserved.*,TheValueofEthics Training,Traininginethical problemsolvingcanmakea differenceinethicalbehaviors,.,.,Traininginethicsincreaseemployeeawareness of ethicalissues in business decisions.,Ethicstrainingclarifies andreinforces theorganization,sstandardsofconduct.,Employeesbecome moreconfident thattheywill havethe organizations supportwhentakingunpopular butethicallycorrectstances.,25,Copyright,2005 Prentice Hall, Inc.All rightsreserved.*,Ethical Leadership,Managersmust provideagood rolemodelby:,Beingethical andhonestatall times.,Telling thetruth;donthideormanipulate information.,Admittingfailureandnot tryingtocoveritup.,Communicating sharedethical valuestoemployeesthroughsymbols,stories,andslogans.,Rewardingemployees whobehaveethically andpunishthosewho do not.,Protecting employees,(,(whistleblowers,),) whobringtolightunethicalbehaviors or raise ethicalissues.,26,Copyright,2005 Prentice Hall, Inc.All rightsreserved.*,BusinessPracticesand SocialIssues,SocialImpact Management,Thefieldofinquiryattheintersection of business practice andwidersocietalconcernsthat reflects andrespectsthecomplexinterdependencyofthosetwo realities.,Thequestionofhow to go about increasingmanagers, awarenesswithintheirdecision,-,-making processesofhowsocietyisimpactedbytheconductandactivitiesoftheirfirms.,27,Copyright,2005 Prentice Hall, Inc.All rightsreserved.*,