ch 6: management social responsibility and ethics
ARGUMENTS FOR SOCIAL RESPONSIBILITY: public image
businesses can create a favorable public image by pursuing social goals
ARGUMENTS FOR SOCIAL RESPONSIBILITY: balance of responsibility and power
businesses have a lot of power and an equally large amount of responsibility is needed to balance against that power
ARGUMENTS AGAINST SOCIAL RESPONSIBILITY: too much power
businesses have lot of power already; if they pursue social goals, they will have even more
ARGUMENTS FOR SOCIAL RESPONSIBILITY: possession of resources
businesses have the resources to support public and charitable projects that need assistance
ARGUMENTS FOR SOCIAL RESPONSIBILITY: superiority of prevention over cures
businesses should address social problems before they become serious and costly to correct
ARGUMENTS FOR SOCIAL RESPONSIBILITY: ethical obligation
businesses should be socially responsible because responsible actions are the right thing to do
ARGUMENTS FOR SOCIAL RESPONSIBILITY: discouragement of further governmental regulation
by becoming socially responsible, businesses can expect less government regulations
Foreign Corrupt Practices Act (FCPA)
a law that prohibits U.S. corporations from making illegal payments to public officials of foreign governments to obtain business rights or to enhance their business dealings in those countries
structural variable
an organization's structural design can influence whether employees behave ethically
how can managers protect Whistle-blowers?
by encouraging them to come forward
focus in social responsibility is ___ while it is ___ for social responsiveness
ends means
in social responsibility major consideration is ___ while it is ___ in social responsiveness
ethical pragmatic (practical, realistic)
independent social audits
evaluate decisions and management practices in terms of the organization's code of ethic
activist approach
firms look for ways to respect and preserve the environment and be actively socially responsible
legal (or light green) approach
firms simply do what is legally required by obeying laws, rules, and regulations willingly and without legal challenge
stakeholder approach
firms work to meet the environmental demands of multiple stakeholders, employees, suppliers and the community
market approach
firs respond to the preferences of their customers for environmentally friendly products
pre conventional level
following rule only when doing so is in your immediate interest, and sticking to rule to avoid physical punishment
principles level
following self-chosen principles even if they violate the law valuing rights of others and upholding absolute values and rights regardless of the majority's opinion
issue intensity
How important an ethical issue is to an individual
social responsibility
a business's intention, beyond its legal and economic obligations, to do the right things and act in ways that are good for so
code of ethics
a formal statement of an organization's primary values and the ethical rules it expects its employees to follow
why does doing business ethically require a commitment from top managers?
because they are the ones who uphold the shared values and set the cultural tone
why would "managing person finances well" matters/be an organization's concern?
being not able to manage personal finances well means you're putting yourself in a position of stealing company's money
ARGUMENTS FOR SOCIAL RESPONSIBILITY: better environment
business involvement an help solve difficult social problems
ARGUMENTS AGAINST SOCIAL RESPONSIBILITY: violation of profit maximization
business is being socially responsible only when it pursues its economic interests
ARGUMENTS AGAINST SOCIAL RESPONSIBILITY: lack of skills
business leaders lack the necessary skills to address social issues
what are the four factors that determine ethical and unethical behavior?
individual characteristic issue intensity structural variables organizational culture
describe a Whistle-Blower
individual, usually an employee, who exposes information or activity within a private, public, or government organization that is deemed illegal, unsafe and fraud.
what does the effectiveness of a code of ethic depend on?
it depends on whether management supports them and how employees that violate the codes are treated
conventional level
living up to what is expected by people close to you
decision framework for social responsibility is ____ while it is ___ for social reponsiveness
long-term medium and short-term
green management
managers consider the impact of their organization on the natural environment
ARGUMENTS AGAINST SOCIAL RESPONSIBILITY: costs
many socially responsible actions do not cover their costs and someone must pay those costs.
ethical training
more organizations are setting up seminars, workshops and similar ethics training programs to encourage ethical behavior
emphasis for social responsibility is ___ while ____ for social responsiveness
obligation responses
ARGUMENTS FOR SOCIAL RESPONSIBILITY: public expectations
public opinion now supports businesses pursuing economic and social goals
ARGUMENTS AGAINST SOCIAL RESPONSIBILITY: dilution of purpose
pursuing social goals dilutes business's primary purpose- economic productivity
what leads employees to behave ethically?
reducing ambiguity and uncertainty with formal rules and regulations
ARGUMENTS FOR SOCIAL RESPONSIBILITY: stockholder interests
social responsibility will improve a business's stock price in the long-run
ARGUMENTS FOR SOCIAL RESPONSIBILITY: long-run profits
socially responsible companies tend to have more secure long-run profits
social obligation
the obligation of a business to meet its economic and legal responsibilities and nothing more
classical view
the view that management's only social responsibility is to maximize profits
socioeconomic view
the view that management's social responsibility goes beyond making profits to include protecting and improving society's welfare = CSR
ARGUMENTS AGAINST SOCIAL RESPONSIBILITY: lack of accountability
there are no direct lines of accountability for social actions
job goals and performance appraisal
to encourage ethical behavior, both ends and means should be evaluated e.g.) a manager's annual review of employees might include a point-by-point evaluation of how their decisions measured up against the company's code of ethics as well as how well goals were met
individual characteristics value ego strength locus of control
value - basic convictions about what is right and wrong ego strength - a personality measure of the strength of a person's convictions locus of control - how strongly people believe they have control over the situations and experiences that affect their lives.
___ is for more important than ___
what they do what they say
social responsiveness
when a firm engages in social actions in response to some popular social need
