Management CHP 3&4
Arguments for Social Responsibility Activities
- Businesses as a whole are a subset of society -Businesses have a responsibility to help maintain and improve the overall welfare of society - Performing social responsibility activities earns greater organizational profits (a relationship not yet proven by research)
Milton Friedman, Distinguished Economist Views on Social Responsibility
- Businesses being socially responsible conflict with profit interests of business owners - Socially responsible public activities conflict with private organizational objectives - Unethical to use owner profits for society's interests
Approaches to Meeting Social Responsibilities
- Incorporate social goals into annual planning process - Seek comparative industry norms for social programs - Present reports to owners and stakeholders - Experiment with different approaches Attempt to measure cost of social programs
Three reasons why managers should build sustainable organizations
- Increased profits - Increased productivity - Increased innovation
Diversity
Characteristics of individuals employed in our firms. These characteristics shape the identities and experiences individuals have in our society
Social Responsibility
The managerial obligation to take action that protects and improves both the welfare of society as a whole and the interests of the organization
Virtue
Behaviors are ethical if they reflect high moral values such as honesty, fairness, and compassion
Ethnocentrism
Belief one's group, culture, country, and customs are far superior to those of other groups
Determining If a Social Responsibility Exists
- Management obligations based on: Business situation Impact on stakeholders - An effective and efficient socially responsive organization works without wasting resources in the process
Social Audit Steps
- Monitoring - Measuring - Appraising
Sarbanes-Oxley Reform Standards
- Passed to prevent accounting deception of publicly owned companies - Holds managers accountable and can result in significant jail time - Supports whistle-blowing
Diversity Challenges: Changing Demographics
- Population is growing more slowly - Workforce is getting older - More women in the workforce - Minorities will make up a larger share of new entrants - Immigration is increasing in the general population and the workforce
Philanthropy Challenge
- Promote welfare through monetary donation - Support the arts, education, world peace, and disaster relief - Donate to causes that benefit both the organization and society
Different managerial approaches
- Requirement: Firm only does what is required by law - Recognition: Firm has obligations to pursue both profit and social goals - Believing: Firm has both profit and social goals
Sustainable Organization
An organization that can meet their present needs without compromising future generations ability to meet theirs
Affirmative Action
Eliminate barriers and increase opportunities for underutilized and/or disadvantaged individuals
Rights
Ethical behavior promotes the respect and rights of others
Utilitarian
Ethical behavior provides the most good or least harm for the greatest number of people
Equal Employment and Affirmative Action E E O C
Federal agency enforcing discrimination in employment laws regulating recruiting and other management practices
Minority Groups
Group of people who are assigned to work in positions that do not involve power, resources, acceptance, or social status
Majority Groups
Group of people who hold most of the decision-making power, control of resources and information, and access to rewards
The Sustainable Organization Challenge
Includes conserving national resources, reducing waste, recycling, and protecting threatened species
The Triple Bottom-Line
Management should work toward making their organizations sustainable in three areas: economy, environment, and society
Reverse Mentoring
Pairing a senior employee with a junior employee to transfer new knowledge
Social Audit Challenge
Process of measuring social responsibility activities to assess organizational performance
Ethics
The capacity to reflect on values in the corporate decision-making process, to determine how these values and decisions affect various stakeholder groups, and to establish how managers can use these observations in day-to-day company management
Social Responsiveness
The degree of effectiveness and efficiency an organization displays in pursuing its social responsiveness The greater the degree of effectiveness and efficiency, the more socially responsive the organization is said to be
Sustainability
The degree to which a person or entity can meet its present needs without compromising the ability of others to meet their needs
Areas of Social Responsibility
Urban/Consumer Affairs, Community Volunteerism, Employment Practices Ecology Conservation (Going Green)