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