Chapter 6- Managing Social Responsibility and Ethics
Social responsiveness
when a firm engages in social actions in response to some popular social need.
Values and Personality
who we are and basic convictions about what is right and wrong. Developed throughout life.
individual characteristics, values and personality, ego strength, locus of control
Factors that determine ethical and unethical behavior
legal approach, market approach, stakeholder approach, activist approach
How organizations go green
The Organization's Culture
The shared values that the organization stands for, what it believes in. Creates an environment that influences employee behavior ethically or unethically. Strength of that culture important. Companies with high ethical standards is likely high in risk tolerance, control, and conflict tolerance.
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 society.
Code of ethics
a formal statement of an organization's primary values and the ethical rules it expects its employees to follow.
Locus of Control
a personality attribute that measures the degree to which people believe they control their own fate. Internal vs. External
Ego Strength
a personality measure of the strength of a person's convictions. High vs. Low.
Green Management
managers consider the impact of their organization on the natural environment.
Protective Mechanisms
allow employees who face ethical dilemmas to do what's right without fear of reprimand.
Factors that affect ethical and unethical behavior include
an individual's level of moral development, individual characteristics, structural variables, organizational culture, issue intensity
Employee Selection
an opportunity to learn about an individual's level of moral development, personal values, ego strength, and locus of control.
Independent Social Audits
evaluate decisions and management practices in terms of the organization's code of ethics.
Activist Approach
firms look for ways to respect and preserve the environment and be actively socially responsible.
Market Approach
firms respond to the preferences of their customers for environmentally friendly products.
Legal (or Light Green) Approach
firms simply do what is legally required by obeying laws, rules, and regulations willingly and without legal challenge...Social Obligation.
Stakeholder Approach
firms work to meet the environmental demands of multiple stakeholders: employees, suppliers, and the community.
Ethics
principles, values, and beliefs that define right and wrong behavior.
Ethics Training
seminars, workshops, and similar ethics training programs to encourage ethical behavior.
Issue Intensity
six characteristics determine how important an ethical issue is to an individual
Social Obligation
the obligation of a business to meet its economic and legal responsibilities and nothing more.
Values based management
the organization's values guide employees in the way they do their jobs.
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.