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)