mgt chapter 4

book arguments for social responsibility

1) businesses helped to create many of the social problems that exist today so it should play a significant role in solving them especially pollution and toxic waste, 2) businesses should be more responsible because they have the financial and technical resources to help solve social problems, 3) as members of society, businesses should do their fair share to help others, 4) socially responsible decision making by business organizations can prevent increased government regulation, 5) social responsibility is necessary to ensure economic survival: if businesses desire educated and healthy employees, customers with money to spend, and supplies with quality goods and services in years to come, they must take steps to help solve the social and environmental problems that exist today

conducting the audit

1) identify ongoing + new socially responsible actions/programs, 2) determine resources + cost of resources required, 3) identify organization objectives + make sure social responsibility actions support those objectives, 4) define reasons for undertaking specific social responsibility actions, and 5) evaluating the success of each social responsibility program undertaken and identifying benchmark goals for future involvement.

book arguments against social responsibility

1) sidetracks managers from primary objective of business (earning profits), 2) participation in social programs gives businesses greater power, perhaps at the expense of particular segments of society, 3) question as to whether business has the expertise needed to assess and make decisions about social problems, 4) many people believe that social problems are the responsibility of government agencies and officials, who can be held accountable by votes.

owners shareholders

Businesses must be reliable to their ____________ or ___________, who are primarily concerned with earning a profit or making a good return on their investment.

ethics audit

a comprehensive evaluation of a firm's ethics and compliance program and its ethical decisions used to determine whether the program is effective

utilitarianism

a philosophy where believers seek the greatest satisfaction for the largest number of individuals / CONCERNED WITH END RESULTS

individual values

also known as moral philosophies, are sets of principles that describe what a person believes are the right way to believe

ethical issue

an identifiable problem, situation, or opportunity that requires a person or organization to choose among several actions that may be evaluated as ethical or unethical

caveat emptor

before consumers advocates or gov agencies could protect consumers and society against deceptive advertising, defective products or practices that harmed people, the motto was "let the buyer beware"

4 stages of social responsibility

financial viability / compliance with legal and regulatory requirements / ethics, principles and values / and corporate citizenship.

deontology

focuses on human rights and values and on the intentions associated with a particular behavior / GOLDEN RULE

codes of ethics

formalized rules and standards that describe and delineate what the organization expects of its employees

yep

if a company is to maintain ethical behavior, its policies, rules and standards must encourage ethical decision making and be enforced through a system of rewards for proper behavior and punishments for unacceptable behavior.

whistle blowing

occurs when employees expose an employer's wrongdoing. This might occur internally or externally.

business ethics

principles, values and codes of conduct that define acceptable behavior in business

a major social responsibility for businesses

providing equal opportunities for all employees regardless of gender, age, race, religion, sexual orientation or nationality.

values orientation

relies on shared values between the company and the employees; these values tend to be ideals and can bring cohesiveness to the organization if all members subscribe to the same values. Consequences to unethical behavior may exist, but the the opportunities for ethical behavior will vary and the ideals can sometimes be interpreted differently among employees

compliance orientation

requires that employees learn and pledge to a specific type of conduct. IT uses language that teaches employees the rules and consequences for noncompliance. Setting clear boundaries for acceptable and unacceptable behavior and assigning consequences to these behaviors, which all aids in decision-making.

consumer bill of rights

right to safety, right to be informed, right to choose, and right to be heard.

consumerism

the activities undertaken by independent individuals, groups, and organizations to protect their rights as consumers.

social responsibility

the obligation a business assumes to maximize its positive impact and minimize its negative impact on society / ORGANIZATIONAL rather than individual

social audit

voluntary, this is a systematic examination of the objectives, strategies, organization, and performance of the social responsibility function. can effect social responsibility efforts by helping MGT evaluate the effectiveness of current programs and recommend activities for the future.

becomes an ethical issue

when accepted rules no longer apply and the decision maker must use his or her own moral principles and standards to decide what is right or wrong

alternative energy sources

wind, geothermal, solar, nuclear, biofuels, hydropower