Dan C. Lungescu, PhD, assistant professor2015-2016

Management

Part I: Introduction

Ch. 4. Social responsibility and ethics

Course outline

Part I: Introduction

Part II: Planning

Part III: Organizing

Part IV: Leading

Part V: Controlling

Management

Part I outline

Part I: Introduction

Ch. 1. Manager’s job

Ch. 2. The evolution of management

Ch. 3. Organizational environments

Ch. 4. Social responsibility and ethics

Management

Learning objectives

After studying this chapter, you should be able to:

Explain the three major perspectives on corporate social responsibility.

Identify the six major stakeholder groups frequently mentioned in conjunction with social responsibility.

Outline approaches that can be used to monitor social demands and expectations.

Describe internal social response mechanisms available to organizations.

Contrast the three major types of managerial ethics.

Outline ethical guidelines for managers and explain actions managers can take to handle ethical situations and avoid ethical conflicts.

Chapter 4 outline

A. Organizational social responsibility

B. Organizational social responsiveness

C. Being an ethical manager

A. Organizational social responsibility

Outline » A. Organizational social responsibility

The obligation of an organization to seek actions that protect andimprove the welfare of society along with its own interests.

Organizational social responsibility

A term often used in reference to the concept of organizationalsocial responsibility as applied to business organizations.

Corporate social responsibility

Major perspectives on OSR

Outline » A. Organizational social responsibility » Major perspectives on OSR

A view that argues that the interests of society are best served byhaving the regulatory hands of the law and the political process,rather than the invisible hand, guide the results of corporations’endeavors.

Hand of government

A view that holds that the entire social responsibility of acorporation can be summed up as “make profits and obey the law”.

Invisible hand

A view that states that corporations and their managers areexpected to act in ways that protect and improve the welfare ofsociety as a whole as well as advance corporate economic interests.

Hand of management

Arguments in favor of OSR

Outline » A. Organizational social responsibility » Arguments in favor of OSR

Since business benefit from a better society, they should bear part of thecosts by actively working to bring about solutions to social problems.

Antifreeloader argument

The private sector, because of its considerable economic and humanresources, must make up for recent government cutbacks in socialprograms.

Capacity argument

Businesses exist at society’s pleasure and, for their legitimacy and survival,businesses should meet the expectations of the public regarding socialresponsibility » iron law of responsibility:

Enlightened self-interest argument

In the long run, those who do not use power in a manner that society considers responsible will tend to lose it.

Social responsibilities of management

Outline » A. Organizational social responsibility » Social responsibilities of management

Making a profit.

Economic responsibilities

Obeying the law.

Legal responsibilities

Behaviors and activities that are expected ofbusiness by society’s members.

Ethical responsibilities

Voluntary beneficial activities that are notstrongly expected of business by society’smembers.

Discretionary responsibilities

Discretionary resp.

Ethical responsibilities

Legal responsibilities

Economic responsibilities

Social stakeholders

Outline » A. Organizational social responsibility » Social stakeholders

Shareholders

Employees

Customers

Local community

Society

International community

B. Organizational social responsiveness

Outline » B. Organizational social responsiveness

A term that refers to the development of organizational decisionprocesses whereby managers anticipate, respond to, and manageareas of social responsibility.

Organizational social responsiveness

A term used in reference to the concept of organizational socialresponsiveness as applied to business organizations.

Corporate social responsiveness

Monitoring social demands and expectations

Outline » B. Social responsiveness » Monitoring social demands and expectations

The systematic process of identifying social trends, evaluating theorganizational importance of those trends, and integrating theseassessments into the organization’s forecasting program.Futurists: individuals who track significant trends in theenvironment and attempt to predict their impact on theorganization.

Social forecasting

Surveys of public opinion on various issues of social concern.

Opinion surveys

A systematic study and evaluation of the social, rather than theeconomic, performance of an organization.

Social audit

Monitoring social demands & expectations (2)

Outline » B. Social responsiveness » Monitoring social demands and expectations (2)

The process of identifying a relatively small number of emergingsocial issues of particular relevance to the organization, analyzingtheir potential impact, and preparing an effective response.

Issues management

The general surveillance of various elements in the taskenvironment to detect evidence of impending changes that willaffect the organization's social responsibilities.

Social scanning

Internal social response mechanisms

Outline » B. Social responsiveness » Internal social response mechanisms

Individual executives

Temporary task forces

Permanent committees

Permanent departments

Combination approaches

C. Being an ethical manager

Outline » C. Being an ethical manager

Standards of conduct and moral judgment used by managers ororganizations in carrying out their business.

Managerial ethics

An approach that strives to follow ethical principles and precepts.

Moral management

An approach that not only lacks ethical principles but is activelyopposed to ethical behavior.

Immoral management

An approach that is neither immoral nor moral but, rather, ignoresor is oblivious to ethical considerations.

Amoral management

Ethical guidelines for managers

Outline » C. Being an ethical manager » Ethical guidelines for managers

Obey the law

Tell the truth

Show respect for people

Stick to the Golden Rule: do unto others as you would haveothers do unto you

Above all, do not harm

Practice participation, not paternalism

Always act when you have responsibility

Dan C. Lungescu, PhD, assistant professor2015-2016