Transcript of Lo ppt03
- 1. Social Responsibility: Definition and Debate
- Corporate Social Responsibility
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- The idea that business has social obligations above and beyond
making a profit.
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- Business has an obligation to constituent groups in society
other than stockholders and beyond that prescribed by law.
- 2. Social Responsibility: Definition and Debate (contd)
- What Does Social Responsibility Involve?
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- Action before lawsuits or other actions that are taken to force
a firm to take action on a matter.
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- An emphasis on means, not ends
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- How the decision to act was reached, not the decision
itself.
- 3. Figure 3.2 A Continuum of Social Responsibility
Strategies
- 4. Social Responsibility Strategies
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- Denying responsibility while striving to maintain the status
quo by resisting change.
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- Resisting additional social responsibilities with legal and
public relations tactics.
- 5. Social Responsibility Strategies (contd)
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- Assuming social responsibility only in response to pressure
from interest groups or the government.
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- Taking the initiative in formulating and putting in place new
programs that serve as role models for industry.
- 6. Who Benefits from Corporate Social Responsibility?
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- The unselfish devotion to the interests of others.
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- There is a positive correlation between industry leadership on
a socially responsible issue (pollution control) and
profitability.
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- Corporate social responsibility is a competitive advantage in
recruiting talented people.
- 7. Who Benefits from Corporate Social Responsibility? (contd)
- Enlightened Self-Interest
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- A business ultimately helps itself by helping solve social
problems.
- An Array of Benefits for the Organization
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- Tax-free incentives to employees.
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- Retention of talented employees.
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- Help in recruiting the talented and socially conscious.
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- Help in swaying public opinion.
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- Improved community living standards.
- 8. The Ethical Dimension of Management
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- The study of moral obligation involving the distinction between
right and wrong.
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- The study of the complex business practices and behaviors that
give rise to ethical issues in organizations.
- 9. Practical Lessons from Business Ethics Research: Ethical Hot
Spots
- Balancing work and family
- Poor internal communications
- Lack of management support
- Need to meet sales, budget, or profit goals
- Little or no recognition of achievements
- Personal financial worries
- 10. Practical Lessons from Business Ethics Research (contd)
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- The problem of superiors pressuring subordinates is
widespread.
- Responding to Pressure from Above
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- Consciously avoid putting undue pressure on subordinates.
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- Be prepared to deal with excessive organization pressure.
- 11. Practical Lessons from Business Ethics Research (contd)
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- Situations where there are no clear-cut ethical
guidelines.
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- Ethical codes can help satisfy employees need for formal
guidelines.
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- The deliberate and conscious actions of a manager to do the
right thing is an ethical and personal matter.
- 12. General Ethical Principles
- Utilitarian benefits( life stance , with happiness or pleasure
being of ultimate importance .)
- Distributive justice(sharing limited resources from superior to
subordinate)
- Contributive justice(sharing between members of same
group)
- 13. Encouraging Ethical Conduct
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- Amoral managers: managers who are neither moral or immoral, but
ethically lazy.
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- Key features of effective ethics training programs
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- A clear focus on ethical issues.
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- Integration of ethics into the organization.
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- A mechanism for anonymously reporting ethical violations.
- 14. Encouraging Ethical Conduct (contd)
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- The reporting of perceived unethical matters.
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- Reducing the fear of retaliation against whistleblowers
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- Anonymous hotlines and web sites
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- Personal, confidential guidance
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- An ethics specialist who plays a role of critical questioner in
top-managements decision-making.
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- Serves as the Board of directors social conscience.
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- Helps prevent groupthink and blind conformity
- 15. Encouraging Ethical Conduct (contd)
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- Published statement of moral expectations for employee
conduct
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- Requirements for an effective ethics code
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- Must describe specific practices as unethical (e.g., kickbacks,
payoffs, gifts, falsification of records, and misleading product
claims).
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- Must be firmly supported and fairly enforced by top
management.