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CHAPTER 2

Environment, Social Responsibility and ethics

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When you finish this chapter, you should be able to: Management Environment Internal Environment related to management Concept of Corporate Culture General environment and Task environment Managerial responses to the environment Organizational setting for management Social responsibility and Corporate social responsibility Measuring social responsibility Management Ethics Approaches to management ethics

Learning Objectives

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I. Management Environment

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I. Management Environment

Managers have to understand from:Surrounding him everything (internal &

external environment)Approaches how to resolve the problemsControlling those environments

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1.1-Internal Environment

Factors that are frequently considered part of the internal environment include:

Operation StaffLeadership StylesOrganizational CultureOrganizational Mission Statement

Mission statement: guide the actions of the organization, spell out its overall goal, provide a sense of direction, and guide decision making.

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Concept of Corporate CultureThe elements of a corporate cultureMr. Deal and Mr. Kennedy shows 5 elements of

corporate culture:1) Business environment2) Values: -staff, coordinate between staff, leader3) Heroes: Sample, close relationship4) Rite and Rituals: visit, dinner5) The culture network

1.1-Internal Environment

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1.2 External Environment

factors surrounding an organization that significant influence on its growth and survivals:

-Competitors-Customers-Technology-Law/Regulations-Resources:

.Skilled Workers

.Raw Materials

.Finance

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1.2.1- General EnvironmentThere are 5 elements:

Political-Legal EnvironmentEconomics EnvironmentSocial and Cultural EnvironmentTechnological Environment International Environment

1.2 External Environment

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1.2.2 Task Environment Customers Competitors Suppliers Regulators

1.2 External Environment

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1.3 Managerial Responses to Environment

Mr. P.N. Khandwalla discovered the factors of change of environment 5 types:

A. TurbulenceB. HostilityC. DiversityD. Technical ComplexityE. Restrictiveness

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1.4 Organizational Setting for Management

CorporationNonprofit organizationsSmall businessesFamily-owned businesses

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II. Social Responsibility

Company has to be responsible to defend social healthy

Water pollutionAir pollutionLand pollution

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2.1 Corporate Social Responsibility

2.1.1 The Stakeholder ConceptGovernmentEmployeesCustomersSuppliersCreditors

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2.2 Measuring Social Responsibility

2.2.1 What should be measured? Analysis: People help program Fund for Scholarship: school, ministry,

government Controlling on pollution 2.2.2 Social Audits: Is a process that enables an organization to assess

and demonstrate its social, economic, and environmental benefits and limitations

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3. Management Ethics

Approaches to management ethicsNormative concepts:-How Should individual have behavior?Contextual Concepts: - Make decision

Environment for ethical decision makingCode of ethics