Lo ppt03
15
Copyright © Houghton Mifflin Company. All rights reserved. Lecture Outlines, 3–1 Social Responsibility: Definition and Debate • Corporate Social Responsibility – The idea that business has social obligations above and beyond making a profit. – Business has an obligation to constituent groups in society other than stockholders and beyond that prescribed by law.
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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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- Voluntary action
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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.
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- 3. Figure 3.2 A Continuum of Social Responsibility Strategies
- 4. Social Responsibility Strategies
- Reactive Strategy
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- Denying responsibility while striving to maintain the status quo by resisting change.
- Defensive Strategy
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- Resisting additional social responsibilities with legal and public relations tactics.
- 5. Social Responsibility Strategies (contd)
- Accommodation Strategy
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- Assuming social responsibility only in response to pressure from interest groups or the government.
- Proactive Strategy
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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?
- Altruism
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- The unselfish devotion to the interests of others.
- Research Findings
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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.
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- Others.
- 8. The Ethical Dimension of Management
- Ethics
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- The study of moral obligation involving the distinction between right and wrong.
- Business Ethics
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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
- Poor leadership
- Work hours, work load
- Lack of management support
- Need to meet sales, budget, or profit goals
- Little or no recognition of achievements
- Company politics
- Personal financial worries
- Insufficient resources
- 10. Practical Lessons from Business Ethics Research (contd)
- Pressure from Above
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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)
- Ambiguous Situations
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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.
- A Call to Action
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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
- Self-Interests
- Personal virtues
- Religious injunctions
- Government requirements
- Utilitarian benefits( life stance , with happiness or pleasure being of ultimate importance .)
- Universal rules
- Individual rights
- Economic efficiency
- Distributive justice(sharing limited resources from superior to subordinate)
- Contributive justice(sharing between members of same group)
- 13. Encouraging Ethical Conduct
- Ethics Training
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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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- Top management support.
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- Open discussion.
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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.
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- Reward ethical conduct.
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- 14. Encouraging Ethical Conduct (contd)
- Whistle-Blowing
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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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- Ethical Advocate
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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)
- Code of Ethics
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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.
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