CHAPTER FIVE: MANAGEMENT'S SOCIAL AND ETHICAL RESPONSIBILITIES

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SOCIAL RESPONSIBILITY: DEFINITION AND PERSPECTIVES


- ________________ (CSR)
- The idea that business has:
- Social obligations above and beyond _____________
- Social obligations to constituent groups in society other than stockholders and beyond that prescribed by ___
- Organizations include ________, __________, and ______responsibility in their core business strategies.

corporate social responsibility, making a profit, law, financial, environmental, social

philanthropic responsibility: do what is ______.

desired by global stakeholders

ethical responsibility: do what is _______.

expected by global stakeholders

legal responsibility: do what is _______.

required by global stakeholders

economic responsibility: do what is _______.

required by global capitalism

SOCIAL RESPONSIBILITY: DEFINITION AND PERSPECTIVES (CONT.)

WHAT DOES SOCIAL RESPONSIBILITY INVOLVE?

- ________action
- Action is taken ________lawsuits or other events force a firm to act on a matter.

- An emphasis on ________, ________
- Emphasis is on how the decision to act was reached, not on the decision itself.

voluntary, before, means, not ends

WHAT IS THE ROLE OF BUSINESS IN SOCIETY?


- The ____________Model (Adam Smith)
- An "_____________" (i.e., the efforts of competing entrepreneurs) promoted the public welfare when individuals tried to maximize short-run profits in pursuit of their own economic self-interests.
- Equates _____-___ ________to social responsibility
(TOMS - ILLUSION OF SOCIAL RESPONSIBILITY - THEY REALLY MAKE MONEY OFF OF IT)

- The _____________Model
- Business has an obligation to meet the needs of the many groups in society besides stockholders in its pursuit of profit.
- _____________: Systematically identifying all the parties that could possibly be affected by the company's performance

(BEER COMMERCIALS - DRINK RESPONSIBLY - THEY SAY THIS BECAUSE OF MADD)

classical economic, invisible hand, short-run profitability, socioeconomic, stakeholder audit

ARGUMENTS FOR AND AGAINST CORPORATE SOCIAL RESPONSIBILITY:


Arguments For:
- Business is ________involved in social issues.
- Business has the ________to tackle today's complex societal problems.
- A better ________means a better environment for doing ________.
- Corporate social action will prevent ___________ ______.

unavoidably, resources, society, business, government action

TOWARD GREATER SOCIAL RESPONSIBILITY


- ________of Responsibility
- Those who do not use power in a socially responsible way will eventually ______.
- If business does not meet the challenge of social responsibility, then __________reform legislation will force it to meet its obligations.

iron law, lose it, government

SOCIAL RESPONSIBILITY STRATEGIES:

Reactive Strategy
- Denying responsibility while striving to ____________________ by resisting change

Defensive Strategy
- Resisting additional ________ with legal and public relations tactics

Accommodation Strategy
- Assuming social responsibility only in response to ________from interest groups or the government

Proactive Strategy
- Taking the ________in formulating and putting in place new programs that serve as role models for industry

maintain the status quo, social responsibilities, pressure, initiative

DEGREE OF SOCIAL RESPONSIBILITY

________: deny or ignore responsibility

________: put up a fight

________: accept social responsibility in response to pressure

________: take the initiative; establish a positive model for the industry

reaction, defense, accommodation, proaction

WHO BENEFITS FROM CORPORATE SOCIAL RESPONSIBILITY:


________
- The unselfish devotion to the interests of others

Research Findings
- There is a positive correlation between industry ________on a socially responsible issue (pollution control) and profitability.
- Corporate social responsibility is a ________ advantage in recruiting. (CORPORATE BETWEEN: SOCIAL RESPONSIBILITY AND PROFIBILITY)

altruism, industry leadership, competitive

WHO BENEFITS FROM CORPORATE SOCIAL RESPONSIBILITY (CONT.):


Enlightened Self-Interest
- A business ultimately helps ______ by helping solve social problems.

An Array of Benefits for the Organization
- ___-free incentives to employees
- ________of talented employees
- Help in recruiting the talented and_____ conscious
- Help in swaying _____________
- Improved _________ standards
- Attracting socially conscious ________
- A _________benefit for employees from company donations to charitable causes

itself, tax, retention, socially, public opinion, community living, investors, nontaxable

THE ETHICAL DIMENSION OF MANAGEMENT:


Ethics
- The study of ______________ involving the distinction between right and wrong

Business Ethics
- The study of the complex business __________ and ________ that give rise to ethical issues in organizations

moral obligations, practices, behaviors

PRACTICAL LESSONS FROM BUSINESS ETHICS RESEARCH:


Ethical Hot Spots
- Balancing work and ________
- Poor internal ________
- Poor ________
- Work _____, work load
- Lack of ________ support
- Need to meet sales, ______, or profit goals
- Little or no ________of achievements
- Company _______
- Personal financial worries
- Insufficient ________

family, communications, leadership, hours, management, budget, recognition, politics, resources

PRACTICAL LESSONS FOR BUSINESS ETHICS RESEARCH (CONT.):


Pressure from Above
- The problem of superiors pressuring subordinates to achieve results is widespread.
- Managers' responses to pressure from above
- Consciously avoid putting undue pressure on subordinates (who may act ________to relieve the pressure).
- Prepare to deal with excessive organizational ________. (PUSHING PEOPLE)

________Situations
- Situations where there are no ________ethical guidelines or ethical codes that can satisfy employees' need for formal guidelines

_____________: (HOW GOOD PEOPLE END UP DOING BAD THINGS)
- Perceiving an objectively questionable action as normal and acceptable

A Call to Action
- The deliberate and conscious action of a manager to do the right thing is an ________and ________matter.

unethically, pressure, ambiguous, clear-cut, rationalization, ethical, personal

PERSONAL VALUES AS ETHICAL ANCHORS


Values
- Abstract ______ that _____ one's thinking and behavior
- _______________: Enduring belief that a certain way (mode) of behaving is appropriate in all situations
- _______________: Enduring belief that a certain end-state of existence (being admired) is worth striving for

Identifying Your Own Values
- Basic personal values are taken for granted.
- They are not arranged consciously in order of priority.

ideals, shape, instrumental value, terminal value

MANAGERIAL RANKING OF VALUES:

_____________VALUES:
- honesty
- responsibility
- capability
- ambition
- independence

_____________VALUES
- self-respect
- family security
- freedom
- a sense of accomplishment
- happiness

instrumental, terminal

________________________:


- self-interests
- personal virtues
- religious injunctions
- government requirements
- utilitarian benefits
- universal rules
- individual rights
- economic efficiency
- distributive justice
- Contributive liberty

general ethical principles

ENCOURAGING ETHICAL CONDUCT:


Ethics Training
- _____________: Managers who are neither moral nor immoral, but ethically lazy
- Key features of effective ethics programs (USUALLY A JOKE - JUST GROUNDS TO FIRE YOU):
- Support of ___management
- ____discussion
- A clear _____on ethical issues
- Integration of ______into the organization
- A mechanism for ______________reporting ethical violations
- ________of ethical conduct

amoral managers, top, open, focus, ethics, anonymously, rewarding

ENCOURAGING ETHICAL CONDUCT (CONT.):


______________
- An ethics specialist who plays a role in top management's decision making

______________
- Requirements for an effective code
- Describes specific events as unethical
- Is supported and equitably enforced by top management

______________
- The reporting of perceived unethical matters

ethical advocate, code of ethics, whistle-blowing

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