CHAPTER FIVE: MANAGEMENT'S SOCIAL AND ETHICAL RESPONSIBILITIES
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)
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 ________
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.
_____________VALUES - self-respect - family security - freedom - a sense of accomplishment - happiness
- 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