6. Managing Social Responsibility and Ethics Flashcards
Social Obligation
the obligation of a business to meet its economic and legal responsibilities and nothing more.
Classical view of management
– the view that management’s only social responsibility is to maximize profits.
Socioeconomic view
the view that management’s social responsibility goes beyond making profits to include protecting and improving society’s welfare.
Social responsiveness
when a firm engages in social actions in response to some popular social need.
Social responsibility
a business’s intention, beyond its legal and economic obligations, to do the right things and act in ways that are good for society.
Social Screening
applying social criteria (screens) to investment decisions
Green Management
managers consider the impact of their organization on the natural environment.
Legal (or Light Green) Approach
firms simply do what is legally required by obeying laws, rules, and regulations willingly and without legal challenge.
Market Approach
firms respond to the preferences of their customers for environmentally friendly products.
Stakeholder Approach
firms work to meet the environmental demands of multiple stakeholders—employees, suppliers, and the community.
Activist Approach
firms look for ways to respect and preserve the environment and be actively socially responsible.
Ethics
principles, values, and beliefs that define right and wrong behavior.
Preconvention level of Moral Development
a person’s choice between right or wrong is based on personal consequences.
Conventional level of Moral Development
ethical decisions rely on living up to the expectations of others.
Principled level of Moral Development
individuals define moral values apart from the authority of the groups or society in general.
