MODULE 2 Flashcards
The managerial obligation to take action that protects and improves the welfare of society along with the business’ own interests.
SOCIAL RESPONSIBILITY
A manager must strive to achieve societal as well as organizational goals.
SOCIAL RESPONSIBILITY
Also known as corporate social responsibility
SOCIAL RESPONSIBILITY
any individual or group that is directly or indirectly affected by an organization’s decisions.
STAKEHOLDER
THE THREE SOCIAL RESPONSIBILITY CHALLENGES
- SOCIAL AUDIT CHALLENGE
- PHILANTHROPY CHALLENGE
- SUSTAINABLE ORGANIZATION CHALLENGE
the process of measuring the present social responsibility activities of an organization to assess its performance.
SOCIAL AUDIT
an internal examination of how a particular business is affecting society.
SOCIAL AUDIT
basic steps in conducting a social audit are
- MONITORING
- APPRAISING ALL ASPECTS OF AN ORGANIZATION’S SOCIAL RESPONSIBILITY PERFORMANCE
promotes the welfare of others through generous monetary donations to social causes.
PHILANTHROPY
- Better conserve natural resources
- Reduce organizational waste
- Recycle used resources
- Preserve the environment by protecting threatened plant and animal species
SUSTAINABLE ORGANIZATION CHALLENGES
Modern managers must face the challenge of crafting ___to be successful in building and operating socially sensitive organizations over the long run
SUSTAINABLE ORGANIZATION
is the degree to which a person or entity can meet its present needs without compromising the ability of other people or entities to meet their needs in the future.
SUSTAINABILITY
3 IMPORTANT AREAS TO BE SUSTAINABLE
- ECONOMY
- ENVIRONMENT
- SOCIETY
Minimizing waste by not over producing goods and generating a fair profit for stakeholders.
ECONOMY
Protecting natural resources like air, water, and land.
ENVIRONMENT
Maintaining the well-being and protection of the communities in which it does business.
SOCIETY
Emphasizes that managers should focus on building organizations that are sustainable in:
- Economic activities (profit)
- Environmental activities (planet)
- Societal activities (people)
IMPORTANCE OF SUSTAINABILITY
- INCREASED PROFIT
- INCREASED PRODUCTIVITY
- INCREASED INNOVATION
commonly the most immediate payoff of sustainability.
INCREASED PRODUCTIVITY
is “our concern for good behavior”.
ETHICS
“we feel an obligation to consider not only our own personal wellbeing, but also that of other human beings.”
ETHICS
is the capacity to reflect on values in the corporate decision-making process, to determine how these values and decisions affect various stakeholder groups, and to establish how managers can use these observations in day-to-day company management.
ETHICS
strive for success within the confines of sound management practices, which are characterized by fairness and justice.
ETHICAL MANAGERS
THREE IMPORTANT AREAS EMPLOYMENT OF ETHICAL BUSINESS PRACTICES
- PRODUCTIVITY
- STAKEHOLDER RELATIONS
- GOVERNMENT REGULATION
When management is determined to act ethically toward stakeholders, then employees will be positively affected.
Productivity
A positive public image can attract customers who view such an image as desirable.
Stakeholder Relations
Where companies are believed to be acting unethically, the public is more likely to put pressure on legislators and other government officials to regulate those businesses or to enforce existing regulations
Government Regulation
formal statement that acts as a guide for the ethics of how people within a particular organization should act and make decisions.
CODE OF ETHICS
commonly address such issues as conflict of interest, competitors, privacy of information, gift giving, and giving and receiving political contributions or business.
CODE OF ETHICS
ETHICAL STANDARDS
- UTILITARIAN STANDARD
- RIGHTS STANDARD
- VIRTUE STANDARD
A guideline that indicates that behavior can generally be considered ethical if it provides the most good for or does the least harm to the greatest number of people.
UTILITARIAN STANDARD
Corporate activity that meets this standard produces the greatest good for and the least harm to all company stakeholders including employees and customers.
UTILITARIAN STANDARD
A guideline that says that behavior is generally considered ethical if it respects and promotes the rights of others.
RIGHTS STANDARD
Corporate action that reflects unfair labor practices like paying abnormally low wages or using child labor would be considered unethical
RIGHTS STANDARD
A guideline that determines behavior to be ethical if it reflects high moral values.
VIRTUE STANDARD
Behavior that is consistent with this standard is action that reflects virtues like honesty, fairness, and compassion.
VIRTUE STANDARD
Examples of business behavior that reflect this standard would include honesty in advertising about the worthwhileness of a product or paying suppliers a fair price for their goods no matter how much bargaining power is held over them.
VIRTUE STANDARD
