NEW MARKET DEVELOPMENT FINALS (MANAGING SOCIAL RESPONSIBILITY AND ETHICS) Flashcards
the obligation of a business to meet its economic and legal responsibilities and nothing more
social obligation
when a firm engages in social actions in response to some popular social need.
social responsiveness
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 responsibility
Arguments for and against social responsibility
-public image
-better environment
-Discouragement of further government mental regulation
-balance of responsibility and power
-lack of skills
-lack of accountability
businesses can create a favorable public image by pursuing social goals
public image
business involvement can help solve difficult social problems
better environment
by becoming socially responsible, businesses can expect less government regulation
Discouragement of further governmental regulation
businesses have lot of power and an equally large amount of responsibility is business have a lot of power already and if they pursue social goals they will have even more.
balance of responsibility
business leaders lack the necessary skills to address social issues
lack of skills
there are no direct lines of accountability for social actions
lack of accountability
applying social criteria (screens) to investment decision
social screening
managers consider the impact of their organization on the natural environment
green management
Green Approaches
-Legal or light green approach
-market approach
-stakeholder approach
-Activist Approach
firms simply do what is legally required by obeying laws, rules, and regulations willingly and without legal challenge.
legal (or light green) approach
firms respond to the preferences of their customers for environmentally friendly products. (DuPont Herbicide)
Market approach
firms work to meet the environmental demands of multiple stakeholders- employees, suppliers, and the community
stakeholder approach
firms look for ways to respect and preserve the environment and be actively socially responsible
activist approach
principle, values, and beliefs that define right and wrong behavior
ethics
basic convictions about what is right and wrong
values
managers and ethical behavior
ethics and values
personality varibales
ego strength and loss of control
personality measure of the strength of persons convictions.
ego strength
a personality attribute that measures the degree to which people believe they control their own fate
locus of control
Factors that determine ethical and unethical behavior
individual characteristics
issue intensity
structural variable
organizational culture
Factors Determining E/U behavior: Moral development
-a measurement of independence from outside influences
- levels of individual moral development
- stages of moral development
stages of moral development
- principled
- conventional
- preconventional
- an approach to managing in which managers establish and uphold an organization shared values
VALUE-BASED MANAGEMENT
•organizational characteristics and mechanisms that guide and influence individual ethics
•examples include
-performance appraisal systems(means and ends)
-reward allocation systems
-behaviors(ethical)of managers
Structural variables
- guiding managerial decision
- shaping employee behavior
- influencing the direction of marketing efforts
- building team spirit
PURPOSE OF SHARED VALUES
Issue intensity
- consensus of wrong
- probability of harm
- immediacy of consequences
- proximity of victims
- concentration of effects
- greatness of harm
•Characteristics determine issue intensity or how important an ethical issue is to an individual : greatness of harm,consensus of wrong,probability of harm,immediacy of consequences,proximity to victim(s),and concentration of effect.(ex: asking a friend on exam question,taking and office supply from work)
ISSUE INTENSITY
•Characteristics determine issue intensity or how important an ethical issue is to an individual : greatness of harm,consensus of wrong,probability of harm,immediacy of consequences,proximity to victim(s),and concentration of effect.(ex: asking a friend on exam question,taking and office supply from work)
ISSUE INTENSITY
- a formal statement of an organization’s primary values and the ethical rules it expects its employees to follow.
CODE OF ETHICS
Cluster 1.Be a dependable organizational citizen
Cluster 2. Do not do anything unlawful or improper that will harm the organization
Cluster 3. Be good to customers
CODE OF ETHICS
PROMOTING POSITIVE SOCIAL CHANGE
•Whistle-Blower
•Social Entrepreneur
PROMOTING POSITIVE SOCIAL CHANGE
•Whistle-Blower
•Social Entrepreneur
- Individual who raise ethical concerns or issues to others.
Whistle-Blower
- an individual or organization who seeks out opportunities to improve society by using practical,innovative,and sustainable approaches.
social entrepreneur
