Managing Social Responsibility and Ethics
What do we learn?
a. What does
socially responsible means and what factors influences that decision.
Ø 3 similar concepts:
1. Social
obligation
·
Classic view:
the view that management’s only social responsibility is to maximize profits.
2. Social responsiveness
·
when a firm engages in social actions in
response to some popular social need.
3.
Socioeconomic
view
·
The managers social responsibility go
beyond making profits to include protecting and improving society’s welfare.
Ø What is social
responsibility?
·
Business’s intention, beond its legal
and economic obligations, to do the right thing and act in ways that are good
for society.
Ø What factors hat influences the decision?
·
By examining
social involvement. ( doesn’t mean that this factors will caused higher
economic performance).
·
1 way to view
social involvement is by:
social screening: applying social and environmental
criteria to investment decisions.
b. What is green
management and how organizations can go green.
Ø What is green management?
Ø How organizations can go green?
·
3 types of
approach:
1. The legal/ light
green approach:
o Simply doing what is required legally.
o Illustrates social obligations.
o Adopt the market approach and respond to environmental
preferences of customers.
2. Stakeholder
approach:
o Organizations work to meet the environmental demands
of multiple stakeholders (such as employee, suppliers, or community).
3.
Activist/ dark green approach:
o Look for ways to protect the earth’s natural
resources.
o Reflects the highest degree of environmental sensivity
and illustrates social responsibility.
Ø Evaluating green management actions
·
Release detailed
reports on their environmental performance. (guidelines developed by Global
Reporting Initiative (GRI)).
·
Pursuing standards
developed by nongovernemental International Orgnization for Standardization
(ISO).
c. Factors that
lead to ethical and unethical behaviour.
Ø Ethics: principles, values, and beliefs that define the right and wrong
decisions and behaviour.
Ø Factors that determine ethical and unethical
behaviour.
1.
Preconventional level:
o A person’s choice between right or wrong is based on
personal consequences from outside sources.( such as physics punishment,
reward,etc)
2.
Conventional level:
o
Ethical decisions rely on living up to
the expectations of others.
3.
Principled level:
o
individuals define moral values apart
from the authority of the groups or society in general.
·
2 individual characteristics:
1. Values: basic
convictions about what is right and wrong.
2. Ego Strength: a
personality measure of the strength of a person’s convictions.
3. Locus of
Control:
a
personality attribute that measures the degree to which people believe they
control their own fate.
·
Structural variables
o Influence whether employee behave ethically.
o Minimize ambiguity and uncertaintywith formal rules
and regulations.
·
Organization’s culture
o
consists of the shared organizational
values
o
Reflect what the organization stands for
and what it believes in
o
Create an environment that influences
employee behavior ethically or unethically.
o
Values-based management: the
organization’s values guide employees in the way they do their jobs.
·
issue intensity
d. Management’s
role in encouraging ethical behaviour.
Ø 7 specific ways that managers can encourage ethical
behaviour:
1. Employee Selection: an opportunity to learn about an
individual’s level of moral development, personal values, ego strength, and
locus of control.
2. Code of ethics: a
formal statement of an organization’s primary values and the ethical rules it
expects its employees to follow.
3.
Leadership: requires
a commitment from top managers.
4. Job goals and performance appraisal: unrealistic
goals will make the employees feel pressured and stressed, which may influence the
ethics of the employees to do whatever is necessary to meet those goals.
5. Ethics training: seminars, workshops, and similar ethics
training programs to encourage ethical behavior.
6. Independent
social audits: evaluate decisions and management
practices in terms of the organization’s code of ethics.
7. Protective mechanism: for employees who face ethical dilemmas to
do what’s right without fear of reprimand.
e. Social responsibility
and ethics issues.
Ø Protection
of Employees Who Raise Ethical Issues:
·
Whistle-Blower : individuals
who raise ethical concerns or issues to others
Ø Ethical Leadership: managers
must provide ethical leadership. What managers do has a strong influence
on employees’ decisions whether to behave ethically.
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