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PowerPointPresentationbyCharlieCookCopyright 2005PrenticeHall Inc Allrightsreserved Copyright 2005PrenticeHall Inc Allrightsreserved 5 2 LEARNINGOUTLINEFollowthisLearningOutlineasyoureadandstudythischapter WhatisSocialResponsibilityContrasttheclassicalandsocioeconomicviewsofsocialresponsibility Discusstherolethatstakeholdersplayinthefourstagesofsocialresponsibility Listandexplaintheargumentsforandagainstsocialresponsibility Differentiatebetweensocialobligation socialresponsiveness andsocialresponsibility SocialResponsibilityandEconomicPerformanceExplainwhatresearchstudieshaveshownabouttherelationshipbetweenanorganization ssocialinvolvementanditseconomicperformance Copyright 2005PrenticeHall Inc Allrightsreserved 5 3 LEARNINGOUTLINE cont d FollowthisLearningOutlineasyoureadandstudythischapter SocialResponsibilityandEconomicPerformance cont d Discussthemethodologicalconcernsraisedabouttheseresearchstudies Definesocialscreening Explainwhatconclusioncanbereachedregardingsocialresponsibilityandeconomicperformance TheGreeningofManagementTellwhatthegreeningofmanagementisandwhyitisimportant Describehoworganizationscangogreen Copyright 2005PrenticeHall Inc Allrightsreserved 5 4 LEARNINGOUTLINE cont d FollowthisLearningOutlineasyoureadandstudythischapter TheGreeningofManagement cont d Relatetheapproachestobeinggreentotheconceptsofsocialobligation socialresponsiveness andsocialresponsibility Values BasedManagementDefinevalues basedmanagement Discusswhatpurposessharedvaluesserve ListsomeofthecorevaluesheldbyU S companies Describetherelationofvalues basemanagementtoethics Copyright 2005PrenticeHall Inc Allrightsreserved 5 5 LEARNINGOUTLINE cont d FollowthisLearningOutlineasyoureadandstudythischapter ManagerialEthicsDefineethics Contrastthefourviewsofethics Discussthefactorsthataffectethicalandunethicalbehavior Describethethreelevelsofmoraldevelopment Definevalues egostrength andlocusofcontrol Explainthestructuralvariablesandorganizationalculturevariablesthatcaninfluencethedecisiontobehaveethicallyornot Discussthesixdeterminantsofissueintensity Copyright 2005PrenticeHall Inc Allrightsreserved 5 6 LEARNINGOUTLINE cont d FollowthisLearningOutlineasyoureadandstudythischapter ManagerialEthicsExplainthechallengesofinternationalethics Discussthesevensuggestionsforimprovingethicalbehavior Tellwhatcodesofethicsareanhowtheireffectivenesscanbeimproved Describetheimportantrolesmanagersplayinencouragingethicalbehavior SocialResponsibilityandEthicsinToday sWorldExplainwhyethicalleadershipisimportant Describehowmanagerscanprovideethicalleadership Copyright 2005PrenticeHall Inc Allrightsreserved 5 7 WhatIsSocialResponsibility TheClassicalViewManagement sonlysocialresponsibilityistomaximizeprofits createafinancialreturn byoperatingthebusinessinthebestinterestsofthestockholders ownersofthecorporation Expendingthefirm sresourcesondoing socialgood unjustifiablyincreasescoststhatlowerprofitstotheownersandraisespricestoconsumers Copyright 2005PrenticeHall Inc Allrightsreserved 5 8 WhatIsSocialResponsibility cont d TheSocioeconomicViewManagement ssocialresponsibilitygoesbeyondmakingprofitstoincludeprotectingandimprovingsociety swelfare Corporationsarenotindependententitiesresponsibleonlytostockholders Firmshaveamoralresponsibilitytolargersocietytobecomeinvolvedinsocial legal andpoliticalissues Todotherightthing Copyright 2005PrenticeHall Inc Allrightsreserved 5 9 FromObligationtoResponsivenesstoResponsibility SocialObligationTheobligationofabusinesstomeetitseconomicandlegalresponsibilitiesandnothingmore SocialResponsivenessThecapacityofafirmtoadapttochangingsocietalconditionsthroughthepracticaldecisionsofitsmanagersinrespondingtoimportantsocialneeds SocialResponsibilityAfirm sobligationsasamoralagentextendsbeyonditslegalandeconomicobligations tothepursuitoflong termgoalsthataregoodforsociety Copyright 2005PrenticeHall Inc Allrightsreserved 5 10 DoesSocialResponsibilityPay Studiesappeartoshowapositiverelationshipbetweensocialinvolvementandtheeconomicperformanceoffirms Difficultiesindefiningandmeasuring socialresponsibility and economicperformanceraiseissuesofvalidityandcausationinthestudies Mutualfundsusesocialscreeningininvestmentdecisionslightlyoutperformedothermutualfunds Ageneralconclusionisthatafirm ssocialactionsdonotharmitslong termperformance Copyright 2005PrenticeHall Inc Allrightsreserved 5 11 TheGreeningofManagement Therecognitionofthecloselinkbetweenanorganization sdecisionandactivitiesanditsimpactonthenaturalenvironment Globalenvironmentalproblemsfacingmanagers Air water andsoilpollutionfromtoxicwastesGlobalwarmingfromgreenhousegasemissionsNaturalresourcedepletion Copyright 2005PrenticeHall Inc Allrightsreserved 5 12 HowOrganizationsGoGreen Legal ofLightGreen ApproachFirmssimplydowhatislegallyrequiredbyobeyinglaws rules andregulationswillinglyandwithoutlegalchallenge MarketApproachFirmsrespondtothepreferencesoftheircustomersforenvironmentallyfriendlyproducts StakeholderApproachFirmsworktomeettheenvironmentaldemandsofmultiplestakeholders employees suppliers andthecommunity ActivistApproachFirmslookforwaystorespectandpreserveenvironmentandbeactivelysociallyresponsible Copyright 2005PrenticeHall Inc Allrightsreserved 5 13 Values BasedManagement Values BasedManagementAnapproachtomanaginginwhichmanagersestablishandupholdanorganization ssharedvalues ThePurposesofSharedValuesServingasguidepostsformanagerialdecisionsShapingemployeebehaviorInfluencingthedirectionofmarketingeffortsTheBottomLineonSharedCorporateValuesAnorganization svaluesarereflectedinthedecisionsandactionsofitsemployees Copyright 2005PrenticeHall Inc Allrightsreserved 5 14 ManagerialEthics EthicsDefinedTherulesandprinciplesthatdefinerightandwrongconduct FourViewsofEthicsTheutilitarianviewTherightsviewThetheoryofjusticeviewTheintegrativesocialcontractstheory Copyright 2005PrenticeHall Inc Allrightsreserved 5 15 ManagerialEthics cont d UtilitarianViewEthicaldecisionsaremadesolelyonthebasisoftheiroutcomesorconsequencessuchthatthegreatestgoodisprovidedforthegreatestnumber Encouragesefficiencyandproductivityandisconsistentwiththegoalofprofitmaximization RightsViewConcernedwithrespectingandprotectingindividuallibertiesandprivacy Seekstoprotectindividualrightsofconscience freespeech lifeandsafety anddueprocess Copyright 2005PrenticeHall Inc Allrightsreserved 5 16 ManagerialEthics cont d TheTheoryofJusticeOrganizationalrulesareenforcedfairlyandimpartiallyandfollowalllegalrulesandregulations Protectstheinterestsofunderrepresentedstakeholdersandtherightsofemployee IntegrativeSocialContractsTheoryEthicaldecisionsshouldbebasedonexistingethicalnormsinindustriesandcommunitiesinordertodeterminewhatconstitutesrightandwrong Basedonintegrationofthegeneralsocialcontractandthespecificcontractbetweencommunitymembers Copyright 2005PrenticeHall Inc Allrightsreserved 5 17 FactorsThatAffectEmployeeEthics MoralDevelopmentAmeasureofindependencefromoutsideinfluencesLevelofIndividualMoralDevelopmentPreconventionallevelConventionallevelPrincipledlevelStageofmoraldevelopmentinteractswith IndividualcharacteristicsTheorganization sstructuraldesignTheorganization scultureTheintensityoftheethicalissue Copyright 2005PrenticeHall Inc Allrightsreserved 5 18 FactorsThatAffectEmployeeEthics cont d MoralDevelopmentResearchConclusions Peopleproceedthroughthestagesofmoraldevelopmentsequentially Thereisnoguaranteeofcontinuedmoraldevelopment MostadultsareinStage4 goodcorporatecitizen Copyright 2005PrenticeHall Inc Allrightsreserved 5 19 IndividualCharacteristics ValuesBasicconvictionsaboutwhatisrightorwrongonabroadrangeofissuesStageofMoralDevelopmentAmeasureofanindividual sindependencefromoutsideinfluences Copyright 2005PrenticeHall Inc Allrightsreserved 5 20 IndividualCharacteristics PersonalityVariablesEgostrengthApersonalitymeasureofthestrengthofaperson sconvictionsLocusofControlApersonalityattributethatmeasuresthedegreetowhichpeoplebelievetheycontroltheirownlife Internallocus thebeliefthatyoucontrolyourdestiny Externallocus thebeliefthatwhathappenstoyouisduetoluckorchance Copyright 2005PrenticeHall Inc Allrightsreserved 5 21 StructuralVariables Organizationalcharacteristicsandmechanismsthatguideandinfluenceindividualethics PerformanceappraisalsystemsRewardallocationsystemsBehaviors ethical ofmanagersAnorganization scultureIntensityoftheethicalissueGoodstructuraldesignminimizesambiguityanduncertainandfosterethicalbehavior Copyright 2005PrenticeHall Inc Allrightsreserved 5 22 EthicsinanInternationalContext Ethicalstandardsarenotuniversal SocialandculturaldifferencesdetermineacceptablebehaviorsForeignCorruptPracticesActMakesitillegaltocorruptaforeignofficialyet token paymentstoofficialsarepermissiblewhendoingsoisanacceptedpracticeinthatcountry Copyright 2005PrenticeHall Inc Allrightsreserved 5 23 HowManagersCanImproveEthicalBehaviorinAnOrganization Hireindividualswithhighethicalstandards Establishcodesofethicsanddecisionrules Leadbyexample Delineatejobgoalsandperformanceappraisalmechanisms Provideethicstraining Conductsocialaudits Providesupportforindividualsfacingethicaldilemmas Copyright 2005PrenticeHall Inc Allrightsreserved 5 24 EffectiveUseofaCodeofEthics Developacodeofethicsasaguideinhandlingethicaldilemmasindecisionmaking Communicatethecoderegularlytoallemployees Havealllevelsofmanagementcontinuallyreaffirmtheimportanceoftheethicscodeandtheorganization scommitmenttothecode Publiclyreprimandandconsistentlydisciplinethosewhobreakthecode Copyright 2005PrenticeHall Inc Allrightsreserved 5 25 TheValueofEthicsTraining Traininginethicalproblemsolvingcanmakeadifferenceinethicalbehaviors Traininginethicsincreaseemployeeawarenessofethica
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