Textbook Notes (280,000)
CA (170,000)
Dal (400)
MGMT (10)
Chapter 5

MGMT 1000 Chapter Notes - Chapter 5: Corporate Social Responsibility, Organizational Culture


Department
Management
Course Code
MGMT 1000
Professor
David Stuewe
Chapter
5

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Chapter(5:(Managing(Responsibly(and(Ethically
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A5
B.0,(1)%$&3."&,/,1,'2:can$be$focused$solely$on$profit-making$or$
pursuing$further$to$improve$socio-economic$conditions
B.0,(1)./1,4(',.":$organizations$engaging$in$social$actions$because$
of$economic$and$legal$responsibilities$
C1(&&,0(1)>,$*:$management’s$only$social$responsibility$is$to$
maximize$profits,$focused$only$on$concerns$of$shareholders$
B.0,.?$0.".-,0)>,$*:$management’s$social$responsibility$goes$
beyond$profits,$works$to$protect$and$improve$society’s$welfare$
B.0,(1)%$&3."&,>$"$&&:$organization$engaging$in$social$actions$as$a$
response$to$a$popular$social$need
B.0,(1)"$$#:$a$need$of$a$specific$part$of$society$caused$by$factors$
such$as:$social/mental$disability,$language$barriers,$cultural/social$
isolation
B.0,(1)%$&3."&,/,1,'2:$business$ goes$beyond$its$legal$and$economic$
obligations$to$ensure$ they$are$doing$the$ right$things$and$acting$in$
ways$to$ better$society
Social(Responsibility(vs.(Social(Responsiveness
Stages$of$organization’s$socially$responsible$management:
Follow$classical$view
1)
Expanding$to$motivating$and$attracting$good$employees
2)
Expanding$to$their$environment,$customers$and$suppliers
3)
Responsibility$to$society$as$a$whole,$working$to$improve$the$public$
regardless$of$any$affected$profits
Corporate(Social(Responsibility(and(Economic(Performance
B.0,(1)&0%$$","4:$apply$social$criteria$to$investment$decisions$
(SRIs)
B.0,(112)%$&3."&,/1$),">$&'-$"')DBE<FG allow$individual$investors$to$
support$socially$responsible$companies
Sustainable(Management(Practices
Business$recognizing$the$link$between$ its$decisions$or$activities$
and$their$impact$on$the$environment.$This$could$mean$reducing$
forms$of$waste,$greenhouse$gases$and$non-renewable$energy
H%$$")-("(4$-$"')3%(0',0$&:$sustainable$ practices$implemented$
by$organizations$by$making$products$ and$production$ methods$
“cleaner”
Methods$of$sustainable$management:
4)
Legal$approach:$obeying$laws$and$regulations$around$sustainable$
management$but$nothing$more$(social$obligation)
1)
Market$approach:$responding$to$customer’s$environmental$preferences
2)
Stakeholder$approach:$working$to$meet$demands$of$employees,$
suppliers$and$community
3)
Activist$approach:$pursuing$ways$to$preserve$the$earth$and$its$resources$
Values-based(management
Approach$in$which$managers$establish$shared$values$of$the$
organization$as$a$whole
4)
Purposes$ of$shared$values:
Guide$actions$and$decisions$of$manager
1)
Shape$the$ behavior$of$employees
2)
Influence$marketing
3)
Builds$community$and$team$spirit
I("(4$%,(1)$'+,0&:$rules$and$principles$that$define$right$and$wrong$
behavior
5$factors$that$affect$ethical$or$unethical$behavior:
4)
B'(4$).:)-.%(1)#$>$1.3-$"':$pre-conventional$level$=$individual's$
choice$between$right$and$wrong$depends$on$personal$consequences.$
Conventional$level$=$individual$will$maintain$standards/expectations$ of$
those$around$them.$Principled$level$=$personal$value$system,$making$
decisions$regardless$of$others
1)
<"#,>,#8(1)0+(%(0'$%,&',0&:$everyone$has$set$values,$their$convictions$of$
what$is$right$and$what$ is$wrong.$
J4.)&'%$"4'+:$measure$of$strength$of$a$person’s$convictions,$
if$they$are$more/less$likely$to$resist$impulses
K.08&).:)0."'%.1:$ degree$to$which$people$believe$they$control$
their$own$fate$(internal:$believe$they$control,$external:$
believe$in$luck/chance)
2)
B'%80'8%(1) >(%,(/1$&:$ structural$design$can$provide$guidance$or$can$
create$uncertainty.$Reward/punishment$ allocation$for$certain$outcomes$
are$important
3)
Organizational$culture:$an$organizational$culture$with$high$ethical$
standards$will$have$a$strong$and$positive$impact$on$employees
4)
Issue$identity:$evaluating$6$factors$in$identifying$an$ethical$issue$
(greatness$of$harm,$consensus$ of$wrong,$probability$of$harm,$
immediacy$of$consequences,$ proximity$of$victims$and$concentration$of$
effect
5)
Ethical$standards$are$not$universal$and$differ$greatly$from$country$to$
country
-
United$Nations$created$guidelines$for$being$ethical$in$international$
business$and$focused$on:$human$rights,$labor$standards,$environment$
and$anti-corruption
Encouraging(Ethical(Behavior
-
Employee$selection:$interviews,$tests$and$background$checks
1)
Codes$of$ethics$and$rules$for$decisions:$formal$statement$of$
organization’s$values$and$ethical$rules$expected$to$be$followed$by$all$
employees
2)
Ethical$leadership:$top$managers$set$the$standards$for$the$entire$
organization$and$need$to$be$role$models
3)
Job$goals/performance$appraisal:$to$encourage$ethical$behavior,$ends$
and$means$must$be$evaluated
4)
Ethics$training:$seminars,$workshops$ and$programs$can$increase$moral$
development$ &$reinforce$standards$
5)
Independent$ social$audits:$evaluate$decisions$and$practices$within$
organization’s$code$of$ethics
6)
Formal$protective$mechanisms:$whistle-blowers$ (individuals$who$ raise$
ethical$concerns)$important$to$organizations$ethical$program$because$
they$ will$step$forward$no$matter$what$ the$cost
7)
Wednesday,$ October$11,$2017
1:17$PM
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Chapter(5:(Managing(Responsibly(and(Ethically
!"#$%&'("#) *+('),')-$("&)'.)/$)()&.0,(112)%$&3."&,/1$)-("(4$%565
7$&0%,/$)+.*)-("(4,"4)%$&3."&,/12)0."'%,/8'$&)'.).%4(",9(',."(1)
3$%:.%-("0$
;5
<#$"',:2)&8&'(,"(/1$)-("(4$-$"')3%(0',0$&=5
!"#$%&'("#) '+$)3%,"0,31$&).:)>(18$&?/(&$#) -("(4$-$"'@5
7,&08&&)08%%$"')$'+,0&),&&8$&A5
B.0,(1)%$&3."&,/,1,'2:can$be$focused$solely$on$profit-making$or$
pursuing$further$to$improve$socio-economic$conditions
B.0,(1)./1,4(',.":$organizations$engaging$in$social$actions$because$
of$economic$and$legal$responsibilities$
C1(&&,0(1)>,$*:$management’s$only$social$responsibility$is$to$
maximize$profits,$focused$only$on$concerns$of$shareholders$
B.0,.?$0.".-,0)>,$*:$management’s$social$responsibility$goes$
beyond$profits,$works$to$protect$and$improve$society’s$welfare$
B.0,(1)%$&3."&,>$"$&&:$organization$engaging$in$social$actions$as$a$
response$to$a$popular$social$need
B.0,(1)"$$#:$a$need$of$a$specific$part$of$society$caused$by$factors$
such$as:$social/mental$disability,$language$barriers,$cultural/social$
isolation
B.0,(1)%$&3."&,/,1,'2:$business$ goes$beyond$its$legal$and$economic$
obligations$to$ensure$ they$are$doing$the$ right$things$and$acting$in$
ways$to$ better$society
Social(Responsibility(vs.(Social(Responsiveness
Stages$of$organization’s$socially$responsible$management:
Follow$classical$view
1)
Expanding$to$motivating$and$attracting$good$employees
2)
Expanding$to$their$environment,$customers$and$suppliers
3)
Responsibility$to$society$as$a$whole,$working$to$improve$the$public$
regardless$of$any$affected$profits
Corporate(Social(Responsibility(and(Economic(Performance
B.0,(1)&0%$$","4:$apply$social$criteria$to$investment$decisions$
(SRIs)
B.0,(112)%$&3."&,/1$),">$&'-$"')DBE<FG allow$individual$investors$to$
support$socially$responsible$companies
Sustainable(Management(Practices
Business$recognizing$the$link$between$ its$decisions$or$activities$
and$their$impact$on$the$environment.$This$could$mean$reducing$
forms$of$waste,$greenhouse$gases$and$non-renewable$energy
H%$$")-("(4$-$"')3%(0',0$&:$sustainable$ practices$implemented$
by$organizations$by$making$products$ and$production$ methods$
“cleaner”
Methods$of$sustainable$management:
4)
Legal$approach:$obeying$laws$and$regulations$around$sustainable$
management$but$nothing$more$(social$obligation)
1)
Market$approach:$responding$to$customer’s$environmental$preferences
2)
Stakeholder$approach:$working$to$meet$demands$of$employees,$
suppliers$and$community
3)
Activist$approach:$pursuing$ways$to$preserve$the$earth$and$its$resources$
Values-based(management
Approach$in$which$managers$establish$shared$values$of$the$
organization$as$a$whole
4)
Purposes$ of$shared$values:
Guide$actions$and$decisions$of$manager
1)
Shape$the$ behavior$of$employees
2)
Influence$marketing
3)
Builds$community$and$team$spirit
I("(4$%,(1)$'+,0&:$rules$and$principles$that$define$right$and$wrong$
behavior
5$factors$that$affect$ethical$or$unethical$behavior:
4)
B'(4$).:)-.%(1)#$>$1.3-$"':$pre-conventional$level$=$individual's$
choice$between$right$and$wrong$depends$on$personal$consequences.$
Conventional$level$=$individual$will$maintain$standards/expectations$ of$
those$around$them.$Principled$level$=$personal$value$system,$making$
decisions$regardless$of$others
1)
<"#,>,#8(1)0+(%(0'$%,&',0&:$everyone$has$set$values,$their$convictions$of$
what$is$right$and$what$ is$wrong.$
J4.)&'%$"4'+:$measure$of$strength$of$a$person’s$convictions,$
if$they$are$more/less$likely$to$resist$impulses
K.08&).:)0."'%.1:$ degree$to$which$people$believe$they$control$
their$own$fate$(internal:$believe$they$control,$external:$
believe$in$luck/chance)
2)
B'%80'8%(1) >(%,(/1$&:$ structural$design$can$provide$guidance$or$can$
create$uncertainty.$Reward/punishment$ allocation$for$certain$outcomes$
are$important
3)
Organizational$culture:$an$organizational$culture$with$high$ethical$
standards$will$have$a$strong$and$positive$impact$on$employees
4)
Issue$identity:$evaluating$6$factors$in$identifying$an$ethical$issue$
(greatness$of$harm,$consensus$ of$wrong,$probability$of$harm,$
immediacy$of$consequences,$ proximity$of$victims$and$concentration$of$
effect
5)
Ethical$standards$are$not$universal$and$differ$greatly$from$country$to$
country
-
United$Nations$created$guidelines$for$being$ethical$in$international$
business$and$focused$on:$human$rights,$labor$standards,$environment$
and$anti-corruption
Encouraging(Ethical(Behavior
-
Employee$selection:$interviews,$tests$and$background$checks
1)
Codes$of$ethics$and$rules$for$decisions:$formal$statement$of$
organization’s$values$and$ethical$rules$expected$to$be$followed$by$all$
employees
2)
Ethical$leadership:$top$managers$set$the$standards$for$the$entire$
organization$and$need$to$be$role$models
3)
Job$goals/performance$appraisal:$to$encourage$ethical$behavior,$ends$
and$means$must$be$evaluated
4)
Ethics$training:$seminars,$workshops$ and$programs$can$increase$moral$
development$ &$reinforce$standards$
5)
Independent$ social$audits:$evaluate$decisions$and$practices$within$
organization’s$code$of$ethics
6)
Formal$protective$mechanisms:$whistle-blowers$ (individuals$who$ raise$
ethical$concerns)$important$to$organizations$ethical$program$because$
they$ will$step$forward$no$matter$what$ the$cost
7)
Ch.5%-Managing%Responsibly%and%Ethically
Wednesday,$ October$11,$2017 1:17$PM
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