Lecture management a pacific rim focus chapter 4 social responsibility and ethics in management

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CHAPTER 4

SOCIAL RESPONSIBILITY &

ETHICS IN MANAGEMENT

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Enhanced Edition Slides prepared by David Meacheam & George Sansbury 2

Lecture outline

• Organisational social responsibility

• Organisational social responsiveness

• Managing an ethical organisation

Organisational social

responsibility

‘The obligation of an organisation to seek

actions protecting and improving society’s welfare along with its own interests.’

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Enhanced Edition Slides prepared by David Meacheam & George Sansbury 4

• Hand of government

A view holding that the interests of society are best served by having the law and political process guide the corporation’s activities.

Organisational social

responsibility

Major perspectives:

• Hand of management

A view stating that corporations and their

managers are expected to act in ways that protect and improve society’s welfare as well

as make profit.

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Enhanced Edition Slides prepared by David Meacheam & George Sansbury 6

Social responsibilities of

managers

• Economic and legal

Responsibility to make a profit and obey the law

(invisible hand, hand of government, hand of

management).

• Ethical and discretionary

Ethical behaviour expected by society (invisible

hand, hand of government).

Difficult to determine, identify.

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Enhanced Edition Slides prepared by David Meacheam & George Sansbury 8

© 2003 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Management: A Pacific Rim Focus

Enhanced Edition Slides prepared by David Meacheam & George Sansbury 10

Does social responsibility pay?

Organisational social

responsiveness

‘A term referring to the development of

organisational decision processes where

managers anticipate, respond to and manage areas of social responsibility.’

Two aspects:

• Monitoring social demands and expectations.

• Internal social response mechanisms.

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Enhanced Edition Slides prepared by David Meacheam & George Sansbury 12

Internal social response

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Being an ethical manager

‘The difficulties and concerns with business ethics raises three important issues about being a manager.’

• Types of managerial ethics

• Ethical guidelines for managers

• Ethical career issues

Types of managerial ethics

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Enhanced Edition Slides prepared by David Meacheam & George Sansbury 16

Ethical guidelines for managers

• Obey the law.

• Tell the truth.

• Show respect for people.

• Stick to the Golden Rule.

• Above all, do no harm.

• Participation not paternalism.

• Responsibility requires action.

Ethical career issues

• Assessing values and protecting yourself

– Seek advice and support from trusted sources.

– Take action to change what you see as not being ethical.

– Take actions to protect yourself.

• Anticipating ethical conflicts

– Pre-employment checks: Is this an ethical

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Enhanced Edition Slides prepared by David Meacheam & George Sansbury 18

Managing an ethical

organisation

Situational factors influencing ethical behaviour:

• External factors

Competitiveness, high/low opportunities for

success, dependency on other organisations.

• Internal factors

Push for high performance, labour unrest,

delegation, quests for innovation.

Managing an ethical

organisation

Ethics training Ethics hotlines Ethics audits Ethics committees Codes of ethics Top-management commitment Increasing awareness of diversity

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Enhanced Edition Slides prepared by David Meacheam & George Sansbury 20

Lecture summary

• Organisational social responsibility

– Major perspectives: invisible hand, hands of government

and management

– Social responsibilities of managers.

– Social stakeholders: shareholders, employees,

customers, local and international community, society.

– Does social responsibility pay? Evidence mixed.

• Organisational social responsiveness

Monitoring social demands and expectations: forecasting, opinion surveys, social audits, issues management,

social scanning, Internal social response mechanisms.

Lecture summary

• Being an ethical manager

– Types of managerial ethics: immoral, amoral, moral.

– Ethical guidelines for managers.

– Ethical career issues: assessing & anticipating ethical

conflicts.

• Managing an ethical organisation

– Situational factors influencing ethical behaviour external

and internal.

– Mechanisms for ethical behaviour.