Lecture Art of Leadership and Motivation - Lecture 27

After studying this chapter you will be able to understand: Team leadership perspective, team leadership model, leadership decisions, leadership actions, team effectiveness, principled leadership, how does the team leadership model work?

Prof Dr Mohammad Majid Mahmood

Art of Leadership & Motivation

HRM – 760 Lecture ­ 27

& Ethics­I

• In the business world, ethics is the study of

morally appropriate behaviors and decisions, examining what "should be done”

• Corporate Social Responsibility (CSR) is the

process by which businesses negotiate their role

in society

Organizations have obligations to society beyond their economic obligations to owners or stockholders

Social responsibility relates to an organization’s 

impact on society

• CSR activities are important to and even

expected by the public

– And they are easily monitored worldwide

• CSR activities help organizations hire and retain the people they want

• CSR activities contribute to business

performance

• Philanthropy:

– give money or time or in kind to charity

– Integrative philanthropy—select beneficiaries aligned with company interests

• Philanthropy will not enhance corporate

reputation if a company:

– fails to live up to its philanthropic image or

– if consumers perceive philanthropy to be

manipulative

CSR is the Sum of:

 Economic Responsibilities (Make a profit)

 Legal Responsibilities (Obey the law)

 Ethical Responsibilities (Be ethical)

 Discretional Responsibilities (Good corporate citizen)

CSR is Inevitable

Vs CSR is a Burden 

Arguments for CSR

Arguments against CSR

Businesses need to balance economic, legal, and  social responsibilities in order to achieve long­ run success.  

More generally, there is a relationship between  good social and good financial performance.

• The word ethics is derived from the Greek word ethos meaning character and Latin word mores meaning

customs

• Ethics defines what is good for the individual and for society and establishes the nature of duties that people owe to oneself and others in society

• The principle of conduct – professional ethics

• A set of moral principles or values

ETHICS

• Are ethics limited to humans only or do they

extend to animals too?

– pure vegetarianism

• Likewise, issues of responsibility to the

environment have also been raised

• In other words, philosophy is not far from the

religious view of total non-violence

 Ethical absolutism - they adapt to us

 Ethical relativism - we adapt to them

Ethic  

• Growing business need for integrative mechanisms such as:

– Ethics reduce operating uncertainties

– Voluntary guidelines avoid government impositions

• Ethical conduct is needed in an increasingly

interdependent world —everyone in the same game

• Companies wish to avoid problems and/or be good

public citizens

Development of a  Global Code of Business Ethics

• Create the same opportunity for all businesses

• Level the playing field

• They are needed in an interconnected world

• Top management commitment in word and deed

• Company codes of ethics

• Develop, monitor, enforce ethical behavior

• Seek external assistance

FACILITATOR

Prof. Dr. Mohammad Majid Mahmood