Lecture Management (2nd edition) – Chapter 6: Ethics and social responsibility

This chapter’s objectives are to: Explain ethics as they relate to the five domains of individuals, organizations, stakeholders, government, and the global community demonstrate processes and practices for managing organizational ethics describe how businesses approach social responsibility summarize management’s role in building responsible businesses based on ethical decision making.

SECOND EDITION

Chapter 6 Ethics and Social

Responsibility

§ Explain ethics as they relate to the five domains of individuals,  organizations, stakeholders, government, and the global 

community

§ Demonstrate processes and practices for managing organizational  ethics

§ Describe how businesses approach social responsibility

§ Summarize management’s role in building responsible businesses  based on ethical decision making

Figure 6.1

believes is good for society as a whole

What Are Ethics?  (cont.)

§ Kohlberg’s stages of moral development

Figure 6.2

What Are Ethics?  (cont.)

and global communities (p. 146)

Figure 6.3

• Stakeholders become a vital component to decision making

Social Responsibility  (cont.)

§ Approaches to social responsibility (p. 155)

• Proactive approach – organization goes beyond industry  norms to solve and prevent problems

activities

• B Lab – non­profit organization that certifies socially responsible  companies

• Accommodative approach – organization accepts 

responsibility and takes action in response to societal 

pressures (p. 156)

Social Responsibility  (cont.)

§ Approaches to social responsibility (cont.)

• Defensive approach – organization accepts 

responsibility, but does only the minimum required (p. 156)

• Reactive approach – organization denies 

responsibility for social problems and responds 

only when legally required

How Does Social Responsibility Pay?  (p. 157)

§ Social entrepreneurs  ­ people who start a business for the dual  purpose of profits and societal benefits

• Consumers and investors becoming more active in supporting  and investing in socially responsible companies

• Social investing – e.g., Calvert Social Investment Fund screens  companies on financial performance and:  

Environment Workplace

Human rights Indigenous peoples’ rights Community relations Product safety and impact Governance business ethics

Managing Social Responsibility Today  (p. 158)

• Building an ethical culture

§ Apply a framework for ethical decision making

§ Ethics training

• Standards of excellence – organization’s highest expectations 

of behavior

• Commitments – self­defined principles unique to an 

individual or organization

§ Ethics training (p. 159)

Figure 6.6

§ Ethics training (cont.)

• Audience for training

• Audience’s assertiveness, cognitive ability, perspective on ethical  behavior (p. 159)

Managing Social Responsibility Today(cont.)