Managing Business Responsibility: Ethics, Stakeholders, and Sustainability (Week 2, Ch.6)

Classical View of Social Responsibility

The view that management's only social responsibility is to maximize profits.

Socioeconomic View of Social Responsibility

It suggests that management's social responsibility goes beyond making profits to include protecting and improving society's welfare.

Stakeholder Capitalism

The concept that companies should focus on all stakeholders, engaging more with the socioeconomic view of social responsibility.

Who are considered stakeholders in a business?

Stakeholders include employees, vendors, community members, and the environment.

Social Responsibility in a business context

A firm's obligation to pursue long-term goals that are good for society, beyond legal and economic requirements.

Difference between Social Obligation and Social Responsibility?

Social Obligation involves meeting economic and legal responsibilities, while Social Responsibility includes ethical obligations beyond laws and social norms.

Social Entrepreneur

An individual or organization that seeks opportunities to improve society using practical, innovative, and sustainable approaches.

What does the Triple Bottom Line approach emphasize?

It commits to social and environmental concerns as much as profit.

Sustainable Management

Management considers the impact of their organization on the natural environment

What is the Legal Approach to sustainability?

Simply doing what is required legally.

Describe the Market Approach to sustainability.

Environmental preferences to customers

What is the Stakeholder Approach in sustainability?

An organization works to meet the environmental demands of multiple stakeholders.

Activist Approach

It seeks ways to protect the earth's natural resources and reflects a high degree of environmental sensitivity.

Managers and Ethical Behaviour

Principles, values, beliefs, stages of moral development, individual characteristics, structural variables, organizational culture, and issue intensity.

Preconventional Level

A person's choice between right and wrong is based on personal consequences from outside sources.

What defines the Conventional Level of Moral Development?

Ethical decisions rely on maintaining expected standards and living up to the expectations of others.

What is the Principled Level of Moral Development?

Individuals define moral values apart from the authority of groups or society.

What does Ego Strength measure?

The strength of a person's convictions

Define Locus of Control.

A personality attribute measuring the degree to which people believe they control their own fate.

What are the Six Characteristics that Determine Issue Intensity?

Greatness of harm, consensus of wrong, probability of harm, immediacy of consequences, proximity to victims, and concentration of effect.

What is Whistle-Blowing?

An act of an individual within an organization who discloses information to report and correct corruption.