Ch. 6 BUSN

Page 1: Learning Objectives

Skill Outcomes

  • 6.1 Discuss what it means to be socially responsible and what factors influence that decision.

  • 6.2 Describe how managing responsibly contributes to organizational performance.

  • 6.3 Explain sustainable management and how organizations can be sustainable.

  • 6.4 Discuss the factors that lead to ethical and unethical behaviour.

  • 6.5 Describe management's role in encouraging ethical behaviour.

  • 6.6 Discuss current social responsibility and ethics issues.

Importance of Social Responsibility and Ethics

  • Understanding social responsibility and ethics is crucial for organizations and managers.

  • The chapter explores the definitions, implications, and the managerial roles related to these concepts.

  • Maintains a balance between work and personal life.

Page 2: Ethical and Social Responsibility Challenges

Complexities of Ethical Decision Making

  • Managers must navigate complex ethical dilemmas influenced by social factors.

  • Examination of corporate social responsibility (CSR) and ethics in the context of changing environments and organizational cultures.

  • The significance of CSR and ethics in global business operations is emphasized.

Page 3: Defining Socially Responsible Management

Exploring Social Responsibility

  • Organizations professing sustainability often engage in contradictory practices.

  • Ethical dilemmas arise in business practices such as outsourcing and employee relations.

  • Managers face social responsibility decisions across various dimensions (e.g., employee treatment, quality of products).

Page 4: Spectrum of Social Responsibility

Different Perspectives

  • Social Obligation: Actions taken to meet economic and legal responsibilities without exceeding them.

  • Social Responsibility: Goes beyond profit by considering social and environmental welfare.

  • Theoretical views contrast with empirical models that showcase the broadened understanding of corporate responsibilities.

Page 5: Socioeconomic View of Social Responsibility

Key Concepts

  • Social Responsiveness: Actions taken in response to social needs, guided by social norms and values.

  • Organizations such as Ford and Purolator take active roles in social causes reflecting social responsiveness.

  • Corporate actions post-social events, like the George Floyd protests, reveal the need for ongoing organizational assessments of practices.

Page 6: Continued Implications of Social Responsibility

  • National and global corporate responses to current social movements show evolving organizational values.

Page 7: Critique of Corporate Conduct

Views on Corporate Responsibility

  • Joel Bakan criticizes how contemporary corporations operate with attitudes akin to psychopathy.

  • The focus on maximizing shareholder profits can conflict with broader ethical and societal responsibilities.

  • Importance of distinguishing between legal obligations and ethical imperatives in corporate governance.

Page 8: Comparing Social Responsibility and Responsiveness

Differences Explained

  • Social Responsibility: Ethical focus on doing what is right for society.

  • Social Responsiveness: Pragmatic approach focused on creating immediate benefits for stakeholders.

  • Examples of socially responsible actions by brands such as Mountain Equipment Co-op highlight effective practices.

Page 9: Excellence in Corporate Actions

  • Positive examples of corporate social responsibility illustrate how businesses align profit with purpose.

Page 10: Evaluating Social Actions

Categories of Social Actions

  • Social actions can be seen as either meeting obligations or engaging responsibly at higher levels.

  • Discussions on how corporate practices influence perceptions and impact on environment and society.

Page 11: Understanding Management Responsibility

Stages of Social Responsibility

  • A four-stage model outlines the evolution of corporate responsibility from classical views to broader societal accountability.

    • Stage 1: Focus on owners and management.

    • Stage 2: Inclusion of employee welfare.

    • Stage 3: Recognition of customers and suppliers.

    • Stage 4: Commitment to society's overall health and interests.

Page 12: Managing Through Stages

  • Responsibilities expand from shareholder interests to wider societal engagement, underlining the manager's role in promoting social good.

Page 13: Managing Responsibly and Organizational Performance

The Connection

  • Importance of responsible management practices and their positive correlation with organizational success.

  • Ray Anderson's Interface illustrates the profound benefits of sustainable practices on company performance.

Page 14: Research Insights

Social Responsibility Metrics

  • Majority of studies show a positive correlation between socially responsible practices and economic performance.

  • Notable findings highlight nuances in the relationship, including the impact of shareholder value concerns.

Page 15: Financial Analysis of Responsibility

Investing in Responsibility

  • Key findings from socially responsible investing (SRI) reveal positive relationships with economic performance metrics.

  • ESG factors are increasingly correlated with superior stock performances, emphasizing the importance of aligning business practices with social goals.

Page 16: Vision for Sustainability in Management

Future Outlook

  • Organizations must embrace sustainability as a core operational principle to thrive alongside environmental stewardship.

  • Interface’s restoration goals and Fairmont’s environmental actions exhibit the potential of corporate initiatives to lead positive societal change.

Page 17: Driving Awareness for Sustainability

Historical and Modern Context

  • Influential works like Rachel Carson's Silent Spring call for deeper consideration of environmental issues.

Page 18: Global Environmental Issues

Current Challenges

  • Organizations need to tackle climate change, resource depletion, and pollution through innovative solutions and responsible practices.

Page 19: Practical Steps to Sustainability

Initiatives and Changes

  • Companies are encouraged to implement substantial environmentally friendly practices, as seen in Teck's reduction of mining impacts and UPS's eco-friendly logistics.

Page 20: Sustainable Management Approaches

Practical Frameworks

  • Several models exist for organizations to assess their environmental practices ranging from minimal compliance to aggressive sustainability efforts.

Page 21: Approaches Mapped

  • Explanations of varying levels of environmental sensitivity align with corporate practices and decision-making processes.

Page 22: Evaluation of Sustainable Management

Monitoring Performance

  • Sustainability reports and third-party evaluations help companies measure their effectiveness in environmental practices.

Page 23: Global Reporting and Standards

Compliance Frameworks

  • Adoption of ISO standards and adherence to global sustainability frameworks underscore the trend toward corporate accountability.

Page 24: Ethics and Behavior in Management

Context of Ethical Behavior

  • Ethical behavior defined as the principles guiding decisions, with ramifications for business dealings across cultures.

Page 25: Factors Influencing Ethics

The Impact of Environment

  • Various factors, including individual characteristics and organizational structure, influence ethical decision-making.

Page 26: Ethical Decision Framework

Key Determinants

  • The intensity of ethical dilemmas and their implications profoundly affect employee behavior and organizational integrity.

Page 27: Understanding Moral Development

Levels Defined

  • Three levels of moral development frame the moral reasoning of individuals in decision-making scenarios.

Page 28: Importance of Moral Progress

Capacity for Change

  • Successful navigation of moral development is crucial for ethical leadership across all organizational levels.

Page 29: Individual Values and Ethics

Character Traits

  • Personal values, personality, and ethical principles play vital roles in shaping an individual’s ethical behavior.

Page 30: Encouraging Organizational Ethics

Core Characteristics

  • Establishing a culture of ethics, organization’s shared values, and their role in decision-making processes.

Page 31: Performance-Driven Ethics

Evaluative Practices

  • Review of performance impacts stemming from goal structures and unnecessary pressures leading to unethical outcomes.

Page 32: Assessing Ethical Issues

Contextual Relevance

  • Identifying characteristics influencing the perceived importance of various ethical challenges.

Page 33: Highlighting Ethical Importance

Situation Analysis

  • Strong correlation between ethical importance and employee actions towards ethical practices.

Page 34: International Ethics Standards

Cultural Considerations

  • Ethical practices vary between cultures, impacting the expectations placed on managers operating globally.

Page 35: The Impact of Global Enforcement

Melting Pot of Expectations

  • Different international norms create ethical dilemmas for businesses, complicating decision-making.

Page 36: The UN Global Compact

Global Principles

  • A set of principles established to enhance ethical behavior globally across business practices and human rights.

Page 37: Framework Against Corruption

Global Efforts

  • Canada’s enactment of anti-bribery laws reflects movements aimed at ethical business transactions in the global marketplace.

Page 38: Individual Ethical Dilemmas

Navigating Choices

  • Ethical dilemmas require personal responsibility and vigilance against commonplace unethical behavior.

Page 39: Gathering Proper Information

Decision-Making Approach

  • Importance of thorough understanding impacts ethical decision-making, enhancing conscientiousness.

Page 40: Self-Testing Techniques

Reflection and Understanding

  • Applying self-reflection tests can help discern right from wrong in ethical dilemmas.

Page 41: Developing Conscience Awareness

Introspection

  • Ethical tests facilitate deeper awareness and accountability in decision-making.

Page 42: Constructive Testing Processes

Critical Evaluation

  • The Front Page/Social Media Test highlights potential backlash for unethical actions.

Page 43: Importance of Management Leadership

Shaping Culture

  • Effective leadership by managers is pivotal for cultivating an ethical work environment.

Page 44: Ethics Support in Recruitment

Strong Selection Strategies

  • Pre-employment measures enhance integrity but alongside structural ethics controls must be employed.

Page 45: Culture of Values

Ethical Foundations

  • Organizational culture rooted in shared values leads to improved ethical standards and resilience.

Page 46: Importance of Shared Values

Organizational Unity

  • Shared values govern organizational direction, ethical expectations, and enhance collaboration.

Page 47: Values in Practice

Practical Purpose

  • Values serve as a guide for decision-making across various company functions and actions.

Page 48: Together Towards Ethical Standards

Creating Commitment

  • Organizational norms and shared values foster a sense of responsibility and unite teams under common principles.

Page 49: Reinforcing Ethical Standards

Influential Leadership

  • Managers must reinforce ethical practices to foster a culture of trust and accountability.

Page 50: Codes of Ethics as Guides

Establishing Clarity

  • Formal codes enhance ethical clarity but are often underutilized by organizations.

Page 51: Effectiveness of Codes

Real-World Impact

  • Comprehensive ethics codes can be procedurally beneficial despite real-world inconsistencies in application.

Page 52: Codes of Ethics Framework

Application Standards

  • Ethical codes cluster actions promoting integrity, accountability, and customer responsibility.

Page 53: Clustered Code Principles

Behavioral Guidelines

  • Several principles guide organizational behaviors to create an ethical workplace environment.

Page 54: Building Cultures of Integrity

Leadership and Guidelines

  • Leadership must model integrity to reinforce an ethical culture throughout the organization.

Page 55: Recommendations for Implementation

Effective Strategies

  • Managers should consistently promote the values of the ethics code and use it in decision-making frameworks.

Page 56: Leadership in Ethical Decision Making

Tim Cook's Ethical Stance

  • Ethical leadership exemplified by actions taken by influential leaders like Tim Cook in tech industries.

Page 57: Incentive Structures in Ethics

Reward Mechanisms

  • Structures for rewards and punishments from upper management dictate ethical behavior pathways.

Page 58: Models of Ethical Leadership

Guidelines for Integrity

  • Practical suggestions offer pathways for managers to lead with ethics at the core.

Page 59: Ethical Behavior and Workplace Performance

Contextual Analysis

  • Workplace pressures can negatively affect ethical choices leading to misconduct or unethical practices.

Page 60: Guidelines for Addressing Ethical Dilemmas

Structured Analysis

  • A flexible process for analyzing ethical dilemmas aids in achieving ethical clarity.

Page 61: Ethics Training Program Effectiveness

Educational Approaches

  • Ethics training increases awareness and promotes sound decision-making skills in organizations.

Page 62: Innovative Ethics Training

Case Study Examples

  • Lockheed Martin’s training methodologies showcase effective techniques for teaching ethics.

Page 63: Audit Mechanisms for Ethics

Oversight Practices

  • Regular independent audits act as deterrents against unethical practices, improving compliance.

Page 64: Formal Mechanisms for Protection

Supporting Ethical Dilemmas

  • Establishment of protective frameworks allows employees to act ethically without fear of reprisal.

Page 65: Upholding Whistle-Blower Protections

Culture of Safety

  • Creating environments supportive of whistle-blowers is essential for organizational ethics.

Page 66: Promoting Anonymous Reporting

Confidential Channels

  • Ethical hotlines promote an open dialogue about ethical standards while providing anonymity.

Page 67: Current Social Responsibility Issues

Contemporary Challenges

  • Managers are confronted with ongoing social responsibility and ethical dilemmas in various contexts.

Page 68: Addressing Ethical Lapses

Corporate Misconduct

  • Case studies demonstrate ongoing issues and the need for strong ethical frameworks in management.

Page 69: Gender and Ethics in the Workplace

Behavioral Trends

  • Differences in how genders approach ethical situations can influence workplace dynamics.

Page 70: Fostering Social Entrepreneurship

Innovative Practices

  • Social entrepreneurship embodies the synergy of profit and purpose, enhancing societal welfare.

Page 71: Real-World Social Innovations

Collaboration and Integration

  • Partnerships among sectors can yield significant solutions to persistent social issues.

Page 72: Corporate Philanthropy Efforts

Engaging Contributions

  • Companies’ actions to contribute positively to communities showcase corporate responsibility principles.

Page 73: Employee Volunteerism Benefits

Enhancing Community Engagement

  • Encouragement of volunteerism strengthens company-employee ties, supporting corporate social responsibility.

Page 74: Global Philanthropic Contributions

Historical Overview

  • Corporate giving illustrates the reach and impact of businesses in addressing poverty globally.

Page 75: Work-Life Balance

Managerial Responsibilities

  • Organizations are encouraged to facilitate better work-life balance for their employees to promote well-being.

Page 76: Individual Considerations for Balance

Personal Responsibility

  • Employees must take charge of their work-life balance while seeking supportive workplaces.

Page 77: Time Management Techniques

Strategic Approaches

  • Effective management of time aids in achieving a healthier work-life balance amidst workplace demands.

Page 78: Prioritization Tactics

Implementing Strategies

  • Having a structured approach leads to improved outcomes in balancing work and personal obligations.

Page 79: Clear Boundaries

Professional vs Personal Life

  • Establishing defined personal boundaries promotes healthier interactions between work and life commitments.

Page 80: Chapter Summary

Major Learning Points

  • Comprehensive understanding of social responsibility, ethical behaviors, managerial roles, sustainable management, and related challenges empowers improved organizational practices.

Important Terminologies and Information

1. Social Responsibility

Definition: The obligation of an organization to act in ways that benefit society at large.

Views: Includes profit-only, discretionary corporate social activity, and social improvement.

2. Corporate Social Responsibility (CSR)

Definition: Business practices that contribute to societal goals.

Importance: Enhances organizational reputation and stakeholder trust.

3. Ethical Behavior

Definition: Actions consistent with societal norms about what is right and wrong.

Influences: Cultural norms and moral development stages.

4. Sustainable Management

Definition: Managing an organization in a way that meets present needs without compromising future generations.

Practices: Initiatives like waste reduction and renewable energy reliance.

5. Stakeholder Theory

Definition: The theory that organizations should consider all parties affected by their actions.

Implications: Broadens accountability to include societal impacts, not just shareholder interests.

6. Whistleblower Protections

Definition: Safeguards for employees who report unethical or illegal activities in their organizations.

Importance: Encourages ethical reporting without fear of retaliation.

7. Codes of Ethics

Definition: Written guidelines that outline ethical standards and expectations for an organization’s behavior.

Purpose: Standardize ethical conduct and decision-making frameworks.

8. Social Audits

Definition: Evaluations of a company’s social performance and practices.

Purpose: To ensure accountability and adherence to ethical standards in business conduct.

9. Ethical Dilemmas

Definition: Situations where individuals must choose between conflicting ethical principles.

Framework: Steps guiding decision-making in ambiguous situations.

10. Environmental Responsibility

Definition: The duty businesses have to minimize their ecological footprint through sustainable practices.

Examples: Initiatives aimed at reducing waste, emissions, and resource consumption.

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