Social Responsibilities as a Manager

$social responsibility:$ managers duty to take actions that will benefit the interest of society as well as of the organization
  * ex: companies engaging in environmental preservation efforts
    * ethical labor practices
    * philanthropy
    * promoting volunteering
$corporate social responsibility:$ notion that corporations are expected to go above and beyond simply following the law and making a profit
* 4 types:

    1. environmental responsibility
    2. ethical responsibility
    3. philanthropic responsibility
    4. economic responsibility

$sustainability:$ economic development that meets the needs of the present without compromising the ability of future generations to meet their own needs
$natural capital:$ the value of natural resources , such as topsoil, air, water, and genetic diversity, on which humans depend
$philanthropy:$ making charitable donations to benefit humankind
* 169 billionares have joined Bill and Melinda Gates in the Giving Pledge
* $Giving Pledge:$ a commitment to dedicate a majority of their wealth to philanthropy

$corporate governance:$ the system of governing a company so that the interests of corporate owners and other stakeholders are protected
* includes matters like long-term strategies, sustainable finances, accurate reporting, and a positive work environment
more attention is being paid to strengthening corporate governance so that directors are clearly separated in their authority from the CEO

creating a strong ethical climate
screening prospective employees
instituting ethics codes and training programs
rewarding ethical behavior; protecting whistle-blowers who report organizational misconduct

Laurence Kohlberg’s 3 levels of personal moral development:
  * level 1 (pre-conventional): follows rules to avoid unpleasant consequences
  * level 2 (conventional): follows expectations of others (most managers are at this level)
  * level 3 (post-conventional): guided by internal values, they lead by example (about 1/5 of managers)