Management by Stoner Chapter 4
20
Chapter 4
description
Hello! This is the chapter 4 of Management by Stoner.The images whihc I used for this presentation are taken from the net. The videos may not work too but you can just replace them with something from youtube. Hope it helps!
Transcript of Management by Stoner Chapter 4
Chapter 4
Corporate Social Responsibility
What an organization does to influence the society in which it exists, such as through
volunteer assistance program
Corporate Social Responsibility
What an organization does to influence the society in which it exists, such as through
volunteer assistance program
EthicsThe study of rights and of who is – or should be- benefited or harmed by an action.
Sample Practices of Corporate Social Responsibility and Ethics
Hires ex- convicts
Hires homeless people
Donates all profits of Newman's Own Food to charity
The Changing Concept of Social Responsibility
The muckcrakers exposes of corrupt business practices
Government‘s provision of some ground rules for managers
Different Views on Social Responsibility
1. Andrew Carnegie‘s The Gospel of Wealth
Charity Principle
Stewardship Principle
Doctrine of social responsibility requiring more fortunate individuals to assist less fortunate members of society.
Derived from bible which requires businesses and wealthy individuals to view themselves as stewards or caretakers of their property
2. Milton Friedman‘s Argument
There is only one social responsibility of business: to use its resources and energy in
activities designed to increase its profits so long as it stays within the rules of the game and
engages in open and free competition without deception and fraud.
Businesses should produce goods and services efficiently and leave the solution of social problems to concerned individuals and government
agencies.
Enlightened Self-interest
Organizations realization that it is in their best interest to act in ways that the community
considers socially responsible.
Corporate Social Responsiveness
A theory of social responsibility that focuses on how companies respond to issues, rather than
trying to determine their ultimate social responsibility.
Corporate Social Performance
A single theory of corporate social action encompassing social principles, processes and
policies.
Application of Social Performance on Decision Making Processes and Policies
The Shift to Ethics
Ethics- the study of how our decisions affect other people.
- It is also the study of people‘s rights and duties, the moral rules that
people apply in making decisions, and the nature of the
relationship among people.
4 Levels of Ethical Questions in Business
Tools of Ethics
The key terms of ethical language: VALUES, RIGHTS, DUTIES,RULES, and RELATIONSHIP
Values- relatively permanent desires that seem to be good in themselves. It is the answer to the WHY questions.
Right- claims that entitle a person. It is also known as the
person‘s SPHERE OF AUTONOMY
Duty- an obligation to take specific steps e.g. pay taxes,
obey the law…
Moral Rules- guide us through situations where
competing interests collide. They are the tie breakers – guidelines that can resolve disagreement.
Human relationship- every human being is connected to others in a web of relationship.
Common Morality
Morality of Care
Recent theories such as Gilligan and Nell Noddings have argues that common morality- the morality rules of justice- is only one perspective for reasoning about morality.
They have suggested an alternative model called THE ETHICS OF CARE.
Gilligan proposes that there are strands of moral theory: Justice and Care Perspectives
Institutionalizing Ethics
CEOs do not have to confront ethical problems in vacuum. Instead they can institutionalize the process.
Ways of INSTITUTIONALIZING ETHICS: corporate code of
conducts, ethics committees, ombudsman offices, judicial board, ethics training programs, and social
audit
Social Audit- report describing company activities in a given
area of social interest, such as environmental protection,
workplace safety, or community involvement.
Challenge of Relativism
There are any versions of moral relativism, but all of them
hold that we cannot decide matters of:
right and wrong, good and evil, in any rational way.
NAÏVE RELATIVISM- idea that all human beings are themselves the standard by which their action should be judged. Ethical decisions are personal.
CULTURAL RELATIVISM- the idea that morality is relative to a particular culture, society, or community.
It tells us to try to understand.
