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Managing Social Responsibility and Ethics (Encouraging Ethical Behavior…
Managing Social Responsibility and Ethics
View in Social Responsibility
Classical View
Management's only social responsibility is to maximize profits
Social Obligation
When a firm engages in social actions because of its obligation to meet certain economic and legal responsibilities
Socioeconomic view
Social responsibilites go beyond making profits to include protecting and improving society's welfare
Social responsiveness
A company engages in social actions to response to some popular social need
Social Responsibility
A business's intention, beyond its legal and economic obligation, to do the right things and act in ways that are good for society
Green Management
1. The Legal Approach
Doing what is required legally
2. The Market Approach
Whatever customer demand in terms of evironmentally friendly products will be what the organization provides
3. The Stakeholder approach
an organizationn works to meet the environmental demands of multiple stakeholders such as employees, suppliers or community
4. Activist Approach (dark green)
it looks fir ways to protect the earth's natural resources
Manager and Ethical Behavior
Ethics?
As the principles, values, and beliefs that define right and wrong decisions and behavior
Values?
Represent basic conviction about what is right and wrong
Faktor yang menentukan
Stage of Moral Development
1. The Preconventional level:
Choice between right or wrong in based on personal consequences from outside source
2. The Conventional level:
Ethical decisions rely on maintaining expected standards and living up to the expectations of others
3. The Principle level:
Individuals define moral values apart from authority of the groups to which they belong or society in general
Individual Characteristic
Ego Strengh
- measures the strength of a person's conviction
Locus Control
- The degree to which people believe they control their own fate
Structure Variable
Organizational characteristic and mechanisms that guide and influence individual ethics
Organization's Culture
Value reflect what the organization stands for and what it believes in as as create an environment that influences employee behavior ethically or unethically
Values-Based management
Organization's values guide employee in the way they do the job
Issue Intensity
Greatness of harm
Consensus of wrong
Probability of harm
Immediacy of consewuences
Proximity to victim
Concentration of effect
International Context
Human Rights
Environment
Labor Standards
Anti-Corruption
Encouraging Ethical Behavior
Employee Selection
Individual's level of moral development, personal values, ego strength, and locus control
Codes of Ethics and Dwcision Rules
Be a dependable organizational citizen
A formal statement of organization's values and the ethical rules it expects employees to follow
Do not do anything unlawful or improper that will harm the organization
Be good at customer
Leadership
Job Goals and Performance Appraisal
Ethic Training
Independent Social Audits
Evaluate decisions and management practices in terms of the organization's code of ethics, increase that likehood
Protective Mechanism
Social Responsibility and Ethics Issues
Manage
Ethical Leadership
Protection of employees who raise ethical issues
Social Entrepeneur
an individual or organization who seeks out opportunities to improve society by using practical, innovative, and sustainable approach
Positive Social Change
Corporate philantropy
Employee volunteering efforts