SOCIAL RESPONSIBILITIES OF BUSINESS & MANAGERIAL ETHICSLetsee
ETHICS : The code of moral principles and values that govern the behaviors of a person or group with respect to what is right or wrongEthics should be firmly determined Corporate Social Responsibility: A business’s obligation to maximize its positive impact and minimize its negative impact on society ”
CLASSICAL VIEWManagement’s only social responsibility isto maximize profits (create a financialreturn) by operating the business in thebest interests of the stockholders(owners of the corporationSOCIOECONOMIC VIEW Management’s social responsibility goes beyond making profits to include protecting and improving society’s welfareFour Dimensions: Economic – earn profits Legal – comply with the law Ethical-Not just “for profit” only Voluntary & Philanthropic- Promote human welfare and goodwill
SOCIAL ISSUESEnvironmental issues: Animal rights Pollution Global warming Water & air emission Climate change
Labour rights: child labour forced labour right to organise safety and healthHuman rights cooperation with paramilitary forces complicity in extra- judicial killingsPoverty Alleviation Job creation public revenues skills and technology
Voluntary Responsibilities-being a “good corporate citizen;” contributing to the community and quality of life Ethical Responsibilities-being ethical; doing what is right, just, and fair; avoiding harmLegal Responsibilities-obeying the law (society’s codification of right and wrong)Economic Responsibilities--beingprofitable
Audit Board of Committee of Directors Board President & CEO Group Chief VP of General Corporate SteeringPresident Financial Human Counsel Responsib Committee s Officer Resourc ility es Officer
Plan Do• Consult stakeholders • Establish management systems and personnel• Establish code of conduct • Promote code compliance• Set targets CheckAct • Measure progress• Corrective action • Audit• Reform of systems • Report
Benefits : Expanded justice for groups of a society. Enhanced company image. Reduced need for government actions. Improved quality of life in a community and around the world. Increase awareness of soci issues among workers, consumers, and others.
The costs of providingsocial programs mustbe realistic to allow abusiness to earn aprofit.
Principles, values, and beliefsis that define what is right and wrong behavior. Three mail Objective of Manageria Ethics
Most ethicaldilemmas involveA conflict betweenneeds of the part &whole.The individual versusthe organization.The organizationversus society as awhole.
Utilitarian Approach● Moral behavior produces the greatest goods for the greatest number● Example – recent trend among companies to monitor employee use of the Internet
Individualism Approach●Acts are moral when theypromote the individualsbest long-term interests,which ultimately leads tothe greater good●Individual self-directionparamount●Individualism is believedto lead to honesty &integrity since that worksbest in the long run
Moral-Rights Approach Moral decisions are those that best maintain the rights of those people affected by them. An ethical decision is one that avoids interfering with the fundamental rights of others.
Justice ApproachIt is the standards of equity, fairness, impartial ity .Three types of Justice Approaches: Distributive Justice Procedural Justice Compensatory Justice
Distributive JusticeDifferent treatment of peopleshould not be based on arbitrarycharacteristics Procedural JusticeRules should be consistentlyand impartially enforced Compensatory JusticeIndividuals should becompensated for the cost oftheir injuries by the partyresponsible
CONCLUSION :The Firms must take care about the Society.They should avoid the activities whichaffects the Peoples and the Nations.They must aware about the SocialResponsibilty & managerial Ethics
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