What Is Social Responsibility?
Social responsibility -is an ethical
theory that an entity, be it an
organization or individual, has an
obligation to act to benefit society
1. The Classical View
Two Opposing Views of Social
The classical view holds that
management's only social responsibility is
to maximize profits.
2. The Socioeconomic View
It is the view that management's social
responsibility goes beyond making
profits to include protecting and
improving society's welfare.
Arguments For and Against
Public expectations Violation of profit maximization
Public opinion now supports
pursuing economic and social goals
Business is being socially responsible
only when it pursues its economic
Long-run profits Dilution of purpose
Socially responsible companies tend
more secure long-run profits
Pursuing social goals dilutes
business's primary purpose—
Ethical obligation Costs
Social obligation is the obligation
of a business to meet its economic
and legal responsibilities.
1. Social responsibility
2. Social responsiveness
1.WHAT IS THE MORE IMPORTANT?
CHOICES RESPONDENTS TOTAL
FREQUENCY DISTRIBUTION TABLE
Social Responsibility and Economic
-The majority showed a
involvement and economic
SOCIAL SCREENING- APPLY
SOCIAL CRITERIA TO
Values-based management is an
approach to managing in which
establish, promote, and practice
an organization's shared values
Developing Shared Values
Managers are responsible for
shaping the organization so that
values, norms, and ideals appeal
strongly to employees.
Purposes of Shared Values
shared values are a way to build team spirit in
Suggestions for Creating a Good Corporate Values
1. Involve everyone in the company.
2. Allow customizing of the values by individual
departments or units.
3. Expect and accept employee resistance.
4. Keep the statement short.
5. Avoid trivial statements.
6. Leave out religious references.
7. Challenge it.
8. Live it.
The "Greening" of Management
This recognition of the close link
between an organization's decisions
and activities and its impact on the
natural environment is referred to
as the greening of
Global Environmental Problems
One "green" issue managers must deal with as
they become more involved in preserving the
natural environment is recognizing the key
global environmental problems and how
these problems are changing
list of global environmental
2.pollution (air, water, and soil),
According to Environment watchdog
"Itong laruang ito ang may pinakamataas na
lead content--6,000 plus parts per
million, samantalang 90 parts per million
lamang ang allowable," said Thony
Dizon, Coordinator for Project Protect of
90 Parts per
How Organizations Go Green
four approaches organizations can take with
respect to environmental issues.
Too much lead in the body may result in sickness
and affect brain and physical development.
Summing Up Social Responsibility
The key issues in social responsibility are easier
to understand if we think in terms of the
people to whom managers are responsible.
four-stage model of the progression of an organization's social
A Stage 1
manager will promote stockholders' interests by seeking to
minimize costs and maximize profits.
At Stage 2, managers will accept their responsibility to
employees and focus on
human resource concerns.
At Stage 3, managers expand their responsibilities to other
stakeholders in the specific
environment—that is, customers and suppliers.
Finally, Stage 4 characterizes the extreme socioeconomic
definition of social responsibility.
• The term ethics refers to rules and principles
that define right and wrong conduct.3
Four Views of Ethics
1.utilitarian view of ethics
2. rights view of ethics
3. theory of justice view of ethics
4. integrative social contracts theory
Factors That Affect Managerial Ethics
a manager acts ethically or
unethically is the result of complex
interactions between the
manager's stage of moral
development and several
An organization's structural design
helps shape whether managers
-Formal rules and regulations
• An organizational culture most likely to
encourage high ethical standards is one that
is high in risk tolerance, control, and conflict
• A strong culture will exert more influence on
managers than a weak one.
TOWARD IMPROVING ETHICAL
Managers can do a number of
things if they're serious about
reducing unethical behaviors in
• —interviews, tests, background checks, and
so forth—should be used to eliminate
ethically questionable applicants. The
selection process should be viewed as an
opportunity to learn about an individual's
level of moral development, personal
values, ego strength, and locus of control.
Codes of Ethics and Decision Rules
• A code of ethics, a formal statement
of an organization's primary values
• More and more organizations are setting up
seminars, workshops, and similar ethics training
programs to encourage ethical behavior. Ethics
researchers estimate that over 40 percent of U.S.
companies provide some form of ethics training
ACCORDING TO U.S
Independent Social Audits
• Independent social audits, which
evaluate decisions and management
practices in terms of the
organization's code of ethics,
increase the likelihood of detection.
• Our last recommendation is for organizations
to provide formal mechanisms to protect
employees who face ethical dilemmas so that
they can do what's right without fear of
-unethical behaviors are prevalent across our
society. Cheating, for instance, is a common
occurrence in education. A range of studies
shows that anywhere from 75 percent to 98
percent of students admit to having cheated
in high school.
A survey of college students by U.S. News and
World Report showed some ethically
Believe cheaters never
pay the price
someone are cheating need to cheat it is fair to cheat