Corporate Social Responsibilty & greening Management.


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Corporate Social Responsibilty & greening Management.

  1. 1. Final project On “Principles of Management” On the topic“Corporate Social Responsibility and Business Ethics” Presented To: Prof. Usman Sadiq Presented By: Group “Supereye” Mubeen Abdur Rehman (Group Leader) MCE 12151 Salman Anjum (Vice Leader) MCE 12157 Asfaq Salamat MCE 12155 Zohaib Ahmad MCE 12152 Shaban Cheema MCE 12169 Mutahir Bilal MCE 12147 Memona Javed MCE 12104 Nadia Izhar MCE 12170 Class M.Com Semester 1st Evening Superior University Lahore. 1
  2. 2. Table of contentsIntroduction ……………………………………………………… 3Definition ……………………………………………………. 4Explanation …………………………………………………….. 4CSR Responsibility …………………………………………………….. 5Responsibility Types …………………………………………………… 5The Interest Group ……………………………………………………. 6Types ..…………………………………………………. 7Approaches Of Business Ethics ……………………………………………….…... 8Business Ethics Types …………………………………………………….. 9Human Resource Ethics …………………………………………………….. 10Importance Of business ethics …………………………………………………….. 1112 points ………………………………………………………12Reference ……………………………………………………….13 2
  3. 3. Corporate Social ResponsibilityIntroduction: Corporate Social Responsibility (CSR) is the commitment of a business orcompany to continuously upgrade its processes, systems, products and services bybehaving responsibly and creating value for local communities they operate in, and byenabling its employees, existing and possible customers to improve their standards ofliving. “HOW A COMPANY BEHAVES TOWARDS SOCIETY” Most responsible organizations and businesses in Pakistan are making cash andin-kind donations for humanitarian and religious reasons. About 60 per cent of PublicListed Companies (PLCs) make some sort of contributions to charitable or socialdevelopment initiatives. ( Mallenbaker’s Definition: “CSR is about how companies manage business processes to produces and overall Positive impact on society”.Philippines say that: CSR is about business giving back to society.Definition: 1: Corporate Social Responsibility is the commitment by business to behaveethically and contribute to economic development by improving the quality of life of theworkforce and their families as well as of the local community and society at large. 3
  4. 4. 2: How companies manage the business processes to produce an overallpositive impact on society.Examples  Corporate Philanthropy  Environmental Policies  Worker Rights PoliciesCategories of Corporate Social Responsibility: For CSR to be accepted by a conscientious business person, it should be framedin such a way that the entire range of business responsibilities is embraced. It issuggested here that four kinds of social responsibilities constitute total CSR: economic,legal, ethical, and philanthropic. Furthermore, these four categories or components ofCSR might be depicted as a pyramid. To be sure, all of these kinds of responsibilitieshave always existed to some extent. But it has only been in recent years that ethicaland philanthropic functions have taken a significant place. Each of these four categoriesdeserves closer consideration. ( Responsibilities: Historically, business organizations were created as economic entities designedto provide goods and services to societal members. The profit motive was establishedas the primary incentive for entrepreneurship. Before it was anything else, businessorganization was the basic economic unit in our society. As such, its principal role wasto produce goods and services that consumers needed and wanted and to make anacceptable profit in the process. At some point the idea of the profit motive gottransformed into a notion of maximum profits, and this has been an enduring value eversince. All other business responsibilities are predicated upon the economicresponsibility of the firm, because without i the others become moot considerations.Legal Responsibilities: Society has not only run business tooperate according to the profit motive; at thesame time business is expected to comply withthe laws and regulations follow by governmentsas the ground rules under which business mustoperate. As a partial fulfillment of the "socialcontract" between business and society firms areexpected to pursue their economic missionswithin the framework of the law. Legalresponsibilities reflect a view of "codified ethics"in the sense that they embody basic notions offair operations as established by our lawmakers. 4
  5. 5. They are depicted as the next layer on the pyramid to portray their historicaldevelopment, but they are appropriately seen as coexisting with economicresponsibilities as fundamental precepts of the free enterprise system.Ethical Responsibilities: Although economic and legal responsibilitiesembody ethical norms about fairness and justice, ethicalresponsibilities embrace those activities and practices thatare expected or prohibited by societal members eventhough they are not codified into law. Ethicalresponsibilities embody those standards, norms, orexpectations that reflect a concern for what consumers,employees, shareholders, and the community regard asfair, just, or in keeping with the respect or protection ofstakeholders moral rights.Philanthropic Responsibilities: Philanthropy encompasses those corporate actions that are in response tosociety‟s expectation that businesses be good corporate citizens. This includes activelyengaging in acts or programs to promote human welfare or goodwill. Examples ofphilanthropy include business contributions to financial resources or executive time,such as contributions to the arts, education, or the community. A loaned-executiveprogram that provides leadership for a community‟s United Way campaign is oneillustration of philanthropy. The pyramid of corporate social responsibility is depicted below. It portrays thefour components of CSR, beginning with the basic building block notion that economicperformance undergirds all else. At the same time, business is expected to obey the lawbecause the law is societys codification of acceptable and unacceptable behavior. Nextis businesss responsibility to be ethical. At its most fundamental level, this is theobligation to-do what is right, just, and fair, and to avoid or minimize harm tostakeholders (employees, consumers, the environment, and others). Finally, business isexpected to be a good corporate citizen. This is captured in the philanthropicresponsibility, wherein business is expected to contribute financial and humanresources to the community and to improve the quality of life In summary, the total corporate social responsibility of business entails thesimultaneous fulfillment of the firms economic, legal, ethical, and philanthropicresponsibilities. Stated in more pragmatic and managerial terms, the CSR firm shouldstrive to make a profit, obey the law, be ethical, and be a good citizen corporate 5
  6. 6. The pyramid of corporate social responsibility.The Interest Group(Stakeholders): Corporations are motivated toinvolve stakeholders in their decision-making and toad dress societalchallenges because todaysstakeholders are increasingly aware ofthe importance and impact ofcorporate decisions upon society andthe environment. The stakeholderscan reward or punish corporations.Thus, Corporate Social Responsibilityrequires the identification of variousinterest groups, which may affect thefunctioning of a business organizationand may also be affected by itsfunctioning. Normally various groupsassociated with a businessorganization are shareholders, workers, customers, creditors, suppliers, governmentand society in generalShareholders.The first responsibility of the management is to protect the interest of shareholders. Theinterests of majority of shareholders and large minority of shareholders are generallywell protected through either direct participation in the management actions or theyhave real power to intervene, if necessary. They should be informed about the 6
  7. 7. functioning of the organization adequately and timely. Therefore, management has aresponsibility to provide proper safeguard to the money invested by shareholders.(Elena F Pérez Carrillo)Workers: Workers have direct interest in an organization because by working there, theysatisfy their needs. Thus, it is the management‟s responsibility to protect the interest ofworkers in the organization. This can be done by the management in the followingways:-Management should treat workers as another wheel of the cart-Managementshould develop administrative process in such a way that promotes cooperativeendeavor between employers and employees.-The management should adopt aprogressive labor policy based on recognition of genuine trade union rights –participation of workers in management, creating a sense of belongingness, improvingtheir living and working conditions.-Management should pay fair and reasonable wagesand other financial benefits to workers.Customers: Management owes a primary obligation to give a fair deal to the customers. Thiscan be done in the following ways:-Customers should be charged a fair and reasonableprice.-The supply of goods and services should be of uniform standard and ofreasonable quality.-Management should not indulge in profiteering, hoarding, orcreating artificial scarcity.-Management should not mislead the customers by false,misleading and exaggerated advertisements.Creditors, Suppliers and Others: They affect the organization in various ways. Therefore, the management isresponsible to fulfill its obligations towards them. This can be done in the followingways.-Management should create healthy and cooperative inter business relationshipbetween different businesses. Management should provide accurate and relevant information to creditors andsuppliers.-Payments of price of materials, interest on borrowings, other charges shouldbe prompt.Government: It is very closely related with the business system of the country. It providesvarious facilities for the development of business. Government, no doubt, exercisescontrol over business, but these controls are meant for overall development of business.Management can discharge its obligation to government by:-Management should be alaw-abiding citizen-Management should pay taxes and other dues fully, timely&honestly.-It should not corrupt government workers and public servants and thedemocratic process-It should not buy political favors by any means. 7
  8. 8. Society: Organizations exist within a social system andget facilities from the system. Therefore, they oweobligations to the society as a whole. This can be doneby:-Management should maintain fair business policiesand practices.-It should play a proper role in civicaffairs.-It should provide and promote general amenitiesand help in creating better living conditions in general. Concept of greening Management: The acknowledgment by the companies that there is close link between anorganizations decisions and its actions has consequences on the natural environmentis referred as greening of management. In the past the organizations did not paid muchattention to the environment which is affecting by their activities. There were smallgroups who showed their concerns in protecting the environmental and naturalresources. There are many manufacturing units andfactories that are adding damage to the naturalenvironment for the sake of getting money and gettingrich. They have no concern for the environment.This awareness is aroused by some environmentalprotection group and they highlighted in the media forthe protection of environment so the companies startedto pay attention in cleaning and safer environment.Managers are now involved in greening ofmanagement. Greening of management adheres to allsafety measures for man and environment. It involvesan integrated effort to consider environment concerns.Management is effective only when it is adaptive tochange in the external world. The 21st Century hasushered in the need to identify and deal with global environment issues. They are nomore the concern of someone else. The Greening of Management is concerned with companies embracingenvironmental protection as part of their competitive strategies. The concept is fastcatching up and is being widely accepted by concerned organizations and individuals.Those who accept and implement greening of management, ensure that the actions ofall the members of their staff and the operations conducted within the business arewithin the rules and regulations laid down by authorities for the protection of theimmediate environment. Businesses today need to be able to recognize the close linkbetween an organizations decisions and its impact on the natural environment. 8
  9. 9. Global environment Issues: A variety of environmentalproblems now affect our entire world.As globalization continues and theearths natural processes transformlocal problems into internationalissues, only few societies are beingleft untouched by majorenvironmental problems. The list ofglobal environment problems is long.Major five global environment issuesinclude; Natural resources depletion Global warming Pollution (air, water, soil) Industrial accidents Toxic waste How these problems occur? Much of the blame can be placed on industrialactivities in developed or affluent societies. Various reports have shown that affluentsocieties account for more than 75% of the world‟s energy & resource consumption andcreate most of the industrial, toxic & consumer waste. An equally disturbing picture isthat as the world population continues to grow as emerging countries become moremarket oriented and affluent, global environmental problems can be expected toworsen. The average mass produced water bottles contain small amount of heavy toxicmetal that causes cancer. The rubbers soles on pair of shoes are loaded with lead thatcan last decades after shoes are thrown away this also increase environmentalpollution. Atmospheric pollution due to industrialization has increased the properties inair which effect greenhouse and caused global warming. All these pollutions haveundesired effects on human and other living things.Pollution and environmental degrading can only be prevented if the industries and theirindividuals feel their responsibility.Approaches of being Green: One model of environmental responsibility uses the term shades of green todescribe the different approaches that organization may take. Approaches are: Legal Approach (light green) Market Approach Stakeholder Approach Activist Approach (dark green)(Stephen.P.Robbins) 9
  10. 10. 1. Legal Approach: The first approach is the legal or light green approach that is simply doing what isrequired legally. Under this approach organizations show little environmental sensitivity.They obey laws, rules and regulations willingly and even try to use the law to their ownadvantage. This approach is a good illustration of social obligation. These organizationssimply follow their legal obligations to prevent pollution and protect environment. Forexample, many durable product manufacturers and oil refiners have taken the legalapproach and comply with relevant rules & regulations but go no further. 2. Market Approach: As an organization become more sensitive to environmental issues, it may adoptthe market approach, where it responds to the environmental preferences of itscustomers. Whatever customers demand in term of environmentally friendly product willbe what the organization provides. For example DuPont developed a new type ofherbicide that helped farmers around the world reduce their annual use of chemical bymore than 45 million pounds. Bu developing this product the company was respondingto the demands of its customers who wanted to minimize the use of chemical on theircrops. This approach is a good illustration of social responsiveness. 3. Stakeholder Approach: Another approach is stakeholder approach. Under this approach the organizationworks to meet the environmental demands of its multiple stakeholders such assuppliers, employees or the community. Stakeholder approach is also an illustration ofsocial responsiveness. For example an organization may decide that it is a necessaryrequirement that the employees should be ensures the health & welfare so that theybecome more satisfy. In this way an organization leads to be more responsive to itsemployees comparatively to its profit. 4. Activist Approach: When an organization look the ways to respect and preserve the earth and itsnatural resources than it said to be following activist approach. The activist approachexhibits the highest degree of environmental sensitivity and is a good illustration ofsocial responsibility. Hanger‟s cleaners use a pollution free process to clean cloths.Whirlpool won an industry competition and $30 million prize for developing CFC highefficiency refrigerator (CFC is abbreviation of Chlorofluorocarbons linked to thedegradation of ozone layer around the earth). So all these industries have adaptedActivist approach which is also called dark green Approach. By taking these approachesmanagers and organizations can protect & preserve the natural environment andsociety. 10
  11. 11. Green management: The recognition of the close links between an organization decisions andactivities and its impact on the natural environment is referred to as the greenmanagement.NATURAL ENVIOURMENT PROBLEMSSome of more serious problems are;  Global climates change  Air pollution  Water pollution  Industrial accidents  Toxic wastes  Global Warming  Ozone Layer reduction  Cutting of forestsThese problems occur in these ways; Much of the blame can be placed on industrial activities in developed(economically affluent) counties over the half century.30Various reports have shownthat affluent societies account for more than 75 percent of the world energy andresource consumption and create most of the industrial, toxic, and consumer waste.31 Global Warming: The burning of coal, oil,petrol, and, gas intensive effects on globalclimate. The burning of gas and petrol producedmany gases which are to reductions ofgreenhouse gases. Greenhouse gases make alayer which recorded the earth. Our increasinguse of coal, oil and natural gas from heating,energy and transportation has caused a largeincrease in greenhouse gas emissions. Thesegreenhouse gases are resulting in a globalwarming. 11
  12. 12. Ozone Layer reduction: Different gases damage or reduction the ozone layer and this layerfrom around 50 years recorded the earth. The ozone layer protective thin screen ofozone gas about 25, kilometres above the earth. Ozone gases protect the earth fromthe harmful and ultra violet rays of the sun. Ultra violet layer are causing increasedcancers and harmful for plant growth. Cutting of forests: The purchase of wood, orwood products, derived from unmanagedtropical forest (e.g. kwila, mahogany or teak)and temperate forests in countries such asCanada, Russia and Poland, is helpingdestroy the world‟s forests. Air Pollution: Modern counties like America,Canada, New Zealand, air is safe clean, but thecounties, like India, Pakistan etc, air pollution is notclean because of World Health Organisationguidelines. Motor vehicles are the largest singlesource of air pollution in these counties especiallyolder or poorly maintained cars. The transportsystem has a significant impact upon theenvironment in noise pollution and communitydislocation. Water Pollution: When the factors like leather field waste theharmful water waste in canals and this water mix withother water and damage and bad effecting on fish,plants and human health. Land Use: Nearly two thirds of New Zealand‟s land is used for farming and forestry or forour towns, cities and roads. Poor land use, soil erosion, unwanted plants and animalsare negatively impacting on the health of our land. 12
  13. 13. There is a growing awareness in New Zealand of the problems that can occurwhen land is contaminated with hazardous substances from the manufacture, use, orstorage of chemicals, industrial residues or waste products. This poses an immediateand, or long-term risk to human health and the environment. What manager or organization do for green management: Organization and mangers can do many things toprotect and preserve the natural enviournment. Some domore than what is required by law that is that is theyfulfill their social obligation. However, others have maderadical changes to make their products and productionprocessor cleaner. For example carpet-maker Shawindustries of Dalton, Georgia, transfer its carpet andwood manufacturing waste into energy. total and sa oneof the largest oil company is clearing up and greening upby implementing tough new rules on oil tanker safetyand working with gropes such as global witness the world largest delivery packagecompany, has done numerous things from retrofitting itsaircraft with advance technology and fuel efficientengines to developing a powerful computer net work toefficient dispatch its fleet of brown trucks and usingalternative fuel to run them. APPROACH OF GREEN MANAGEMENT:There are four approaches;  Light green  Market approach  Stakeholder approach  Dark green approachLight green approach: The first approach is light green approach or legal approach that what is simpledoing what is required is legally. In this approach the organization follow the rules, law,and regulation. For example many durable goods manufactured have taken the followthe rules and regulation. 13
  14. 14. Market approach: The second approach is market and in this approach an organization becomemore sensitive to environment issue. In this approach where the organization effect onthe environment of their customer. For example farmers used the urea for theincreasing the annually production and company manufacturing use high qualitychemical. DuPont developed the new type of herbicide that helped the farmer to reducethe chemical and developing this products farmer less using the chemical on the crops.Stakeholder approach: Under the approach the stakeholder approach the organization work to meet theenvironment demand of multiple the stakeholderssuch as employee suppler and the community. BUSINESS ETHICS:Definition: “Knowing the difference between right andwrong”Business ethics are also corporate ethics. In simple words, ethics can be defined asmoral values and principles. It is a decision of choosing right among wrong and right.Business ethics are that functions which help to choosing right decision at right timewhich help for the welfare of not only business owners but also society, consumers,stakeholders and its employees. “DISCPLINE OF DEALING WITH WHAT IS GOOD AND BAD, OR RIGHT OR WRONG, OR WITH MORALDUTY AND OBLIGATION”Approaches to Business Ethics:When business people speak about “business ethics” they usually mean one of threethings:(1) Avoid breaking the criminal law in one‟s work-related activity.(2) Avoid action that may result in civil law suits against the company.(3) Avoid actions that are bad for the company image.(Bringing business ethics to life, Bjorn Andersen) 14
  15. 15. 7 Principles of Admirable Business Ethics: 1. Be Trustful: Recognize customers want to do business with a company they can trust; when trust is at the core of a company, its easy to recognize. Trust defined, is assured reliance on the character, ability, strength, and truth of a business. 2. Keep An Open Mind: For continuous improvement of a company, the leader of an organization must be open to new ideas. Ask for opinions and feedback from both customers and team members and your company will continue to grow. 3. Meet Obligations: Regardless of the circumstances, do everything in your power to gain the trust of past customers and clients, particularly if something has gone wrong. Reclaim any lost business by honoring all commitments and obligations. 4. Have Clear Documents: Re-evaluate all print materials including small business advertising, brochures, and other business documents making sure they are clear, precise and professional. Most important, make sure they do not misrepresent or misinterpret. 5. Become Community Involved: Remain involved in community-related issues and activities, thereby demonstrating that your business is a responsible community contributor. In other words, stay involved. 6. Maintain Accounting Control: Take a hands-on approach to accounting and record keeping, not only as a means of gaining a better feel for the progress of your company, but as a resource for any "questionable” activities. Gaining control of accounting and record keeping allows you to end any dubious activities promptly. 7. Be Respectful: Treat others with the utmost of respect. Regardless of differences, positions, titles, ages, or other types of distinctions, always treat others with professional respect and courtesy. 15
  16. 16. Examples of Business Ethics  Use of child labor and forced labor  Violation of the basic rights of workers  Ignoring health, safety and environmental standardsBusiness ethic is concerned with the behavior of all businesses that operate in thesupply chain. •Suppliers •Contractors •Distributors •Sales agents Importance of Business Ethics in BusinessProfit Maximization: The importance of ethics in business can beunderstood by the fact that ethical businesses tendto make much more profits than the others. Thereason for this is that customers of businesseswhich follow ethics are loyal and satisfied with theservices and product offerings of such businesses.Let us take an example. Suppose, there is anorganization named XYZ which manufacturescosmetics. XYZ greatly believes in the importanceof business ethics. When XYZ advertises itscosmetics in the market, being an ethicalorganization, it will be very truthful and honest in itscommunication with the probable customers. It willtell correctly about the kind of ingredients it hasused while manufacturing the cosmetics.Efficient Utilization of Business Resources: 16
  17. 17. In an organization, people working at thejunior levels often emulate the ones working atthe top. The same applies with ethics too. If themanagement or seniors of an organization followethical business practices, i.e., they do not bribeto get their way or they do not cheat thecustomers, investors, suppliers, etc., theemployees will follow suit.Creates Goodwill in the Market: An organization, which is well-known for its ethical practices, creates goodwill foritself in the market. Investors or venture capitalists are more willing to put their money inthe businesses which they can trust.APPROACHES TO BUSINESS ETHICS: When business people speak about “business ethics” they usually mean one ofthree things,  Avoid breaking the criminal law in one‟s work-related activity.  Avoid action that may result in civil law suits against the company.  Avoid actions that are bad for the company image. Businesses are especially concerned with these three things since they involveloss of money and company reputation. In theory, a business could address these threeconcerns by assigning corporate attorneys and public relations experts to escortemployees on their daily activities. Anytime an employee might stray from the straightand narrow path of acceptable conduct, the experts would guide him back. Obviouslythis solution would be a financial disaster if carried out in practice since it would cost abusiness more in attorney and public relations fees than they would save from properemployee conduct. Perhaps reluctantly, businesses turn to philosophers to instructemployees on becoming “moral.” For over 2,000 years philosophers have systematicallyaddressed the issue of right and wrong conduct. Presumably, then, philosophers canteach employees a basic understanding of morality will keep them out of trouble.Human Resource Ethics: 17
  18. 18. The application of ethical principles to human resource relationships andactivities  A Code of Ethics Establishes the rules by which the organizations lives Easy to talk the talk butharder to execute  Must breathe it  Train its people  Communicate the codeTopics for Code of Ethics  Business conduct and Fair competition  Workplace and HR issuesReinforcing the Code of EthicsCommittee is established  Legal  HR, Corporate Compliance  Corporate Communication  External Affairs  Training and Development  Balding National Quality Award are changing criteriaThe Ethical Behavior Formula:Taken together, virtuous values, actions, and behavioral standards/codes can producea “formula,” such as that illustrated below, that may increase the likelihood of ethicalorganizational behavior:Virtuous Values + Aligned Action + Behavioral Standards/Codes –> IncreasedEthical BehaviorConsider adapting the six virtuous values and aligning them with key managerialleadership actions such as selection, employee orientation/socialization, and allocationof resources. Behavioral standards and/or codes of ethical conduct can be added asappropriate. Acting on these three formula components may serve to increase thedisplay of ethical organizational behavior. 18
  19. 19. DUTY AND OBLIGATION:Definition:Corporate Social Responsibility:Corporate-wide activities carried out to improve a Company‟s image vis-à-vis variousstakeholder groups is called corporate social responsibility.Examples  Corporate Philanthropy,  Environmental Policies,  Worker Rights Policies, etc.Business Ethics:Refers to actions by individuals and/or groups within organizations is called businessethics. Examples  Embezzlement  Sexual HarassmentIs CRS & Business Ethics same? There is clearly similarity between CSR and business ethics Both concepts concern values, objectives and decision based on something than the pursuit of profits. CSR is about responsibility to all stakeholders and nt just shareholders where as Ethics is about morally correct. There are good things for society that are not good for business and this is where social responsibility comes in. There are also good things in business that are not good for society and this is where business ethics comes in. Social responsibility is more of a policy or an obligation to the community, while business ethics is more of a conscience. Business is focused on profits but with social responsibility. It is still obliged to perform beneficial activities for society, while business ethics should make a positive move for society. Without social responsibility, the community will not benefit, however. 19
  20. 20. Managers and Ethical Behavior: Business ethics is a fundamental term that is applicable to all workplaces.Irrespective of the nature of an organization and its function, an unethical employeepromotes corruption and also could be a liability to an organization. Therefore, itbecomes important for an organization to encourage its employees to adhere to ethicalbehavior.Here are some ways for organizations to encourage ethical behavior.1. Communicating the code of ethics: The preliminary step to promote ethical behavior among employees is byestablishing a code of ethics. The code of ethics provides the direction and guidelinesfor employees‟ ethical behavior. Employees need to be familiarized with the code ofethics either through a company manual or posters. This enables the employees tohave a clear idea of the management‟s expectation with respect to employee code andconduct.2. Making the managers as role model: Having managers as role models is another way of promoting ethical behavior. Forthis purpose, managers need to be chosen with care and due consideration. This will bebeneficial in the following ways. a) Employees will have a guiding force to promote ethical behavior b) Employees tend to emulate their managers and if they are ethical in their behavior, it lends more credibility to the code of ethics c) If managers strictly adhere to ethical standards themselves, employees will feel less reluctant to oppose the guidelines laid out for ethical behavior3. Disciplinary actions for unethical behavior: Condemning any malpractice or unethical behavior in the initial stages itself is better than allowing it to proliferate to other areas of the organization. Imposing sanctions on unethical behavior helps the employees to understand the implications of inappropriate behavior. Therefore, the management needs to lay down disciplinary actions that will be taken against employees found guilty of violating the rules. If management promotes sales „at all costs‟, then employees might resort to any methods to achieve their targets. However, if management is serious about the means as much as the results, they should make sure that it is conveyed in no uncertain terms to their employees. 20
  21. 21. 4. Rewards for ethical behavior: When an employee is rewarded for positive behavior, it is likely that theemployee will not only continue to adhere to ethical practices but also be an inspirationto his colleagues. Therefore, it is important.Importance Of Ethical Behavior: Why is it important for top managers to ensure that organizational culturesupports ethical conduct and social responsibility?? In today‟s society people don‟t always do what‟s right. They may know that doingcertain things will cause greater consequences that they would like but still do itanyways. It is the top managers responsibility to ensure that the organizational culturesupports ethical conduce and social responsibility because they are who the teammembers look to for guidance. As stated in chapter 1, ethics is a branch of philosophyconcerned with human values and conduct, moral, duties and obligations. Managershave to be the voice that people look to; to know what they want to do may not alwaysbe the best thing for themselves or the company. Top managers need to ensure organizational structure to make sure thatharassment, discrimination and stealing are not happening within their company. And ifit does happen then it will immediately be taken care of. For example, if I am the officemanager and I know that Monica is stealing money from the office drawer it is my job tohandle that situation either by termination or verbal discipline. I have to act ethically andmake the best decision for the company, no mater how much or bad she needed it.When discrimination happens it puts a dark cloud over the employees. They tend to feelthat the company does not care about them as employees so they begin not to careabout they job and tend to slack off. Managers need to make it an on going habit to treat each employee fairly.They need to make sure that they keep their ethics in check while they are in thepresents of employees. Social responsibility is described in the text as obligations toprotect and benefit others and to avoid actions that could harm them. This basicallymeans don‟t do anything that will put anyone else in harms way, or cause anotheremployee bodily harm. Encouraging ethical behavior: Ethics is about behavior. In the face of dilemma, it is about doing the right thing.Ethical managerial leaders and their people take the “right” and “good” path when theycome to the ethical choice points. 21
  22. 22. The purpose of this article is to steer your thinking and action toward creatingand sustaining an ethical workplace culture. Managerial leaders and their people areinvited to explore how values, actions, and behavioral standards can help steerorganizational behavior. ( Wisdom and Knowledge: The capacity to take information and convert it to something useful. Wisdomcomes from capitalizing on one‟s experience to interpret information in a knowledgeablemanner to produce wise decisions. A prerequisite to doing the right thing when facingan ethical dilemma is knowing what to do, knowing the difference between right andwrong. Self Control: The ability to avoid unethical temptations. The capacity to take the ethical pathrequires a commitment to the value of acting with temperance. Ethical people say “no”to individual gain if it is inconsistent with institutional benefit and goodwill. Justice and Fair Guidance: The fair treatment of people. Justice is served when individuals perceive thatthey receive a fair return for the energy and effort expended. For example, a leader‟scommitment to justice is tested continually with the allocation of organizationalresources. Are certain individuals and groups given special treatment without regard toobjective criteria by which to judge fairness? Ethical leaders value and embrace fairadvice and guidance. Transcendence: The recognition that there is something beyond oneself more permanent andpowerful than the individual. Without this value, one may tend toward self-absorption.Leaders who are motivated predominately by self-interest and the exercise of personalpower have restricted effectiveness and authenticity. Love and Kindness: The expression through words and deeds of love and kindness. Researchershave documented that there appear to be different types of “love.” In an organizationalcontext, love refers to an intense positive reaction to another co-worker, group and/orsituation. An organization “with heart” allows for the expression of love, compassion andkindness among and between people, the goodwill which can be drawn upon when onefaces ethical challenges. Courage and Integrity: 22
  23. 23. The courage to act ethically and with integrity. These values involve discerningright from wrong and acting accordingly. They impel one to consistently do what is rightwithout concern for personal consequences, even when it is not easy. Reference: 23
  24. 24. o Bringing business ethics to life, Bjorn Anderseno Stephen.P.Robbins, Principal of management.o Corporate Ownership & Control / Volume 4, Issue 4, Summer 2007 Elena F Pérez Carrilloo =4/trackLogID=96372_7972F7D055o corporate-social-responsibility/introduction.htmlo html?id=BseLWTK-iLIC&redir_esc=y 24