ninth edition                                      STEPHEN P. ROBBINS               MARY COULTER                          ...
Current stories about companies being          socially irresponsibleThe Tainted Sanlu Baby Milk Powder Incident© 2007 Pre...
China starts probe into baby powder milk contamination as more cases   reported (2008-09-12)    Two babies with kidney sto...
China reports 432 infants with kidney stones, production of Sanlu halted;   Stores in China pull contaminated milk powder ...
What Is Social Responsibility?• The Classical View     Management’s only social responsibility is to      maximize profit...
What Is Social Responsibility? (cont’d)• The Socioeconomic View     Management’s social responsibility goes beyond      m...
• What are the reasons for corporations taking          (not taking) social responsibility ?                    • List at ...
Exhibit 5–2 Arguments For and Against Social Responsibility• For                                   • Against       Public...
Does Social Responsibility Pay?• Studies appear to show a positive relationship  between social involvement and the econom...
• VALUES-BASED MANAGEMENT    An approach to managing in which managers    establish and uphold an organization’s shared   ...
• The Purposes of Shared Values     Guiding managerial decisions     Shaping employee behavior     Influencing the dire...
Exhibit 5–7 Survey of Stated                                                           Percentage of             Values of...
Managerial Ethics• Ethics Defined     Principles, values, and beliefs that define what is right      and wrong behavior.©...
Three domains of human action            Domain                      Domain         Domain         of codified law        ...
Small case I: Management EthicsDilemma• A top employee at your small company tells you he  needs some time off because he ...
Small case II: Management Ethics Dilemma • As a sales manager for a major pharmaceuticals   company, you’ve been asked to ...
Exhibit 5–8 Factors That Affect Ethical and Unethical Behavior© 2007 Prentice Hall, Inc. All rightsreserved.              ...
Ethics in an International Context• Ethical standards are not universal.     Social and cultural differences determine ac...
How Managers Can Improve EthicalBehavior in An Organization1.    Hire individuals with high ethical standards.2.    Establ...
An Sample:Code of Ethics  © 2007 Prentice Hall, Inc. All rights  reserved.                               5–20
Awareness of Social Issues• Social Entrepreneurs     Are individuals or organizations who seek out      opportunities to ...
Terms to Know• classical view                        • ethics• socioeconomic view                    • values             ...
LEARNING OUTLINEFollow this Learning Outline as you read and study this chapter.   What is Social Responsibility?     • Co...
LEARNING OUTLINEFollow this Learning Outline as you read and study this chapter.   Social Responsibility and Economic Perf...
L E A R N I N G O U T L I N E (cont’d)Follow this Learning Outline as you read and study this chapter.   The Greening of M...
L E A R N I N G O U T L I N E (cont’d)Follow this Learning Outline as you read and study this chapter.   Managerial Ethics...
L E A R N I N G O U T L I N E (cont’d)Follow this Learning Outline as you read and study this chapter.   Social Responsibi...
Homework1. Reading: Book chapter 51 paper essay covering the key points of social    responsibility and managerial ethics....
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Management

  1. 1. ninth edition STEPHEN P. ROBBINS MARY COULTER Chapter Social Responsibility 5 and Managerial Ethics Instructor: Zhengxin Lingnan College, Sun Yat-Sen University© 2007 Prentice Hall, Inc. PowerPoint Presentation by Charlie CookAll rights reserved. The University of West Alabama
  2. 2. Current stories about companies being socially irresponsibleThe Tainted Sanlu Baby Milk Powder Incident© 2007 Prentice Hall, Inc. All rightsreserved. 5–2
  3. 3. China starts probe into baby powder milk contamination as more cases reported (2008-09-12) Two babies with kidney stones receive medical treatment at a military hospital in Lanzhou, capital of northwest Chinas Gansu Province© 2007 Prentice Hall, Inc. All rightsreserved. 5–3
  4. 4. China reports 432 infants with kidney stones, production of Sanlu halted; Stores in China pull contaminated milk powder off shelves (2008-09-12); Zhang Yujun, who produced and sold melamine-laced "protein powder" in the China tainted milk scandal, was convicted of endangering public security and sentenced to death by a local court. (2009-01-22)© 2007 Prentice Hall, Inc. All rightsreserved. 5–4
  5. 5. What Is Social Responsibility?• The Classical View  Management’s only social responsibility is to maximize profits (create a financial return) by operating the business in the best interests of the stockholders (owners of the corporation).  Expending the firm’s resources on doing “social good” unjustifiably increases costs that lower profits to the owners and raises prices to consumers.© 2007 Prentice Hall, Inc. All rightsreserved. 5–5
  6. 6. What Is Social Responsibility? (cont’d)• The Socioeconomic View  Management’s social responsibility goes beyond making profits to include protecting and improving society’s welfare.  Corporations are not independent entities responsible only to stockholders.  Firms have a moral responsibility to larger society to become involved in social, legal, and political issues.  “To do the right thing”© 2007 Prentice Hall, Inc. All rightsreserved. 5–6
  7. 7. • What are the reasons for corporations taking (not taking) social responsibility ? • List at least five reasons© 2007 Prentice Hall, Inc. All rightsreserved. 5–7
  8. 8. Exhibit 5–2 Arguments For and Against Social Responsibility• For • Against  Public expectations  Violation of profit  Long-run profits maximization  Ethical obligation  Dilution of purpose  Public image  Costs  Better environment  Too much power  Discouragement of further  Lack of skills governmental regulation  Lack of accountability  Balance of responsibility and power  Stockholder interests  Possession of resources  Superiority of prevention over cure© 2007 Prentice Hall, Inc. All rightsreserved. 5–8
  9. 9. Does Social Responsibility Pay?• Studies appear to show a positive relationship between social involvement and the economic performance of firms.• A general conclusion is that a firm’s social actions do not harm its long-term performance.© 2007 Prentice Hall, Inc. All rightsreserved. 5–9
  10. 10. • VALUES-BASED MANAGEMENT An approach to managing in which managers establish and uphold an organization’s shared values.© 2007 Prentice Hall, Inc. All rightsreserved. 5–10
  11. 11. • The Purposes of Shared Values  Guiding managerial decisions  Shaping employee behavior  Influencing the direction of marketing efforts  Building team spirit© 2007 Prentice Hall, Inc. All rightsreserved. 5–11
  12. 12. Exhibit 5–7 Survey of Stated Percentage of Values of Core Value Respondents Organizations Customer satisfaction 77% Ethics/integrity 76% Accountability 61% Respect for others 59% Open communication 51% Profitability 49% Teamwork 47% Innovation/change 47% Continuous learning 43% Positive work environment 42% Diversity 41% Community service 38% Trust 37% Social responsibility 33% Security/safety 33% Empowerment 32% Employee job satisfaction 31% Have fun 24%© 2007 Corporate Values Survey,” (www.amanet.org), October 30, 2002.Source: “AMA Prentice Hall, Inc. All rightsreserved. 5–12
  13. 13. Managerial Ethics• Ethics Defined  Principles, values, and beliefs that define what is right and wrong behavior.© 2007 Prentice Hall, Inc. All rightsreserved. 5–13
  14. 14. Three domains of human action Domain Domain Domain of codified law of ethics of free choice (Legal (Social (Personal standard) standard) standard) High Amount of Explicit Control Low© 2007 Prentice Hall, Inc. All rightsreserved. 5–14
  15. 15. Small case I: Management EthicsDilemma• A top employee at your small company tells you he needs some time off because he has AIDS. You know the employee needs the job as well as the health insurance benefits. Providing health insurance has already stretched the company’s budget, and this will send premiums through the roof. You recently read of a case in which federal courts upheld the right of an employer to modify health plans by putting a cap on AIDS benefits. Should you investigate whether this is a legal possibility for your company?© 2007 Prentice Hall, Inc. All rightsreserved. 5–15
  16. 16. Small case II: Management Ethics Dilemma • As a sales manager for a major pharmaceuticals company, you’ve been asked to promote a new drug that costs $2500 per dose. You’ve read the reports saying the drug is only 1 percent more effective than an alternate drug that costs less than one-fourth as much. Can you in good conscience aggressively promote the $2500-per-dose drug? It you don’t, could lives be lost that might have been saved with that 1 percent increase in effectiveness?© 2007 Prentice Hall, Inc. All rightsreserved. 5–16
  17. 17. Exhibit 5–8 Factors That Affect Ethical and Unethical Behavior© 2007 Prentice Hall, Inc. All rightsreserved. 5–17
  18. 18. Ethics in an International Context• Ethical standards are not universal.  Social and cultural differences determine acceptable behaviors.• Foreign Corrupt Practices Act  Makes it illegal to corrupt a foreign official yet “token” payments to officials are permissible when doing so is an accepted practice in that country.• The Global Compact© 2007 Prentice Hall, Inc. All rightsreserved. 5–18
  19. 19. How Managers Can Improve EthicalBehavior in An Organization1. Hire individuals with high ethical standards.2. Establish codes of ethics and decision rules.3. Lead by example.4. Set realistic job goals and include ethics in performance appraisals.5. Provide ethics training.6. Conduct independent social audits.7. Provide support for individuals facing ethical dilemmas.© 2007 Prentice Hall, Inc. All rightsreserved. 5–19
  20. 20. An Sample:Code of Ethics © 2007 Prentice Hall, Inc. All rights reserved. 5–20
  21. 21. Awareness of Social Issues• Social Entrepreneurs  Are individuals or organizations who seek out opportunities to improve society by using practical, innovative, and sustainable approaches.  Want to make the world a better place and have a driving passion to make that happen.© 2007 Prentice Hall, Inc. All rightsreserved. 5–21
  22. 22. Terms to Know• classical view • ethics• socioeconomic view • values • ego strength• social obligation • locus of control• social responsiveness• social responsibility • code of ethics • whistle-blower• social screening • social entrepreneur• greening of management • social impact • values-based management management© 2007 Prentice Hall, Inc. All rightsreserved. 5–22
  23. 23. LEARNING OUTLINEFollow this Learning Outline as you read and study this chapter. What is Social Responsibility? • Contrast the classical and socioeconomic views of social responsibility. • Discuss the role that stakeholders play in the four stages of social responsibility. • Differentiate between social obligation, social responsiveness, and social responsibility.© 2007 Prentice Hall, Inc. All rightsreserved. 5–23
  24. 24. LEARNING OUTLINEFollow this Learning Outline as you read and study this chapter. Social Responsibility and Economic Performance • Explain what research studies have shown about the relationship between an organization’s social involvement and its economic performance. • Define social screening. • Explain what conclusion can be reached regarding social responsibility and economic performance.© 2007 Prentice Hall, Inc. All rightsreserved. 5–24
  25. 25. L E A R N I N G O U T L I N E (cont’d)Follow this Learning Outline as you read and study this chapter. The Greening of Management • Describe how organizations can go green. • Relate the approaches to being green to the concepts of social obligation, social responsiveness, and social responsibility. Values-Based Management • Discuss what purposes shared values serve. • Describe the relationship of values-based management to ethics.© 2007 Prentice Hall, Inc. All rightsreserved. 5–25
  26. 26. L E A R N I N G O U T L I N E (cont’d)Follow this Learning Outline as you read and study this chapter. Managerial Ethics • Discuss the factors that affect ethical and unethical behavior. • Describe the important roles managers play in encouraging ethical behavior.© 2007 Prentice Hall, Inc. All rightsreserved. 5–26
  27. 27. L E A R N I N G O U T L I N E (cont’d)Follow this Learning Outline as you read and study this chapter. Social Responsibility and Ethics in Today’s World • Explain why ethical leadership is important. • Discuss how managers and organizations can protect employees who raise ethical issues or concerns. • Explain what role social entrepreneurs play. • Describe social impact management.© 2007 Prentice Hall, Inc. All rightsreserved. 5–27
  28. 28. Homework1. Reading: Book chapter 51 paper essay covering the key points of social responsibility and managerial ethics.2. Movie watch <Outsourced>http://v.youku.com/v_playlist/f2364608o1p0.html1 paper essay talking about the global outsourcing and management issues in the movie.Due time: 30th, Oct., Friday before class.© 2007 Prentice Hall, Inc. All rightsreserved. 5–28

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