10. TOPICS IN MANAGING SOCIAL
RESPONBILITY AND ETHICS
TOPIC 1
TOPIC 2
TOPIC 3
TOPIC 5
TOPIC 4
What is Social
Responsibility?
11. TOPICS IN MANAGING SOCIAL
RESPONBILITY AND ETHICS
TOPIC 2
TOPIC 3
TOPIC 4
TOPIC 1
TOPIC 5
Green Management
and Sustainability
12. TOPICS IN MANAGING SOCIAL
RESPONBILITY AND ETHICS
TOPIC 3
TOPIC 4
TOPIC 5
TOPIC 2
TOPIC 1
Managers and
Ethical Behavior
13. TOPICS IN MANAGING SOCIAL
RESPONBILITY AND ETHICS
TOPIC 4
TOPIC 5
TOPIC 1
TOPIC 3
TOPIC 2
Encouraging
Ethical Behavior
14. TOPICS IN MANAGING SOCIAL
RESPONBILITY AND ETHICS
TOPIC 5
TOPIC 1
TOPIC 2
TOPIC 4
TOPIC 3
Social Responsibility and
Ethical Issues in Today's World
15. TOPICS IN MANAGING SOCIAL
RESPONBILITY AND ETHICS
TOPIC 1
TOPIC 2
TOPIC 3
TOPIC 5
TOPIC 4
18. From
Duty
to
Responsiveness
to
Responsibility
The concept of social responsibility is explained in several different ways. For example,
social responsibility is called "just making a profit", "doing more than making a profit".
From those two concepts, we can understand more than that with a similar concept,
namely:
Social Obligationis
a company's involvement in social action due to its obligation to fulfill its economic and
legal responsibilities. The organization does what it is obligated to do and nothing more.
This idea reflects the Classical View (the view that management's only social
responsibility is to maximize profits.
Socioeconomic Viewis
that the social responsibility of managers is not just to make profits, but also to protect
and improve social welfare.
While the second concept is social responsiveness
is that the company is involved in several popular social activities. Company managers are
guided by social norms and values in making practical and market-oriented decisions about
their actions.
The definition of social responsibility as the intention of a business, beyond its legal and
economic obligations, to do the right thing and act in a way that is good for society.
Should
Organizations
be
Socially
Engaged?
19. From
Duty
to
Responsiveness
to
Responsibility
The concept of social responsibility is explained in several different ways. For example,
social responsibility is called "just making a profit", "doing more than making a profit".
From those two concepts, we can understand more than that with a similar concept,
namely:
Social Obligationis
a company's involvement in social action due to its obligation to fulfill its economic and
legal responsibilities. The organization does what it is obligated to do and nothing more.
This idea reflects the Classical View (the view that management's only social
responsibility is to maximize profits.
Socioeconomic Viewis
that the social responsibility of managers is not just to make profits, but also to protect
and improve social welfare.
While the second concept is social responsiveness
is that the company is involved in several popular social activities. Company managers are
guided by social norms and values in making practical and market-oriented decisions about
their actions.
The definition of social responsibility as the intention of a business, beyond its legal and
economic obligations, to do the right thing and act in a way that is good for society.
Should
Organizations
be
Socially
Engaged?
Many researchers have looked at whether social involvement affects the economic
performance of companies. While most have found a small positive relationship, no general
conclusions can be made, as these studies have shown the relationship is influenced by various
contextual factors such as company size, industry, economic conditions, and regulatory
environment.
Arguments in favor
1. Public Expectations
public opinion now favors businesses pursuing economic and social goals
2. Long-term profit
Socially responsible companies tend to have more certain long-term profits.
3.Ethical obligation
Businesses should be socially responsible because responsible action is the right thing to do.
4. Public image
Create a good public image by pursuing social goals.
5. Good environment
helps solve difficult social problems
6. Relaxation of government regulations
businesses can expect less government regulation.
7. Balancing responsibility and power
many powers and equally large responsibilities are needed to match those powers.
8. Shareholder interests
social responsibility will increase share price in the long run.
20. From
Duty
to
Responsiveness
to
Responsibility
The concept of social responsibility is explained in several different ways. For example,
social responsibility is called "just making a profit", "doing more than making a profit".
From those two concepts, we can understand more than that with a similar concept,
namely:
Social Obligationis
a company's involvement in social action due to its obligation to fulfill its economic and
legal responsibilities. The organization does what it is obligated to do and nothing more.
This idea reflects the Classical View (the view that management's only social
responsibility is to maximize profits.
Socioeconomic Viewis
that the social responsibility of managers is not just to make profits, but also to protect
and improve social welfare.
While the second concept is social responsiveness
is that the company is involved in several popular social activities. Company managers are
guided by social norms and values in making practical and market-oriented decisions about
their actions.
The definition of social responsibility as the intention of a business, beyond its legal and
economic obligations, to do the right thing and act in a way that is good for society.
Should
Organizations
be
Socially
Engaged? Arguments against
1. Violation of profit maximizationsocially
responsible only when business pursues its economic interests.
2. Obfuscation of purpose
pursuit of social goals obscures the primary purpose of business.
3. Cost
many social responsibility actions cannot cover their costs and someone has to pay the
costs.
4. Too much power
Businesses have a lot of power and if they pursue social goals, they will have even more
power.
5. Lack of expertise
Business leaders lack the ability to address social issues.
6. Lack of accountability
There is no direct link to accountability for social action.
9. Resource control
have the resources to support public projects and charitable projects that need help.
10. Prioritizing prevention over repair
businesses should address social problems before they become more serious and costly to fix.
21. TOPICS IN MANAGING SOCIAL
RESPONBILITY AND ETHICS
TOPIC 2
TOPIC 3
TOPIC 4
TOPIC 1
TOPIC 5
24. Green Management is an approach in business management that aims to integrate
sustainable and environmentally friendly practices in a company's operations.
It involves various actions and strategies designed to reduce consumption of natural
resources, reduce waste, improve energy efficiency, and adopt more environmentally
friendly practices.
Some important aspects of green management include:
1. Waste reduction.
2. Energy efficiency
3. Use of environmentally friendly materials
4. Water conservation
5. Improved sustainable transportation
6. Environmental regulation compliance
There are various approaches for organizations to become light green is simply doing what
is legally required, i.e. social obligations. In the market scope, organizations approach by
responding to the environmental choices of the customers they have. In the stakeholder
space, organizations also approach this by responding to the environmental demands of
various stakeholders. These two approaches can also be seen as social
responsiveness(corporate involvement in social action in response to popular social needs).
What about the dark green approach?
An approach where organizations look for ways to value and protect the earth and its
natural resources, which can be seen as social responsibility.
How
Does
an
Organization
Become
a
Green
Organization?
Evaluating
Green
Management
Measures.
25. Green Management is an approach in business management that aims to integrate
sustainable and environmentally friendly practices in a company's operations.
It involves various actions and strategies designed to reduce consumption of natural
resources, reduce waste, improve energy efficiency, and adopt more environmentally
friendly practices.
Some important aspects of green management include:
1. Waste reduction.
2. Energy efficiency
3. Use of environmentally friendly materials
4. Water conservation
5. Improved sustainable transportation
6. Environmental regulation compliance
There are various approaches for organizations to become light green is simply doing what
is legally required, i.e. social obligations. In the market scope, organizations approach by
responding to the environmental choices of the customers they have. In the stakeholder
space, organizations also approach this by responding to the environmental demands of
various stakeholders. These two approaches can also be seen as social
responsiveness(corporate involvement in social action in response to popular social needs).
What about the dark green approach?
An approach where organizations look for ways to value and protect the earth and its
natural resources, which can be seen as social responsibility.
How
Does
an
Organization
Become
a
Green
Organization?
Can be evaluated by examining reports made by the company and then submitted to the
company regarding their environmental performance.To evaluate a company's green actions or
sustainable practices, there are several methods that can be used, including:
1.Environmental Performance Reports
Companies often publish annual reports or sustainability reports that include information on
their sustainable practices, such as carbon emissions reduction, resource use, waste
management, and other efforts to protect the environment.
2. Global Standards Compliance
Many organizations such as the Global Reporting Initiative (GRI), Sustainability Accounting
Standards Board (SASB), and ISO 14001 have developed standards and frameworks for
reporting and measuring environmental performance.
Evaluating
Green
Management
Measures.
26. TOPICS IN MANAGING SOCIAL
RESPONBILITY AND ETHICS
TOPIC 3
TOPIC 4
TOPIC 5
TOPIC 2
TOPIC 1
29. In short, a manager is a person who is responsible for directing efforts aimed at helping
the organization achieve its goals. A good manager is an ethical manager. Ethics are
principles, values and beliefs that define right and wrong decisions and actions. Many
decisions a manager makes require them to consider both the process and who will be
affected by the decision.
The following factors determine ethical and unethical behavior:
1. Levels of Moral Development
There are 3 levels of moral development, each of which has 2 levels.
a. At the first level, the preconventional level is a person's choice between right
and wrong based on personal consequences from external sources, such as physical
punishment, reward or exchange of needs.
b. At the second level, the conventional level, ethical decisions depend on
maintaining expected standards and meeting the expectations of others.
c. At the third level, the principal level, individuals define moral values apart
from the authority of the group to which they belong or society in general.
Conclusions about moral development:
First, humans go through 6 stages at 3 levels sequentially. Second, there is no guarantee
of continuous moral development. Third, the majority of adults are at level 4: they obey
limited rules and will behave ethically, although for different reasons.
Factors
that
Determine
Ethical
and
Unethical
Behavior
30. In short, a manager is a person who is responsible for directing efforts aimed at helping
the organization achieve its goals. A good manager is an ethical manager. Ethics are
principles, values and beliefs that define right and wrong decisions and actions. Many
decisions a manager makes require them to consider both the process and who will be
affected by the decision.
The following factors determine ethical and unethical behavior:
1. Levels of Moral Development
There are 3 levels of moral development, each of which has 2 levels.
a. At the first level, the preconventional level is a person's choice between right
and wrong based on personal consequences from external sources, such as physical
punishment, reward or exchange of needs.
b. At the second level, the conventional level, ethical decisions depend on
maintaining expected standards and meeting the expectations of others.
c. At the third level, the principal level, individuals define moral values apart
from the authority of the group to which they belong or society in general.
Conclusions about moral development:
First, humans go through 6 stages at 3 levels sequentially. Second, there is no guarantee
of continuous moral development. Third, the majority of adults are at level 4: they obey
limited rules and will behave ethically, although for different reasons.
Factors
that
Determine
Ethical
and
Unethical
Behavior
2. Individual Characteristics
Values and personality play a role in determining whether a person behaves ethically.
Values are broad and cover a wide range of issues such as the level of moral development
is a measure of independence from outside influences. There are 2 personality variables
that influence a person's actions according to their beliefs about what is right and wrong:
ego strength and locus of control. Ego strength is a measure of the strength of one's
beliefs. Whereas locus of control is the degree to which people feel confident that they
can control their own destiny. It is divided into internal and external locus of control.
3. Structural Variables
The structural design of an organization can influence employees' ethical behavior.
Structures that minimize ambiguity and uncertainty with formal rules and regulations and
that continually remind employees about ethical matters are more likely to encourage
ethical behavior. Other structural variables that influence ethical choices include goals,
work appraisal systems, and reward allocation procedures. Although many organizations
use goals to guide and motivate employees, they can create unexpected problems.
Meanwhile, an organization's performance appraisal system can also affect ethical
behavior. Some systems focus only on results, while others evaluate both means and
results. Closely related to organizational appraisal systems is how rewards are allocated.
The more that rewards or punishments depend on the outcome of a particular goal, the
greater the pressure on employees to do whatever they have to do to achieve this goal,
perhaps to the point of compromising their ethical standards.
31. In short, a manager is a person who is responsible for directing efforts aimed at helping
the organization achieve its goals. A good manager is an ethical manager. Ethics are
principles, values and beliefs that define right and wrong decisions and actions. Many
decisions a manager makes require them to consider both the process and who will be
affected by the decision.
The following factors determine ethical and unethical behavior:
1. Levels of Moral Development
There are 3 levels of moral development, each of which has 2 levels.
a. At the first level, the preconventional level is a person's choice between right
and wrong based on personal consequences from external sources, such as physical
punishment, reward or exchange of needs.
b. At the second level, the conventional level, ethical decisions depend on
maintaining expected standards and meeting the expectations of others.
c. At the third level, the principal level, individuals define moral values apart
from the authority of the group to which they belong or society in general.
Conclusions about moral development:
First, humans go through 6 stages at 3 levels sequentially. Second, there is no guarantee
of continuous moral development. Third, the majority of adults are at level 4: they obey
limited rules and will behave ethically, although for different reasons.
Factors
that
Determine
Ethical
and
Unethical
Behavior
2. Individual Characteristics
Values and personality play a role in determining whether a person behaves ethically.
Values are broad and cover a wide range of issues such as the level of moral development
is a measure of independence from outside influences. There are 2 personality variables
that influence a person's actions according to their beliefs about what is right and wrong:
ego strength and locus of control. Ego strength is a measure of the strength of one's
beliefs. Whereas locus of control is the degree to which people feel confident that they
can control their own destiny. It is divided into internal and external locus of control.
3. Structural Variables
The structural design of an organization can influence employees' ethical behavior.
Structures that minimize ambiguity and uncertainty with formal rules and regulations and
that continually remind employees about ethical matters are more likely to encourage
ethical behavior. Other structural variables that influence ethical choices include goals,
work appraisal systems, and reward allocation procedures. Although many organizations
use goals to guide and motivate employees, they can create unexpected problems.
Meanwhile, an organization's performance appraisal system can also affect ethical
behavior. Some systems focus only on results, while others evaluate both means and
results. Closely related to organizational appraisal systems is how rewards are allocated.
The more that rewards or punishments depend on the outcome of a particular goal, the
greater the pressure on employees to do whatever they have to do to achieve this goal,
perhaps to the point of compromising their ethical standards.
4. Organizational Culture
The strength of organizational culture affects ethical behavior. Organizational culture
consists of shared organizational values. These values reflect what the organization
stands for and what it believes in and they create an environment that influences how
employees behave ethically and unethically. Because these values can be so influential,
many organizations use values-based management, which is a form of management where
the values of the organization guide employees in carrying out their work.
32. TOPICS IN MANAGING SOCIAL
RESPONBILITY AND ETHICS
TOPIC 4
TOPIC 5
TOPIC 1
TOPIC 3
TOPIC 2
35. Managers can do many things if they are serious about encouraging ethical behavior-hire
employees with high ethical standards, create a code of conduct, lead by example, and so
on. In isolation, such actions will not have much impact. However, a comprehensive ethics
program has the potential to improve the ethical climate in the organization.
Definition 1
T
o
s
2
A
e
v
C
m
3
D
w
w
l
a
a
Ways
managers
can
encourage
ethical
behavior.
36. Managers can do many things if they are serious about encouraging ethical behavior-hire
employees with high ethical standards, create a code of conduct, lead by example, and so
on. In isolation, such actions will not have much impact. However, a comprehensive ethics
program has the potential to improve the ethical climate in the organization.
Definition 1. Employee selection
The selection process (interviews, tests, background checks, etc.) should be viewed as an
opportunity to learn about an individual's level of moral development, personal values, ego
strength, and locus of control.
2. Code of Ethics and Decision Rules
A code of ethics is a formal statement of an organization's core values and the ethical rules they
expect employees to follow. Codes of ethics and decision rules are a set of guidelines used in
various professions and organizations to guide ethical behavior and appropriate decision-making.
Codes of ethics and decision rules typically include values, norms, and principles that individuals or
members of an organization should follow.
3. Top Management Leadership
Doing Business ethically requires commitment from top-level managers. Because they are the ones
who stand up for shared values and provide cultural nuance. They are role models in terms of
words and behavior although what they do is far more important than what they say. When top-
level managers, for example, use company resources for personal gain, inflate their expense
accounts, or provide special services to friends, they are signaling that such actions are
acceptable to all employees.
Ways
managers
can
encourage
ethical
behavior.
37. Managers can do many things if they are serious about encouraging ethical behavior-hire
employees with high ethical standards, create a code of conduct, lead by example, and so
on. In isolation, such actions will not have much impact. However, a comprehensive ethics
program has the potential to improve the ethical climate in the organization.
Definition 1. Employee selection
The selection process (interviews, tests, background checks, etc.) should be viewed as an
opportunity to learn about an individual's level of moral development, personal values, ego
strength, and locus of control.
2. Code of Ethics and Decision Rules
A code of ethics is a formal statement of an organization's core values and the ethical rules they
expect employees to follow. Codes of ethics and decision rules are a set of guidelines used in
various professions and organizations to guide ethical behavior and appropriate decision-making.
Codes of ethics and decision rules typically include values, norms, and principles that individuals or
members of an organization should follow.
3. Top Management Leadership
Doing Business ethically requires commitment from top-level managers. Because they are the ones
who stand up for shared values and provide cultural nuance. They are role models in terms of
words and behavior although what they do is far more important than what they say. When top-
level managers, for example, use company resources for personal gain, inflate their expense
accounts, or provide special services to friends, they are signaling that such actions are
acceptable to all employees.
Ways
managers
can
encourage
ethical
behavior.
4. Job Objectives and Performance Appraisal
Under the pressure of unrealistic goals, supposedly ethical employees may feel that they have no
choice but to do what is necessary to meet those goals. Goal attainment is important in
performance appraisal. When performance appraisals focus solely on economic goals, the end
result will begin to justify the means.
5. Ethics Training
Ethics training is the process by which individuals or groups learn about moral principles and values
that guide correct and responsible behavior.
6. Independent Social Audit
The fear of being caught can be a major deterrent to unethical behavior, an independent Social
Audit, which evaluates management decisions and practices based on an organization's code of
ethics, increases that possibility.
7. Protective Mechanisms
Employees facing ethical dilemmas need protectives so that they can do what is right without fear
of retribution.
38. TOPICS IN MANAGING SOCIAL
RESPONBILITY AND ETHICS
TOPIC 5
TOPIC 1
TOPIC 2
TOPIC 4
TOPIC 3
41. Nowadays, managers are constantly facing the challenge of being socially and morally
responsible. Here we study three recent issues including the following:
1. Managing moral failure and social depravity
Managing moral failures and social depravity refers to the actions taken by individuals,
organizations or societies to address situations where there is a violation of ethical
principles or expected social norms.
As a manager, there are two actions that must be taken if the problem occurs, namely:
a. Ethical leadership
What managers do has a strong influence on employees' decisions to behave
ethically or not. When managers cheat, lie, steal, manipulate, take advantage of
situations or people, or treat others unfairly, what signals are they sending to
employees (or other stakeholders). some suggestions on how managers can
provide ethical leadership:
- Be a good role model with ethical and purposeful actions.
a) Always tell the truth
b) Do not hide or manipulate information
c) Be willing to admit mistakes.
- Share your personal values by regularly communicating them to employees.
- Emphasize shared values that are important to the organization or team.
- Use the reward system to hold everyone accountable to those values.
Three
Recent
Issues
42. Nowadays, managers are constantly facing the challenge of being socially and morally
responsible. Here we study three recent issues including the following:
1. Managing moral failure and social depravity
Managing moral failures and social depravity refers to the actions taken by individuals,
organizations or societies to address situations where there is a violation of ethical
principles or expected social norms.
As a manager, there are two actions that must be taken if the problem occurs, namely:
a. Ethical leadership
What managers do has a strong influence on employees' decisions to behave
ethically or not. When managers cheat, lie, steal, manipulate, take advantage of
situations or people, or treat others unfairly, what signals are they sending to
employees (or other stakeholders). some suggestions on how managers can
provide ethical leadership:
- Be a good role model with ethical and purposeful actions.
a) Always tell the truth
b) Do not hide or manipulate information
c) Be willing to admit mistakes.
- Share your personal values by regularly communicating them to employees.
- Emphasize shared values that are important to the organization or team.
- Use the reward system to hold everyone accountable to those values.
Three
Recent
Issues
b. Protection for employees who raise ethical issues
It is important for managers to ensure that employees who raise ethical concerns or
issues will not face career or risk. This individual, often called a whistle-blower, is
someone who brings an ethics problem or issue to the attention of others, can be an
important part of any company's ethics program. So, how can employees be protected so
that they are willing to complain if they see illegal or unethical actions taking place? One
way is to provide a free hotline on ethics. For example, Dell has a hotline for ethics where
employees can report anonymously to report violations that the company then
investigates, in addition managers need to create a culture where bad news can be heard
and acted upon before it is too late.
2. Social entrepreneurship
Social entrepreneurs are individuals or organizations that seek opportunities to improve society
using practical, innovative and sustainable approaches. "The importance of social entrepreneurs to
social enterprises is similar to the importance of business entrepreneurs to the economy". What
can we learn from social entrepreneurs? While many organizations are committed to doing
business ethically and responsibly, perhaps they can do more, as demonstrated by social
entrepreneurs. Perhaps, as in the case of PATH, it is simply a matter of business organizations
collaborating with community groups or nonprofit organizations to address social issues. Or
perhaps, as in the case of AgSsquared, they provide skills where they are needed. It may also
involve nurturing individuals who have a passion and a strong belief that they have an idea that can
make the world a better place and just need organizational support to pursue it.
43. Nowadays, managers are constantly facing the challenge of being socially and morally
responsible. Here we study three recent issues including the following:
1. Managing moral failure and social depravity
Managing moral failures and social depravity refers to the actions taken by individuals,
organizations or societies to address situations where there is a violation of ethical
principles or expected social norms.
As a manager, there are two actions that must be taken if the problem occurs, namely:
a. Ethical leadership
What managers do has a strong influence on employees' decisions to behave
ethically or not. When managers cheat, lie, steal, manipulate, take advantage of
situations or people, or treat others unfairly, what signals are they sending to
employees (or other stakeholders). some suggestions on how managers can
provide ethical leadership:
- Be a good role model with ethical and purposeful actions.
a) Always tell the truth
b) Do not hide or manipulate information
c) Be willing to admit mistakes.
- Share your personal values by regularly communicating them to employees.
- Emphasize shared values that are important to the organization or team.
- Use the reward system to hold everyone accountable to those values.
Three
Recent
Issues
3. Businesses promoting positive social change
Engaging in activities that promote positive social change, businesses can do this in two ways,
namely:
a. Philanthropy
Can be an effective way for companies to address societal issues. For example, the
"pink" campaign to raise awareness of the dangers of breast cancer and the g
lobal AIDS red campaign (started by Bono) are ways that companies support social
movements.
b. Employee volunteer efforts
It is a popular way for businesses to get involved in promoting social change. For
example, Dow Coming sent a small team of employees to rural India to
help women there "check seams and set prices for apparel to be sold in local markets."
Other businesses also encourage their employees to volunteer in various ways. The
Committee Encouraging Corporate Philanthropy says that more than 90 percent of its
members have volunteer programs and almost all encourage volunteerism by providing
paid time off or by creating volunteer events. many businesses find that such
efforts not only benefit the community, but also increase employee effort and
motivation.