Management by Stoner Chapter 4


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Hello! This is the chapter 4 of Management by Stoner.The images whihc I used for this presentation are taken from the net. The videos may not work too but you can just replace them with something from youtube.
Hope it helps!

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Management by Stoner Chapter 4

  1. 1. Chapter 4
  2. 2. Corporate Social Responsibility Corporate Social Responsibility What an organization does to influence the What an organization does to influence the society in which ititexists, such as through society in which exists, such as through volunteer assistance program volunteer assistance program
  3. 3. Ethics The study of rights and of who is – or should be- benefited or harmed by an action.
  4. 4. Sample Practices of Corporate Social Responsibility and Ethics Hires ex- convicts Hires homeless people Donates all profits of Newman's Own Food to charity
  5. 5. The Changing Concept of Social Responsibility The muckcrakers exposes of corrupt business practices Government‘s provision of some ground rules for managers
  6. 6. Different Views on Social Responsibility 1. Andrew Carnegie‘s The Gospel of Wealth Charity Principle Stewardship Principle Doctrine of social responsibility requiring more fortunate individuals to assist less fortunate members of society. Derived from bible which requires businesses and wealthy individuals to view themselves as stewards or caretakers of their property
  7. 7. 2. Milton Friedman‘s Argument There is only one social responsibility of business: to use its resources and energy in activities designed to increase its profits so long as it stays within the rules of the game and engages in open and free competition without deception and fraud. Businesses should produce goods and services efficiently and leave the solution of social problems to concerned individuals and government agencies.
  8. 8. Enlightened Self-interest Organizations realization that it is in their best interest to act in ways that the community considers socially responsible. Corporate Social Responsiveness A theory of social responsibility that focuses on how companies respond to issues, rather than trying to determine their ultimate social responsibility. Corporate Social Performance A single theory of corporate social action encompassing social principles, processes and policies.
  9. 9. Application of Social Performance on Decision Making Processes and Policies
  10. 10. The Shift to Ethics Ethics- the study of how our decisions affect other people. - It is also the study of people‘s rights and duties, the moral rules that people apply in making decisions, and the nature of the relationship among people.
  11. 11. 4 Levels of Ethical Questions in Business
  12. 12. Tools of Ethics The key terms of ethical language: VALUES, RIGHTS, DUTIES,RULES, and RELATIONSHIP Values- relatively permanent desires that seem to be good in themselves. It is the answer to the WHY questions. Moral Rules- guide us through situations where competing interests collide. They are the tie breakers – guidelines that can resolve disagreement. Human relationship- Right- claims that entitle a person. It is also known as the person‘s SPHERE OF AUTONOMY Duty- an obligation to take specific steps e.g. pay taxes, obey the law… every human being is connected to others in a web of relationship.
  13. 13. Common Morality
  14. 14. Morality of Care Recent theories such as Gilligan and Nell Noddings have argues that common moralitythe morality rules of justice- is only one perspective for reasoning about morality. They have suggested an alternative model called THE ETHICS OF CARE. Gilligan proposes that there are strands of moral theory: Justice and Care Perspectives
  15. 15. Institutionalizing Ethics CEOs do not have to confront ethical problems in vacuum. Instead they can institutionalize the process. Ways of INSTITUTIONALIZING ETHICS: corporate code of conducts, ethics committees, ombudsman offices, judicial board, ethics training programs, and social audit Social Audit- report describing company activities in a given area of social interest, such as environmental protection, workplace safety, or community involvement.
  16. 16. Challenge of Relativism There are any versions of moral relativism, but all of them hold that we cannot decide matters of: right and wrong, good and evil, in any NAÏVE RELATIVISM- idea that all human beings are themselves the standard by which their action should be judged. Ethical decisions are personal. CULTURAL RELATIVISM- the idea that morality is relative to a particular culture, society, or community. It tells us to try to understand. rational way.