ethical and social enviroment of an organization


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ethical and social enviroment of an organization

  1. 1. Subject: Principles of Management Research Assignment On Ethical & Social Environment of an organization Submitted To: Miss Farah khan Visiting Faculty Lecturer. Submitted By: Shah Junaid ID# 9722 MBA (Fall-2010) Business Administration Department Peshawar Campus
  2. 2. CONTENTS 1. Introduction to Ethic………………..Page 3 I. Ethic meaning II. Ethic Definition III. Common miss concern about ethic 2. Formation of ethic…...…………………….. Page 4 3.Ethic and management of organization……Page 5,6 I. How org treat employees II. How employees threat org III. How organization treat other economic agent 4. Ethic in organization context……………… Page 7 5. Managing ethical behaviors………………… Page 8 6. Social context of management …………Page 9 I. The stockholder II. The natural environment. III. Society 7. How business and govt influence each other… 10, 11 1) How Government Influence Organization 2) How Organization Influence Govt 8. How organization Mange their social responsibility……Page12,13 1) Formal dimension of managing social responsibility: 2) Informal dimension of managing of social responsibility 9 Reference ……………………………….Page 13 2
  3. 3. What is ethic? Meaning of World “Ethic”: The word ethics is derived from the Greek work ethos, which refers to the character and sentiment of the community, and standards of behavior. What is ethic? Ethic is complex of percepts held or rules of conduct followed by an individual or group Or Simple Ethic is the standard of behaviors which promotes welfare and the good. Business Ethic: Business ethic is the study of standard is business behaviors which promotes human welfare and the good. What is ethic about? • How we behave, standard in day-by-day life. • Relation how to treat others things exclude from ethic. Common Miss Concern about Ethic: I. Not just feeling or conscience II. Not the same as religious III. Not just following the law IV. Not following “What ever body does” V. No technology or science- what can be done? 3
  4. 4. Formation of ethic Three Level of ethic” 1. How we act as a individuals 2. How we structure our organization and their work 3. How we structure our law and our society, our system. Formation of ethic: Every person has a set of values, which determines ethical standard for that person. These standard has actually adopt by the society in which that person grown. The society values, the teacher, the peer and other factor that determents ethic. Other factors that determents the ethic of some one are: 1) Life experience of through that person has been passes. 2) Situational factors like the current situation in which that person is. 4
  5. 5. Ethic and Organization management Managerial Ethic Managerial ethic is the standard of behaviors that guide a individual manager in their work place. Bellow is the three areas given that can affect the managerial work and decision. These areas include: 1. How organization treats its employees. 2. How the employees treats the organization 3. How employs and organization treats other economic agents. 1. How organization treats its employees: Of the important area of managerial ethic is the treat of employees by the organization. This area in clued I. Hiring and firing of the employees should be on the individual based on ability and merit. II. Wages and working condition should be base on the certain rules and regulation. III. Employees privacy include illness and others personal record. 2. How employees treat the organization: Numerous ethical issues stem from how the employees treat the organization Such issues include: I. Conflict of interest: No, match the interest of employees with organization. Employees want and think own self. II. Secrecy : Not out the secrets of organization to the external environment or out side within the organization. III. Honesty : 5
  6. 6. Ethic and Organization management Employees should be honest regarding using organization property like making personal calls from the organization telephone or by using the company sources. 3. How employees and the organization treats other economic agents: Managerial ethic also came into the play in the relation between the firm and its employees with other economic agents. An organization should fairly and honestly treats their economic agents . These economic agents include Stockholder, Supplier, dealer, competitors etc. 6
  7. 7. Ethic in organization context Ethic in organization context As we know ethic is an individual phenomenon, all the individual organization, the management, employees and itself, the org environment makes ethic for organization. Organization and ethic: Organization effect the ethical standard of employees in organization such organization management permits those ethical standard, which are in the fever. Some organization openly permits the unethical business practices. Manager and Ethic: Manager also allows unethical practices if they are in the interests of organization. Such activity contributed to the organization to the organizational cultural. Organization environment and ethic: Organizational environment is also contributed ethical and unethical behaviors for organization. Highly competitive business organization makes baring more pressure for a manager to achieve high performance. in order to achieve high performance ,a manager uses different ways include ethical and un ethical ways on its subordinates. 7
  8. 8. Managing ethical behaviors Managing ethical behaviors: It is fact that ethical standard has a great impact on any organization, for that reason many organization has establish its own ethical standard and even ethical comities, that that maintain and promotes these ethical standard . Ethical standard establishment start fro the top management, who establish the organization culture and define what will and ho will not be acceptable behaviors. For which they arrange different events and training programmed. Some organization formulize their ethical standard by preparing guidelines ethical code that how the organization employees treats the economic agents. Unpleasant effect of ethic: Some time these code of ethic and guide lines some time failed epically when the code of ethic are against the employees choice in such cases they give un pleasant out come in the fever of organization. In order to avoid such effect of ethic code, the experts suggest three steps model for establishing code of ethic. Which are: 1) Gather the relevant factual information 2) Determine most appropriate moral values 3) Makes an ethical judgment based on the rightness or wrongness of the propose activity or policy. 8
  9. 9. Social context of management Social context of management: For a manager making decision for organization the look to the different dimension of the society .thus we ca say that a organization influences by the different environmental dimension in which that organization operate. Social responsibility of an organization: A social responsible organization is that one which looks to the society welfare a long to its own interest. Areas of social responsibilities For an organization, the areas of social responsibilities include: IV. The stockholder V. The natural environment. VI. Society I. The stockholder: The stockholder is the peoples or organization that directly affects ed by the practices of an organization Stick holder of a organization include: Customer: A responsible organization always treats their customer fairly and honestly. Employees: A social responsible organization deals fairly with their employee, such organization look them a part of organization and look after their al human rights. Investor: One of the major responsibility of organization to provide the appropriate and true information to the shareholder. II. The natural environment: A critical area for a social responsible organization is to look to the environment in which that organization operate, especially when that organization concern with manufacturing. Such organization wills not pollutants the environment by its production function. III. Social welfare: A social responsible business organization also promote the general welfare of the society such organization contribute their full efforts not own self but also supporting other organization that work for the society development. 9
  10. 10. How business and Govt influence each other How Business organization And Government Influences Each Other. In general, environment the business organization and government has direct relationship with other. For example Government influence the business organization to work for the society interest .While other hand such organization show resistance these rules and regulation. Shortly there are a number of ways by which business and Governament influence each other. 1) How Government Influence Organization: Government influences their duty of social responsibility by direct and in direct ways/channels. Direct Regulation: Establishing law and other rules and regulation, that direct influence the organization. these regulation include what type business should or should not be allowed to do in order to implement and maintain these rules ,regulation Government create special agencies which carry the power often fine all those who violate regulation. Example of such agencies : Environmental Protection agency –which handle environment issues. Security exchange commission – Which handle inverter related issues. Indirect Regulation: Government influences the organization to perform the duty of its social responsibility by taking /collecting taxes. Others form of such influences includes passing some law that if organization sends capital to the train unemployed, they can tax relaxation. The main incentive behind this is to provide training facilities for their employees. 2) How Organization Influence Government A organization influence the government in many different ways, some particular ways are given bellow: I. Personal contacts: Many business organization executive and political leader during their traveling came into contact from this contact lather often they influence government and takes benefit from it for there business. 10
  11. 11. How business and organization influence each other II. Lobbying: This use of person or group to formally represent a company or group of company to influence the political bodies before passing laws .lobbying is an effective way to influencing the government. III. Political action committee: These committees are made by business organization in order to donations to political campaigns. By donation, these make them to heir their problems. IV. Favors: Favors are legal tactic that are use by organization in order to gain support. 11
  12. 12. How organization Manage their social responsibility How an organization manage their social responsibility The awareness of public about the organization is now days increase due to its importance now it is important to establish a style of its social responsibility. However, who it to establish, it is a major challenge that required Planning, decision making, Consideration and evaluation, which may be accomplish through formal and informal dimension of social responsibilities. 1)Formal dimension of managing social responsibility: Formal means plan these dimension of managing social responsibility are planned activities of organization. Which include? I. Legal compliance: II. Ethical compliance III. Philanthropic giving I. Legal compliance: Local, state, and international laws makes legal compliance for an organization. The legal compliance task is associated with different manager (according to their function) with in same organization as Human resource executive is responsible for ensuring compliance with regulation concerning hiring ,pays, work safety ,health. Similarly top finance executive oversees with securities and banking regulation. II. Ethical compliance It means that the context to which the member of organization follow basic ethical standard of behaviors .Organization gives more importance to this area and provide a good standard of ethic by training ,guidelines and developing code of ethic. III. Philanthropic giving: Philanthropic means giving funds or gifts for charities purpose. These business organizations gives some percentage of its taxable income to charity and social programmed. The organization of receiving may be international or local. 3) Informal dimension of managing of social responsibility It includes: I. Organization culture and leadership 12
  13. 13. II. Whistle blowing How organization Manage their social responsibility I. Organization culture and leadership: On the basis of leadership practices and organization culture , we can define the position of a social responsible organization that adopt by its member. II. Whistle blowing: Whistle means the disclosure by employees of illegal or unethical conduct on the part of others with the organization. The response to such causes represents the standard of its social responsibility. The whistle blower first report the incident to boss, if nothing is don ,the whistle blower may go forward until this matter reach to the top management .Unstill person can reach to the concern regulatory authority or can approach to the media. R e f e r e n c e: Book Management ( By Griffen 8th edition) 13
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