This document discusses corporate social responsibility and business ethics. It defines social responsibility as a company's obligation to society beyond legal and economic responsibilities. Businesses have social responsibilities because they operate within society and must respond to social demands. There are arguments both for and against businesses acting socially responsible. Areas of social responsibility include stakeholders, the environment, and social welfare. Measuring social performance can be done through social indicators, cost-benefit analyses, and audits. Ethics provide moral principles for conduct and business ethics applies these principles to business decisions. Factors that influence ethics include individuals' values and the organizational culture. Mechanisms for ethical management encompass training, codes of conduct, and committees.

1. Dr. Shubhankur Bhardwaj
PG-HA
Department of Hospital Administration
Sanjay Gandhi Postgraduate Institute of Medical Sciences,
Lucknow
Management and Society:
An overview
1

2. What’s Social Responsibility?
Defined as the obligation of management towards the
society and others concerned.
Corporate Social Responsibility
The serious consideration of the impact of the company’s
actions on society
– The idea that business has social obligations above and beyond making a
profit
– Business has an obligation to constituent groups in society other than
stockholders and beyond that prescribed by law
9/25/2018 2

3. • Business enterprises are creatures of society and should respond to the demands
of society.
• If the management does not react to changes in social demands, the society will
either force them to do so through laws or will not permit the enterprise to
survive
Reason for Social Responsibilities:
9/25/2018
Management and Society:Social
Responsibility and Ethics
3

4. • Therefore the long-term interests of business are best served when
management assume social responsibilities.
9/25/2018
Management and Society:Social
Responsibility and Ethics
4

5. 9/25/2018
Arguments Supporting Businesses Being
Socially Responsible
 Long-run profits
 Ethical obligation
 Public image
 Better environment
 Avoidance of government regulations
 Traditional values
5

6. 9/25/2018
Arguments Against Businesses Being
Socially Responsible
 Violation of profit maximization
 Dilution of purpose
 Costs
 Too much power
 Lack of skills
 Lack of accountability
6

7. 9/25/2018
•Stakeholders: customers, employees, and
investors.
•The natural environment: environmentally
sensitive products, recycling, and public safety.
•The general social welfare: charitable
contributions, and support for social issues such
as child labor and human rights.
Areas of Social Responsibility
7

8. Mistaken view of business responsibility
9/25/2018
Social
concerns
Economic
concerns
Management and Society:Social
Responsibility and Ethics
Economic
concerns
Social concerns
Realistic view of business responsibility 8
Mutual
concern

9. Measuring Social Performance
• Social indicators
• Social cost-benefit Analysis
• Social audits
9/25/2018
Management and Society:Social
Responsibility and Ethics
9

10. What is ethics?
Code of moral
principles that
set standards of
conduct of what
is good and
right.
9/25/2018 10

11. ETHICS
• Ethics (also called moral philosophy), involves systematizing,
defending, and recommending concepts of right and wrong
behavior.
• Business ethics is the application of general ethical principles
to business dilemmas.
• Not the same as legal considerations (although laws overlap
with society’s agreed-upon ethical standards)
9/25/2018 11

12. Ethical Perspectives: Utilitarian
• Decisions are made on the basis of outcomes
• Maximize benefits for the greatest number
9/25/2018 12

13. Ethical Perspectives: Individualism
• At the most basic level, “What’s in it for me?”
• However, there’s a long-term equilibrium; the
invisible hand
9/25/2018
Ethical Perspectives: Justice
Decisions made with equity and impartiality
13

14. 9/25/2018
WHAT INFLUENCES ETHICAL
BEHAVIOR?
THE INDIVIDUAL’S ROLE
THE ORGANIZATION’S ROLE
•Structure
•Culture
14

15. 9/25/2018
Determinants of Individual Ethics
Family
Influences
Situational
Factors
Values and
Morals
Experiences
Peer
Influences
Individual Ethics
15

16. 9/25/2018
ETHICAL GUIDELINES FOR
MANAGERS
 Obey the law.
 Tell the truth.
 Show respect for people.
 Stick to the Golden Rule.
 Above all, do no harm.
 Participation not paternalism.
 Responsibility requires action.
16

17. 9/25/2018
MECHANISMS FOR ETHICAL
MANAGEMENT
 Increasing awareness of diversity
 Top management commitment
 Codes of ethics
 Ethics committees
 Ethics audits
 Ethics hotlines
 Ethics training
17

18. THANK YOU
9/25/2018 18