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8theditionStevenP.RobbinsMaryCoulterPowerPointPresentationbyCharlieCookCopyright©2005PrenticeHall,Inc.Allrightsreserved.Copyright©2005PrenticeHall,Inc.Allrightsreserved.5–2LEARNINGOUTLINEFollowthisLearningOutlineasyoureadandstudythischapter.WhatisSocialResponsibility?•Contrasttheclassicalandsocioeconomicviewsofsocialresponsibility.•Discusstherolethatstakeholdersplayinthefourstagesofsocialresponsibility.•Differentiatebetweensocialobligation,socialresponsiveness,andsocialresponsibility.SocialResponsibilityandEconomicPerformance•Explainwhatresearchstudieshaveshownabouttherelationshipbetweenanorganization’ssocialinvolvementanditseconomicperformance.•Explainwhatconclusioncanbereachedregardingsocialresponsibilityandeconomicperformance.Copyright©2005PrenticeHall,Inc.Allrightsreserved.5–3LEARNINGOUTLINE(cont’d)FollowthisLearningOutlineasyoureadandstudythischapter.TheGreeningofManagement•Describehoworganizationscangogreen.•Relatetheapproachestobeinggreentotheconceptsofsocialobligation,socialresponsiveness,andsocialresponsibility.Values-BasedManagement•Discusswhatpurposessharedvaluesserve.•Describetherelationshipofvalues-basedmanagementtoethics.Copyright©2005PrenticeHall,Inc.Allrightsreserved.5–4LEARNINGOUTLINE(cont’d)FollowthisLearningOutlineasyoureadandstudythischapter.ManagerialEthics•Contrastthefourviewsofethics.•Discussthefactorsthataffectethicalandunethicalbehavior.•Discussthesixdeterminantsofissueintensity.•Explainwhatcodesofethicsareandhowtheireffectivenesscanbeimproved.•Describetheimportantrolesmanagersplayinencouragingethicalbehavior.Copyright©2005PrenticeHall,Inc.Allrightsreserved.5–5LEARNINGOUTLINE(cont’d)FollowthisLearningOutlineasyoureadandstudythischapter.SocialResponsibilityandEthicsinToday’sWorld•Explainwhyethicalleadershipisimportant.•Describehowmanagerscanprovideethicalleadership.•Describesocialimpactmanagement.Copyright©2005PrenticeHall,Inc.Allrightsreserved.5–6WhatIsSocialResponsibility?•TheClassicalViewManagement’sonlysocialresponsibilityistomaximizeprofits(createafinancialreturn)byoperatingthebusinessinthebestinterestsofthestockholders(ownersofthecorporation).Expendingthefirm’sresourcesondoing“socialgood”unjustifiablyincreasescoststhatlowerprofitstotheownersandraisespricestoconsumers.Copyright©2005PrenticeHall,Inc.Allrightsreserved.5–7WhatIsSocialResponsibility?(cont’d)•TheSocioeconomicViewManagement’ssocialresponsibilitygoesbeyondmakingprofitstoincludeprotectingandimprovingsociety’swelfare.Corporationsarenotindependententitiesresponsibleonlytostockholders.Firmshaveamoralresponsibilitytolargersocietytobecomeinvolvedinsocial,legal,andpoliticalissues.“Todotherightthing”Copyright©2005PrenticeHall,Inc.Allrightsreserved.5–8Exhibit5.1ToWhomisManagementResponsible?Copyright©2005PrenticeHall,Inc.Allrightsreserved.5–9Exhibit5.2ArgumentsForandAgainstSocialResponsibility•ForPublicexpectationsLong-runprofitsEthicalobligationPublicimageBetterenvironmentDiscouragementoffurthergovernmentalregulationBalanceofresponsibilityandpowerStockholderinterestsPossessionofresourcesSuperiorityofpreventionovercure•AgainstViolationofprofitmaximizationDilutionofpurposeCostsToomuchpowerLackofskillsLackofaccountabilityCopyright©2005PrenticeHall,Inc.Allrightsreserved.5–10FromObligationtoResponsivenesstoResponsibility•SocialObligationTheobligationofabusinesstomeetitseconomicandlegalresponsibilitiesandnothingmore.•SocialResponsivenessThecapacityofafirmtoadapttochangingsocietalconditionsthroughthepracticaldecisionsofitsmanagersinrespondingtoimportantsocialneeds.•SocialResponsibilityAfirm’sobligationsasamoralagentextendsbeyonditslegalandeconomicobligations,tothepursuitoflong-termgoalsthataregoodforsociety.Copyright©2005PrenticeHall,Inc.Allrightsreserved.5–11Exhibit5.3SocialResponsibilityversusSocialResponsivenessSource:AdaptedfromS.L.WartickandP.L.Cochran,“TheEvolutionoftheCorporateSocialPerformanceModel,”AcademyofManagementReview,October1985,p.766.SocialResponsibilitySocialResponsivenessMajorconsiderationEthicalPragmaticFocusEndsMeansEmphasisObligationResponsesDecisionframeworkLongtermMediumandshorttermCopyright©2005PrenticeHall,Inc.Allrightsreserved.5–12DoesSocialResponsibilityPay?•Studiesappeartoshowapositiverelationshipbetweensocialinvolvementandtheeconomicperformanceoffirms.Difficultiesindefiningandmeasuring“socialresponsibility”and“economicperformanceraiseissuesofvalidityandcausationinthestudies.Mutualfundsusingsocialscreeningininvestmentdecisionsslightlyoutperformedothermutualfunds.•Ageneralconclusionisthatafirm’ssocialactionsdonotharmitslong-termperformance.Copyright©2005PrenticeHall,Inc.Allrightsreserved.5–13TheGreeningofManagement•Therecognitionofthecloselinkbetweenanorganization’sdecisionandactivitiesanditsimpactonthenaturalenvironment.Globalenvironmentalproblemsfacingmanagers:Air,water,andsoilpollutionfromtoxicwastesGlobalwarmingfromgreenhousegasemissionsNaturalresourcedepletionCopyright©2005PrenticeHall,Inc.Allrightsreserved.5–14HowOrganizationsGoGreen•Legal(ofLightGreen)ApproachFirmssim
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