Session-2-Ethical-Responsibility

©2013CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.1ChapterObjectivesDefinethetermcorporatesocialresponsibility(CSR)andspecifythefourlevelsinCarroll’sglobalCSRpyramid.ContrasttheclassicaleconomicandsocioeconomicmodelsofbusinessandsummarizetheargumentsforandagainstCSR.Identifyanddescribethefoursocialresponsibilitystrategiesandexplaintheconceptofenlightenedself-interest.Summarizethefourpracticallessonsfrombusinessethicsresearch.©2013CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.2ChapterObjectives(cont’d)Distinguishbetweeninstrumentalandterminalvaluesandexplaintheirrelationshiptobusinessethics.Identifyanddescribeatleastfourofthetengeneralethicalprinciples.Discusswhatmanagementcandotoimprovebusinessethics.©2013CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.3SocialResponsibility:DefinitionandPerspectivesCorporateSocialResponsibility(CSR)Theideathatbusinesshas:SocialobligationsaboveandbeyondmakingaprofitSocialobligationstoconstituentgroupsinsocietyotherthanstockholdersandbeyondthatprescribedbylawOrganizationsincludefinancial,environmental,andsocialresponsibilityintheircorebusinessstrategies.Triplebottomline:People,planet,profits©2013CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.4Figure5.1:Carroll’sCorporateGlobalSocialResponsibilityPyramid©2013CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.5SocialResponsibility:DefinitionandPerspectives(cont’d)CSRforglobalandtransnationalcorporationsWorkingfromthebottomup,theglobalcorporationshould:MakeaprofitObeythelawBeethicalinitspracticesBeagoodcorporatecitizenCSRrequiresvoluntaryaction©2013CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.6WhatIstheRoleofBusinessinSociety?TheClassicalEconomicModel(AdamSmith)An“invisiblehand”promotedthepublicwelfare.Thepublicinterestwasservedbyindividualspursuingtheirowneconomicself-interests.Accordingtotheclassicaleconomicmodelofbusiness,profitabilityandsocialresponsibilityarethesamething.©2013CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.7WhatIstheRoleofBusinessinSociety?TheSocioeconomicModelBusinesshasanobligationtomeettheneedsofthemanygroupsinsocietybesidesstockholdersinitspursuitofprofit.Stakeholderaudit:Systematicallyidentifyingallthepartiesthatcouldpossiblybeaffectedbythecompany’sperformance©2013CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.8Figure5.2:ASampleStakeholderAuditforWal-Mart,theWorld’sLargestRetailer©2013CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.9ArgumentsForandAgainstCorporateSocialResponsibilityArgumentsForBusinessisunavoidablyinvolvedinsocialissues.Businesshastheresourcestotackletoday’scomplexsocietalproblems.Abettersocietymeansabetterenvironmentfordoingbusiness.Corporatesocialactionwillpreventgovernmentintervention.©2013CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.10ArgumentsForandAgainstCorporateSocialResponsibility(cont’d)ArgumentsAgainstProfitmaximizationensurestheefficientuseofsociety’sresources.Asaneconomicinstitution,businesslackstheabilitytopursuesocialgoals.Businessalreadyhasenoughpower.Becausebusinessmanagersarenotelected,theyarenotdirectlyaccountabletosociety.©2013CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.11TowardGreaterSocialResponsibilityIronLawofResponsibilityThosewhodonotusepowerinasociallyresponsiblewaywilleventuallyloseit.Ifbusinessdoesnotmeetthechallengeofsocialresponsibility,thengovernmentreformlegislationwillforceittomeetitsobligations.©2013CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.12SocialResponsibilityStrategiesReactiveStrategyDenyingresponsibilitywhilestrivingtomaintainthestatusquobyresistingchangeDefensiveStrategyResistingadditionalsocialresponsibilitieswithlegalandpublicrelationstactics©2013CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.13SocialResponsibilityStrategies(cont’d)AccommodationStrategyAssumingsocialresponsibilityonlyinresponsetopressurefrominterestgroupsorthegovernmentProactiveStrategyTakingtheinitiativeinformulatingandputtinginplacenewprogramsthatserveasrolemodelsfortheindustry©2013CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoap