Summary Management Ch5 Social Responsibility and Ethics
Summary of the Management book;
Chapter 5 Social Responsibility and Ethics
What is Social Responsibility?:
Discuss what it means to be socially responsible and what factors influence that decision.
Managers regularly face decisions that have a dimension of social responsibility in areas such as employee relations, philanthropy, pricing, resource conservation, product quality and safety, and doing business in countries that devalue human rights.
From obligations to responsiveness to responsibility
Social obligation: when a firm engages in social actions because of its obligation to meet certain economic and legal responsibilities. The organization does what it’s obligated to do and nothing more.
Classical view (of social responsibility): the view that management’s only social responsibility is to maximize profits.
Social responsiveness and social responsibility reflect the socioeconomic view: the view that management’s social responsibility goes beyond making profits to include protecting and improving society’s welfare. Corporations are not independent entities responsible only to stockholders, but have an obligation to the larger society.
Social responsiveness: when a firm engages in social actions in response to some popular social need. Managers are guided by social norms and values and make practical, market-oriented decisions about their actions.
Social responsibility: a business’s intention, beyond its legal and economic obligations, to do the right things and act in ways that are good for society. The business obeys the law and cares for its stockholders, but adds an ethical imperative to do those things that make society better.
For example, social obligation is when you meet the pollution control standards and don’t discriminate people over age 40 in job promotions. Social responsiveness is when you provide on-site child-care and use recycles paper because the consumers ask for it.
Should organizations be socially involved?
Exhibit 5-1
Chapter 5 Social Responsibility and Ethics
What is Social Responsibility?:
Discuss what it means to be socially responsible and what factors influence that decision.
Managers regularly face decisions that have a dimension of social responsibility in areas such as employee relations, philanthropy, pricing, resource conservation, product quality and safety, and doing business in countries that devalue human rights.
From obligations to responsiveness to responsibility
Social obligation: when a firm engages in social actions because of its obligation to meet certain economic and legal responsibilities. The organization does what it’s obligated to do and nothing more.
Classical view (of social responsibility): the view that management’s only social responsibility is to maximize profits.
Social responsiveness and social responsibility reflect the socioeconomic view: the view that management’s social responsibility goes beyond making profits to include protecting and improving society’s welfare. Corporations are not independent entities responsible only to stockholders, but have an obligation to the larger society.
Social responsiveness: when a firm engages in social actions in response to some popular social need. Managers are guided by social norms and values and make practical, market-oriented decisions about their actions.
Social responsibility: a business’s intention, beyond its legal and economic obligations, to do the right things and act in ways that are good for society. The business obeys the law and cares for its stockholders, but adds an ethical imperative to do those things that make society better.
For example, social obligation is when you meet the pollution control standards and don’t discriminate people over age 40 in job promotions. Social responsiveness is when you provide on-site child-care and use recycles paper because the consumers ask for it.
Should organizations be socially involved?
Exhibit 5-1