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Questions and Answers
What are the two opposing views of social responsibility?
What are the two opposing views of social responsibility?
According to the classical view, what is management's primary social responsibility?
According to the classical view, what is management's primary social responsibility?
maximize profits
What is the socioeconomic view of social responsibility?
What is the socioeconomic view of social responsibility?
_______ is the capacity of a firm to adapt to changing societal conditions.
_______ is the capacity of a firm to adapt to changing societal conditions.
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Social obligation involves pursuing social goals only when they contribute to economic goals.
Social obligation involves pursuing social goals only when they contribute to economic goals.
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According to the utilitarian view of ethics, decisions are made based on:
According to the utilitarian view of ethics, decisions are made based on:
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Match the following factors affecting managerial ethics with their descriptions:
Match the following factors affecting managerial ethics with their descriptions:
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At the conventional level of moral development, moral values reside in living up to others' __________.
At the conventional level of moral development, moral values reside in living up to others' __________.
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What is ethics?
What is ethics?
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The rights view of ethics emphasizes protecting individual liberties and privileges.
The rights view of ethics emphasizes protecting individual liberties and privileges.
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Study Notes
Social Responsibility
- There are two opposing views of social responsibility: the classical view and the socioeconomic view.
- The classical view, advocated by Milton Friedman, states that management's only social responsibility is to maximize profits.
- The socioeconomic view holds that businesses have a responsibility to society that goes beyond making profits, and includes protecting and improving societal welfare.
Levels of Social Involvement
- There are three levels of social involvement: social obligation, social responsibility, and social responsiveness.
- Social obligation refers to a business's obligation to meet its economic and legal responsibilities.
- Social responsibility refers to a business's obligation to pursue long-term goals that help society, going beyond legal and economic requirements.
- Social responsiveness refers to a firm's capacity to adapt to changing societal conditions.
Social Responsibility versus Social Responsiveness
- The key differences between social responsibility and social responsiveness are:
- Focus: social responsibility focuses on ends, while social responsiveness focuses on means.
- Emphasis: social responsibility emphasizes obligation, while social responsiveness emphasizes responses.
- Decision framework: social responsibility uses a long-term framework, while social responsiveness uses a medium-term and short-term framework.
Social Responsibility and Economic Performance
- Most research suggests a positive relationship between social responsibility and economic performance.
- Socially responsible actions do not hurt a company's long-term economic performance.
Values-Based Management
- Values-based management is an approach to managing in which managers establish, promote, and practice an organization's shared values.
- The purposes of shared values are to:
- act as guideposts for managerial decisions and actions
- shape employee behavior
- influence marketing efforts
- build team spirit
- The purposes of shared values are to:
The "Greening" of Management
- The "greening" of management refers to the recognition of the close link between an organization's decisions and activities and its impact on the natural environment.
- Organizations can go green by adopting approaches such as the legal, market, stakeholder, and activist approaches.
- The four approaches to being green vary in their level of environmental sensitivity.
Managerial Ethics
- Ethics are the rules and principles that define right and wrong conduct.
- There are four views of ethics: utilitarian, rights, theory of justice, and integrative social contracts theory.
- Factors that affect managerial ethics include:
- individual characteristics (values, ego strength, locus of control)
- structural variables (organizational design, rules and regulations, behavior of superiors)
- organizational culture
- issue intensity
- To improve ethical behavior, organizations can use comprehensive ethics programs, employee selection, codes of ethics, top management's leadership, job goals, performance appraisal, ethics training, and formal protective mechanisms.
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Description
Learn about the classical and socioeconomic views of social responsibility, arguments for and against business's being socially responsible, and differentiating among social obligation, social responsiveness, and social responsibility.
