ORMAN Managing Social Responsibility & Ethics PDF

Managing Social Responsibility and Ethics ORGMAN | LESSON 4 After this module, you should be able to: 1.Discuss what it means to be socially responsible and what factors influence that decision. 2.Explain green ­ What is social management and how...

Managing Social Responsibility and Ethics ORGMAN | LESSON 4 After this module, you should be able to: 1.Discuss what it means to be socially responsible and what factors influence that decision. 2.Explain green ­ What is social management and how responsibility? organizations can go ­ Green management green. and sustainability 3.Discuss the factors that lead to ethical and ­ Managers and ethical unethical behavior behavior 4.Describe management’s ­ Social responsibility role in encouraging and ethics issues in ethical behavior Classical Socioeconomic  Management’s only social View View  Management’s social responsibility responsibility is to goes beyond making profits to include protecting and improving maximize profits (create a society’s welfare. financial return) by  Corporations are not independent operating the business in entities responsible only to the best interests of the stockholders. stockholders (owners of  Firms have a moral responsibility the corporation). to larger society to become  ­Expending the firm’s involved in social, legal, and political issues. resources on doing “social  “To do the right thing” good” unjustifiably increases costs that lower profits to the  From Obligation to Responsiveness to Responsibility  Social Obligation - the obligation of a business to meet its economic and legal responsibilities and nothing more.  Social Responsiveness - when a firm engages in social actions in response to some popular social need.  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.  Social Social Responsivene Responsibilit ss y Major Pragmatic Ethical consideration Means Ends Focus Responses Obligation Emphasis Medium- & Long-term Decision short-term framework When PETA supporters picketed Avon products because of its use of animals in the testing of its cosmetics, Avon changed its practices and stopped testing on animals. In this situation, Avon exercised ________. 👍social obligation ❤️classical responsibility 👏social responsiveness 😂social obligation  Arguments For and Against Social Responsibility Public expectations Public opinion now supports businesses pursuing economic and social goals. Long-run profits for Socially responsible companies tend to have more secure long-run profits. Ethical obligation Businesses should be socially responsible because responsible actions are the right thing to do.  Arguments For and Against Social Responsibility Public image Businesses can create a favorable public image by pursuing social goals. Better environment Business involvement can help solve difficult social for problems. Discouragement of further regulation By being socially responsible, businesses can expect less government regulation. Balance of responsibility and power  Arguments For and Against Social Responsibility Stockholder interests Social responsibility will improve a business’ stock price in the long run. Possession of resources for Businesses have the resources to support public and charitable projects that need assistance. Superiority of prevention over cures Businesses should address social problems before they become serious and costly to correct.  Arguments For and Against Social Responsibility Violation of profit against maximization Business is being socially responsible only when it pursues its economic interests. Dilution of purpose Pursuing social goals dilutes business's primary purpose —economic productivity Costs Many socially responsible actions do not cover their costs and someone must pay those costs.  Arguments For and Against Social Responsibility Too Much Power against Businesses have a lot of power already; if they pursue social goals, they will have even more. Lack of skills Business leaders lack the necessary skills to address social issues. Lack of accountability There are no direct lines of accountability for social actions. Which one of the following arguments on social responsibility states that a business is socially responsible only when it pursues its economic interests? 👍Public expectations ❤️Violation of profit maximization 👏Superiority of prevention over cures 😂Possession of resources As a student, what can you do to protect the environmen Green Management Managers consider the impact of their organization on the natural environment How Organizations Go Green Legal (light green) approach Market approach Stakeholder approach Activist (dark green) approach How Organizations Go Green Legal (light green) Legal (light green) approach approach simply doing Market what is approach required legally Stakeholder approach Activist (dark green) approach How Organizations Go Green Legal (light green) Market approach approach respond to Market environment approach al preferences Stakeholder of customers approach Activist (dark green) approach How Organizations Go Green Legal (light green) Stakeholder approach approach an organization works to meet the environmental demands of multiple Market approach stakeholders such as employees, suppliers, or community Stakeholder approach Activist (dark green) approach How Organizations Go Green Legal (light green) Activist (dark green) approach looks for ways to approach protect the Market approach earth’s natural Stakeholder resources approach Activist (dark green) approach  Employees and customers exerted pressure on Amazon until it issued a public statement indicating the firm would use its clout to push for tougher environmental standards. This is an example of a(n) ________ approach to sustainability. 👍legal (light green) approach ❤️market approach 👏stakeholder approach 😂activist (dark green) approach Ethics - principles, values, and beliefs that define right and wrong behavior  At the ________ level of moral development, individuals define moral values apart from the authority of the groups to which they belong or society in general 👍preconventional ❤️conventional 👏principled 😂unconventional  When faced with an ethical dilemma, consider using one or more of these tests: The Golden Rule Test Would I want people to do this to me? The What-If-Everybody-Did-This Test Would I want everyone to do this? Would I want to live in that kind of world? The Family Test How would my parents/spouse/significant other/children feel if they found out I did this? The Conscience Test Does this action go against my conscience? Will I feel guilty afterwards? The Front Page/Social Media Test How would I feel if this action was reported on the front page of my hometown newspaper or splashed across social media outlets for all to see?  Codes of Ethics and Decision Rules Code of ethics a formal statement of an organization’s primary values and the ethical rules it expects its employees to follow The effectiveness of a code of ethics depends heavily on whether management supports them and how employees that violate the codes are treated  Codes of Ethics and Decision Rules Leadership at the Top business ethically requires a commitment from managers at all levels, but especially the top level because: ­ they uphold the shared values and set the cultural tone ­ they’re role models in both words and actions  Codes of Ethics and Decision Rules Job Goals and Performance Appraisal Under the stress of unrealistic goals, otherwise ethical employees may feel they have no choice but to do whatever is necessary to meet those goals. Social Entrepreneur an individual or organization that seeks out opportunities to improve society by using practical, innovative, and sustainable approaches Corporate Philanthropy can be an effective way for companies to address societal problems  Share your thoughts! If you discover any “questionabl e” practice within your whistle- organization, blower Individual who will you / raises ethical Managing Change and Disruptive Innovation BECORE1 | LESSON 4 After this module, you should be able to: 1.Describe making the case for change 2.Compare and ­ The case for change contrast views on the ­ change process The change process ­ Areas of change 3.Classify areas of organizational ­ Managing change change ­ Stimulating and 4.Explain how to Nurturing manage change Innovation Organizatio nal Change any alteration of people, structure, or technology in an organization Change Agent someone who acts as a catalyst and assumes the responsibility for managing the change process External Forces for Change ­ ­Consumer needs and wants ­ ­New governmental laws ­ ­Technology ­ ­The economy Internal Forces for Change ­ New organizational strategy ­ Composition of workforce ­ New equipment ­ Employee attitudes Managers exclusively play the role of change agents. 👍 ❤️  Government regulations are considered an internal factor for change because they force the business to change how it functions. 👍 ❤️ Kurt Lewin’s three-step change process Why Do People Resist Change? o Uncertainty o Habit o Fear of loss o Belief change is inconsistent with goals of Techniques for Reducing Resistance Education andto Change communication Participation Facilitation and support Negotiation Manipulation and co- optation Coercion Techniques for Reducing Resistance to Change Disadvanta Technique When Used Advantage ge Education When Clear up mis- May not work and resistance is understandin when mutual communicati due to gs trust and on misinformati credibility on are lacking Techniques for Reducing Resistance to Change Disadvanta Technique When Used Advantage ge Participation When Increase Time- resisters involvement consuming; have the and has potential expertise to acceptance for a poor make a solution contribution Techniques for Reducing Resistance to Change Disadvanta Technique When Used Advantage ge Facilitation When Can facilitate Expensive; and support resisters are needed no guarantee fearful and adjustments of success anxiety ridden Techniques for Reducing Resistance to Change Disadvanta Technique When Used Advantage ge Negotiation When Can “buy” Potentially resistance commitment high cost; comes from opens doors a powerful for others to group apply pressure too Techniques for Reducing Resistance to Change Disadvanta Technique When Used Advantage ge Manipulation When a Inexpensive, Can backfire, and co- powerful easy way to causing optation group’s gain support change endorsement agent to lose is needed credibility Techniques for Reducing Resistance to Change Disadvanta Technique When Used Advantage ge Coercion When a Inexpensive, May be powerful easy way to illegal; may group’s gain support undermine endorsement change is needed agent’s credibility  One reason people resist change in an organization is that they are afraid their skill set will be obsolete. 👍 ❤️  Negotiation involves bringing those affected by change into the decision-making process. 👍 ❤️ Creativity vs Innovation  Creativity: the ability to combine ideas in a unique way or to make unusual associations between ideas  Innovation: taking creative ideas and turning them into How can you encourage people to be creative and/or innovative? An innovative organization is likely to have the following characteristics. ­ Accept ambiguity ­ Tolerate the impractical ­ Keep external controls minimal ­ Tolerate risk ­ Tolerate conflict ­ Focus on ends rather than means ­ Provide positive feedback  Stimulating and Nurturing Innovation Idea Champion individual who actively and enthusiastically supports new ideas, builds support, overcomes resistance, and ensures that  Stimulating and Nurturing Innovation Design-thinking Idea mentality Champion entails knowing customers as real people with real problems— not just as sales targets or demographic statistics.  Stimulating and Nurturing Innovation Disruptive Idea Champion innovation innovations in products, services, or processes that radically change an industry’s rules of the game  Stimulating and Nurturing Innovation Sustaining Idea innovation Champion small and incremental changes in established products rather than dramatic breakthroughs Innovation refers to the ability to combine ideas in a unique way or to make unusual associations between ideas 👍 ❤️ Design thinker is an individual who actively and enthusiastically supports new ideas, builds support, overcomes resistance, and ensures that innovations are implemented 👍 ❤️ Books: Robbins, S. and Coulter, M. (2016). Management, 13th Edition/Global Edition. Prentice Hall Rice University: OpenStax. (2019). Principles of Management. https://openstax.org/details/books/principles-management Pereda, P. (2014). Principles of Management and Organization. Rex Bookstore Online Resources: Pedulla, D. (2020). Diversity and Inclusion Efforts That Really Work. Harvard Business Review. https://hbr.org/2020/05/diversity-and-inclusion-efforts-that-r eally-work TED. (2018). How to get serious about diversity and inclusion in 68 the workplace | Janet Stovall. https://youtu.be/kvdHqS3ryw0  OFFICIAL MCC MODULE DISCLAIMER It is not the intention of the author/s nor the publisher of this module to have monetary gain in using the textual information, imageries, and other references used in its production. This module is only for the exclusive use of a bona fide student of Mabalacat City College. In addition, this module or no part of it thereof may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, and/or otherwise, without the prior permission of Mabalacat City College. 69 KVV –