The main contents of the chapter consist of the following: Social responsibility, obligation to responsiveness, factors that affect employee ethics, stages of moral development, effect of technological change. | Management Practices Lecture-28 1 Recap Socialization The Socialization Process Managerial Decisions Affected by Culture External Environment Key Stakeholders 2 Organizational Stakeholders 3 3 Today’s Lecture Social Responsibility Obligation to Responsiveness Factors That Affect Employee Ethics Stages of Moral Development Effect of Technological Change 4 What Is Social Responsibility? The Classical View Management’s only social responsibility is to maximize profits (create a financial return) by operating the business in the best interests of the stockholders (owners of the corporation). Expending the firm’s resources on doing “social good” unjustifiably increases costs that lower profits to the owners and raises prices to consumers. 5 5 What Is Social Responsibility? (cont’d) The Socioeconomic View Management’s social responsibility goes beyond making profits to include protecting and improving society’s welfare. Corporations are not independent entities responsible only to . | Management Practices Lecture-28 1 Recap Socialization The Socialization Process Managerial Decisions Affected by Culture External Environment Key Stakeholders 2 Organizational Stakeholders 3 3 Today’s Lecture Social Responsibility Obligation to Responsiveness Factors That Affect Employee Ethics Stages of Moral Development Effect of Technological Change 4 What Is Social Responsibility? The Classical View Management’s only social responsibility is to maximize profits (create a financial return) by operating the business in the best interests of the stockholders (owners of the corporation). Expending the firm’s resources on doing “social good” unjustifiably increases costs that lower profits to the owners and raises prices to consumers. 5 5 What Is Social Responsibility? (cont’d) The Socioeconomic View 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. Firms have a moral responsibility to larger society to become involved in social, legal, and political issues. “To do the right thing” 6 6 To Whom is Management Responsible? 7 7 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. 8 8 Johnson & Johnson Credo 4-9 Figure Managerial Ethics Ethics Defined Principles, values, and beliefs that define what is right and wrong behavior. 10 10 Factors That Affect Ethical and Unethical Behavior 11 11 Factors That Affect Employee Ethics Moral Development A measure of independence from outside influences Levels of Individual Moral Development Preconventional level Conventional .
