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Management, 7e
Schermerhorn
Prepared by
Michael K, McCuddy
Valparaiso University
John Wiley & Sons, Inc
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COPYRIGHT
Copyright 2002 !ohn "iley # Sons, $nc% &ll rights reserved%
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damages, caused by the use o( these programs or (rom the use o( the
in(ormation contained herein%
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Schermerhorn Chapter 3
Chapter
4thical 5ehavior and Social 'esponsibility
Planning ahead6study -uestions
"hat is ethical behavior8
9o) do ethical dilemmas complicate the)or*place8
9o) can high ethical standards be maintained8
"hat is organi:ational social responsibility89o) do organi:ations and government )or*
together in society8
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Schermerhorn Chapter ;
4thics
Code o( moral principles%
Set standards o( good and bad and right and
)rong%
4thical behavior
"hat is accepted as good and right in the
contet o( the governing moral code%
"hat is ethical behavior8
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Schermerhorn Chapter
4thical behavior should also be legal in a ?ust
and (air society%
=egal behavior is not necessarily ethical
behavior%
Personal values help determine individual
ethical behavior%
"hat is ethical behavior8
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Schermerhorn Chapter
"hat is ethical behavior8
Utilitarian vie) o( ethics6greatest good to the
greatest number o( people%
$ndividualism vie) o( ethics6primarycommitment is to one@s longterm sel(interests%
Moralrights vie) o( ethics6respects the
(undamental rights o( all people%
!ustice vie) o( ethics6(air and impartial treatmento( people according to rules and standards%
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Schermerhorn Chapter 7
Cultural issues in ethical behavior>
Cultural relativism
A 4thical behavior is al)ays determined by culturalcontet%
4thical imperialism
A 5ehavior that is unacceptable in one@s homeenvironment should not be acceptable any)here
else%
"hat is ethical behavior8
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Schermerhorn Chapter B
"hat is ethical behavior8
9o) companies can respect core or universal values>
Respect for human dignity
A Create culture that values employees, customers, and suppliers%
A Keep a sa(e )or*place%
A Produce sa(e products and services%
Respect for basic rights
A Protect rights o( employees, customers, and communities%
A &void anything that threatening sa(ety, health, education, and livingstandards%
Be good citizens
A Support social institutions, including economic and educational systems%
A "or* )ith local government and institutions to protect environment%
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Schermerhorn Chapter
&n ethical dilemma occurs )hen choices o((er
potential (or personal and1or organi:ational bene(it
but may be considered unethical%
4thical dilemmas include>
.iscrimination
Seual harassment
Con(licts o( interest Customer con(idence
Drgani:ational resources
9o) do ethical dilemmas complicate the)or*place8
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Schermerhorn Chapter +0
9o) do ethical dilemmas complicate the
)or*place8 4thical behavior can be rationali:ed by convincing
yoursel( that>
5ehavior is not really illegal%
5ehavior is really in everyone@s best interests%
Eobody )ill ever (ind out%
/he organi:ation )ill FprotectG you%
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Schermerhorn Chapter ++
Hactors in(luencing ethical behavior include>
/he person
A Hamily in(luences, religious values, personal standards, and
personal needs
/he organi:ation
A Supervisory behavior, policy statements and )ritten rules, and
peer group norms and behavior
/he environment
A Iovernment la)s and regulations, societal norms and values,
and competition climate in an industry
9o) do ethical dilemmas complicate the)or*place8
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Schermerhorn Chapter +2
4thics training>
Structured programs that help
participants to understand ethical aspectso( decision ma*ing%
9elps people incorporate high ethical
standards into daily li(e%9elps people deal )ith ethical issuesunder pressure%
9o) can high ethical standards bemaintained8
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Schermerhorn Chapter +3
"histleblo)ers
4pose misdeeds o( others to
A Preserve ethical standards
A Protect against )aste(ul, harm(ul, or illegal acts
9o) can high ethical standards bemaintained8
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Schermerhorn Chapter +;
9o) can high ethical standards be
maintained8 =a)s protecting )histleblo)ers vary%
5arriers to )histleblo)ing include> Strict chain o( command
Strong )or* group identities
&mbiguous priorities
Drgani:ational methods (or overcoming)histleblo)ing barriers> 4thics advisors
4thics sta(( units
Moral -uality circles
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Schermerhorn Chapter +
/op managers serve as ethical role models%
&ll managers can in(luence the ethical behavior o(
people )ho )or* (or and )ith them%
4cessive pressure can (oster unethical behavior%
Managers should be realistic in setting per(ormance
goals (or others%
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Schermerhorn Chapter +
Codes o( ethics> D((icial )ritten guidelines on ho) to behave in situations
susceptible to the creation o( ethical dilemmas%
&reas o(ten covered by codes o( ethics> "or*(orce diversity
5ribes and *ic*bac*s
Political contributions
9onesty o( boo*s or records Customer1supplier relationships
Con(identiality o( corporate in(ormation
9o) can high ethical standards bemaintained8
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Schermerhorn Chapter +7
United Eations@ Ilobal Compact guidelines
(or corporate codes o( ethics>
9uman rights
=abor
4nvironment
9o) can high ethical standards bemaintained8
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Schermerhorn Chapter +B
"hat is organi:ational social
responsibility8Drgani:ation Jcorporate social
responsibility>
=oo*s at ethical issues on the organi:ation
level%
Dbligates organi:ations to act in )ays that
serve both its o)n interests and the interests o(
eternal sta*eholders%
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Schermerhorn Chapter +
"hat is organi:ational social
responsibility8 5elie(s that drive organi:ational social
responsibility>
People do their best )ith a balance o( )or* and (amilyli(e%
Drgani:ations per(orm best in healthy communities%
Drgani:ations gain by respecting the naturalenvironment%
Drgani:ations must be managed and led (or longtermsuccess%
Drgani:ations must protect their reputations%
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Schermerhorn Chapter 20
"hat is organi:ational social
responsibility8Perspectives on social responsibility>
Classical vie)6
A Management@s only responsibility is to maimi:e
pro(its%
Socioeconomic vie)6
A Management must be concerned (or the broader
social )el(are, not ?ust pro(its%
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Schermerhorn Chapter 2+
"hat is organi:ational socialresponsibility8
&rguments against social
responsibility>
'educed business pro(its
9igher business costs .ilution o( business
purpose
/oo much social po)er (or
business
=ac* o( public
accountability
&rguments in (avor o(
social responsibility>
&dds longrun pro(its
5etter public image &voids more government
regulation
5usinesses have resources
and ethical obligation
5etter environment
Public )ants it
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Schermerhorn Chapter 22
"hat is organi:ational social
responsibility8
Criteria (or evaluating corporate social
per(ormance>
$s the organi:ation@s L
A 4conomic responsibility met8
A =egal responsibility met8
A 4thical responsibility met8
A .iscretionary responsibility met8
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Schermerhorn Chapter 23
"hat is organi:ational social
responsibility8
Strategies (or pursuing social responsibility> Dbstructionist6meets economic
responsibilities% .e(ensive6meets economic and legal
responsibilities%
&ccommodative6meets economic, legal, and
ethical responsibilities% Proactive6meets economic, legal, ethical, and
discretionary responsibilities%
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Schermerhorn Chapter 2;
9o) do organi:ations and government)or* together in society8 9o) government in(luences organi:ations6
Some governmental agencies that monitor compliance
)ith legislative mandates>
A Hederal &viation &dministration JH&&
A 4nvironmental Protection &gency J4P&
A Dccupational Sa(ety and 9ealth &dministration JDS9&
A Hood and .rug &dministration JH.&
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Schermerhorn Chapter 2
A Dccupational sa(ety and health
AHair labor practices
A Consumer protection
A 4nvironmental protection
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Schermerhorn Chapter 2
9o) do organi:ations and government
)or* together in society89o) organi:ations in(luence government6
Personal contacts and net)or*s
Public relations campaigns
=obbying
Political action committees
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Schermerhorn Chapter 27
9o) do organi:ations and government)or* together in society8Managers ma*e the di((erence in ethics and social
responsibility because L
Managers Jand )or*ers must accept personalresponsibility (or doing the FrightG things%
Managers play a crucial role in responding to public
demands%
4thics and social responsibility play a central role in
managers@ decisions and activities%