Social responsibility and Ethics

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Social responsibility and Ethics
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C H A P T E R
S E V E N
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Social Responsibility

• Taking all stakeholders into account
• Organizations are influencing society
• Why be socially responsible?
• Genuine desire
• Fear of legislative action
• Good business

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Perspectives on Social Responsibility

• SR is no business of organizations
• SR is a matter for government
• SR is enlightened self-interest
• SR is core business

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The four Ps of ethical business

• Purpose
• Principles
• Practices
• Performance management

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Ethical Decision Making

• Utilitarianism
• Greatest good for greatest number
• Golden Mean
• Categorical Imperative
• Individual Rights
• Fundamental entitlements in society
• Distributive Justice
• Inequality must have equal access
• Inequality must benefit the least well off

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Ethical Dilemmas

• What is good for this organization is not good
  for society as a whole
• What benefits certain stakeholders will not
  benefit other stakeholders
• Short term focus
• What is good for me is not good for the
  organization

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Common rationalisations

• It is not illegal
• Everyone else does it
• I am not responsible
• I am only hurting the system
• I am making things right or fair

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Factors affecting the extent of ethical behaviour

• Individual Characteristics
• ego strength and locus of control
• Structural variables
• formalisation, appraisal systems, rewards, job
  pressure
• Organizational culture
• examples, strength, content

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Improving ethical behavior

• Individual
• selection and training
• Structural
• Codes of ethics, adjusting appraisal and reward,
  workload
• Culture
• ethical role models
• Systems thinking

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Workplace Emotions,Values, and Ethics
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C H A P T E R
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