MANAGEMENT A PACIFIC RIM FOCUS

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MANAGEMENTA PACIFIC RIM FOCUS

• Lecture 4
• 18 August, 2004
• SOCIAL RESPONSIBILITY AND ETHICS IN MANAGEMENT

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So far -

• Management roles (POLC)
• Pioneering Ideas
• The organisations environment

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THE MEGA-ENVIRONMENT Telstra(Interview Ziggy
Switkowski/Alan Kohler, ABC TV 15.8.04)
Economic element
Technological element PSTN, mobile, 3G, IP
Legal-political element ACCC/broadband,
ownership
The organisation
Sociocultural element
International element
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LECTURE OUTLINE

• Organisational social responsibility
• Major perspectives
• Social responsibilities of managers
• Social stakeholders
• Does social responsibility pay?
• Organisational social responsiveness
• Monitoring social demands and expectations
• Internal social response mechanisms

• Being an ethical manager
• Types of managerial ethics
• Ethical guidelines for managers
• Ethical career issues
• Managing an ethical organisation
• Situational factors influencing ethical behaviour
• Mechanisms for ethical behaviour

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Roger Corbett CEO WoolworthsManagement
August 2004

• Q What, in your experience, are the key
  management skills needed to run any successful
  business and what skills do you prize most?
• A Well, I most prize integrity and genuineness.
• Second, the ability to work hard and apply
  oneself to the task.
• If you do these two things and you have basic
  ability and are prepared to work hard with
  enthusiasm, application and motivation, you will
  achieve.
• If you give us a young man or woman with these
  skills and attitudes then we can teach them, but
  genuineness, capacity and integrity are the keys.

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What is Social Responsibility?

• Organisational social responsibility is the
  obligation of an organisation to seek actions
  that protect and improve the welfare of society
  along with its own interest
• Operationally defining social responsibility is
  difficult
• Public perception of an organisations social
  responsibility is sometimes linked to charity
• How does charity affect profit?
• How about employment policies?
• Products and service offered by the organisation!

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ORGANISATIONAL SOCIAL RESPONSIBILITY

• Major perspectives
• The invisible hand - make profits obey the
  law...
• The hand of government - control legislation
• The hand of management - improve social welfare
  and mind profit

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Social Responsibilities of Managers

• All the three perspectives recognise the economic
  and legal responsibilities of management
• The hand of management perspective recognises
  that managers have an ethical and discretionary
  responsibility to act beyond the economic and
  legal responsibility afforded to them by other
  views
• Ethical responsibilities include behaviours and
  activities that are expected of business
  societys members
• Discretionary responsibilities are those the
  company is not expected to perform, but that do
  benefit some members of society

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ORGANISATIONAL SOCIAL RESPONSIBILITY SOCIAL
STAKEHOLDERS
Employees
The organisation
Shareholders
Customers
International community
Local community
Society (regional national)
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ORGANISATIONAL SOCIAL RESPONSIBILITY

• Does social responsibility pay?
• Evidence is mixed
• Strategically beneficial
• Likely, profit ? socially responsible management
• Shareholders sensitive to extent it affects profit

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ORGANISATIONAL SOCIAL RESPONSIVENESS

• the development of organisational decision
  processes where managers anticipate, respond to,
  and manage areas of social responsibility.
• Monitoring social demands and expectations
• Social forecasting - includes use of futurists
• Opinion surveys - give indications of community
  group sentiments
• Social audits - of organisational social
  performance
• Issues management - identify emerging social
  issues, prepare responses
• Social scanning - non-formal, attention to
  elements of task environment

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ORGANISATIONAL SOCIAL RESPONSIVENESS

• Internal social response mechanisms, reliance
  upon
• Individual executives As-need-arises, reactive
  approach
• Temporary task forces Reactive, broader range of
  skills applied
• Permanent committees More proactive, longer focus

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ORGANISATIONAL SOCIAL RESPONSIVENESS

• Internal social response mechanisms, reliance
  upon (cont.)
• Permanent departments Proactive, likely to
  invoke broader range of public affairs
  initiatives.
• Combination approaches Proactive, committee may
  oversee permanent department, task forces and
  project workers/executives

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BEING AN ETHICAL MANAGER Types of managerial
ethics
Immoral management - lacks ethical principles,
concern only for profit
Amoral management - ignores or oblivious to
ethical issues - intentional or unintentional
Moral management - conscious attention to
ethical standards, pursuit of profit (ends)
ethical conduct (means)
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BEING AN ETHICAL MANAGER

• Ethical guidelines for managers
• Obey the law
• Tell the truth
• Show respect for people
• Stick to the Golden Rule (Do unto others )
• Above all, do no harm
• Practice participation, not paternalism
• Always act when you have responsibility

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ETHICAL CAREER ISSUES

• Assessing values and protecting yourself
• Seek advice support from trusted sources
• Take action to change what you see as not being
  ethical
• Take actions to protect yourself
• Anticipating ethical conflicts
• Pre-employment checks Is this an ethical
  company?
• Is the industry marked by patterns of unethical
  behaviour?
• Avoid ethical compromises

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MANAGING AN ETHICAL ORGANISATION

• Situational factors influencing ethical behaviour
• External factors
• Competitiveness, high/low opportunities for
  success, dependency on other organisations
• Internal factors
• Push for high performance, labour unrest,
  delegation, quests for innovation

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Managing an ethical organisation Mechanisms for
ethical behaviour
Increasing awareness of diversity
Top-management commitment
Codes of ethics
Ethics committees
Ethics audits
Ethics hotlines
Ethics training
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SUMMARY OF SOCIAL RESPONSIBILITY AND ETHICS IN
MANAGEMENT

• Organisational social responsibility
• Major perspectives - invisible hand, hands of
  government management
• Social responsibilities of managers
• Social stakeholders- shareholders, employees,
  customers, local international community,
  society.
• Does social responsibility pay? - Evidence mixed
• Organisational social responsiveness
• Monitoring social demands and expectations -
  forecasting, opinion surveys, social audits,
  issues management, social scanning

• Internal social response mechanisms
• Being an ethical manager
• Types of managerial ethics- immoral, amoral,
  moral
• Ethical guidelines for managers
• Ethical career issues - assessing anticipating
  ethical conflicts
• Managing an ethical organisation
• Situational factors influencing ethical behaviour
  - external internal
• Mechanisms for ethical behaviour

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Thanks for your attention