Social Responsibilities and Managerial Ethics

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IDENTITY• Prepared by • Prepared for

Revolutioneer’s Md. Samimul IslamLecturer

Dept . of BUAAchieve immortality through

humanitarian service2

Social Responsibilities and Managerial Ethics

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LEARNING OBJECTIVES

• Define ethics and explain how ethical behavior relates to behavior governed by law and free choice.

• Explain the utilitarian, individualism, moral-rights, and justice approaches for evaluating ethical behavior.

• Describe how both individual and organizational factors shape ethical decision making.

• Define corporate social responsibility and how to evaluate it along economic, legal, ethical, and discretionary criteria.

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The code of moral principles and values that govern the behaviors of a person or group with respect to what is right or wrong

ETHICS

Ethics should be firmly determined

SOCIAL RESPONSIBILITIES

Liabilities to society

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Domain of Codified Law

(Legal Standard)

Domain of Ethics

(Social Standard)

Domain of Free Choice

(Personal Standard)

Amount of

Explicit ControlLow

THREE DOMAINS OF HUMAN ACTION

High

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ETHICAL DILEMMA

• alternative choices

• distinguish right from wrong

He is in a fix what to do 7

CRITERIA FOR ETHICAL DECISION MAKING

Most ethical dilemmas involve Conflict between needs of the part &

whole- Individual versus the organization - Organization versus society as a

wholeManagers benefit from a normative

strategy to guide their decision making - norms and values

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ETHICAL DECISION MAKING APPROACHES

• Utilitarian Approach

• Individualism Approach

• Moral-Rights Approach

• Justice Approach

Different thinking

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UTILITARIAN APPROACH

● Moral behavior produces the greatest goods for the greatest number

● Example – recent trend among companies to monitor employee use of the Internet

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INDIVIDUALISM APPROACH

● Acts are moral when they promote the individual's best long-term interests, which ultimately leads to the greater good

● Individual self-direction paramount

● Individualism is believed to lead to honesty & integrity since that works best in the long run

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MORAL-RIGHTS APPROACH

• Moral decisions are those that best maintain the rights of those people affected by them.

• An ethical decision is one that avoids interfering with the fundamental rights of others.

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SIX MORAL RIGHTS

1. The right of free consent

2. The right to privacy

3. The right of freedom of conscience

4. The right of free speech

5. The right to due process

6. The right to life and safety

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JUSTICE APPROACH

• Moral Decisions must be based on standards of equity, fairness, impartiality

Three types of Justice Approaches: Distributive Justice Procedural Justice Compensatory Justice

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DISTRIBUTIVE JUSTICE

• Different treatment of people should not be based on arbitrary characteristics

• In case of substantive differences, people should be treated differently in proportion to the differences among them

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PROCEDURAL JUSTICE

• Rules should be clearly stated

• Rules should be consistently and impartially enforced

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COMPENSATORY JUSTICE

● Individuals should be compensated for the cost of their injuries by the party responsible

● Individuals should not be held responsible for matters they have no control over

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FACTORS AFFECTING ETHICAL CHOICES

• The Manager• Levels or stages of moral

development• Pre-conventional• Conventional• Post-conventional

• The Organization18

LEVELS OF PERSONAL MORAL DEVELOPMENT

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Follows rules to avoid punishment.

Lives up to expectations of others.

Follows self-chosen principles of justice and right.

Level1:Preconventional

Level 2:Conventional

Level 3:Postconventional

CORPORATE SOCIAL RESPONSIBILITIES

• Organization’s obligation

• good corporate citizen

• Difficulty in understanding

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SOCIAL RESPONSIBILITIES ON THE CONTEXT OF BANGLADESH

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Arsenic free water

Book distribution

SOCIAL RESPONSIBILITIES ON THE CONTEXT OF BANGLADESH (CONTD.)

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Repairing house

Food distribution

SOCIAL RESPONSIBILITIES ON THE CONTEXT OF BANGLADESH

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Tree plantation

Blood donation

THE ORGANIZATION

• personal values of a single manager

• Adopted values

• Fulfill obligations

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ORGANIZATIONAL STAKEHOLDERS• Any group within or

outside the organization that has a stake in the organization’s performance

• Each stakeholder – Has a different criterion of

responsiveness – Has a different interest in

the company• Monsanto

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ENVIRONMENTAL RESPONSIBILITY COMMITMENT

The Shades of Corporate Green

Activist Approach

Stakeholder Approach

Market Approach

Legal Approach

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TOTAL CORPORATE SOCIAL RESPONSIBILITY

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THE ETHICAL ORGANIZATIONThe Three Pillars of an Ethical Organization

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Eid Mubarak Everyone

Thanks for being with

us