SOCIAL RESPONSIBILITY AND ADMINISTRATIVE ETHIS

CONCEPTS OF SOCIAL RESPONSIBILITY

Classic Concept: Idea that the only social responsibility of the administration is to obtain the greatest profits.

Socioeconomic Concept: Idea that the social responsibility of the administration goes beyond making profits to include defense and improvement of the welfare of society.

Comparison of ideas Four stages of the progression of social responsibilities of a company

Owners Employee Constituents of a specific environment Society as a whole

Arguments pro and against the social responsibility

Pro Public expectations Long-term returns Ethical obligation Public image Best atmosphere Discouragement of new governmental regulations. Balance of responsibility and power Interests of the shareholders Possession of resources Better to prevent than to remedy

Arguments pro and against the social responsibility

Counter There is no respect for the pursuit of maximum

profit Dilution of the purposes Costs Too much power Lack of capacity Lack of responsibility

Obligations, sensitivity and responsibility

Social Obligation: Duty of a company to comply with its legal and economic responsibilities.

Social Sensitivity: Ability of a company to adapt to changes in social conditions.

Social Responsibility: the duty of a company apart from the legal requirements and economic, to pursue long-term goals for the good of society. Adds the moral imperative.

Social Responsibility and economic performance

Positive relationship between the social commitment and the economic performance.

Methodological concerns in terms of wanting to measure the social responsibility and economic performance.

Coincidence Evaluate mutual funds of social responsibility

Social Filtering: Act to continue social criteria to take investment decisions.

Environmental management approach

Recognition of the direct link between decisions and activities of the organization and its impact on nature.

Global environmental problems As ecological become organizations:

Model of environmental responsibility: Legal position Market position Position of stakeholders Activist stance

Administration of securities

Methodology of the direction in wich managers establish and maintain the values that are shared across the organization.

Objectives of shared values: Guide decisions and actions of managers. Define the behavior of employees Influence the marketing activities Promotes group spirit

Outcome of shared corporate values Managers are responsible to uphold the values of the corporation:

enunciate values Values are linked to performance evaluations and compensation

Administrative ethics

Rules and principles that define right and wrong conduct.

Four notions of ethics

Utilitarian notion: Idea ethics moral decisions are taken according to the results or consequences

Legalistic notion: Idea of ethics centered on respect and protection of freedoms and privileges.

Ethical notion of the theory of justice: ethical theory according to which managers apply the rules fairly and impartially in accordance with the standards and legal guidelines

Theory of integrated social contracts: ethical theory which postulates that moral decisions should be based on ethical standards for industries and communities to determine what constitutes right and wrong.

Factors affecting the ethics of employees

Stages of moral development Preconventional

Sticking to the rules to avoid punishment Follow the rules just for the immediate interest

Conventional Living up to what people expect close Maintaining conventional order to comply with the obligations

accepted The principles

Assessing the rights of others and defend values and absolute rights, whatever the majority opinion.

Follow ethical principles chosen for yourself, but break the law

Factors affecting the ethics of employees

Characteristics of individuals: Values: basic convictions about right and wrong. Influential personality variables.

Firmness of the ego: A measure of personality strength of personal convictions.

Control Headquarters: Attribute of personality that expresses the degree to which the individual believes that controls his destiny.

Factors affecting the ethics of employees

Structural variables Structural Design Performance evaluation systems and procedures

for distribution of prizes. Behavior of managers

Organizational culture

Factors affecting the ethics of employees

Intensity of the problem Amount of damage Probability of harm Immediacy of the consequences Near the victims Concentration of effect Consensus of evil

Ethics in international context

Ethical standards are not universal. Practices Act Foreign Corrupt Global Compact

Human rights Labour Standards Environment

The promotion of ethical conduct

Selection of employees. Codes of ethics and decision rules. Leadership of management. Job goals and performance evaluation. Ethics training. Independent social audits. Formal mechanisms of protection.