Wheelen Smbp13 Ppt 03

7/21/2019 Wheelen Smbp13 Ppt 03

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STRATEGIC MANAGEMENT & BUSINESS POLICY

13THEDITION

THOMAS L. WHEELEN J. DAVID HUNGER


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Prentice Hall, Inc. 2012 3-2

Responsibilities of a Business Firm

Social Responsibility:proposes tat a pri!atecorporation as responsibilities to society tate"ten# beyon# ma$in% a pro&t


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Frie#man's tra#itional !ie( of a business&rm:

) *r%ues a%ainst te concept of socialresponsibility

+ ,rimary %oal of business is pro&t ma"imi-ationnot spen#in% sareol#er money for te%eneral social interest


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.arroll's four responsibilities of business: /in

or#er of priority0) Economic

) e%al

) Etical

) Discretionary


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.arroll's four responsibilities of business:


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) Te ability to enter localan# international mar$ets

) Enance# reputation

) .ompetiti!e a#!anta%e

) .ost sa!in%s

) Te ability to car%epremium prices

) Impro!e# relationsips (itsuppliers an# #istributors

) Te ability to attract bettertalent

) 2oo#(ill in te eyes ofpublic ocials

) *ccess to capital

Social capitalrefers to the goodill of !e" sta!eholdersand pro#ides a co$pan" ith%


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'haracteristics of S(staina)ilit"

*+n#iron$ental

*+cono$ic

*Social


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.orporate Sta$eol#ers

Sta$eol#ers a!e an interest in te business

an# a4ect or are a4ecte# by te acie!ement ofte &rm's ob5ecti!es

Enterprise strate%y6 articulates te &rm's eticalrelationsip (it its sta$eol#ers


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Sta$eol#er *nalysis6 te i#enti&cation ofcorporate sta$eol#ers in 3 steps:

17 ,rimary sta$eol#ers a!e a #irect connection(it te corporation an# a!e sucientbar%ainin% po(er to #irectly a4ect corporateacti!ities

87 Secon#ary sta$eol#ersa!e an in#irect

sta$e in te corporation but are also a4ecte# bycorporate acti!ities

37 Estimate te e4ect on eac sta$eol#er from aparticular strate%ic #ecision


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Reasons for 9netical Bea!ior

) 9na(are tat bea!ior is uestionable

) ac$ of stan#ar#s of con#uct) Di4erent cultural norms an# !alues

) Bea!ior6base# or relationsip6base#%o!ernance systems

) Di4erent !alues bet(een business people an#sta$eol#ers


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;oral Relati!ismclaims tat morality is relati!eto some personal< social< or cultural stan#ar#an# tat tere is not a meto# for #eci#in%

(eter one #ecision is better tan anoter


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Types of ;oral Relati!ism inclu#e:

) Na=!e relati!ism

) Role relati!ism

) Social %roup relati!ism

) .ultural relati!ism


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>olber%'s e!els of ;oral De!elopment

) ,recon!entional le!el: concern for one's self

) .on!entional le!el: consi#erations forsociety's la(s an# norms

) ,rinciple# le!el: %ui#e# by an internal co#e ofetics


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Encoura%in% Etical Bea!ior

) .o#e of Etics6speci&es o( an or%ani-ation

e"pects its employees to bea!e (ile on te5ob

) ?istleblo(ers6 employees (o report ille%al

or unetical bea!ior on te part of oters


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>ey Terms in Etical Bea!ior

Etics6te consensually accepte# stan#ar#s ofbea!ior for an occupation< tra#e< or profession

;orality6te precepts of personal bea!ior base#on reli%ious or pilosopical %roun#s

a( is te formal co#es tat permit or forbi#certain bea!iors an# may or may not enforceetics or morality


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*pproaces to Etical Bea!ior

9tilitarian6 actions are 5u#%e# by conseuences

In#i!i#ual ri%ts6 fun#amental ri%ts soul# berespecte#

@ustice6 #ecisions must be euitable< fair an#impartial in te #istribution of costs an#

bene&ts to in#i!i#uals or %roups


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Prentice Hall, Inc. 2012 3-1&


.a!ana%'s uestions to sol!e etical

problems:

17 9tility6 #oes it optimi-e te satisfactions of testa$eol#ersA

87 Ri%ts6 Does it respect te ri%ts of tein#i!i#uals in!ol!e#

37 @ustice6 Is it consistent (it te canons of 5usticeA


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>ant's cate%orical imperati!es:

17 *ctions are etical only if te person is (illin%for te same action to be ta$en by e!eryone(o is in a similar situation

87 Ne!er treat anoter person simply as a meansbut al(ays as an en#


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17 ?at is te relationsip bet(een corporate%o!ernance an# social responsibilityA

87 ?at is your opinion of 2*, International's

a!in% a co#e of con#uct for its suppliersA?at (oul# ;ilton Frie#man sayA .ontrastis !ie( (it *rcie .arroll's !ie(7


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37 Does a company a!e to act selessly to be consi#ersocially responsibleA For e"ample< (en buil#in% a neplant< a corporation !oluntarily in!este# in a##itionaleuipment tat enable# it to re#uce its pollution emisbeyon# any current la(s7 >no(in% tat it (oul# be !ee"pensi!e for its competitors to #o te same< te &rmlobbie# te %o!ernment to ma$e pollution re%ulationsmore restricti!e on te entire in#ustry7Is tis company socially responsibleA ?ere its mana%

actin% eticallyA


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C7 *re te people li!in% in a relationsip6base# %o!ernancsystem li$ely to be unetical in business #ealin%sA

7 2i!en tat people rarely use a company's co#e of etito %ui#e teir #ecision ma$in%< (at %oo# are te co#e


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PoerPoint created )"%

Ronald Heimler

* Dowling College M!A* George"own Uni#er$i"% !S !&$ine$$

Admini$"ra"ion* Ad'&n(" )ro*e$$or LIM College+ N,* Ad'&n(" )ro*e$$or Long I$land

Uni#er$i"%+ N,

* Le("&rer Cali*ornia S"a"e )ol%"e(-ni(Uni#er$i"%+ )omona+ CA

* )re$iden" Wal"er Heimler+ In(.


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$eans, electronic, $echanical, photocop"ing, recording, or otherise,itho(t the prior ritten per$ission of the p()lisher. Printed in the

nited States of $erica.

'op"right 2012 Pearson +d(cation, Inc.p()lishing as Prentice Hall

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Wheelen Smbp13 Ppt 03