Ch 14 - Social resp

14.3 Views of CSR
Two contrasting views used to stimulate debate about merits of CSR • Classical view: management’s only responsibility is to maximise profits; the returns to stockholders

CSR would threaten organisations; foreign competitors may ignore social demands & be more competitive
• Socio-Economic view: organisations have responsibility to the larger society
Cornerstones of Management: Chapter 14
14.9 Reducing Employee Harm to CSR
To ensure employees do not harm the organisation’s CSR stance, the manager needs to:
Cornerstones of Management: Chapter 14
14.1 Introduction
• Last quarter of 20th century, questions asked about organisations having a single economic goal – ‘profit’ • Managers now faced with corporate social responsibility (CSR) – product pricing, philanthropy, employee relations, resource conservation, product quality …. • CSR arises from ethical nature of the organisation, its moral development & ethical codes & strategies that sustain ethical judgement & behaviour
Cornerstones of Management: Chapter 14
14.8 Employees as CSR Citizens
A manager needs to:
• Model positive CSR behaviours • Set clear CSR goals for all employees • Resource CSR training programmes • Promote an underlying ethics programme • Develop quality-of-life outcomes through work-life issuessustains them

survival more important than profit
Cornerstones of Management: Chapter 14
14.4 Four CSR Approaches
Strategy Proactive Commitment Actions
• Set up CSR structures throughout the organisation • Develop protective mechanisms for those active in CSR • Establish CSR reconciliation approaches • Demonstrate CSR procedures in political & business lobbying
Cornerstones of Management: Chapter 14
14.11 Ethics Definitions
• Ethics: a set of beliefs & principles that govern behaviour
• Ethical behaviour: actions which conform to generally accepted social norms • Unethical behaviour: actions which do not conform to generally accepted social norms • Managerial ethics: standards of conduct used by manager in their work
• Build CSR into performance training
• Establish a multi-disciplinary group to undertake social audits • Provide rewards at public ceremonies • Advertise CSR rewards in local media
Cornerstones of Management: Chapter 14
• Public expects social + economic goals
• CSR orgs have more secure profits
• CSR adds to image + customer base • CSR is right for its own sake
• CSR organisations have better work-life balance
Cornerstones of Management: Chapter 14
14.6 Arguments Against CSR
• Organisations most socially responsible when they attend to core economic role • CSR diminishes organisations basic purpose • CSR costs passed on to customers • MNCs too big now & CSR will make them more powerful • Business people poorly equipped to cope with social issues • Business leaders may not be accountable for social goals • Conflict in society about CSR role
Chapter 14
Social Responsibility and Ethics in Management
Cornerstones of Management
Skills in Practice
Chapter Overview
This chapter looks at: • Corporate social responsibility & relevant stakeholders • Values of CSR • Informal social responsibility mechanisms used by organisations • Three major types of managerial ethics • Ethical guidelines for managers • Situational factors affecting ethics • Behaviour in organisations reinforcing ethical behaviour
• CSR limits further govt regulation • CSR balances power & responsibility
• CSR organisations seen as less risky
• CSR resources/professionals can contribute to public projects • CSR organisations act on social problems before damaging production of goods/services
Rule
Operating concept
Obligation to do what is right, just and fair. Avoid harm.
The foundation upon which all the others rest.
Cornerstones of Management: Chapter 14
Cornerstones of Management: Chapter 14
14.2 Grid of CSR
1 Voluntary responsibility Be a good corporate citizen Contribute resources to the community, improve the quality of life. 2 Ethical responsibility Be ethical 3 Legal responsibility Obey the law Law is society’s coding of right and wrong. Play by the rules of the game. 4 Economic responsibility Be profitable Type
Cornerstones of Management: Chapter 14