Ch 5: Social Responsibility & Management Ethics

social responsibilities dimension
employee relations, philantrophy, pricing, resource conservation, product quality, & safety
doing business in countries that violate human rights
classic view of social responsibility
managements only social responsibility is to maximize org profits for stockholders
friedman
most outspoken advocate of classical view
economist
nobel laureate
leading proponent of classical view
anytime managers decide on their own to spend orgs resources for social good, they are adding to the costs of doing business
proponents of social responsibility
believe that business orgs are not just economic institutions
ethical obligation argument
the belief that business should be responsible because such actions are right for their own sake
better environment argument
belief that businessmen help solve difficult social problems create a desirable community & attract & keep skilled employees
violation of profit maximization argument
the belief that businesses are being socially responsible when they attend only to economic interests
cost argument against social responsibility
belief that the cost of social activity is passed on as higher prices to consumers
social obligation
the obligation of a business to meet its economic and legal responsibilities and nothing more.
social responsibility
firms obligation beyond that required by law & economic to pursue long term goals that are good for society
aspect that differentiates social responsibility
adds an ethical imperative
basic definition of ethics
rule or principle that defines right & wrong conduct
primary debate about ethics training
whether ethics can be taught or not
more than any other quality
of leadership, employees crave honesty