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BOH4M0 Management Leadership

BOH4M0 Management Leadership. Chapter 3: Ethical Behaviour and Social Responsibility. Chapter 3 Topic Overview. What is Ethical Behaviour? Ethics in the Workplace Maintaining High Ethical Standards Corporate Social Responsibility Organizations and Society. Corporate Social Responsibility:

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BOH4M0 Management Leadership

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  1. BOH4M0Management Leadership Chapter 3: Ethical Behaviour and Social Responsibility

  2. Chapter 3Topic Overview • What is Ethical Behaviour? • Ethics in the Workplace • Maintaining High Ethical Standards • Corporate Social Responsibility • Organizations and Society

  3. Corporate Social Responsibility: …is the obligation of an organization to serve its own interests and those of society. Stakeholder Analysis occurs when we identify the people and organizations that may be affected by a decision and then deal with the problems that may occur because of that decision.

  4. Stakeholders • Owners • Employees • Suppliers • Competitors • Regulators (Government, laws) • Interest Groups

  5. Leadership Beliefs • People—perform best in a healthy environment and balance of work and family life • Communities—organizations perform best when located in healthy communities • Natural Environment • Long Term • Reputation

  6. Perspectives on CSR • Classic view: management should only be concerned with maximizing profit. • If done under the Individualism view (the company), this will result in good, responsible decisions that will ensure the long-term success of the company • CSR practices will only drive up costs, reduce profits and allow the public too much control over private company affairs.

  7. Perspectives on CSR • Socio-Economic View: managers must take social welfare into account when making decisions about maximizing profits. • Will produce long-term benefits • Will help avoid government regulation (which would reduce costs) • Companies usually have the resources and definitely have a moral obligation to behave

  8. Evaluating Corporate Social Performance • A Social Responsibility audit is used assess an organization’s accomplishments in areas of social responsibility. • Can include a review of: • Impact on ecology/environment • Product safety • Consumer Protection • Community Service/Charity • Employee Assistance

  9. Evaluating Corporate Social Performance • Can act out of compliance-follow the rules to avoid punishment: • be profitable • Obey the law/regulations • Can act out of Conviction-creating a positive impact because you want to: • Doing what is right • Contributing to the community

  10. Social Entrepreneurship • This is the process of attempting to solve problems in society for the benefit of society as opposed to personal profit. • Search for things that are not working for people who need them • Change the system • Spread the solution • Change society • Fish story-give a man a fish, teach him to fish, change the entire industry.

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