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Chapter 5
Managing Social Responsibility and Ethics
How important is it for organizations and managers to be socially responsible and ethical? In this chapter, we’re going to look at what it means to be socially responsible and ethical and what role managers play in both. Focus on the following learning outcomes as you read and study this chapter.
LEARNING OUTCOMES
5.1 Discuss what it means to be socially responsible and what factors influence that decision.
5.2 Explain green management and how organizations can go green.
5.3 Discuss the factors that lead to ethical and unethical behavior.
5.4 Describe management’s role in encouraging ethical behavior.
5.5 Discuss current social responsibility and ethics issues.
A MANAGER’S DILEMMA
Chapter 5 presents contemporary concepts of managerial ethics and social responsibility to help your students explore and appreciate the critical role of these issues in today’s complex business environment. The opening case in “A Manager’s Dilemma” highlights TOMS Shoes unique idea to promote corporate social responsibility. For each pair of shoes it sells, it donates a pair to a child in need. Founded by Blake Mycoskle, who experienced firsthand the injuries that children suffer when they have no shoes, the business concept is one of mixing charity with commerce. TOMS is popular with teens and twenty-somethings and has donated almost half a million shoes so far. For Blake Mycoskle, the ability for TOMS to produce a profit is just as important as his commitment to social responsibility. A question for TOMS concerns their ability to stay profitable and still be socially responsible. Encourage students to think about the value that TOMS gives to its customers and underprivileged children. Can companies afford to be both for profit and at the same time heavily promote a charity at the expense of corporate profits? Another way to ask this question is can companies afford NOT to be both for profit and promote other causes.
In
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