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5 - * ? Prentice Hall, 2002 Chapter 5 SOCIAL RESPONSIBILITY AND MANAGERIAL ETHICS ? Prentice Hall, 2002 5-* Learning Objectives You should learn to: Explain the classical and socioeconomic views of social responsibility List the arguments for and against business’s being socially responsible Differentiate among social obligation, social responsiveness, and social responsibility Explain the relationship between corporate social responsibility and economic performance Describe values-based management and how it is related to organizational culture ? Prentice Hall, 2002 5-* Learning Objectives (cont.) You should learn to: Explain what the “greening” of management is and how organizations are “going green” Differentiate among the four views of ethics Identify the factors that affect ethical behavior Discuss various ways organizations can improve the ethical behavior of their employees ? Prentice Hall, 2002 5-* Two Opposing Views of Social Responsibility Classical view - management’s only social responsibility is to maximize profits Milton Friedman - managers’ primary responsibility is to serve the interests of the stockholders doing “social good” adds to the cost of doing business costs have to be passed on to consumers What Is Social Responsibility? ? Prentice Hall, 2002 5-* Two Opposing Views of Social Responsibility (cont.) Socioeconomic view - businesses are not just economic institutions management’s social responsibility goes beyond making profits to include protecting and improving society’s welfare businesses have responsibility to a society that: endorses their creation through laws and regulations supports them by buying their products/services more organizations around the world have increased their social responsibility What is Social Responsibility (cont.) ? Prentice Hall, 2002 5-* What Is Social Responsibility (cont.) From Obligations to Responsiveness social responsibility - a business’s obligation to pursue long-term goals that help society goes beyond
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