UNIT 2
Social and Ethical Responsibilities of
Management
Overview
Increasingly,
organizations
are
expected
to
be
socially
and
environmentally
responsible
and
be
...
UNIT 2
Social and Ethical Responsibilities of
Management
Overview
Increasingly,
organizations
are
expected
to
be
socially
and
environmentally
responsible
and
behave
in
ethically
accepted
ways
as
they
operate
in
their
global
environments.
Social
issues
that
concern
stakeholders
directly
and
indirectly
will
influence
how
they
make
decisions.
The
choices
they
make
in
dealing
with
these
types
of
issues
may
have
both
short
and
long
term
consequences
for
the
future
survival
of
their
business
entity.
Society
expects
organizations
to
operate
in
ways
that
are
acceptable
for
the
preservation
and
sustainability
of
the
entity
and
the
environment
in
which
it
operates.
In
this unit we
will
explore some
of
the
main
issues
including
social
responsibility,
ethics
and
corporate
culture that
impact
an
organization
and
how
it
functions.
Unit 2 Learning Objectives
By
the
end
of
this
Unit
you
will
be
able
to:
1. Explain
what
is
meant
by
corporate
social
responsibility;
2. Outline
the
classical
and
socioeconomic
view
of
corporate
social
responsibility
3. Discuss
the
role
that
a
code
of
ethics
plays
in
business.
4. Describe
how
ethical
dilemma
may
arise
for
a
manager
This
Unit
is
divided
into
two sessions
as
follows:
Session
2.1: Corporate
Social
Responsibility
Session
2.2: Corporate/Managerial
Ethics
Reading Resources
Required ReadingMGMT1001 Principles of Management Unit 2_Version 1 Page 2
Boundless.com (n.d.).
Maintaining
Ethical
Standards.
Lecture
Slides.
Adapted from:
https://www.boundless.com/management/textbooks/boundless-‐managementtextbook/ethics-‐in-‐business-‐13/maintaining-‐ethical-‐standards-‐97/maintaining-‐ethicalstandards-‐97-‐powerpoint-‐templates/
Boundless.com
(n.d.).
Corporate
Social
Responsibility.
Lecture
Slides.
Adapted
from:
https://www.boundless.com/management/textbooks/boundless-‐managementtextbook/ethics-‐in-‐business-‐13/corporate-‐social-‐responsibility-‐98/corporate-‐socialresponsibility-‐98-‐powerpoint-‐templates/
Education-‐Portal.com
(n.d.)
Business
Ethics:
Corporate
Social
Responsibility.
Retrieved
from
https://www.youtube.com/watch?v=xoE8XlcDUI8
The
Saylor
Foundation
(n.d.).
Principles
of
Management.
Chapter
3,
Section
3.5,
pages
123
to
128. Retrieved
from:
http://www.saylor.org/site/textbooks/Principles%20of%20Management.pdf
Licensed
under
a
Creative
Commons
Attribution-‐NonCommercial-‐ShareAlike
3.0
License
The
Saylor
Foundation
(n.d.).
Exploring
Business.
Chapter
2,
Section 2.5 Corporate Social Responsibility,
pgs.78 to 88. Retrieved from: http://www.saylor.org/site/textbooks/Exploring%20Business.pdf
Licensed
under
a
Creative
Commons
Attribution-‐NonCommercial-‐ShareAlike
3.0
LicenseMGMT1001 Principles of Management Unit 2_Version 1 Page 3
Session 2.1
Corporate Social Responsibility
Introduction
Stakeholder management implies that an organization will be sensitive to the environment,
safety, diversity and other issues that are of concern to society, while still keeping its attention
on business objectives and the satisfaction of key stakeholders such as shareholders, customers,
and employees. You will recall the discussion on stakeholders in Unit 1. The focus in this
session is mainly related to the firm’s interaction with external stakeholders and the importance
of corporate social responsibility as a key aspect of management practice.
What is Corporate Social Responsibility?
How is Corporate Social Responsibility (CSR) defined? Let us look at a few definitions to guide
your review of this topic and its key role in management.
"Corporate Social responsibility is a management concept whereby companies integrate social
and environmental concerns in their business operations and interactions with their
stakeholders…It is understood as being the way through which a company achieves a balance
of economic, environmental and social imperatives (“Triple-Bottom-Line- Approach”), while at
the same time addressing the expectations of shareholders and stakeholders."
(The United Nations International Development Organization [UNIDO] n.d. "What is CSR?"
para.1).
This definition points to at least two dimensions of corporate social responsibility: sustainable
development and social responsibility.
Sustainable development can be defined as development that meets the needs of the
present without compromising the ability of future generations to meet their own needs.
It contains within it two key concepts:MGMT1001 Principles of Management Unit 2_Version 1 Page 4
• the concept of needs, in particular the essential needs of the world's poor, to which
overriding priority should be given; and
• the idea of limitations imposed by the state of technology and social organization on the
environment's ability to meet present and future needs."
Also, UNIDO (n.d.) notes that for an organization to be sustainable, it must be financially
secure, minimize (or ideally eliminate) its negative environmental impacts and act in
conformity with societal expectations.
Social
responsibility for
an
organization
refers
to
the
approach
that
an
organization
takes
in
balancing
its
responsibilities
toward
different
stakeholders
when
making
legal,
economic,
ethical,
and
social
decisions. (Collins,
pg.78).
The definitions and key point above suggest that a properly implemented CSR concept has the
potential to bring along a variety of competitive advantages, such as enhanced access to capital
and markets, increased sales and profits, operational cost savings, improved productivity and
quality, efficient human resource base, improved brand image and reputation, enhanced
customer loyalty, better decision making and risk management processes.
Opposing Views of Corporate Social Responsibility
[Show More]
.png)
