topic 3 social responsibility and ethics s1 2015 (1 slide per page).pdf

8/21/2019 Topic 3 Social Responsibility and Ethics s1 2015 (1 Slide per page).pdf

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Why the ethical imperative of early 21st century?


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Global Business Environment


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Comparison of World’s Largest Corporations’ Revenues to Countries’ GDP


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ManagementResponsibility

Classical Views Socioeconomic Views

Objective/ Goal

Focus


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Jennings 2006 p.13-16

“The Business of Business isBusiness”

(Milton Friedman, 1970)


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Definition: Corporate Social Responsibility(vs Corporate Social Responsiveness)

When an organisation meets or exceeds legal and‘normatively mandated’ standards by considering thegreater good to the widest possible community ...with regard to the environmental, social, economic,

legal, ethical and philanthropic impact of theorganization’s way of doing business and theactivities it undertakes

(adapted from Clegg et al 2012)


10/28

Definitions: Corporate Sustainability

... a business approach that creates long-term value forthe organisation by incorporating economic,environmental and social dimensions into its corebusiness decisions

(adapted from Benn and Bolton 2011)

... Ensuring that resources are renewed

(adapted from Clegg et al 2012)


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Why sustainability?

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Defining Ethics


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Ethics: many facets, levels of focus

Individual

Organisational

Macro/systemic


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It is helpful to identify what Ethics is NOT:

! Ethics is NOT the same as feelings

! Ethics is NOT religion

! Ethics is NOT following the Law (although in somecountries, a good system of law does incorporate manyethical standards)

! Ethics is NOT following culturally accepted norms

! Ethics is NOT Science (although it can provideimportant data to help us make better ethical choices)


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Why be ethical?

• Global business environment: business- societyrelationship

• Public perceptions of business practices

• Regulation reflecting society’s concerns

• Demonstrated ethical leadership, trust

• Good ethics is good business

• Costs of criminal/civil liability


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Some commonly used frameworks

All frameworks have

differing degrees of

usefulness, & limitations

Duties / Moral rights Utilitarianism

Individualism

Justice


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Justice


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Ethical Thinking implies an ability to:

• Think critically

• Recognise issues or practices that have moral content

• See beyond our own personal experience, assumptions (ST)

• Address issues from all sides (ST)

• Consider the consequences of decisions, whether intended orunintended (ST)

• Evaluate the best arguments from each perspective (EF)

• Arrive at a conclusion based on a systematic analysis of these arguments(EF)

• Defend viewpoints; analyse new information or perspectives (EF)

ST denotes System Thinking – decisions made by organisations affect otherstakeholders within the ‘system’.

EF denotes ethical frameworks


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• To successfully embed corporate responsibility andsustainability within organisations, there needs to be a focuson developing the mindset and skills of individualmanagers, rather than simply introducing new policies andprocedures.

• Many studies showed a positive relationship between socialinvolvement and economic performance. While there are noconclusive evidence (contingency theory applies), managerscan afford to be (and should be) socially responsible.

• Once again, managers play an important role in an

organisation! And in the near future, what decision would yoube making when confronted with an ethical dilemma inbusiness?

topic 3 social responsibility and ethics s1 2015 (1 slide per page).pdf

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