EM 201ORGANIZATION

AND MANAGEMENT

Dr. Marinette Ramos

MANAGEMENT AND

SOCIETY

Report by: Mrs. Maria Michelle L. Arevalo

Social Responsibility and Ethics

Moral Development and Concept of Values

What is social responsibility?• The moral and ethical content of

managerial and corporate decisions over and above the

pragmatic requirements

• Concerned with low individuals and organizations

BUSINESSORGANIZATION EMPLOYERS

CUSTOMERS

OWNERS/INVESTORS

SUPPLIERS

COMMUNITYGOVERNMENT

The public seems to feel that managers & business organizations should provide leadership in rebuilding cities, wiping out poverty, controlling crime, and cutting government red tape.

MAJOR ARGUMENTS FOR SOCIAL RESPONSIBILITY

1. Public expectations

2. Long run profits

3. Ethical obligation

5. Better environment

6. Discouragement of further government regulation

4. Public image

7. Balance of responsibility and power

10. Superiority of prevention over cures

9. Possession of resources

8. Stockholder interests

MAJOR ARGUMENTS AGAINST SOCIAL RESPONSIBILITY

1. Violation of profit maximization

2. Dilution of purpose

3. Costs

4. Too much power

5. Lack of skills

6. Lack of accountability

7. Lack of broad public support

PHASE 1PROFIT-MAXIMIZING MANAGEMENT

Raw self-interest What’s good for me is good

for my country Profit maximizer Money & wealth are most

important Let the buyer beware Labor is a commodity to be

bought & to be sold

Accountability of management is to the owners

Technology is very important Employee personal problems must be

left at home I am a rugged individualist, and I will

manage my business as I please Minority group are inferior to whites.

They must be treated accordingly The natural environment controls the

destiny of people

PHASE 2TRUSTEESHIP MANAGEMENT

Self-interest & contributor’s interest

What’s good for organizations & management is good for our country

Profit satisfier Money is important, but

so are people

Let us not cheat the customer

Labor has certain rights which must be recognized

Accountability of management is to the owners, customers, employees, and other contributors

Technology is important & so are people

We recognize that employees have needs beyond their economic needs

I am an individualist, but I recognize the value of group participation

Minority groups have their place in society, and their place is inferior to mine

People can control & manipulate the environment

Enlightened self-interest, contributor’s interest & society’s interest

What is good for society is good for our company

Profit is necessary, but… People are more important than money Let the seller beware

PHASE 3QUALITY-OF-LIFE MANAGEMENT

Employee dignity has to be satisfied

Accountability of management is to be owners, contributors, and society

People are more important than technology

We hire the whole person Group participation is

fundamental to our success

Minority group members are people, as you and I are

We must preserve the environment in order to lead quality lives

BUSINESS ETHICS moral principles that guide the way a

business behaves

involves distinguishing between “right” and “wrong” and then making the “right” choice

10 COMMANDMENTS FOR MORAL EXECUTIVES

I. Thou shalt not bear false witness in the books & records of the employer.

II. Thou shalt not play games with numbers.

III. Thou shalt speak the truth to thy boss, even though he may not want to hear it.

V. Thou shalt keep thine eyes wide open.

IV. Thou shalt rattle on thy neighbor when he is doing something wrong.

VI. Sin not, nor help thy brother to sin, for thou art thy brother’s keeper.

VII. Thou shalt not have two masters – thy boss and thyself.

VIII. Thou shalt not seek to profit by use of thy employer’s confidences.

IX. Honor thy father and thy mother and, in addition, thy auditors.

X. Obey the real Ten Commandments

BUSINESS BASIC CONCEPTS

embraces commerce & industry

not an accidental human activity but an integral element of the social order

primary purpose is to meet society’s human needs

Essentially an expression of human relationships

Principles for the Conduct of

Business

Employees

SuppliersCustomers

recognition

fair recruitment practice

job security

safe & healthy atmosphere

conditions in w/c human potentials

& relationships can be developed

participative element

FOR EMPLOYEES:

FOR SUPPLIERS:• The terms of all contracts

be clearly stated & honored in full

• Abuse of economic power in dealing w/ a smaller concern be avoided

• No supplier be encouraged to commit his resources for apparently long-term purposes

FOR CUSTOMERS:Strive after a quality

Avoid anything that would be detrimental to the health, safety & growth

Seek to apply or make use of the discoveries & inventions of science

Deliver the product/service in the quality, quantity & time agreed upon

Ensure that all promotional communications be informative & true

FOR OWNERS & OTHER PROVIDERS OF CAPITAL: Provide an adequate rate of return

Use their financial resources to provide goods & services responsibly & efficiently

Furnish the owners & other providers of capital w/ such information

Pursue the specific objectives of the owners & other providers of the capital

FOR LOCAL GOVERNMENT & NATIONAL:

To participate in the discussion of proposed legislation and / or its implementation

To propose sound policies in the use of human & material resources

FOR SOCIETY IN GENERAL:

Take regular stock of their response to the basic needs of society

Do their best to ensure that the way they deploy their resources benefits society in general

Pay proper regard to the environmental & social consequences of their business activity

Ethical Principles for the Professional Manager

Acknowledge that his role is to serve

Avoid all abuse of executive power

Reveal the facts to his superiors

Establish a policy regarding conflicts of interest

Not tolerate any form of illegal data-gathering or any form of incentive

Recognize that his subordinates have a right to information on matters affecting them

Fully evaluate the likely effects on employees & the community of the business plans for the future

Cooperate with his colleagues & not attempt to secure personal advantages

3 Simple Steps for Maximum Benefit of the Code

1. Involve examination, understanding & acceptance of the code by the policy makers

2. Develop detailed guidelines & policies for use by their employees

3. Evaluation & regular audit of the implementation of the code & its policies & guidelines

ETHICS IS KNOWING THE DIFFERENCE BETWEEN

WHAT YOU HAVE A RIGHT TO DO AND WHAT IS

RIGHT TO DO.