Chapter 6

Question 1

Initially interpreted as

Answer 1

Profit-making
Going beyond profit-making
Any discretionary corporate activity intended to further social welfare
Improving social and environmental conditions

Question 2

The Classical view: Social Obligation

Answer 2

Maximize profits
Doing good unjustifiably increase cause

Social Obligation
Is a firm’s engaging in social action because of its obligation to meet certain economic and legal responsibilities?

Question 3

The Socioeconomic View

Answer 3

Management should also protect and improve societies welfare
Corporations are responsible to more than stockholders
Firms have a moral responsibility to larger society

Question 4

Social Responsiveness

Answer 4

A firms engaging in social actions in response to some popular social need
A need of a segment of society caused by factors such as physical and mental disabilities; language barriers; and cultural, socal, or geographical isolation
Managers in these companies are guided by social norms and values and make practical, market-oriented decisions about their actions

Question 5

Social Responsibility

Answer 5

A socially responsible organization view thing differently
It goes beyond what it’s obligated to do or chooses to be because of some popular social need and does that it can to help improve society because it’s the right thing to do

Question 6

The evolutions of Socially Responsible Management

Answer 6

Those supporting the socio-economic view would respond that managers should be responsible to any group affected by the organization’s decisions and action
Classicists would say that shareholders or owners are the only legitimate concern

Question 7

Socially Responsible Investing

Answer 7

Funds which provide a way for individual investors to support socially responsible companies.

Question 8

Green Management

Answer 8

Managers consider the impact of their organization on the natural environment

Question 9

General Views

Answer 9

Utilitarian View
Observe and act on the positives and negatives of the utility of the decision

Rights View
Does it interfere with the rights of others

Theory of Justice View
The process has to be just in conception

Integrate Social Contract View
Goals and standards integrated into the contract creation which are socially responsible

Question 10

Managerial Ethics Levels

Answer 10

Pre-conventional Level (Self interest)
Conventional Level (Laws of current Society)
Principal Level (Broad Society)

Question 11

Locus of Control

Answer 11

Internal Locus
The belief that you control your destiny
External Locus
The belief that what happens to you is due to luck or chance

Question 12

Encouraging Ethical Behaviour

Answer 12

Hire individuals with high ethical standards
Establish codes of ethics and decision rules
Lead by example
Delineate job goals and performance appraisal mechanisms
Provide ethics training
Conduct independent social audits
Provide support for individuals facing ethical dilemmas

Question 13

Addressing Ethical Dilemmas

Answer 13

What is the ethical dilemma
Who are the affected stakeholders
Which personal, organizational, and external factors are important in this decision
What are possible alternatives
What is my decision, and how will I act on it?

Question 14

Ethics Training

Answer 14

Makes a difference in ethical behaviours
Training increases employee awareness of ethical issues in business decisions
Clarifies and reinforces the standards of conduct
Employees are more confident if support when taking unpopular but ethically correct stances

Question 15

Formal protective Mechanisms

Answer 15

Provide formal mechanisms to protect employees who face ethical dilemmas so that they can do what is right without fear of reprimand (Whistle Blowers)