Management (ch_6)

Question 1

What is The Classical View on Socially Responsible management?

Answer 1

The only social responsibility of management is to maximize profits for the benefit of the stockholders
Doing good unjustifiably increases costs.

Question 2

What is social obligation?

Answer 2

A firm’s engaing in social actions because of its obligation to meet certain economic and legal responsibilities.

Question 3

What is The Socio-Economic View on Socially Responsible management?

Answer 3

1) Management should also protect and improve society’s welfare
2) Corporations are responsible to more than stockholders
3) Firms have a moral responsibility to a larger society “to do the right thing”

Question 4

What is social responsiveness?

Answer 4

A firm’s engaging in social actions in response to some popular social needs.

Question 5

What is a social need?

Answer 5

A need of a part of society caused by factors such as:

1) physical or mental disabilities
2) language barrier
3) cultural, social, or geographical isolation

Question 6

What is a social responsibility?

Answer 6

A business intention, besides its legal and economic obligations, to do the right things and act in ways that are good for society

Question 7

What are the difference between socila responsibility and social responsiveness?

Answer 7

1) Social Responsibility is about ethical behaviour of the company, whereas Social Responsiveness is about pragmatic behaviour
2) Social Responsibility is about obligation, whereas Social Responsiveness is about responses

Question 8

Name 4 stages of Corporate Social Responsibility?

Answer 8

1) Owners and Management (Lesser)
2) Employees
3) Constituents in the Specific Environment
4) Broader society (Greater)

Question 9

What is Socially Responsible Investing?

Answer 9

Funds that provide an ability for individual investors to support socially responsible companies

Question 10

What means Sustainable Management Practice?

Answer 10

When managers consider the impact of their organization on the natural environment

Question 11

Name 3 Global Environmental Problems

Answer 11

1) Climate change
2) Air pollution
3) Toxic waste

Question 12

How organizations manage sustainability? Name 4 approaches

Answer 12

1) Legal Approach (Low)
2) Market Approach
3) Stakeholder Approach
4) Activist approach

Question 13

What is Legal Approach about?

Answer 13

• Organizations obey laws, rules, and regulations willingly and without legal challenge, but that’s all
• It’s a good illustration of social obligation, because they just follow the rules, but nothing more

Question 14

What is Market Approach about?

Answer 14

• An organization is more sensitive to environmental issues, responding to the environmental preferences of their customers
• Whatever customers want in terms of environmentally friendly products will be what organization provides.

Question 15

What is Stakeholder Approach about?

Answer 15

The organization works to meet the environmental demands of multiple stakeholders such as employees, suppliers, and the community

Question 16

What is Activist Approach about?

Answer 16

• It shows the highest degree of environmental sensivity and illustrates social responsibility
• These organizations look for ways to respect and preserve the earth and its natural resources

Question 17

How sustainable management is evaluated?

Answer 17

The organizations issue detailed reports on their environmental performance through:

• Global Reporting Initiative
• Adopting ISO standards
• Inclusion in the list of the Global 100 Most Sustainable Corporations in the World

Question 18

What is ethics?

Answer 18

Principles, values and beliefs that define which behavior is write and which is wrong

Question 19

With what does stage of moral development interact?

Answer 19

1) Individual characteristics
2) The organization’s structural design
3) The organizational rules

Question 20

What are the Stages of Moral Development?

Answer 20

1) Pre-conventional level
2) Conventional level
3) Principled level

Question 21

Describe Pre-conventional level of Moral Development

Answer 21

1. Following rules to avoid physical punishment

2. Following rules only when doing so is in your immediate interest

Question 22

Describe Conventional level of Moral Development

Answer 22

1. Living up to what is expected by people close to you

2. Maintaining conventional order by fulfilling obligations to which you have agreed

Question 23

Describe Principled level of Moral Development

Answer 23

1. Valuing rights of others and maintaining valuing absolute rights regardless of the majority’s opinion
2. Following self-chosen ethical principles even if they violate the law

Question 24

What are values?

Answer 24

Basic convictions about what is right or wrong on a broad range of issues

Question 25

What is Ego Strength?

Answer 25

A personality measure of the strength of a person's convictions

Question 26

What is Locus of Control? How many types of that are there? Describe each type

Answer 26

- A personality attribute that measures the degree to which people believe they control their own life 1) Internal Locus: the belief that you control your destiny 2) External Locus: the belief that what happens to you is due to luck or chance

Question 27

Name the organizational characteristics and mechanisms that guide and influence individual ethics

Answer 27

1) Performance evaluation systems 2) Reward allocation systems 3) Behaviours of managers 4) An organization's culture 5) Intensity of the ethical issue

Question 28

What are 6 components of Issue Intensity?

Answer 28

1) Greatness of harm 2) Concentration of effect 3) Proximity to victim(s) 4) Immediacy of consequences 5) Probability of harm 6) Consensus of Wrong

Question 29

How managers can encourage ethical behaviour?

Answer 29

- Hire individuals with high ethical standards - Establish codes of ethics and decision rules - Lead by example - Set job goals and performance evaluation mechanisms

Question 30

What selection process of an employee made of?

Answer 30

Interview, tests, background checks and so on - could be used to eliminate ethically questinable applicants.

Question 31

What is value-based management?

Answer 31

An approach to managing, when managers establish and uphold an organization's shared values

Question 32

What are 4 purposes of shared organizational values?

Answer 32

1) Guide manager's decisions and actions 2) Shape employee behaviour by explaining what the organization expects of its members 3) Influence marketing efforts 4) Build team spirit in an organization

Question 33

What is Code of Ethics?

Answer 33

A formal statement of an organization's primary values and the ethical rules it expects its employees to follow

Question 34

Name 5 steps in addressing ethical dilemmas

Answer 34

Step 1: What are the ethical dilemma? Step 2: Who are the affected stakeholders? Step 3: Which personal, organizational, and external factors are important in this decision? Step 4: What are possible alternatives? Step 5: What is my decision, and how will I act on that?

Question 35

Who are Independent Social Audits?

Answer 35

They evaluate decisions and management practices in terms of the organization's code of ethics

Question 36

Who are whistle-blowers?

Answer 36

Individuals who raise ethical concerns or issues to others inside or outside the organization

Question 37

What can managers do to manage ethical lapses and socila irresponsibility?

Answer 37

1) Ethical leadership (top managers uphold the shared values and set the cultural tone) 2) Protecting those who report wrongdoing

Question 38

Who is a social entrepreneur?

Answer 38

An individual or organization that seeks out opportunities to improve society by using practical, innovative and sustainable approaches

Question 39

How business can promote social change?

Answer 39

- Use corporate philantropy to address societal problems | - Use Employee Volunteering efforts to be involved in promoting social change