Flashcards in Mgt 4335-Chapter 3 Deck (13):
What is Friedman's traditional view of business responsibility?
Friedman referred to the social responsibility of business as a "fundamentally subversive doctrine".
What is Carroll's 4 responsibilities of business?
1. Economic responsibilities of a business organization's management are to produce goods and services of value to society so that the firm may repay its creditors and shareholders.
2. Legal responsibilities are defined by governments in laws that management is expected to obey.
3. Ethical responsibilities of an organization's management are to follow the generally held beliefs about behavior in a society.
4. Discretionary responsibilities are the purely voluntary obligations a corporation assumes.
What is empirical research about social responsibilities? Give some examples.
It indicates that socially responsible actions may have a positive effect on a firm's financial performance.
Ben & Jerry's Ice Cream - their environmental concerns may enable them to charge premium prices and gain brand loyalty.
Proctor & Gamble and Starbucks can attract outstanding employees who prefer working for a responsible firm.
What is sustainability?
Environmental concerns such as utilization of resources, global warming, pollution control, etc.
What is concept of ethics ?
A system of right and wrong that assists individuals in deciding when an act is moral or immoral and/or socially desirable or not.
What is organizational ethics?
They are the values, attitudes, and behavioral patterns that define an organization's operating culture and determine what an organization holds as acceptable behavior.
What is social responsibility?
Proposes that a private corporation has responsibilities to society that extend beyond making a profit.
The expectation that businesses or individuals will strive to improve the overall welfare of society.
CSR (Corporate Social Responsibility): certain requirements of managements and owners in order to meet obligation to society.
T. What is 3 P's meant?
What are theories of the firm?
Ownership theory: purpose is to maximize profits; firms responsibility is to the shareholders; traditional economic model.
Stakeholders: firm responsibility to society at large; purpose is not just.
What are sources of ethical value?
Philosophy: "perception"; what will other people think? Law consequences.
T.What are factors influencing ethics in the workplace?
Leadership: attitude and reaction of senior leaders.
Strategies & policies: code of conduct policies need to set, reinforce honestly and ethical actions.
Organizational culture: formal and informal rules.
Individual characteristics: personality, supervisor pressure.
T*.What are 3 approaches to ethical behavior?
1. Utilitarian approach: actions and plans should be judged by their consequences (decisions should produce the greatest benefit to society and produce the least harm or lowest cost).
2. Individual rights approach: human beings have fundamental rights that should be respected in all decisions (don't do something if it interferes with the rights of others).
3. Justice Approach: decision makers should be fair in the distribution of costs and benefits to individual groups.