Documente Academic
Documente Profesional
Documente Cultură
Foundation Course
Principles of Management
Post Graduate Programme (2008 – 10)
(PGP)
Learning
Objectives
After reading this chapter, you should be able to:
o Explain social responsibility.
Social Responsiveness
o The capacity of a firm to adapt to changing societal
conditions through the practical decisions of its managers in
responding to important social needs.
Social Responsibility
o A firm’s obligations as a moral agent extends beyond its
legal and economic obligations, to the pursuit of long-term
goals that are good for society.
12/06/09 PGP, Alliance Business School 8
Does Social Responsibility
Pay?
o Studies appear to show a positive relationship
between social involvement and the economic
performance of firms.
o Difficulties in defining and measuring “social
responsibility” and “economic performance raise
issues of validity and causation in the studies.
o A general conclusion is that a firm’s social actions
do not harm its long-term performance.
Stakeholders of the
Organization
Stakeholders’ Concerns
Stakeholder Group Examples of Concerns
Owners and Financial Soundness
Investors Consistency in meeting
shareholder expectations
Sustained profitability
Average return on assets
over five-year period
Timely and accurate
disclosure of financial
12/06/09
information
PGP, Alliance Business School 14
6.6
Stakeholders’ Concerns
(Contd.)
Stakeholder Group Examples of Concerns
Customers Product/service quality,
innovativeness, and
availability
Responsible management of
defective or harmful
products/services
Safety records for
products/services
Pricing policies and practices
12/06/09 PGP, Alliance Business School 15
6.7
Stakeholders’ Concerns
(Contd.)
Stakeholder Group Examples of Concerns
Employees Nondiscriminatory, merit-
based hiring and promotion
Diversity of the workforce
Wage and salary levels and
equitable distribution
Availability of training and
development
Workplace safety and privacy
12/06/09 PGP, Alliance Business School 16
6.8
Stakeholders’ Concerns
(Contd.)
Stakeholder Group Examples of Concerns
Society Environmental issues
• Environmental sensitivity in
packaging and product
design
• Recycling efforts and use of
recycled materials
• Pollution prevention
• Global application of
environmental standards
12/06/09 PGP, Alliance Business School 17
6.9
Stakeholders’ Concerns
(Contd.)
Stakeholder Group Examples of Concerns
Society Community involvement
• Percentage of profits
designated for cash
contributions
• Innovation and creativity in
philanthropic efforts
• Product donations
• Availability of facilities and
other assets for community
12/06/09 use School
PGP, Alliance Business 18
Managerial Ethics
Ethics Defined
The rules and principles that define right and wrong
conduct.