Basic Concepts of Management

Ethics and Social Responsibility

•Definitionand scope of the subject
•Roots in moral philosophy
•Social Responsibility Principles and its scope

MARY CHRISTINE B. LUZANDE

PHD– ELM
ELM 504-Management Ethics and Social Responsibility
WILL YOU BE A
COURAGEOUS
MANAGER?
Meaning & Definition
Management
 It means art or skills of directing human
activities and physical resources in the
attainment of predetermined goals.
 According to Henry Fayol, “To manage is to
forecast and plan, to organize, to command,
to coordinate, and control”.

 According to Louis Allen, “Management is

what managers does in the organizations”.
Meaning & Definition
Social Responsibility
 These are basic obligations of business
organizations. These are described in terms
of obligations of business towards the
various interest groups.
 According to K.R. Andrews, “conceptually
social responsibilities may be taken to mean
intelligent and objective concern for the
welfare of the society”.
Meaning & Definition
Management Ethics
 The word “ethics ”is derived from the Greek
word “Ethos”, which refers to character, beliefs,
community or people.
 According to Webster “Ethics is the discipline
dealing with that which is good and bad and
with moral and obligation”.
 Ethics is a code of moral principles and
values that governs the behaviours of a person
or group with respect to what is right or
wrong.
Factors that Determine Ethical and
Unethical Behavior
Levels of Individual Moral Development

Research Conclusions:
• People proceed through the stages of moral
development sequentially.
• There is no guarantee of continued moral
development.
• Most adults are in Stage 4 (“good corporate citizen”).
 Difference between
Ethics & Social Responsibilities
Ethics provide guidelines for human behavior in every
field, whether organizational or non-organizational.
BUT
Social responsibilities works in organizational
context. Thus, implication of ethics are much wider
than those of social responsibility.

Ethics is concerned with micro aspect that is, relating

to daily operating decisions with limited social impact.
BUT
Social responsibility is concerned with macro aspect
relating to decisions with broad implications for a large
segment of the society.
Ethical Issues In Management
a) Self dealing
b) Information manipulation
c) Opportunistic exploitation
d) Substandard working conditions
e) Environmental degradation
f) Corruption
Becoming an Ethical Leader
 Be a good role model by being ethical and
honest.
◦ Tell the truth always.
◦ Don’t hide or manipulate information.
◦ Be willing to admit your failures.
 Share your personal values by regularly
communicating them to employees.
 Stress the organization’s or team’s important
shared values.
 Use the reward system to hold everyone
accountable to the values.
 Encouraging Ethical Behavior
1. Hire individuals with high ethical standards.
2. Establish codes of ethics and decision rules.
3. Lead by example.
4. Set realistic job goals and include ethics in
performance appraisals.
5. Provide ethics training.
6. Conduct independent social audits.
7. Provide support for individuals facing
ethical dilemmas.
References
 Robbins and Coulter (2010). Management 10th Edition, Chapter 5 Social
Responsibility and Social Ethics, 190-203
 Cochran (2010).The evolution of corporate social responsibility
 Giacalone and Thompson (2017). Business Ethics and Social Responsibility
Education: Shifting the Worldview, Vol. 5, No. 3
 Wallace and Tassabehji (2007), An Analysis of Corporate Social Responsibility,
Corporate Identity and Ethics Teaching in Business Schools, Volume 76, Issue 1, pp
117–135
 https://sevenpillarsinstitute.org/ethics-101/early-roots-of-the-western-moral-
tradition/
 https://www.civilserviceindia.com/subject/Management/notes/social-responsibility-
and-managerial-ethics.html
 https://asiasociety.org/corporate-social-responsibility-philippines
 https://uz.edu.ph/corporate-social-responsibility/
 https://www.oxfordhandbooks.com/view/10.1093/oxfordhb/9780199211593.001.000
1/oxfordhb-9780199211593-e-021
 https://prezi.com/qpriyaz3upxw/chapter-5-managing-ethics-and-social-responsibility/
 https://www.slideshare.net/marykaren_/chapter-5-managing-ethics-and-social-
responsibility