Social Responsibility and Ethics in Management

Identify cultural and social changes that influence management decisions.

     Changes in technology, human rights, social systems, social demographics, competition, global enterprise, and scientific innovations affect not only the way managers behave but also how organizations are structured and how managers are accountable to society for their decisions.

Define and discuss ethical behavior in management.

     Business ethics are concerned with moral right and wrong as applied to business enterprise and managerial behavior. Ethics are related to how managers accomplish their tasks, and this is largely determined by society's expectations for responsible behavior.

Discuss relationships between managers and their constituents.

     Viewed from a systems perspective, managers have far&-reaching responsibilities to many constituents. Constituents, called stakeholders, include employees, consumers, investors, suppliers, competitors, local citizens, and society at large. Managers have the responsibility to provide safe and reliable products consumers and at the same time maintain profits for investors.

Explain the role of government regulation in business operations and discuss the cases for and against government regulation.

     Government regulation is meant to protect society and to improve the quality of life for all citizens. Local authorities control licensees regulate advertising, impose taxes, and police the environment. State agencies regulate employment practices and provide for public welfare. Federal agencies enforce safety rules, monitor product reliability, impose regulations for commercial drugs, and scrutinize interstate commerce. Arguments for and against regulation are framed in terms of government intervention in commercial enterprises. Those opposed to government intervention maintain that free enterprise and unrestrained trade produce the best products and services for consumers at the best prices. Those in favor of government intervention emphasize the need to protect consumers, suppliers, and competitors from exploitative practices, unfair pricing, discriminatory hiring practices, unsafe products, and unhealthy work environments.

Examine how managers can become more responsive to social issues.

     Individually, managers must accept a changing role in society. They must broaden their awareness of domestic and global social issues, and integrate new values into their organizations. By improving their communicative skills and becoming more politically sensitive to expectations by public constituents, managers can improve their organization's ability to respond effectively to social problems. Intellectual sensitivity to social issues helps managers make better individual decisions. These issues are emphasized in the ethics training and management development programs of many of our best companies.