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Four Approaches to Social Responsibility
Justin Kearnson 13 April 2011
Transcript of Four Approaches to Social Responsibility
Approach Low Social
Responsibility High Social
Responsibility Companies and their managers choose not to behave
in a socially responsible way and insead behave
unethically and illegally. Companies and their managers behave
ethically to the degree that they stay within
the law and abide strictly with legal requirements. Companies and their managers behave legally
and ethically and try to balance the interests
of different stakeholders as the need arises. Companies and their managers actively embrace socially responsible behavior, going out of their way to learn about the needs of different stakeholder groups and utilizing organizational resources to promote the interests of all stakeholders. Why be Socially Responsible? Builds a good reputation for a company
A good reputation means increased business
and improved ability to obtain resources.
Enhances Profitability. In a capitalist system, companies and the government have to bear the costs of protecting their stakeholders, providing health care and income, pay taxes.
Acting socially responsible improves the quality of life A company’s behavior towards employees determines a society’s values and norms
If all companies cared for their employees, it would develop a caring society.
Countries with low crime rates, and high literacy rates have very socially responsible companies. The Role of Organizational Culture When organizational ethical code questions arise, managers can go one step further by ensuring that important ethical values and norms are key features of an organization’s culture.
This translates into organizational values and norms dictating that layoffs should be avoided and employees should share in the profits the company makes
Companies like Google and Toyota are among the many who espouse similar values
When ethical values like these are part of an organization’s culture, they help organizational members resist self-interested action because they recognize that they are part of something bigger than themselves.
Benefits of Being Socially Reponsible Managers hold the key role in developing ethical values and standards in the employees.
If top managers are perceived as being self-interested, and not ethical, their subordinates are not likely to behave in an ethical manner. If the ethical manner is not there, employees will slack off and will not help their company as a whole.
The Managers actions represent the values of their organization. They also provide a visible means of support to develop an ethical culture.
More recently companies are creating the role of ethics ombudsman. The ethic ombudsman provides guidance on ethical issues. Human Resouces risk management Brand differentiation License to operate CORPORATE SOCIAL RESPONSIBILITY Companies and their managers choose not to behave in a socially responsible way and instead behave unethically and illegally. Companies and their managers behave ethically to the degree that they stay within the law and abide strictly with legal requirements. Companies and their managers behave legally and ethically and try to balance the interests of different stakeholders as the need arises. Companies and their managers actively embrace social responisbility, going out of the way to learn about the needs of different stakeholder groups and utilizing organizational resources to promote the interests of all stakeholders.