LECTURE 5 CHAPTER 5 MANAGING SOCIAL RESPONSIBILITY
Ethics is the code of moral principles and values that governs the behavior of a person or group with respect to what
is right or wrong.
Three domain of Human Action
Domain of Codified Law
( Legal Standard )
Domain of Ethics
( Social Standard )
Domain of Free Choice
( Personal Standard )
Amount of
High
Explicit control
low
Ethical decision making
1. Utilitarian approach moral behavior produces the greatest good for the greatest number. Select a
decision that optimizes the benefits for the greatest number of people.
2. Individualism approach - when they promote the individuals best long term interests.
3. Moral-rights Approach asserts that human beings have fundamental rights and liberties that cannot be
taken away .
1. The right of free consent to be treated only as they freely consent to be treated.
2. The right to privacy to have control of information about their private life.
3. The right of freedom of conscience may refrain from carrying out any order that violates their moral and
religious norms
4. The right of free speech may criticize truthfully
5. The right to due process- right to impartial hearing and fair treatment
6. The right to life and safety- to live without endangerment or violation of their health and safety.
1. Justice Approach must be based on standards of equity, fairness and impartiality.
1. Distributive justice Individual who are similar in ways relevant to a decision should be treated similarly.
2. Procedural justice rules should be administered fairly.
3. Compensatory justice - individual should be compensated for the cost of their injuries by the party
responsible.
Factor affecting Manager ethical choice.
1. Individual personality and behavioral traits to the job- Personal needs, family influence and religious
background.
Specific personality characteristics ego strength, self-confidence and strong sense of independence
2. Moral development
Level 1: Preconventional
Follows rules to avoid
punishment. Act in own
interest. Obedience for
its own sake.
Leadership style: Aristocratic/coercive
Employee
Behavior:
Task accomplishment
Level 2:
Conventional
Lives up to the
expectation of
others. Fulfills
duties and
obligations of social
system. Upholds the
laws.
Level 3:
Postconventional
Follows self-chosen
principles of justice
and right. Aware that
people hold different
values and seek
creative solutions to
ethical dilemmas.
Balances concern
for individual with
concern for common
goods.
Guiding and encouraging
work group collaboration
transformingor servant
Leadership
empowered employee,
Full participation
3- Levels of Personal Moral Development
Corporate social responsibility is the
managements obligation to make choices and take
actions that will contribute to the welfare and interest of
society as well as the organization. It involves moral,
legal and economic consideration.
1. Stakeholders Responsibility to whom?
2. The bottom of the Pyramid Concept
(BOP) proposes that corporation can
alleviate poverty and social ills as well as
make significant profits, by selling to the
worlds poorest people.
Ethics of sustainability refers to economic
development that generates wealth and meets
the needs of the current generation, while saving
the environment, so future generations can meet
their needs as well.
Evaluating corporate social responsibility
1. Discretionary Responsibility
Contribute to the Community; Be a good Corporate
citizen
1. Ethical responsibility
Be ethical, Do what is right, Avoid Harm
2. Legal Responsibility
Obey the laws
1. Economic responsibility
Be Profitable
Criteria for corporate social performance
Managing company ethics and social responsibility
Management is responsible for creating and sustaining
conditions in which people are likely to behave
themselves.
1. Ethical Leadership managers are honest
and trustworthy air in their dealings with
employees and customers , and behave
ethically in both their personal and
professional lives.
2. Code of ethics is a formal statement of the
company values concerning ethics and
social issues.
a. Principle- based statements designed to
affect corporate culture. They define
fundamental values and contain general
language about company responsibilities,
quality
of
product,
treatment
of
employees ( company Credo )
b. Policy-based statements outline the
procedure to be used in specific ethical
situations.
It
includes
marketing
practices, conflict of interest, observance
of laws, proprietary information, political
gifts and equal opportunities.
1. Ethical structures refers to various systems,
positions and program a company can
undertake to implement ethical behavior.
a. Ethics committee group of executives
appointed to oversee company ethics.
b. Chief ethic officer
c. Ethics hotlines
d. Ethics training
e. Support for whistle blowers
WHISTLE BLOWERS a person who report illegal
or unethical activities.
Employee disclosure of illegal, immoral or
illegitimate practices on the employers part.
LECTURE 6 CHAPTER-6 MANAGERIAL PLANNING AND GOAL SETTING
GOAL is a desired future state that the organization attempts to realize. An Organization exist for a purpose and goal
define and state that purpose.
PLAN is a blueprint for goal achievement and specifies the necessary resources allocation, schedules, task and other
actions.
Goal specify the future ends; plans specify the means. The concept of planning incorporates both ideas; it means
determining the organizations goals and defining the means for achieving them.
Mission
Statement
Strategic Goal /Plans
Senior Management
( Organization as a whole )
Tactical Goals/Plans
Middle Management
(Major Divisions, Functions )
Operational Goals/Plans
Lower Management
( Departments, Individuals )
Levels of Goals/Plans and their importance
Purpose of Goals and Plans
1. Legitimacy mission identify the overall purpose and reason for existence. It symbolizes legitimacy to
external audiences such as investors, customers, suppliers and local community.
2. Source of motivation and commitment
3. Resource allocation
4. Guides to action provides a sense of direction
5. Rationale for decision
6. Standard of performance also serve as performance criteria.
The Organizational planning process
1. The manager develop the overall plan for the organization by clearly defining MISSION AND STRATEGIC
GOALS.
2. Translate the plan into action, which includes defining the tactical plans and objectives, developing a
strategic map to align goals, formulating contingencies and scenario plans , and identifying intelligence
teams to analyze competitive issues.
3. Manager layout the operational factors needed to achieve the goals
4. Execute the plans
5. Monitor and learn
Mission the organizations reason for existence. It describe the organizations values, aspirations and reason for
being.
Mission statement a broadly stated definition of purpose .
It focuses on the market and customers and identifies desired field of endeavor, it describes company values,
product quality, location of facilities and attitude towards employees.
STRATEGIC GOALS OR OFFICIAL GOALS a broad statement
describing where the organization wants to be in the future.
1. Strategic Plans define the action steps by which the company intend to attain strategic goals.
2. TACTICAL PLANS Designed to help execute the major strategic plans ( Middle management )
3. OPERATIONAL PLANS action steps toward achieving operational goals and to support tactical plans
STRATEGY MAP a visual representation of the key drivers of an organizations success and how specific goals and
plans in each area are linked.
GOAL CHARACTERESTICS
1. Specific and measurable
2. Define time period
3. Cover key result areas
4. Challenging but realistic
5. Linked to rewards.
MANAGEMENT BY OBJECTIVES (MBO) IS A SYSTEM whereby managers and employees define goals for every
department, project and person and use them to monitor subsequent performance.
1. Set Goals Strategic Goals, Department Goals and Individual Goals
2. Develop Action Plans
3. Review Progress and take corrective actions
4. Appraise overall performance.
Planning in turbulent environment
1. Contingency Planning company responses to be taken in case of emergencies, setbacks or unexpected
conditions.
2. Building Scenarios - - looking at current trends and discontinuities and visualizing future possibilities. Just
in case when a best laid plans collapse, what shall a best manager do?
3. Crisis Planning
Crisis prevention prevent crisis from occurring and to detect warning signs of potential crises.
1. Build relationship
2. Detect signals from environment
Crises Preparation planning to handle the crises when it occurs
1. Designate crisis management team and spokesperson
2. Create detailed crisis management plans
3. Set up effective communications system.
Planning for high performance
1. Traditional approaches to planning creating a central planning department- group of planning specialist
who report directly to the CEO
2. High Performance Approaches
a. Decentralized Planning planning experts works with managers throughout the company and
come up with their own solutions to the problems. Planning comes alive when employees are
involvech goals for excellence. Big hairy audacious Goal ( BHAG)
b. Use Performance Dashboard gauge their progress toward achieving goals.
c. Organizing intelligence team a cross functional group of managers and employees led by a
competitive intelligence professional, who work together to gain a deep understanding of a
specific business issue.
