Chapter 04
The Ethical & Social Environment
Our Today’s
Topics
Individual Ethics Social Responsibility
in Organization 1 & Organizations 2
The Government
& Social Managing Social
Responsibility 3 Responsibility 4
Individual Ethics
In Organization
Prepared By: Raihan Sobhan
Ethics
Ethics
An individual’s personal
beliefs about whether a
behavior, action, or decision
is right or wrong Managerial Ethics
Standards of behavior that
guide individual managers
in their work
Managerial Ethics
Creating Code of Ethics
A formal, written statement of
the values and ethical standards
that guide a firm’s actions
Managing
Ethical Behavior
Applying Moral Judgment Maintaining Organizational Justice
(1) Gather the relevant factual information
(2) Determine the most appropriate moral 1. Distributive Justice
values 2. Procedural Justice
(3) Make an ethical judgment based on 3. Interpersonal Justice
the rightness or wrongness of the 4. Informational Justice
proposed activity or policy.
Social
Responsibility
& Organization
Prepared By: Raihan Sobhan
SOCIAL RESPONSIBILITY
The set of obligations an
organization has to protect and
enhance the societal context in
which it functions
Prepared By: Raihan Sobhan
Organizational
Stakeholders
Areas of Social
Responsibility
The Natural General Social Welfare
Environment
Arguments For & Against Social Responsibility
Approaches to Social Responsibility
A social responsibility stance in A social responsibility stance
which an organization does in which an organization
everything that is required of views itself as a citizen in a
it legally, but nothing more society and proactively seeks
opportunities to contribute
An approach to social A social responsibility stance in
responsibility in which which an organization meets its
firms do as little as possible legal and ethical obligations but will
to solve social or also go beyond these obligations in
environmental problems selected cases
Government &
Social
Responsibility
Prepared By: Raihan Sobhan
How Business & the Government Influence Each Other
Managing
Social
Responsibility
Prepared By: Raihan Sobhan
Managing Social Responsibility
Formal Organizational Dimensions
• Legal Compliance
• Ethical Compliance
Informal Organizational Dimensions
• Philanthropic Giving
• Organization Leadership
and Culture
• Whistle-Blowing
