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Chapter 5 Summary by Learning Outcomes

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Chapter Summary by Learning Outcomes 

Discuss what social responsibility is and what the factors are that influence it.

Social obligation, that reflects the main view of social responsibility, can be described as when an organization engages itself in social activities because of the obligations to meet some legal and economic responsibilities. The social responsiveness is that when an organization has to engage in certain social activities due to some important social needs of the society and the business. But social responsibility is an organization’s intention to do different social activities not because it has social obligations but without any such legal and economic obligations. Both of them reflect the socioeconomic views of this. Thus an organization’s social involvement does not hurt the economic performance.

Explain how companies can go green and green management.

Green management is that when the mangers of the firm considers or worry about the impact of their company on the environment. There are different ways firms can go green. Light green approaches are doing whatever is required legally that is social obligations. The companies respond to environmental preference made by the customers, by using the market approach. The multiple demands of the stakeholders can be met by the famous stakeholder approach. Both these approaches are part of social responsiveness. When an organization uses the dark green or activist approach for providing facilities to the environment and preserve and protect the earth that is what social responsibility is.

The green actions every year can be calculated by examining different reports that are complied by the companies about their all environmental performances. This can be done by looking at the Global hundred list of sustainable businesses in the whole world and by matching the global standards (ISO 14000).

What are the factors that lead to ethical and unethical behaviour?

Ethics are the values, beliefs and principles which defines every right & wrong decisions that an individual takes. The factors which affect both ethical & unethical behaviour include the following:

  • Individual characteristics ( personality and value variables- locus of control and ego strength)
  • Level of ethical development( conventional, pre conventional or principled)
  • Structural variables(using goals, structural design, performance appraisal system, & reward allocation procedure)
  • Organizational culture( cultural strength and shared values)
  • Issue intensity( greatness and probability of harms, fastness of consequences, effects concentration etc)

Since all ethical standards are not universal, the mangers of the organizations should be aware of what and what not they can do legally according to the Foreign Corrupt Practices Act. It is also necessary to consider the cultural differences between different locations & clarify the ethical guidelines so that employees in different locations can work efficiently. Mangers should be aware of the principles of Anti-Bribery Convention and global Impact.

Describe the management’s role for encouraging moral and ethical behaviour.

Manager’s behaviours are extremely important for the decisions and activities of the employees whether they should act ethically or not. Certain ways through which managers can encourage good behaviour includes using ethical codes, selective employee selection, show ethical leadership and gain attention through it, concentrating on their activities and not what they say, setting certain ethical goals, doing social audit, ethical programs and trainings, and launching protective mechanism.

Discuss current social responsibilities and ethical issues

The mangers of a firm can manage different ethical dilemmas & social responsibilities by making themselves strong ethical role models & protecting those employees who fights against unethical activities. The examples which the managers set have strong impact on the employee’s thoughts, decision and activities. Ethical leaders are honest, uses reward and punishment system, share values and principles and help the employees in every ethical dilemma. Managers can guard the whistle blowers of an organization by encouraging the employees to speak on ethical issues. This can be done by making a culture within the organization where the employees have the right to speak and fight against unethical deeds without any fear or risk. Social entrepreneur plays a vital role in providing social help to the society through their innovative, sustainable and practical approaches. These social entrepreneurs want to take every opportunity to make world a better living place and do whatever is needed to make the society good. Every business can promote good social changes through business philanthropy & employee’s voluntary efforts.

Discussion questions

  1. What are the differences between social responsiveness, social responsibility and social obligation?
  2. What do you think about social responsibility personally? Do organizations should have social responsibilities? Explain.
  3. How can the companies go green and what do you mean by green management?
  4. What are the factors that influence the ethical & unethical behaviour of individuals? Explain the factors.
  5. Do you really think that value based management is only a “do gooder”? Explain with relevant examples.
  6. How can mangers do encourage ethical activities and behaviours? Explain
  7. Online file sharing program are famous among students. These types of programs works by allowing non-company users access local networks where the needed file is located. This can cause a serious problem. Discuss the ethical responsibilities that a university should have at this situation. To whom they have this responsibility? What suggestions do you have on this problem for the universities?
  8. Discuss the problems associated with the employee whistle blowing a) the organization b) the whistle blower.
  9. What are the behaviour and characteristics of an ethical person according to you what are the thoughts and decisions this person will have that can encourage other employees in a firm?
  10. What are the ethical dilemmas and social problems faced by the mangers in general?


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