Social responsibility of Managers?
Society expects organizations and managers to be responsible and ethical.
But there are examples of notorious financial scandals, scams with quality of materials utilised, and most of the time simple negligence, which proves that managers don’t always act responsibility.
one side can argue that the classical or economic view is that management’s only respnsibility is to Maximizse Profits.
the other side argues the socioeconomic position, which holds the management responsible to Protect and Improve the society’s welfare.
Corporate Social Responsibility! (CSR)
is just another term for the same ,
it means the business firm’s intention, beyond its legal and exonomic obligations, to do the right things and act in ways that are good for the society
Note
that this definition assumes that a business obeys the law and pursues economic interest. But also note that this definition views the business as a moral agent. In its effort to do good for society, it must differentiate between right and wrong.
Drivers of CSR
1. Employees and Shareholders
2. Brand Equity
3. Ethical marketing practices and social awareness
4. The environment Conscious
5. Energy conservation and global warming
6. Responsibility towards the government
note
Brand Equity is the value of a brand, determined by the consumer perception of of its quality and desirability.
Ethics In Managing
Three basic types of moral theories in the field of normative ethics have been developed.
Utilitarian Theory
the first suggests that plans and actions should be evaluated by their consequences. The underlying idea is that plans or actions should produce the greatest good for the greatest number of people.
Based on Rights
Second, this holds that all people have Basic Rights.
examples of which are freedom of conscience, free speech, and due process.
wiki
Freedom of conscience is the freedom of an individual to act upon their moral beliefs.1 In particular, it often refers to the freedom to not do something one is normally obliged, ordered or expected to do. An individual exercising this freedom may be called a conscientious objector.
Theory of Justice
Third, it demands that decision makers be guided by fairness and equity as well as impartiality.