Sep 3, 2019

Social Responsibility Management Ethics Study Notes

Social Responsibility Management Ethics Meaning

Social Responsibility Management Ethics Meaning

Social responsibility is an ethical framework, to act at large for the benefit of society, by an organization or an individual.  Social responsibility is a duty for each person, to maintain Balance between economy and ecosystem. although it has been challenged by several reports over the past decade. This is not only for business organizations but also for all those whose actions affect the environment. Social responsibility aims to ensure safe health care for people living in rural areas and eliminate all obstacles such as distance, financial status, etc. Social responsibility should be intergenerational that is one generation protect environmental resources for next generation. Businesses can use ethical decision making to secure social responsibility. companies should follow the United States Environmental Protection Agency (EPA) guidelines, for emissions on hazardous pollutants and to join the community and address those concerns, Which may be for the public benefit. According to some experts, the creation of most rules and regulations is caused by public outrage, which threatens profit maximization and therefore shareholder well-being, and if there is not an outrage, there will often be limited regulation.

Corporate Social Responsibility

Corporate Social Responsibility or CSR is defined by Lord Holme and Richard Watts, according to them "Making Good Business Sense", Improving Business Ethically and Economically Quality Continued commitment to contribute to economic development. Which is published in publication by the World Social Business Council for Sustainable Development. CSR is one of the latest management strategies, where companies try to create a positive impact on society, lives of the workers and their families as well as the local community and society at large. while doing. business. Evidence suggests that CSR taken voluntarily by companies will be more effective and efficient than CSR mandated by governments. There is no clear definition of corporate social responsibility, Every company has different CSR objectives, although the main objective is the same that is to improve qualitatively management of people and processes and, quantitatively impact on society. The second is as important as the first for every stake holders of  company. how they are affecting the environment and society. behind the second it's motive is that companies should only be profitable. While many corporations have incorporated social responsibility in their operations, it is still important for those purchasing products and services to ensure that products are socially sustainable. There are Various Verification tools are available internationally from many institutions, such as Underwriter Laboratories Environmental Standards, BIFMA, Business and Institutional Furniture Manufacturer's Association, is a non-profit organization that works for creating voluntary standards that would promote safe working environments. BioPreferred and Green Seal. These resources help corporations and their consumers identify potential risks associated with a product's lifecycle and enable end-users to confirm that the corporation's behavior comply to social responsibility ideals. scientists and engineers should be morally responsible for the negative consequences, that result from various applications of their knowledge and inventions. scientists and engineer should have ethical guidelines for the conduct of scientific research. scientists and engineers, both individually and collectively, have a special and much greater responsibility than average citizens regarding the generation and use of scientific knowledge. The International Organization for Standardization "will encourage voluntary commitment to social responsibility and provide general guidance on concepts, definitions and methods of upcoming technical knowledge.

Management Ethics

Management Ethics' deals with social accountability of a company. It is a discipline dealing with good and bad, right and wrong,  moral and obligation.It is a standard of behavior that guides individual or managers in their actions. It is a set of ethical principles that govern the actions of an individual or group, social responsibility, ethically, what is right and what is wrong.

Types of Management Ethics 

Archie B. Carroll find out three types of management ethics and standards of conduct. Which is given below,

Immoral Management Ethics 

Immoral management means the actions and practices followed by managers is lack of ethical practices. Managers want to get the maximum benefit and profit, even if it is at the cost of legal standards or is a concern for employees.

Moral Management Ethics 

According to moral management ethics, managers aim to earn maximum profit within the limits of ethical values and principles. They follow and conform to professional and legal standards of conduct. Guiding Principles in Ethical Management Ethics "Is this action, decision, or behavior appropriate for us and all parties.?

Amoral Management Ethics 

This type of management ethics is between ethical and unethical management ethics. Managers respond to personal and legal ethics only when they are required to do so, Otherwise there is a lack of moral understanding and awareness. There are two types of amoral management ethics intentional and unintentionally. In Intentional Managers intentionally avoid ethical practices in business decisions because they feel that ethics should be followed in non-business activities. and in unintentionally Managers do not deliberately avoid ethical practices but make decisions spontaneously Whose moral implications are ignored.

Approaches to Management Ethics

There are three approaches to management ethics.
Utilitarian approach,
Moral rights approach,
Social justice approach,

Utilitarian Approach

In utilitarian approach, managers analyze the effects of decisions on the people, affected by these decisions taken by the managers. Action is the focus of this approach rather than the motive behind the action. Positive and negative outcomes are weighed and managerial actions are justified, if positive effects outweigh negative effects. Analyzing pollution standards and the impact of pollution on society is a management ethics, code under a utilitarian approach.

Moral Rights Approach

In moral Rights approach, managers follow an ethical code that takes care of the fundamental and moral rights of a man. Such as, Right to speech, right to life and security, right to express feelings, etc. In the context of business organizations, managers disclose information in relevant annual reports that are necessary for the welfare of the people concerned. The nature,amount of information, timing and validity of the information is taken into account while giving information in the annual report.

Social Justice Approach

According to social justice approach, managers' actions are fair, impartial and equal for all individuals and groups. Employees are not treated on the basis of race, religion, race or gender, although a distinction based on skills abilities or production is appropriate. For example, all employees, men or women with similar skills, should be treated equally, but it is appropriate to treat employees with less production and less skills.