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Every organization is having certain responsibility towards the society. Since a society is a broader framework within which the organization operates, there are many social issues which impinge on the operation of organizations. The most important social issue that managers must take into account is social responsibility of managers or corporate social responsibility. CSR focuses on what an organization does that affect the society in which it exists.
Ethics
Study of rights and of who is (or should be) benefited or harmed by action.
Both CSR and Ethics prescribe some actions by managers for the betterment of the society.
Robert Ackerman suggested that responsiveness, not responsibility, should be the goal of corporate social endeavors. He pointed that corporate response to social issues has a life cycle.
It starts with corporate recognition of the problem. Study of the problem and consideration of ways to deal with it. Implement with a solution.
In 1979, Archie Carroll combined philosophical ideas of social responsibility & social responsiveness into single theory of corporate social action called corporate social performance. According to this theory, the arena of social responsibility debates is shaped by economic, legal & ethical principles. In this country, for example, we support free enterprise (an economic principle), the publics right to safe workplace (a legal principle) & equal employment opportunity (an ethical principle). Together these principle create a social contract between business & society that permits companies to act as moral agents.
Societal
At this level, we ask question about the basic institutions in a society.
Ex: is it ethically correct to have a social system in which a group of people is denied basic rights.
Stakeholder
Second ethical question concerns stakeholders such as suppliers, customer, shareholders, and the rest. Here answer is found for the questions like: how a company should deal with the external groups affected by its decisions, as well as how the stakeholders should deal with company Stakeholder issues can be
Insider trading Companys obligation to inform its customers about the potential dangers of its products What obligations does a company have to its suppliers?
Internal Policy
Here nature of companys relations with its employees is the matter of concern. To decide what kind of employment contract, compensation plan is fair. What are the mutual obligations of managers and workers? What rights do employees have? Layoffs, benefits, work rules, motivation and leadership are all ethical concerns for the management.
Personal
How people should treat one another within an organization How honest we should be with one another Questions that deals with day to day issues of life in any organization are dealt with in this level of ethics.
Values
Values can be defined as relatively permanent desires that seem to be good in themselves
Duties
Rights and duties are correlated Whenever someone has a right, someone else has a duty to respect it. Duty can be defined as an obligation to take specific steps. Ex: to file ITR on time.
Moral rules
Guides for situations where competing interests collide. Can be considered as guidelines that can resolve disagreements.
Common morality
Is the body of moral rules governing ordinary ethical problems. These rules can be used to understand managerial problems in ethical terms.