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Chapter
3
Social
Responsibility
and Ethics
1 2 3 4 5
The stakeholder The concept of The four Different What values are,
view and the corporate social perspectives of approaches for how they form the
impact of business responsibility and corporate social responding to basis of an
globalization on the primary responsibility. social issues. individual’s ethical
social premises on which behavior, and how
responsibility and it is based. they may vary in a
ethics. global business
environment.
6 7 8 9 10
How advances in The differences in The methods used The different What is meant by
information the utility, human by organizations to approaches used in whistle-blowing in
technology have rights, and justice encourage ethical ethics training monitoring ethical
created new approaches to organizational programs. behavior.
ethical challenges. ethical dilemmas. behavior.
1 2 3 4 5
The stakeholder The concept of The four Different What values are,
view and the corporate social perspectives of approaches for how they form the
impact of business responsibility and corporate social responding to basis of an
globalization on the primary responsibility. social issues. individual’s ethical
social premises on which behavior, and how
responsibility and it is based. they may vary in a
ethics. global business
environment.
6 7 8 9 10
How advances in The differences in The methods used The different What is meant by
information the utility, human by organizations to approaches used in whistle-blowing in
technology have rights, and justice encourage ethical ethics training monitoring ethical
created new approaches to organizational programs. behavior.
ethical challenges. ethical dilemmas. behavior.
Source: From Business & Society, Ethics and Stakeholder Management, 3rd edition, by A. Carroll. © 1996.
Reprinted with permission of South-Western, a division of Thomson Learning: http://www.thomsonrights.com. Fax 800-730-2215.
1 2 3 4 5
The stakeholder The concept of The four Different What values are,
view and the corporate social perspectives of approaches for how they form the
impact of business responsibility and corporate social responding to basis of an
globalization on the primary responsibility. social issues. individual’s ethical
social premises on which behavior, and how
responsibility and it is based. they may vary in a
ethics. global business
environment.
6 7 8 9 10
How advances in The differences in The methods used The different What is meant by
information the utility, human by organizations to approaches used in whistle-blowing in
technology have rights, and justice encourage ethical ethics training monitoring ethical
created new approaches to organizational programs. behavior.
ethical challenges. ethical dilemmas. behavior.
1 2 3 4 5
The stakeholder The concept of The four Different What values are,
view and the corporate social perspectives of approaches for how they form the
impact of business responsibility and corporate social responding to basis of an
globalization on the primary responsibility. social issues. individual’s ethical
social premises on which behavior, and how
responsibility and it is based. they may vary in a
ethics. global business
environment.
6 7 8 9 10
How advances in The differences in The methods used The different What is meant by
information the utility, human by organizations to approaches used in whistle-blowing in
technology have rights, and justice encourage ethical ethics training monitoring ethical
created new approaches to organizational programs. behavior.
ethical challenges. ethical dilemmas. behavior.
Type of Societal
Responsibility Expectation Explanations
Source: From Business and Society: Ethics and Stakeholder Management, 6th ed. by A. Carroll and A. Buchholtz. © 2006. Reprinted with permission of South-
Western, a division of Thomson Learning: http://www.thomsonrights.com. Fax 800-730-2215.
© 2016 Wessex Press, Inc. All rights reserved. 3–10
Perspectives on Social
Responsibility
• Economic Responsibility
The only responsibility of business is to make a profit
within the “rules of the game.” (Milton Friedman)
Organizations cannot be moral agents.
Only individuals can serve as moral agents.
Legal/Responsible
Illegal/Irresponsible
Source: Based upon D.R. Dalton and R.A. Cosier, “The four faces of social responsibility,” Business Horizons, May/June, 1982, 19-27.
Printed from Business Horizons, D. R. Dalton and R. A. Cosier, “The Four Faces of Social Responsibility,” May/June 19–27, 1982, with permission from
Elsevier..
1 2 3 4 5
The stakeholder The concept of The four Different What values are,
view and the corporate social perspectives of approaches for how they form the
impact of business responsibility and corporate social responding to basis of an
globalization on the primary responsibility. social issues. individual’s ethical
social premises on which behavior, and how
responsibility and it is based. they may vary in a
ethics. global business
environment.
6 7 8 9 10
How advances in The differences in The methods used The different What is meant by
information the utility, human by organizations to approaches used in whistle-blowing in
technology have rights, and justice encourage ethical ethics training monitoring ethical
created new approaches to organizational programs. behavior.
ethical challenges. ethical dilemmas. behavior.
Do Nothing Do Much
• Reaction
An approach to corporate social responsibility that
includes an organization denying responsibility for its
actions.
• Defense
Organizations that pursue a defense strategy respond
to social challenges only when it is necessary to
defend their current position.
• Accommodation
An approach to corporate social responsibility that
adapts to public policy in doing more than the
minimum required.
• Proaction
An approach to corporate social responsibility that
includes behaviors that improve society.
Organizations that assume a proaction strategy
subscribe to the notion of social responsiveness.
1 2 3 4 5
The stakeholder The concept of The four Different What values are,
view and the corporate social perspectives of approaches for how they form the
impact of business responsibility and corporate social responding to basis of an
globalization on the primary responsibility. social issues. individual’s ethical
social premises on which behavior, and how
responsibility and it is based. they may vary in a
ethics. global business
environment.
6 7 8 9 10
How advances in The differences in The methods used The different What is meant by
information the utility, human by organizations to approaches used in whistle-blowing in
technology have rights, and justice encourage ethical ethics training monitoring ethical
created new approaches to organizational programs. behavior.
ethical challenges. ethical dilemmas. behavior.
1 2 3 4 5
The stakeholder The concept of The four Different What values are,
view and the corporate social perspectives of approaches for how they form the
impact of business responsibility and corporate social responding to basis of an
globalization on the primary responsibility. social issues. individual’s ethical
social premises on which behavior, and how
responsibility and it is based. they may vary in a
ethics. global business
environment.
6 7 8 9 10
How advances in The differences in The methods used The different What is meant by
information the utility, human by organizations to approaches used in whistle-blowing in
technology have rights, and justice encourage ethical ethics training monitoring ethical
created new approaches to organizational programs. behavior.
ethical challenges. ethical dilemmas. behavior.
1 2 3 4 5
The stakeholder The concept of The four Different What values are,
view and the corporate social perspectives of approaches for how they form the
impact of business responsibility and corporate social responding to basis of an
globalization on the primary responsibility. social issues. individual’s ethical
social premises on which behavior, and how
responsibility and it is based. they may vary in a
ethics. global business
environment.
6 7 8 9 10
How advances in The differences in The methods used The different What is meant by
information the utility, human by organizations to approaches used in whistle-blowing in
technology have rights, and justice encourage ethical ethics training monitoring ethical
created new approaches to organizational programs. behavior.
ethical challenges. ethical dilemmas. behavior.
1 2 3 4 5
The stakeholder The concept of The four Different What values are,
view and the corporate social perspectives of approaches for how they form the
impact of business responsibility and corporate social responding to basis of an
globalization on the primary responsibility. social issues. individual’s ethical
social premises on which behavior, and how
responsibility and it is based. they may vary in a
ethics. global business
environment.
6 7 8 9 10
How advances in The differences in The methods used The different What is meant by
information the utility, human by organizations to approaches used in whistle-blowing in
technology have rights, and justice encourage ethical ethics training monitoring ethical
created new approaches to organizational programs. behavior.
ethical challenges. ethical dilemmas. behavior.
Source: Academy of Management: The Thinking Manager’s Source by S. J. Harrington. Copyright 1991 by Academy of Management. Reproduced with
permission of Academy of Management.
© 2016 Wessex Press, Inc. All rights reserved. 3–30
Fostering Improved Business
Ethics (cont’d)
• Code of Ethics
Describes the general value system, ethical
principles, and specific ethical rules that a company
tries to apply.
1 2 3 4 5
The stakeholder The concept of The four Different What values are,
view and the corporate social perspectives of approaches for how they form the
impact of business responsibility and corporate social responding to basis of an
globalization on the primary responsibility. social issues. individual’s ethical
social premises on which behavior, and how
responsibility and it is based. they may vary in a
ethics. global business
environment.
6 7 8 9 10
How advances in The differences in The methods used The different What is meant by
information the utility, human by organizations to approaches used in whistle-blowing in
technology have rights, and justice encourage ethical ethics training monitoring ethical
created new approaches to organizational programs. behavior.
ethical challenges. ethical dilemmas. behavior.
1 2 3 4 5
The stakeholder The concept of The four Different What values are,
view and the corporate social perspectives of approaches for how they form the
impact of business responsibility and corporate social responding to basis of an
globalization on the primary responsibility. social issues. individual’s ethical
social premises on which behavior, and how
responsibility and it is based. they may vary in a
ethics. global business
environment.
6 7 8 9 10
How advances in The differences in The methods used The different What is meant by
information the utility, human by organizations to approaches used in whistle-blowing in
technology have rights, and justice encourage ethical ethics training monitoring ethical
created new approaches to organizational programs. behavior.
ethical challenges. ethical dilemmas. behavior.
Sources: N. Swartz, “Whistleblower Complaints Growing,” Information Management Journal 38, no. 3 (May/June
2005): 8; T. Mohr and D. Slovin, “Making Tough Calls Easy,” Security Management 49, no. 3 (March 2005): 51–
56; L. Driscoll, “A Better Way to Handle Whistle-Blowers: Let Them Speak,” BusinessWeek, 27 July 1992, 36.
© 2016 Wessex Press, Inc. All rights reserved. 3–38
Implications for Leaders
• Explore ways in which the organization can be more
socially responsive.
• Recognize the effect of the organization’s actions on its
stakeholders.
• Create an environment in which employees commit to
behaving in socially responsive and ethical ways.
• Make sure that a code of ethics is put in place and
followed.
• Ensure that whistle blowing and ethical concerns
procedures are established for internal problem solving.