Chapter 2 Principles of Management

Fundamentals of cordial Responsibility bodily societal Responsibility The managerial obligation to take deed of conveyanceion that protects and improves two the welfare of society as a whole and the interests of the administration. Davis Model of embodied amicable Responsibility Keith Davis A generally accepted model of incarnate hearty responsibility. List of 5 propositions that describe why and how affair should cohere to obligation to take action that protects and improves the welfare of society as s headspring as of the formation.Davis model Proposition 1 Social responsibility arises from sociable power commercial enterprise has power over society and can regularise minority and environmental pollution issues. Proposition 2 commerce should buy the farm a 2 way system Inputs from society and open apocalypse to the worldly concern. Proposition 3 Social cost and benefits shall be considered prior to proceeding Profits are not the only factors involved.Proposition 4 Social costs shall be passed on to the consumer Business can bot be expected to root the bill for companionable activities the cost must be passed along to the consumer as well. Proposition 5 Business has a responsibility for some loving problems outside their normal area of operation Business should help put to work social problems, if they can. perpetrateance of Social Responsibility practiceivities by Business Perform all legally required social responsibility activities. Consider voluntarily playacting social responsibility activities beyond those legally required.Inform all relevant individuals of the extent to which the placement will become involved in performing social responsibility activities. acting Required Social Responsibility Activities federal official Legislation requires that fear perform certain social responsibility activities. environmental Protection Agency(EPA) Enforces socially responsible environmental standards. Equal pay act of 1963 Equal pay for equal work. Equal Employment Opportunity Act of 1972 Highway Safety Act of 1978 Clean Air/ Act Amendment of 1990.Voluntarily Performing Social Responsibility Activities Assessing the positive and negative outcomes of performing social responsibility activities over both the short and long term, and the performing only those activities that maximise circumspection system success while making a in demand(predicate) contribution to the welfare of society. Social Responsiveness The degree of effectiveness and qualification an organization displays in pursuing its social responsibilities. Determining Whether a Social Responsibility Exists Determine which specific social obligation are implied by specific vocation situations.Ex tobacco execs need to consider reducing hurt to public while increasing revenues. Social Responsiveness and Decision make Socially responsible organizations are both effective and efficient in meeting its social responsibilities without wasting organizati onal resources in the process. border ones to meeting Social Responsibilities Two types of proposed approaches Lipson S. Prakash Sethi Lipsons Approach Incorporate social goals into the annual planning process. Seeks proportional industry norms of social programs.Presents reports to all stakeholders on social responsibility progress. Experiments with polar approaches for measuring social performance. Attempts to measure the cost of social programs as well as the return on social program investings. S Prakash Sethis Approach Social obligation approach Business has economic purpose and social responsibility is covered by legislature. Social responsibility approach Business has both economic and societal goals. Social responsiveness approach Business has both economic and societal goals but anticipates future impact of business practices.Planning Social Responsibility Activities Determining how the organization will achieve its social responsibility objectives. Converting Organizat ional Policies on Social Responsibility into Action form 1 Recognition, by top management, that the organization has some social obligation. phase 2 Technical staff give input to top management for implementation. Phase 3 Complete employee acceptance of strategy and responsibility for implementation. irresponsible Social Responsibility ActivitiesManagers assess or measure what is occurring in the organization and, if necessary, change these occurrences in some way to make them conform to plans. Areas of measurement Economic function area Measure of economic contribution the organization is making to society such as fair wages, worker, safety, etc.. Quality of sustenance area Whether the organization is upholding or improving the general quality of look such as producing high quality items, preserving the natural environment, etc.. Social investment area Assisting community organizations to solve social problemes such as education, charities, etc..Problem solve area Dealing wi th social problems such as long-rang community problems. Social Audit The process of measuring the present social responsibility activities of an organization to assess its performance in this area. How society can help business meet social obligations Set rules that are clear and consistent fall out the rules technically feasible. Make sure the rules are economically feasible. Make the rules prospective, not retro-active. Make the rules goal setting, not procedure prescribing. Definition of EthicsThe capacitor to reflect on value in the corporate decision-making process, to determining how these values and decisions affect various stake holder groups, and to establish how mangers can lend oneself these observations in day to day company management.. Why Ethics is a vital part of management practices Productivity If employees are treated honestly they will be loyal and productive. Stakeholder Relations A positive public image is rock-steady for business. Government Regulation I f organization behave ethically, in that location is less pressure on regulation and corporate over-sight.Code of ethics A formal statement that acts as a guide for the ethics of how population within a particular organization should act and make decisions. Creating an ethical workplace The golden rule Do unto others The Utilitarian principles Grea show good for greatest number. Kants categorical imperative Universal rule of behavior fairness. The headmaster ethics Assume you are being judged by peers. The T. V. Test Would you be comfortable saying it in front of national T. V.? The legal test Is it legal? The four way test Is it rightful?Is it fair? ordain it build good will? Will it be beneficial. Sarbanes-Oxley Reform Standards Passed in 2002 to prevent future deception in publically owned companies. Focuses on promoting ethical conduct. Areas covered include maintaining GAAP, evaluating executive compensation, monitoring fundamental business strategies, understanding and mit igating major risk, and ensuring company structure and process that enhance wholeness and reputation. Supports whistle-blowing to discourage deceptive management practices. Consequences Significant fines and jail time.