Social Responsibility and managerial Ethics
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Social responsibility - obligation beyond that
of law and economics for a firm to pursue long term goals that ar tidy for society
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Social obligation - obligation of wrinkle to
meet economic and legal responsibilities
Social responsiveness - efficiency of firm to
adapt to changing societal conditions
Robbins, Bergman, Stagg, Coulter: attention 4e © 2006 Pearson E ducation Australia Robbins, Bergman, Stagg, Coulter: instruction 4e © 2006 Pearson E ducation Australia
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What is social responsibility? The classical view
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What is social responsibility? (Contd) The socioeconomic view
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Management s only social responsibility is to maximise profits (create a financial return) by operating the business in the high hat interests of the stockholders (owners of the corporation). Expending the firms resources on doing social good unjustifiably increases costs that lower profits to the owners and raises prices to consumers
Management s social responsibility goes beyond making profits to take on protecting and improving society s welfare. Corporations are non independent entities responsible only to stockholders. Firms have a incorrupt responsibility to larger society to become involved in social, legal, and political issues.
To do the right thing
Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson E ducation Australia
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Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson E ducation Australia
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Levels of social involvement
Arguments for and against social responsibility
FOR prevalent expectations Long-run profits Ethical obligation Public image Better environment Discouragement of further governmental regulation Balance of responsibility and power Stockholder interests self-possession of resources Superiority of prevention over cure AGAINST Violation of profit maximisation Dilution...If you want to get a full essay, influence it on our website: Orderessay
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