Principles Of Management Chapter 2 GTU MBA

7/31/2019 Principles Of Management Chapter 2 GTU MBA

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Management and Society: The External Environment,

Social Responsibility, and Ethics


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The Organization and Its External

Environment


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Operating in a Pluralistic Society

Managers operate in a pluralistic society, in which manyorganized groups represent various interests.

Each group has an impact on other groups, but no onegroup exerts an inordinate amount of power. Manygroups exert some power over business.


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The Technological Environment

Technology is the sum total of the knowledge we have ofways to do things.


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The Ecological Environment

Ecology pertains to the relationship of people and otherliving things with their environment, such as soil, water,and air.

Land may be polluted by industrial waste such as

packaging. Water pollution may be caused, for example, by

hazardous waste and sewage.

Air pollution can be caused by acid rain, vehicle exhaust

fumes, carcinogens from manufacturing processes, andother sources.


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The Social Responsibility of Managers

Corporate social responsibility is seriouslyconsidering the impact of the company's actions onsociety.

Social responsiveness is "the ability of a corporation torelate its operations and policies to the socialenvironment in ways that are mutually beneficial to thecompany and to society.


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Arguments for Social Involvement

Public expectations

Long-run profits

Ethical obligation

Public image Better environment

Discouragement of further governmental regulation

Balance of responsibility & power

Stockholder interests

Possession of resources

Superiority of prevention over cures


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Arguments against Social Involvement

Violation of profit maximization

Dilution of purpose

Costs

Too much power Lack of skills

Lack of accountability


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Ethics in Managing

Ethics is the discipline dealing with what is good and badand with moral duty and obligation.

Business ethics is concerned with truth and justice.


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Four levels of ethical questions in business

Societal

Stakeholder

Internal policy

Personal


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Ethical Theories

The utilitarian theory suggests that plans and actionsshould be evaluated by their consequences.

The theory based on rights holds that all people havebasic rights.

The theory of justice demands that decision makers beguided by fairness and equity, as well as impartiality.


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The tools of ethics

Values

Rights & duties

Moral rules

Human relationships

Common morality Promise keeping

Non malevolence

Mutual aid

Respect for others Respect for persons

Respect for property

The morality of care


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Institutionalizing Ethics

A code is a statement of policies, principles, or rules thatguide behavior.


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Factors that May Raise Ethical Standards

(a study)

Public disclosure and publicity

The increased concern of a well-informed public

Government regulations

Education to raise the professionalism of businessmanagers


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Guidelines for International Business

EthicsFocus China

International Business Ethics

Labor Conditions

Areas of Justice

Toward Virtue Ethics


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Definition of Whistle-Blowing

Whistle-blowing is making known to outside agencieswhat are considered unethical company practices.


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Trust as the Basis for Change

Management

Traditionally, the concept of trust is equated withintegrity, loyalty, caring, and keeping promises in therelationships between and among individuals.

Belardo points out that trust should go beyond individualrelationships and extend to the organization by creatinga culture of trust that transcends individual leadership.

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Principles Of Management Chapter 2 GTU MBA