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social responsibility and governance ppt

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This document discusses organizational environments and social responsibility, and corporate governance. It defines key terms like stakeholders, social responsibility, and corporate governance. It explains that organizations operate within general and specific environments. It also discusses arguments for and against corporate social responsibility. The document then covers corporate governance failures that have prompted regulation, and strategies for moral management and ethics mindfulness within organizations.

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MODULE 5 SOCIAL RESPONSIBILITY AND GOVERNANCE What should we know about organizational environments and social responsibility? What are current issues in corporate governance? Organizations have ethics, too
SOCIAL RESPONSIBILITY AND GOVERNANCE Organizational Environments And Social Responsibility MODULE GUIDE 5.1 Organizations operate within conditions set by the general environment. The specific environment includes an organizations stakeholders. Social responsibility is an organizations obligation to best serve society. Social performance by organizations can be evaluated in different ways. Scholars argue cases for and against corporate social responsibility. Organizations follow different social responsibility strategies. Failures of ethics and social responsibility prompt calls for stronger governance.
ORGANIZATIONAL ENVIORNMENTS AND SOCIAL RESPONSIBILITY Organizational Environments General Environment Consists of cultural, economic, legal, political and educational conditions Specific Environment Consists of the people and groups with which an organization interacts Stakeholders People and Institutions most directly affected by an organizations performance
ORGANIZATIONAL ENVIRONMENTS General Environment Economic Health of the economy in terms of inflation, income levels, gross domestic product, unemployment, and job outlook Sociocultural Norms, customs, and social values on such matters as human rights, trends in education and related social institutions, as well as demographic patterns in society Legal-political Prevailing philosophy and objectives of the political party or parties running the government, as well as laws and government regulations Technological Development and availability of technology, including scientific advancements Natural Nature and conditions of the natural environment, including levels of public concern expressed through environmentalism
ORGANIZATIONAL ENVIRONMENTS Specific Environment Specific Environment : The people and groups with whom an organization interacts.
ORGANIZATIONAL ENVIRONMENTS Social Responsibility Corporate Social Responsibility The obligation of an organization to serve its own interest and those of its stakeholders Social Responsibility Audit Assesses an organizations performance in the area of social responsibility
ORGANIZATIONAL ENVIRONMENTS Social Responsibility
ORGANIZATIONAL ENVIRONMENTS Social Responsibility The Case In Favor Of Corporate Social Responsibility Responsibility Increases long-run profits Improves public image Helps avoid government regulation Businesses have resources and ethical obligations to act responsibly The Case Against Corporate Social Responsibility Reduces business profits Creates higher business costs Dilutes business purpose Gives too much social power to business
ORGANIZATIONAL ENVIRONMENTS Social Responsibility Strategies
SOCIAL RESPONSIBILITY AND GOVERNANCE Corporate Governance MODULE GUIDE 5.2 Failures of ethics and social responsibility prompt calls for stronger governance. Weak corporate governance can result in more government regulation. Moral management builds capacities for self-governance in organizations.
CORPORATE GOVERNANCE Corporate Governance Corporate Governance The oversight of top management by a board of directors Weak corporate governance leads to government regulation Boeing WorldCom Enron
CORPORATE GOVERNANCE Corporate Governance
CORPORATE GOVERNANCE Government Regulations Government Regulations Sarbanes-Oxley Act 2002 Goal is to see that top CEOs oversee the financial conduct of their organizations Occupational and Safety Act (OSHA) 1970 Goal is to protect employees from workplace injuries Equal Opportunity Act (EEO) 1972 Goal is to protect minorities against discrimination Consumer Product Safety Act 1972 Goal is to protect consumers from harmful products
CORPORATE GOVERNANCE Moral management Moral Management Moral Manager Considers ethical behavior as a personal goal Amoral Manager Is unethical but unintentionally Immoral Manager Chooses to behave unethically
CORPORATE GOVERNANCE Moral Management
CORPORATE GOVERNANCE Ethics Mindfulness Ethics Mindfulness Enriched awareness that leads to consistent ethical behavior
MANAGEMENT TIPS A social responsibility audit assesses an organizations accomplishments in areas of social responsibility. Discretionary Responsibility: Contribute to Community Ethical Responsibility: Do What Is Right Legal Responsibility: Obey the Law Economic Responsibility: Be Profitable

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social responsibility and governance ppt

  • 1. MODULE 5 SOCIAL RESPONSIBILITY AND GOVERNANCE What should we know about organizational environments and social responsibility? What are current issues in corporate governance? Organizations have ethics, too
  • 2. SOCIAL RESPONSIBILITY AND GOVERNANCE Organizational Environments And Social Responsibility MODULE GUIDE 5.1 Organizations operate within conditions set by the general environment. The specific environment includes an organizations stakeholders. Social responsibility is an organizations obligation to best serve society. Social performance by organizations can be evaluated in different ways. Scholars argue cases for and against corporate social responsibility. Organizations follow different social responsibility strategies. Failures of ethics and social responsibility prompt calls for stronger governance.
  • 3. ORGANIZATIONAL ENVIORNMENTS AND SOCIAL RESPONSIBILITY Organizational Environments General Environment Consists of cultural, economic, legal, political and educational conditions Specific Environment Consists of the people and groups with which an organization interacts Stakeholders People and Institutions most directly affected by an organizations performance
  • 4. ORGANIZATIONAL ENVIRONMENTS General Environment Economic Health of the economy in terms of inflation, income levels, gross domestic product, unemployment, and job outlook Sociocultural Norms, customs, and social values on such matters as human rights, trends in education and related social institutions, as well as demographic patterns in society Legal-political Prevailing philosophy and objectives of the political party or parties running the government, as well as laws and government regulations Technological Development and availability of technology, including scientific advancements Natural Nature and conditions of the natural environment, including levels of public concern expressed through environmentalism
  • 5. ORGANIZATIONAL ENVIRONMENTS Specific Environment Specific Environment : The people and groups with whom an organization interacts.
  • 6. ORGANIZATIONAL ENVIRONMENTS Social Responsibility Corporate Social Responsibility The obligation of an organization to serve its own interest and those of its stakeholders Social Responsibility Audit Assesses an organizations performance in the area of social responsibility
  • 8. ORGANIZATIONAL ENVIRONMENTS Social Responsibility The Case In Favor Of Corporate Social Responsibility Responsibility Increases long-run profits Improves public image Helps avoid government regulation Businesses have resources and ethical obligations to act responsibly The Case Against Corporate Social Responsibility Reduces business profits Creates higher business costs Dilutes business purpose Gives too much social power to business
  • 10. SOCIAL RESPONSIBILITY AND GOVERNANCE Corporate Governance MODULE GUIDE 5.2 Failures of ethics and social responsibility prompt calls for stronger governance. Weak corporate governance can result in more government regulation. Moral management builds capacities for self-governance in organizations.
  • 11. CORPORATE GOVERNANCE Corporate Governance Corporate Governance The oversight of top management by a board of directors Weak corporate governance leads to government regulation Boeing WorldCom Enron
  • 13. CORPORATE GOVERNANCE Government Regulations Government Regulations Sarbanes-Oxley Act 2002 Goal is to see that top CEOs oversee the financial conduct of their organizations Occupational and Safety Act (OSHA) 1970 Goal is to protect employees from workplace injuries Equal Opportunity Act (EEO) 1972 Goal is to protect minorities against discrimination Consumer Product Safety Act 1972 Goal is to protect consumers from harmful products
  • 14. CORPORATE GOVERNANCE Moral management Moral Management Moral Manager Considers ethical behavior as a personal goal Amoral Manager Is unethical but unintentionally Immoral Manager Chooses to behave unethically
  • 16. CORPORATE GOVERNANCE Ethics Mindfulness Ethics Mindfulness Enriched awareness that leads to consistent ethical behavior
  • 17. MANAGEMENT TIPS A social responsibility audit assesses an organizations accomplishments in areas of social responsibility. Discretionary Responsibility: Contribute to Community Ethical Responsibility: Do What Is Right Legal Responsibility: Obey the Law Economic Responsibility: Be Profitable