BA 310 EXAM 3 STUDY GUIDE - BA 310 EXAM 3 STUDY GUIDE...

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BA 310 EXAM 3 STUDY GUIDE ETHICS AND SOCIAL RESPONSIBILITY: Stakeholders – any internal or external groups that are affected by the organization’s decisions and actions What Challenges Do Stakeholders Pose? - expect their needs to be met - effective stakeholder mgmt linked to high performance Social Responsibility: To Whom is Management Responsible? LESSER GREATER Owners and Employees Constituents in Broader Management Specific Environment Society Different Views: 1. Social Obligation – if management is responsible to owners, they should be concerned with obligations to society – meeting economic and legal responsibilities - business should “play by the rules” - maximize profits while staying within the law - should take socially responsive actions only when they increase profits - business shouldn’t make decisions for society - also known as “classical” view of social responsibility 2. Management is Responsible to Broader Social Groups : Implication – if management is responsible to broader groups, they must be more broadly concerned about their impact on society a. Social Responsibility – a business’s obligation is to pursue long-term goals that help society - go beyond legal and economic – do the right thing b. Social Responsiveness – capacity of a firm to adapt to changing societal conditions and norms - business’s should respond to social trends - a more pragmatic, action-oriented approach - ex., McDonald’s and Styrofoam containers c. Related to “socioeconomic” view (contrasts to “classical”): - businesses have a responsibility to improve and protect the welfare of a society that endorses and supports them - business supported by society – should give back
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Advocates Argue: 1. It is in businesses’ interest: it can increase long-term profitability and/or reputation 2. Business can make a difference: solving problems, providing resources 3. It’s ethical Social Responsibility and Economic Performance : - Most research shows a positive relationship - Research itself if subject to question - Possible reverse causation – economic performance causing social responsibility - if company broke – can’t give money The Ethics Landscape: 56% of employees feel pressure to act unethically or illegally - 48% admit to committing such activity 75-98% of students admit to cheating in HS 84% of college students believe they need to cheat to get ahead in the world Ethics – rules and principles that define right and wrong conduct Ethical Decision Models: 1. Utilitarian Model – an ethical decision produces the greatest good for the greatest number of people - encourages efficiency – can exploit those in weak positions - probably the dominant view in business situations - ex., “I believe in the power of free markets to make everyone better off in the long run. So I’ll pay the market wage.” 2. Moral Rights Model – an ethical decision best protects the rights and privileges of people affected by it
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This note was uploaded on 04/18/2008 for the course BADM 310 taught by Professor G. love during the Fall '08 term at University of Illinois at Urbana–Champaign.

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BA 310 EXAM 3 STUDY GUIDE - BA 310 EXAM 3 STUDY GUIDE...

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