Chapter 4 outline

Chapter 4 outline - Chapter 4 Social Responsibility and...

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Chapter 4 Social Responsibility and Managerial Ethics 1. Social Responsibility a. Such as obligations corporations have to constituencies  i. Constituencies varying from shareholders, consumers, to the  communities they work in. ii. Each constituency have their different wants , needs and roles with the  company. b. Efficiency Perspective = the concept that managers’ roles are solely to making  profits for the company and owners. i. Managers as owners mainly go with the flow of societal values and  needs, mainly when the effects are visible otherwise, “what they don’t  know(and can’t see), won’t hurt them” ii. Managers as agents are to take care of the company and make profit and  nothing else. “baby sitters” iii. Concerns 1. Because it is mainly about competition and consumer demand  profit overlooks safety and concerns for future society. 2. Change only happens when someone gets hurt… iv. Externalities = indirect or unintended consequences imposed on society  that may not be understood or anticipated (in our case done by a  company. c. Social responsibility perspective i. Limited liability: a privilege granted to corporations by society and not  shareholders—ultimately not all responsibilities of firm are controlled by  the shareholders. ii. Stakeholders = individuals or groups who have an interest in and are  affected by the actions of an organization.
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1. Customers, employees, communities, suppliers
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This note was uploaded on 02/20/2009 for the course MGMT 38000 taught by Professor Dibble during the Winter '09 term at UC Irvine.

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Chapter 4 outline - Chapter 4 Social Responsibility and...

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