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The Course

The Course. MGM4137 Dasar Sosial Korporat (Corporate Social Policy). The Course Lecturer. PUAN RUHANA BTE BUSU Room No.: A118 Telephone No.: 038946 7740 e-mail: ruhana@econ.upm.edu.my. Assessment ~. Ujian Pertengahan 30% Tugasan 30%

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The Course

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  1. The Course MGM4137 Dasar Sosial Korporat (Corporate Social Policy)

  2. The Course Lecturer PUAN RUHANA BTE BUSU • Room No.: A118 • Telephone No.: 038946 7740 • e-mail: ruhana@econ.upm.edu.my

  3. Assessment ~ Ujian Pertengahan 30% Tugasan 30% Peperiksaan akhir 40% Jumlah 100%

  4. Nota Kuliah boleh dimuat turun dari: Kelas Maya/Virtual Class • http://econ3.upm.edu.my/kelasmaya/

  5. Reference Book ~ Thorne, D. M., Ferrell, O. C., & Ferrell, L. (2008). Business and society: A strategic approach to social responsibility. (3rd ed.). Boston: Houghton Mifflin Company.

  6. Chapter 1 Social Responsibility Framework

  7. 95% of Respondents Agree • U.S. corporations should have more than one purpose. They also owe something to their workers and the communities in which they operate, and they should sometimes sacrifice some profit for the sake of making things better for their workers and communities. Source: "How Business Rates: By the Numbers, Business Week, Sept. 11, 2000, pp. 148-149.

  8. What do you believe organizations should be responsible for accomplishing?

  9. Social Responsibility Defined • Social responsibility • The adoption by a business of a strategic focus for fulfilling the economic, legal, ethical and philanthropic responsibilities expected by its stakeholders. • Businesses should look beyond their self-interests and recognize that they belong toa larger group that expects responsible participation.

  10. Business and Society: An Interactive System

  11. Social Responsibility Defined (cont.) • Applies to all types of businesses. • Small businesses • Large businesses • Sole proprietorships • Multinational corporations

  12. Social Responsibility Defined (cont.) • Adopts a strategic focus. • Requires a formal commitment from top management. • Communicated through mission and vision statements, annual reports, websites, and public relations. • Requires action and results. • Depends on collaboration and coordination across business and among constituencies. • Large companies often create specific positions and departments to support social responsibility programs.

  13. Social Responsibility Defined (cont.) • Fulfills societal expectations. • Provides a return on investment for owners. • Obeys the law and regulatory agencies. • Acts in a just, fair, and correct manner. • Promotes human welfare and good will.

  14. Pyramid of Responsibility

  15. Who are the keystakeholders of the organization?

  16. Social Responsibility Defined (cont.) • Requires a stakeholder orientation. • Customers • Employees • Investors • Stockholders • Suppliers • Government • Communities

  17. Market Stakeholder Map

  18. Stakeholders • Those constituents who have a stake in or claim on some aspect of a company’s products, operations, markets, industry and outcomes. • A stakeholder refers to persons or groups that can affect, or are affected by, an organization’s decisions, policies, and operations • Stakeholders are important to companies that operate with a stakeholder orientation.

  19. Managing Social Responsibilityin Home and Host Markets

  20. Global Nature of Social Responsibility • Who determines social responsibility on a global scale? • Host country? • Home country? • Outside organizations?

  21. Benefits of Social Responsibility • Greater trust with stakeholders • Greater customer satisfaction • Stronger employee commitment • Stronger investor loyalty • Greater profitability • Countries with greater trust-based institutions foster a productivity-enhancing environment. • Competitive processes are more efficient and effective.

  22. Social Responsibility Builds Trust • Trust is the glue that holds organizational relationships together. • Stephen Covey contends that low trust results in organizational decay and relationship deterioration. • Political problems and inefficiency • Most workers feel they can be trusted more than they can trust others.

  23. Social ResponsibilityStrengthens Employee Commitment • The greater a company’s dedication to employees, the greater the likelihood that employees will take care of the organization. • Failure to care for employees results in lower loyalty and commitment. • Employees’ perceptions are affected by: • Safe working conditions, competitive salaries, and contractual fulfillment. • Social programs, including work-family relationships, stock ownership, community service.

  24. What happens whenemployee loyalty is breached? • Quality is compromised. • Service is compromised. • Efficiency decreases.

  25. Social ResponsibilityImproves Customer Satisfaction • Focuses on customer satisfaction and strengthens trust. This is especially key in service organizations. • Seventy percent of consumers indicated they would switch to brands associated with a good cause if price and quality were equal.

  26. What happens when consumer– organizational trust is breached? • Seventy-five percent of consumers say they would avoid or refuse to buy from certain businesses. • Consumers may avoid products from companies that treat their employees unfairly.

  27. Social ResponsibilityContributes to Investor Loyalty • Investor relationships require dependability, trust, and commitment. • Shareholders are concerned about ethics, social responsibility, and corporate reputation. • Half of investors sell their stock within one year.

  28. Social ResponsibilityEnhances Economic Performance • Does business conduct relate to a nation’s overall economic conduct? • Economic well-being is promoted by: • Trust and a sense of community. • Rigor in the ethical system. • The exercise of authority within the society. • Positive attitudes about work, innovation, savings, and profits.

  29. Social Responsibility Model

  30. An Overview of this book

  31. Framework for Studying Social Responsibility • Chapter 2 • Strategic Management of Stakeholder Relationships • Chapter 3 • Corporate Governance • Chapter 4 • Legal, Regulatory, and Political Issues • Chapter 5 • Business Ethics and Ethical Decision Making

  32. Framework for Studying Social Responsibility (cont.) • Chapter 6 • Strategic Approaches to Improving Ethical Behavior • Chapter 7 • Employee Relations • Chapter 8 • Consumer Relations • Chapter 9 • Community Relations and Strategic Philanthropy

  33. Framework for Studying Social Responsibility (cont.) • Chapter 10 • Environmental Issues • Chapter 11 • Technology Issues • Chapter 12 • The Social Audit

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