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BOH4M0 Management Leadership. Chapter 3: Ethical Behaviour and Social Responsibility. Chapter 3 Topic Overview. What is Ethical Behaviour? Ethics in the Workplace Maintaining High Ethical Standards Corporate Social Responsibility Organizations and Society. Corporate Social Responsibility:

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BOH4M0 Management Leadership

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Boh4m0 management leadership

BOH4M0Management Leadership

Chapter 3:

Ethical Behaviour and Social Responsibility

Chapter 3 topic overview

Chapter 3Topic Overview

  • What is Ethical Behaviour?

  • Ethics in the Workplace

  • Maintaining High Ethical Standards

  • Corporate Social Responsibility

  • Organizations and Society

Boh4m0 management leadership

Corporate Social Responsibility:

…is the obligation of an organization to serve its own interests and those of society.

Stakeholder Analysis occurs when we identify the people and organizations that may be affected by a decision and then deal with the problems that may occur because of that decision.



  • Owners

  • Employees

  • Suppliers

  • Competitors

  • Regulators (Government, laws)

  • Interest Groups

Leadership beliefs

Leadership Beliefs

  • People—perform best in a healthy environment and balance of work and family life

  • Communities—organizations perform best when located in healthy communities

  • Natural Environment

  • Long Term

  • Reputation

Perspectives on csr

Perspectives on CSR

  • Classic view: management should only be concerned with maximizing profit.

    • If done under the Individualism view (the company), this will result in good, responsible decisions that will ensure the long-term success of the company

    • CSR practices will only drive up costs, reduce profits and allow the public too much control over private company affairs.

Perspectives on csr1

Perspectives on CSR

  • Socio-Economic View: managers must take social welfare into account when making decisions about maximizing profits.

    • Will produce long-term benefits

    • Will help avoid government regulation (which would reduce costs)

    • Companies usually have the resources and definitely have a moral obligation to behave

Evaluating corporate social performance

Evaluating Corporate Social Performance

  • A Social Responsibility audit is used assess an organization’s accomplishments in areas of social responsibility.

  • Can include a review of:

    • Impact on ecology/environment

    • Product safety

    • Consumer Protection

    • Community Service/Charity

    • Employee Assistance

Evaluating corporate social performance1

Evaluating Corporate Social Performance

  • Can act out of compliance-follow the rules to avoid punishment:

    • be profitable

    • Obey the law/regulations

  • Can act out of Conviction-creating a positive impact because you want to:

    • Doing what is right

    • Contributing to the community

Social entrepreneurship

Social Entrepreneurship

  • This is the process of attempting to solve problems in society for the benefit of society as opposed to personal profit.

    • Search for things that are not working for people who need them

    • Change the system

    • Spread the solution

    • Change society

  • Fish story-give a man a fish, teach him to fish, change the entire industry.

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