SR IN BUSINESS - BUS 604

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ETHICS & SOCIAL

RESPONSIBILITY

Mohamed Ali Abukar, PhD

GRAND CANYON UNIVERSITY

POSITIVE THINKING

Approaching positive thinking in any task fulfillment, equipped with an appropriate model of mental process will certainly create an ability to bring together different practices under a single umbrella of practical intelligence

Openness, ability to generate ideas, sense of humor, intellectual courage and mental flexibility are the main skills that can be used as a working model of practical intelligence and positive thinking

This will allow Working productively with most of the people most of the time

HEALTHY ENVIRONMENT

The healthy climate of an organization has a direct implication for both moral and performance, which will lead to total positiveness in creating an atmosphere of approval and security in which everyone feels free to express without fear

Although peoples have some unique thinking habits, there are a certain common thought patterns used in information processing and decision-making that can be used to distinguish between different decision styles, which will be guided by an important tools of how much information has been received

MECHANISM

Organization is the mechanism by which human join together to accomplish the objectives. Particular attention should be given on how the organization is structured to accomplish particular purpose

People should ask themselves following questions in order to understand where they stand: (1) How well developed is my sense of humor? (2) How well I do maintain a positive frame of mind? (3) Am I listening with an open mind to any new ideas or information?

The challenge is to make the organization productive and achieve the goals in an efficient and effective manner

DIVERSITY

People of different ethnicity and origins bring new ideas and different ways of doing things. To work together as a team people needs to be aware of differences in style and expectations.

Tension is likely to arise in demographically diverse team with contrasting personalities, and these needs not to be destructive but constructive

An organization that may need to succeed should welcome diversity and treat it as an opportunity

POSITIVENESS

Positiveness is appreciated as is tolerance for view, opinion, orientation and capabilities and one must be able to communicate effectively and equipped with an interpersonal relations skills

Such peoples always are able to create healthy atmosphere, and by encouraging the initiative to act and learn working with other as a productive team

A positive working environment provides the organization and its employees with the opportunities to achieve high performance and productivity

INTERPERSONAL ROLE

Interpersonal relation bring down all barriers, creates appreciation and healthy environment where everyone is pleased in working together as team

An individual cannot be effective without knowing how to establish and maintain productive relation with other

ETHICS

AND SOCIAL RESPONSIBILITY

Refers to an organizations obligation to maximize its positive impact and minimize its negative impact on society

Is to determine the relationships, obligation and duties that are appropriate between organization and various stakeholders

SOCIAL RESPONSIBILITY

The responsibility is to conduct the business in accordance with their desire to make profit in conformity to the basic rules of the society

(Law and ethic)

Same financial institutions contributes huge amount in grants to community improvement, educational services and others

Accountability, innovation, justice, respect for the community, respect for rules and avoid illicit operations are business responsibility

LEVELS OF

SOCIAL RESPONSIBILITY

Following are the levels of social responsibility:

ECONOMIC

LEGAL

ETHICAL

PHILANTHROPIC

SOCIAL RESPONSIBILITY ISSUES

Organizations that fails to provide:

A return on investment or profits

Create jobs for community, and

Contribute to the economy

Cannot survive for long-term

CORPORATE CITIZEN

Refers to the extent to which business strategically meet the economic, legal, ethical and philanthropic responsibilities

A commitment to corporate citizenship indicates a strategic focus on fulfilling the social responsibilities to stakeholders

Includes all activities and organizational process adopted by business to meet their social responsibilities

CORPORATE CULTURE

Refers to the value and practices shared by the employees

The way that work and authority are organized

The way people are rewarded and managed

ECONOMIC ISSUES

Price increases over extended period of time,

( inflation) raise on unemployment, credit restriction, low productivity, low investment and many bankruptcies ( recession), and when there is a high demand in the market with a limited supply

Yes - that is when economic issues exists

Needs immediate attention and consideration, in order to be able to correct it properly

CRISES IN BUSINESS ETHICS

In Government, several politicians and some highranking officials have had to resign in disgrace over ethical indiscretion

Nixon Administration’s Watergate's scandal

The Foreign corrupt practices Act, passed during

Carter’s Administration made illegal for US businesses to bribe government officials of other countries

Accounting fraud, documents falsification and employee theft are all problems that negatively effect ethical standards

COMPLIANCE

In recent years accounting fraud become a major ethical issue in many organizations

Compliance, usually is performed by audit and control unit

Accounting services must abide by a strict code of ethical, which defines their responsibilities

Possible question can be:

Are all financial records accurate and free from fraud?

ETHICS OFFICERS

EO are responsible for managing the organizations ethics and legal compliance program

The ethical officers association (EOA) has approximately 900 members who are at the front line of managing ethics program

BUSINESS COMMUNICATION

Business communication is particularly difficult with lot of misunderstanding

The reason is that the message is most of the time complex, conditions are difficult and differences often separate the sender and receiver

To overcome communication barriers, one must think about persuasion, clarify message, use simple and easy language, emphasize key point and provide opportunity for feedback

A POSITIVE APPROACH

A successful communication can be achieved when there is:

A sincere wish to communicate

A properly organized management structure

Clear lines of communication and well-defined responsibility

An understanding of the What, how, where,

When and why of communication

High communication skill

A willingness to explain, consult and consider individual feeling and reaction

IMPORTANT PRINCIPLES

Organizations must be:

Profitable

Provide high quality products

Treat customer fairly and with dignity

Improve living conditions for workers

Ensure safety of worker while at working

Communicate honestly and openly

Encourage staff development

Avoid discrimination and promote competition

Exercise fair pricing policies

ETHICAL ISSUES

Following are some of the ethical issues related to most business organizations:

Fraud and conflict of interest

Discrimination

Ethical issues related to the technology

There is evidence that people use the organization’s technology for personal business while are working

ETHICS

AS A FORCE IN SOCIAL RESPONSIBILITY

Many businesspeople and scholars have questioned the role of ethics and SR

Classical theorists says – responsibilities to society if this is well done - profits are maximized and organization carryout their major

Classical period have extended from the mid of 19 th century through early 20 th century. Have successfully held the balance of power in economic circles

Evidence shows that SR, including business ethics is associated with increased profits and contributes to employee commitment and customer loyalty

HIGH

STANDARDS OF PERFORMANCE

WILL BE GUIDED BY:

HONESTY AND CREDIBILITY

TALENTS AND ENERGIES

MANAGE PROPERLY TIME AND ACTIVITY

PROFESSIONALISM AND WORKING KNOWLEDGE

PRACTICE RATIONAL DECISIONS

SUCCESS, EFFECTIVENESS AND EFFICIENCY

PEOPLE NEEDS EFFECTIVE LEADER – INDIVIDUALS

OF VISION AND JUDGMENT WHO CAN GUIDE,

DIRECT, MOTIVATE AND INSPIRE TO REACH HIGH

STANDARDS OF PERFORMANCE

LEADERSHIP STYLES

PATH-GOAL THEORY SUGGESTS DIFFERENT

LEADESHIP STYLES:

DIRECTIVE

SUPPORTIVE

PARTICIPATIVE

ACHIEVEMENT-ORIENTED

PATH-GOAL’S KEY CONCEPTS:

INCREASE MOTIVATION BY CLARIFYING THE

BEHAVIORS NECESSARY FOR TASK ACHIEVEMENT

Management's Characteristics

Frederick Taylor’ Scientific management

Max Weber’s Bureaucracy

Henry Fayol’s Administrative management

(functions)

Herbert Simon- Administrative behavior with decision-making as the central focus

Elton Mayo study on the concern for human elements

Chris Argyris- for integration and job enrichment

McGregor-self-fulfilling prophecies and theory X&Y

All these will have a significant bearing on the characteristics of today’s Management

EVOLUTION OF MANAGEMENT

OVERVIEWING THE MANAGEMENT

REVOLUTION COMPONENT WILL

ALLOW BETTER UNDERSTANDING OF

THEIR CONTRIBUTIONS TO

ORGANIZATION AND MANAGEMENT

IN TODAY’S WORLD A BETTER SKILLED,

KNOWLEDGED AND QUALIFIED

MANAGERS BECOME A KEY FACTOR TO

THE SUCCESS OF THE ORAGNIZATION

OLD VALUES

KEEP THE BOSS ALWAYS HAPPY

DUMP PROBLEMS ON SOMEONE

WHEN THINGS GOES WRONG

WITH LARGE SPAN FEEL MORE

IMPORTANT (EMPIRE BUILDER)

NEW VALUES

CUSTOMER SATISFACTION

ACCEPT RESPONSIBILITY

ACCEPT ACCOUNTABILITY

DECENTRALIZE AUTHORITY

IDENTIFY PROBLEMS BEFORE THEY

EMERGE

CONTINUOUS LEARNING PROCESS

EQUITY THEORY

Stacy Adam has stressed that a sense of inequity will create and lead to discomforts and dysfunctions

People always assess the balance between their inputs and the rewards they receive

It’s very important that reward and promotion system to be fair and free of any kind of discrimination and favoritism

The system should be always legally defendable

QUESTIONS FOR DISCUSSION

Identify the social responsibility issues

What are the crises in Business ethics?

Explain and discuss economic issues

What are the levels of social responsibilities?

Explain and discuss the leadership styles

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