MGTS1301 Introduction to Management Final Exam Study notes
Lecture 5:
Ethics and Social Responsibility
Human behaviour falls into 3 categories:
Legal Standard, Social Standard, Personal Standard Ethics: Individual levels of behaviour, Moral
principles.
Approaches to Ethical decision making:
1. Utilitarian approach: greatest good to the greatest number of people
2. Individualism approach: Individuals best long-term interests
3. Moral-rights approach: Fundamental rights and liberties 4. Justice approach: Standards of equity, fairness
and impartiality
3 Factors affecting ethical choices:
Individual Managers:
• Pre-conventional: Acts in own interest (follows rules to avoid punishment)
• Conventional: lives up to expectations of others (fulfils duties others set)
• Post-conventional: Follows self-chosen principles of justice (balances concern for individual with common good)
National Culture:
• Cultural relativism: Ethical behaviour determined by cultural context.
• Ethical imperialism: Certain behaviours that should be assumed unacceptable anywhere.
The Organisation:
• Values of an organisation or department
• The socialisation employees( Hero’s and stories of employees affecting others choices)
• Other factors: e.g: rules, rewards, staff selection, standards, leadership
Corporate Social Responsibility: Organisation level of behaviour. Obligation for organisations to make decisions
enhancing welfare of organisation and society.
Classical Economic Perspective: Only responsible to maximising shareholder profits.
Stakeholder Perspective: Concerned for broader social welfare of all stakeholders, not just profits.
Organisation’s performance is measured by:
• Financial outcomes
1
• Environmental outcomes
Page
Page 1 of 13
, • Societal outcomes
Organisation’s Social Responsibilities
• Economic
• Legal
• Ethical
• Discretionary
Organisational responses to Social demands
• Obstructive response: denies responsibility (concerned only with economic responsibility)
• Defensive response: admits some errors, defends self on others (concerned with economic and legal
responsibilities only)
• Accommodative response: accepts social responsibility and complies with public interest (concerned with
economic, legal and ethical responsibilities)
• Proactive response: seeks for public interest without external pressure (concerned with all social
responsibilities)
Managing Ethics and social responsibility:
• Leadership by example: Leaders commitment to values reflected through organisation.
• Codes of ethics: combining… Principal-based statements (organisational values) with Policy-based statements
(procedures to use in ethical situations)
• Ethical structures: Having ethics committees and training programs.
• Supporting Whistle blowers: Employees of illegal/immoral practices by organisations telling them off.
Lecture 6:
ENVIRONMENT AND CORPORATE CULTURE
Environment of Organisations:
External Environment: Outside the boundary of the organisation General Environment: The outer layer of the
external environment that affects the organisation indirectly.
1. International dimension: Events in other countries or opportunities for locals in other countries.
2. Technological dimension: Technological advancements in a specific industry and society at large.
3. Sociocultural dimension: The values of the population within which the organisations operate in.
4. Economic dimension: Overall economic health of the country or region in which the organisation
operates.
5. Legal-Political dimension: Government relations and political activities designed to control
organisational behaviour.
6. Natural dimension: All elements that occur naturally on earth, including natural resources.
• Task Environment: The inner layer of the external environment that directly influences the organisation.
1. Customers: People/Organisations who acquire goods from organisation
2. Competitors: Other organisation in the same industry that provide goods and services to the same set
of customers.
3. Suppliers: Provides the resources the organisation uses to produce output.
2
4. Labour market: People available for hire by organisation.
Page
Page 2 of 13
Lecture 5:
Ethics and Social Responsibility
Human behaviour falls into 3 categories:
Legal Standard, Social Standard, Personal Standard Ethics: Individual levels of behaviour, Moral
principles.
Approaches to Ethical decision making:
1. Utilitarian approach: greatest good to the greatest number of people
2. Individualism approach: Individuals best long-term interests
3. Moral-rights approach: Fundamental rights and liberties 4. Justice approach: Standards of equity, fairness
and impartiality
3 Factors affecting ethical choices:
Individual Managers:
• Pre-conventional: Acts in own interest (follows rules to avoid punishment)
• Conventional: lives up to expectations of others (fulfils duties others set)
• Post-conventional: Follows self-chosen principles of justice (balances concern for individual with common good)
National Culture:
• Cultural relativism: Ethical behaviour determined by cultural context.
• Ethical imperialism: Certain behaviours that should be assumed unacceptable anywhere.
The Organisation:
• Values of an organisation or department
• The socialisation employees( Hero’s and stories of employees affecting others choices)
• Other factors: e.g: rules, rewards, staff selection, standards, leadership
Corporate Social Responsibility: Organisation level of behaviour. Obligation for organisations to make decisions
enhancing welfare of organisation and society.
Classical Economic Perspective: Only responsible to maximising shareholder profits.
Stakeholder Perspective: Concerned for broader social welfare of all stakeholders, not just profits.
Organisation’s performance is measured by:
• Financial outcomes
1
• Environmental outcomes
Page
Page 1 of 13
, • Societal outcomes
Organisation’s Social Responsibilities
• Economic
• Legal
• Ethical
• Discretionary
Organisational responses to Social demands
• Obstructive response: denies responsibility (concerned only with economic responsibility)
• Defensive response: admits some errors, defends self on others (concerned with economic and legal
responsibilities only)
• Accommodative response: accepts social responsibility and complies with public interest (concerned with
economic, legal and ethical responsibilities)
• Proactive response: seeks for public interest without external pressure (concerned with all social
responsibilities)
Managing Ethics and social responsibility:
• Leadership by example: Leaders commitment to values reflected through organisation.
• Codes of ethics: combining… Principal-based statements (organisational values) with Policy-based statements
(procedures to use in ethical situations)
• Ethical structures: Having ethics committees and training programs.
• Supporting Whistle blowers: Employees of illegal/immoral practices by organisations telling them off.
Lecture 6:
ENVIRONMENT AND CORPORATE CULTURE
Environment of Organisations:
External Environment: Outside the boundary of the organisation General Environment: The outer layer of the
external environment that affects the organisation indirectly.
1. International dimension: Events in other countries or opportunities for locals in other countries.
2. Technological dimension: Technological advancements in a specific industry and society at large.
3. Sociocultural dimension: The values of the population within which the organisations operate in.
4. Economic dimension: Overall economic health of the country or region in which the organisation
operates.
5. Legal-Political dimension: Government relations and political activities designed to control
organisational behaviour.
6. Natural dimension: All elements that occur naturally on earth, including natural resources.
• Task Environment: The inner layer of the external environment that directly influences the organisation.
1. Customers: People/Organisations who acquire goods from organisation
2. Competitors: Other organisation in the same industry that provide goods and services to the same set
of customers.
3. Suppliers: Provides the resources the organisation uses to produce output.
2
4. Labour market: People available for hire by organisation.
Page
Page 2 of 13
