ORM
CHAPTER 5, Managing Ethics and Social Responsibility
The code of moral principles and values that governs the behaviors of a person or group with respect
to what is right or wrong. Ethics fall between law and free choice. Managers and employees are the
moral agents who must make ethical choices.
Normative approaches for ethical decision-making:
Utilitarian approach – moral behaviors should produce the greatest good for the greatest number
Individualism approach – acts are moral when they promote the individual’s best long-term interests
Moral Rights Approach – moral decisions are those that best maintains the rights of those affected
Justice Approach – decisions must be based on standards of equity, fairness, and impartiality
An important personal trait that managers pose is their stage of moral development:
Globalization:
• Globalization makes ethical issues more complex
• Bribes are common practice in many countries
• Transparency International ranks countries based on Bribe Payers Index
,The Ethical Organization
Code of Ethics – formal statement of the organization’s values and guide for behavior regarding
ethics and social issues
Ethical Structures – systems, positions and programs to implement ethical behavior
Whistle-Blowing – employee disclosure of illegal, immoral, or illegitimate practices
What is Corporate Social Responsibility?
Corporate Social Responsibility (CSR) is the obligation of organization management to make decisions
and take actions that will enhance the welfare and interests of society as well as the organization.
Companies should take into account not only the welfare and interests of the organisation but also
that of those in direct or indirect contact with the organisation, so even society as a whole.
Nowadays CSR provides a ‘license to operate’
Stakeholders are any group within or outside the organization that has a stake in the organization’s
performance.
,The Bottom of the Pyramid (BOP)
- Sometimes called base of the pyramid
- Alleviate poverty and social ills while making profits
- This pyramid is aimed at the financial situation of individuals, reasoning from GDP per capita
- Companies can make money while addressing global poverty, environmental destruction,
social decay and political instability
Triple bottom line
Sustainability
• Sustainable Development
- Economic Development that generates wealth
- Meets the needs of current generation
- Saving the environment for future generations
-
Evaluating Corporate Responsibility
, Developments regarding the subject
Cradle to cradle
A holistic economic, industrial and social framework that seeks to create systems that are not only
efficient but also essentially waste free.
Social entrepreneurship
The process of pursuing innovative solutions to social problems. More specifically, social
entrepreneurs adopt a mission to create and sustain social value.
CHAPTER 11 Managing Change and Innovation
One of the two key aspects of change is product and technologies
• A product change is a change in the organization’s product or service outputs.
• A technology change is a change in the organization’s production process – how the
organization does its work.
There are three critical innovation strategies for changing products and technologies.
- Exploration is where ideas for new products and technologies are born.
- Cooperation guides internal and external coordination.
- Entrepreneurship is the culture of generating and pushing forward new ideas
Ambidextrous Change: Incorporating structures and processes that are appropriate for both the
creative impulse and for the systematic implementation of innovations.
Coordination Model for Innovation
Horizontal
linkage model –
product change
that emphasizes
shared
development of
innovations
among several
departments.
CHAPTER 5, Managing Ethics and Social Responsibility
The code of moral principles and values that governs the behaviors of a person or group with respect
to what is right or wrong. Ethics fall between law and free choice. Managers and employees are the
moral agents who must make ethical choices.
Normative approaches for ethical decision-making:
Utilitarian approach – moral behaviors should produce the greatest good for the greatest number
Individualism approach – acts are moral when they promote the individual’s best long-term interests
Moral Rights Approach – moral decisions are those that best maintains the rights of those affected
Justice Approach – decisions must be based on standards of equity, fairness, and impartiality
An important personal trait that managers pose is their stage of moral development:
Globalization:
• Globalization makes ethical issues more complex
• Bribes are common practice in many countries
• Transparency International ranks countries based on Bribe Payers Index
,The Ethical Organization
Code of Ethics – formal statement of the organization’s values and guide for behavior regarding
ethics and social issues
Ethical Structures – systems, positions and programs to implement ethical behavior
Whistle-Blowing – employee disclosure of illegal, immoral, or illegitimate practices
What is Corporate Social Responsibility?
Corporate Social Responsibility (CSR) is the obligation of organization management to make decisions
and take actions that will enhance the welfare and interests of society as well as the organization.
Companies should take into account not only the welfare and interests of the organisation but also
that of those in direct or indirect contact with the organisation, so even society as a whole.
Nowadays CSR provides a ‘license to operate’
Stakeholders are any group within or outside the organization that has a stake in the organization’s
performance.
,The Bottom of the Pyramid (BOP)
- Sometimes called base of the pyramid
- Alleviate poverty and social ills while making profits
- This pyramid is aimed at the financial situation of individuals, reasoning from GDP per capita
- Companies can make money while addressing global poverty, environmental destruction,
social decay and political instability
Triple bottom line
Sustainability
• Sustainable Development
- Economic Development that generates wealth
- Meets the needs of current generation
- Saving the environment for future generations
-
Evaluating Corporate Responsibility
, Developments regarding the subject
Cradle to cradle
A holistic economic, industrial and social framework that seeks to create systems that are not only
efficient but also essentially waste free.
Social entrepreneurship
The process of pursuing innovative solutions to social problems. More specifically, social
entrepreneurs adopt a mission to create and sustain social value.
CHAPTER 11 Managing Change and Innovation
One of the two key aspects of change is product and technologies
• A product change is a change in the organization’s product or service outputs.
• A technology change is a change in the organization’s production process – how the
organization does its work.
There are three critical innovation strategies for changing products and technologies.
- Exploration is where ideas for new products and technologies are born.
- Cooperation guides internal and external coordination.
- Entrepreneurship is the culture of generating and pushing forward new ideas
Ambidextrous Change: Incorporating structures and processes that are appropriate for both the
creative impulse and for the systematic implementation of innovations.
Coordination Model for Innovation
Horizontal
linkage model –
product change
that emphasizes
shared
development of
innovations
among several
departments.
