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ETHICS & SOCIAL RESPONSIBILITY

ETHICS & SOCIAL RESPONSIBILITY

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ETHICS & SOCIAL RESPONSIBILITY

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  1. ETHICS &SOCIAL RESPONSIBILITY Mohamed Ali Abukar, PhD GRAND CANYON UNIVERSITY

  2. 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

  3. 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

  4. 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

  5. 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

  6. 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

  7. 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

  8. 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

  9. 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

  10. LEVELS OFSOCIAL RESPONSIBILITY • Following are the levels of social responsibility: • ECONOMIC • LEGAL • ETHICAL • PHILANTHROPIC

  11. 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

  12. 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

  13. 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

  14. 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

  15. CRISES IN BUSINESS ETHICS • In Government, several politicians and some high-ranking 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

  16. 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?

  17. 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

  18. 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

  19. 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

  20. 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

  21. 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

  22. ETHICS AS A FORCE IN SOCIAL RESPONSIBILITY • Many businesspeople and scholars have questioned the role of ethics and SR • Classical theorists says – if this is welldone - profits are maximized and organization carryout their major responsibilities to society • Classical period have extended from the mid of 19th century through early 20th 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

  23. 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

  24. 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

  25. Management'sCharacteristics • 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 propheciesandtheory X&Y • All these will have a significant bearing on the characteristics of today’s Management

  26. 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

  27. OLD VALUES • KEEP THE BOSS ALWAYS HAPPY • DUMP PROBLEMS ON SOMEONE WHEN THINGS GOES WRONG • WITH LARGE SPAN FEEL MORE IMPORTANT (EMPIRE BUILDER)‏

  28. NEW VALUES • CUSTOMER SATISFACTION • ACCEPT RESPONSIBILITY • ACCEPT ACCOUNTABILITY • DECENTRALIZE AUTHORITY • IDENTIFY PROBLEMS BEFORE THEY EMERGE • CONTINUOUS LEARNING PROCESS

  29. 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

  30. 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