G0206 Principles of
Management
1
4
Stakeholders,
Ethics and
Corporate Social
Responsibility
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Learning Outcomes
 Explain stakeholders.
 Discuss how society’s expectations are
influencing managers and organizations.
 Discuss the factors that lead to ethical and
unethical behavior in organizations.
 Describe how the workforce is changing and
its impact on the way organizations are
managed.
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Explain
stakeholders.
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Stakeholders
Any constituencies in an
organization’s environment
that are affected by that
organization’s decisions
and actions.
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Organizational Stakeholders
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Discuss how
society’s
expectations are
influencing
managers and
organizations.
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Society’s Expectations
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Example: Some managers failure to act
responsibly and ethically.
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Social Responsibility
 Corporate social responsibility (CSR)
 Social obligations
 Social responsiveness
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Should Organizations be Socially Involved?
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Does Social Involvement Affect
Economic Performance?
 Positive?
 Negative?
 Neutral?
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What is Sustainability?
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Sustainability
Sustainability:
a company’s ability to achieve its business
goals and increase long-term shareholder
value by integrating economic,
environmental, and social opportunities into
its business strategies.
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Discuss the factors
that lead to ethical
and unethical
behavior in
organizations.
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Ethical Behavior
Ethics:
a set of rules or principles that defines
right and wrong conduct
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Different Views of Ethics
 Utilitarian view of ethics
 Rights view of ethics
 Theory of justice view of ethics
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What Determines
Ethical Behavior?
Morality
Values
Personality
Experience
Organization’s culture
Issue being faced
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Encouraging Ethical Behavior
 Code of ethics
 Ethical leadership
 Ethics training
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Being an Ethical Leader
 Be a good role model by being ethical and
honest.
 Tell the truth always.
 Don’t hide or manipulate information.
 Be willing to admit your failures.
 Share your personal values by regularly
communicating them to employees.
 Stress the organization’s or team’s
important shared values.
 Use the reward system to hold everyone
accountable to the values.
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Ethics Training
Can ethics be taught?
Critics: value systems learned in youth.
Proponents: values can be learned and
ethical problem solving increases ethical
behavior, moral development, awareness.
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Describe how the
workforce is
changing and its
impact on the way
organizations are
managed.
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The Changing Workforce
Diversity is visible in age, gender, race,
physical attributes, styles of dress, and
personality type.
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Workplace Diversity
Workforce diversity:
the ways in which people in an organization
are both different from and similar to one
another.
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Types of Workplace Diversity
GLBT refers to gay,
lesbian, bisexual,
and transgender
people
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Managers are adapting to a
Changing Workforce
 Work-life balance programs
 Contingent workforce
 Generational differences
 many organizations now offer family-friendly benefits
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Thank you.
Have a wonderful day!
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