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The following will be discussed in this chapter: Social responsibility, stakeholders, evolving social consciousness, social responsibility, social responsibility - environment, consumer rights, unfair pricing, advertising ethics. | Lecture 6 Social Responsibility Business Commitments To Stakeholders Stakeholders Affected: Groups Individuals Organizations Stakeholders Evolving Social Consciousness 1930s – 1940s 1960s – 1970s 1980s – 1990s 2000+ John D. Rockefeller J. P. Morgan Cornelius Vanderbilt Vietnam War Social Activism Laissez-Faire Corporate Scandals Increased Gov’t Control Tighter Standards Social Responsibility Environment Customer Employees Investors Social Responsibility - Environment Pollution Air (emission of carbon monoxide) Water Land Improve quality Prevention of future contamination Toxic Waste Recycling Consumer Rights Safe Products Informed About Product To Be Heard Choose What To Buy To Be Educated Courteous Service Unfair Pricing Collusion Two firms collaborate on price fixing Gouging Price above the market price when no other retailer is available Advertising Ethics Food Product Labeling Light, reduced calorie, diet, low fat Misleading Product Claims Deceptive Morally Objectionable Employer Commitments To Employee Job Skills Respect & Compassion Nondiscrimination Equal Opportunities Physically & Socially Safe Workplace Whistleblowers Employees who detect and tries to put an end to company’s unethical, illegal, socially irresponsible action by publicizing them Responsibility To Investors Improper Financial Management Check Kiting Insider Trading Financial Misrepresentation- GAAP Social Responsibility Approaches/Stances Obstructionist Do as little as possible Deny or cover actions Little regards to ethics Defensive What is required legally Social Responsibility Approaches/Stances Accommodative Meets standards but will go further in certain cases Proactive Actively participates in CSR Low Level High Level Obstructionist Defensive Accommodative Proactive Social Responsibility Auditing Success of Program Starts At Top Requires Management Support Set %age of profits for social programmes Single Manager In Charge Conduct Social Audits Systematic analysis of the firms success in | Lecture 6 Social Responsibility Business Commitments To Stakeholders Stakeholders Affected: Groups Individuals Organizations Stakeholders Evolving Social Consciousness 1930s – 1940s 1960s – 1970s 1980s – 1990s 2000+ John D. Rockefeller J. P. Morgan Cornelius Vanderbilt Vietnam War Social Activism Laissez-Faire Corporate Scandals Increased Gov’t Control Tighter Standards Social Responsibility Environment Customer Employees Investors Social Responsibility - Environment Pollution Air (emission of carbon monoxide) Water Land Improve quality Prevention of future contamination Toxic Waste Recycling Consumer Rights Safe Products Informed About Product To Be Heard Choose What To Buy To Be Educated Courteous Service Unfair Pricing Collusion Two firms collaborate on price fixing Gouging Price above the market price when no other retailer is available Advertising Ethics Food Product Labeling Light, reduced calorie, diet, low fat Misleading Product Claims Deceptive Morally Objectionable Employer
