Social Responsibility Free Essays

Presentation Transcript Core Concepts of ManagementSchermerhorn : Schermerhorn – Chapter 4 1 Core Concepts of ManagementSchermerhorn Prepared by Cheryl Wyrick California State Polytechnic University Pomona John Wiley Sons, Inc COPYRIGHT : Schermerhorn – Chapter 4 2 COPYRIGHT Copyright 2003  © John Wiley Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that named in Section 117 of the 1976 United States Copyright Act without the express written consent of the copyright owner is unlawful. We will write a custom essay sample on Social Responsibility or any similar topic only for you Order Now Request for further information should be addressed to the Permission Department, John Wiley Sons, Inc. The purchaser may make back-up copies for his/her owner use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, cause by the use of these programs or from the use of the information contained herein. Chapter 4Ethical Behavior and Social Responsibility : Schermerhorn – Chapter 4 3 Chapter 4Ethical Behavior and Social Responsibility Planning Ahead What is ethical behavior? How do ethical dilemmas complicate the workplace? How can high ethical standards be maintained? What is corporate social responsibility? What is Ethical Behavior? Schermerhorn – Chapter 4 4 Ethical behavior what is accepted as â€Å"good† and â€Å"right† in the context of the governing moral code Values broad beliefs about what is or is not appropriate behavior What is Ethical Behavior? What is Ethical Behavior? : Schermerhorn – Chapter 4 5 What is Ethical Behavior? Examples of Values Equality Fairness Honesty Responsi bility Harmony JCAHO Standards : JCAHO Standards RI 2. 10 The hospital respects the rights of patients: Elements of Performance 2. Each patient has the right to have his or her cultural, psychosocial, spiritual and personal values, beliefs and preferences respected 4. The hospital accommodates the right to pastoral and other spirituals services for patients. RI 2. 220 (LTC only) Residents receive care that respects their personal values, beliefs, cultural and spiritual preferences, and life-long patterns of living Slide 7: Schermerhorn – Chapter 4 7 If we are to comply with JCAHO standards, how important is it to understand the differing worldviews on which our patients base their values and spiritual beliefs as well as knowing our own? Five Questions about WV : Schermerhorn – Chapter 4 8 Five Questions about WV 1. What is ultimately the prime reality? (†¦ such as â€Å"God†, or Matter/Energy) 2. What is the basic nature of the universe? 3. What is the basic nature and condition of man? 4. What happens to man at death? 5. What is the reason or basis of ethics and morality? Conflicting world views? : Schermerhorn – Chapter 4 9 Conflicting world views? â€Å"I am aware that no one†¦. is neutral on such emotionally charged issues. None of us can tolerate the notion that our worldview may be based on a false premise and, thus, our whole life headed in the wrong direction. Dr. Armand M. Nicholi Jr. Slide 10: Schermerhorn – Chapter 4 10 â€Å"Most of us make one of two basic assumptions: we view the universe as a result of random events and life in this planet is a matter of chance; Or we assume an Intelligence beyond the universe who gives the universe order, and life meaning. † Dr. Armand M. Nicholi Jr. The basis for an approach to ethics : Schermerhorn â€⠀œ Chapter 4 11 The basis for an approach to ethics Worldview establishes the foundation that individuals rely on to form their approach to ethics. There are two fundamental worldviews from which ethics and values manifest in behavior and decision-making: A belief that humans are created beings accountable to a creator. A belief that humans evolved from the result of a chance event. Alternative Views of Ethical Behavior : Schermerhorn – Chapter 4 12 Alternative Views of Ethical Behavior Utilitarian – greatest good to the greatest number of people Individualism – primary commitment is to one’s long tem self-interests Moral-rights – respect the fundamental rights of people Justice – ethical decisions treat people fairly according to rules Cultural Issues in Ethical Behavior : Schermerhorn – Chapter 4 13 Cultural Issues in Ethical Behavior Cultural Relativism ethical behavior is always determined by cultural context Cultural Issues in Ethical Behavior : Schermerhorn – Chapter 4 14 Cultural Issues in Ethical Behavior Ethical Imperialism attempt to externally impose one’s ethical standards on others Ethics in the Workplace : Schermerhorn – Chapter 4 15 Ethics in the Workplace What is an Ethical Dilemma? Situation that requires choosing a course of action offers potential for personal and/or organizational benefit may be considered unethical Examples of Ethical Dilemmas : Schermerhorn – Chapter 4 16 Examples of Ethical Dilemmas Should I support my bosses incorrect views? Should I sign a false document? Should I accept a gift from a client? Should I give special treatment to a friend or boss’ friend? Ethics in the Workplace : Schermerhorn – Chapter 4 17 Ethics in the Workplace Rationalizations for Unethical Behavior Convincing oneself that: behavior is not really illegal behavior is really in everyone’s best interests nobody will ever find out the organization will â€Å"protect† you Preventing Rationalization for Unethical Behavior : Schermerhorn – Chapter 4 18 Preventing Rationalization for Unethical Behavior Question 1 â€Å"How will I feel about this if my family finds out? † Question 2 â€Å"How will I feel about this if it is printed in the local newspaper? † Ethics in the Workplace : Schermerhorn – Chapter 4 19 Ethics in the Workplace Factors Influencing Ethical Behavior Person Organization Environment Factors Affecting Ethical Behavior : Schermerhorn – Chapter 4 20 Factors Affecting Ethical Behavior Person family influences religious values personal standards and needs Factors Affecting Ethical Behavior : Schermerhorn – Chapter 4 21 Factors Affecting Ethical Behavior Organization policies, codes of conduct behavior of supervisors, peers organizational culture Factors Affecting Ethical Behavior : Schermerhorn – Chapter 4 22 Factors Affecting Ethical Behavior External Environment government regulations norms and values of society ethical climate of industry Maintaining High Ethical Standards : Schermerhorn – Chapter 4 23 Maintaining High Ethical Standards Ethics Training structured programs that help participants to understand ethical aspects of decision making Slide 24: Schermerhorn – Chapter 4 24 Where do pressures for unethical acts come from? BOSSES LOWER LEVELS Sometimes, perhaps too often Bosses may ask: â€Å"support an incorrect view† â€Å"sign a false document† â€Å"overlook a wrong doing† â€Å"do business with my friends† Who hold a lot of power Who depend on them for raises, promotions, etc. Maintaining High Ethical Standards : Schermerhorn – Chapter 4 25 Maintaining High Ethical Standards Whistleblower Protection Whistleblowers expose misdeeds of others to preserve ethical standards protect against wasteful, harmful, illegal acts Maintaining High Ethical Standards : Schermerhorn – Chapter 4 26 Maintaining High Ethical Standards Whistleblower Protection Barriers to whistleblowing strict chain of command strong work group identities ambiguous priorities State laws protecting whistleblowers vary Federal laws protect government workers Maintaining High Ethical Standards : Schermerhorn – Chapter 4 27 Maintaining High Ethical Standards Top management support model appropriate ethical behavior Formal codes of ethics official written guidelines on how to behave Corporate Social Responsibility : Schermerhorn – Chapter 4 28 Corporate Social Responsibility Obligation of the organization to act in ways that serve both its own interests and that of stakeholders Social Responsibility in Action : Schermerhorn – Chapter 4 29 Social Responsibility in Action Social Audits Evaluate corporate social performance by asking Is the organization’s Economic responsibility met? Legal responsibility met? Ethical responsibility met? Discretionary responsibility met? Social Responsibility and the Legal Environment : Schermerhorn – Chapter 4 30 Social Responsibility and the Legal Environment Governmental agencies that monitor compliance with government mandates Federal Aviation Administration (FAA) Environmental Protection Agency (EPA) Occupational Safety Health Administration (OSHA) Food Drug Administration (FDA) Complex Legal Environment : Schermerhorn – Chapter 4 31 Complex Legal Environment Areas of government intervention occupational safety and health fair labor practices consumer protection environmental protection How to cite Social Responsibility, Papers Social Responsibility Free Essays Sole proprietorship This business is an individual owned organization. This business is the most attractive because of its simplicity and control over the business. * Liability-. We will write a custom essay sample on Social Responsibility or any similar topic only for you Order Now This business has unlimited liability. The owner is responsible for everything. If the business begins to fail personal assets and business assets can be sought after to pay off debts. There is no distinction between the two assets. * Income taxes- Business owners in a sole proprietorship file a 1040 as well as a schedule C (â€Å"profit or loss from a business or profession†). The Proprietor’s personal income is supplemented by all profits of his business. This form of taxation is known as pass-through taxation, meaning there is no separate federal income tax reporting for the proprietorship. * Longevity/continuity: In the event the sole proprietor dies and planned steps were not properly carried out the business will cease. Sadly the family’s source of income is no longer available. Life insurance is an important need to the proprietor, it may be the family’s only source of income. Secondly a will is a must have with precise details on to whom and how the business should be carries out. It’s also important to pre-plan with his chosen representative, teaching them how the business is managed. Control: The sole Proprietor may choose to directly run his business or hire others to manage for him. Being in total control of the business the proprietor is solely responsible for the major functions of his business. Leaving him with the responsibility of guiding his business down the path of success. * Profit retention: Al l profits belong to the owner. There is sole gain, no partners or stockholders to share proceeds with. * Location: One of the best things about a sole proprietorship is there are no limitations on the business. If the owner wishes he can expand, down size, move locations, or sell his business at will. Convenience/Burden: A sole proprietorship has the convenience of absolute freedom of action. A downfall to the Proprietor is the responsibility of running a business that â€Å"pays the bills†. In the event he were to die become ill or injured the business could no longer run. General Partnership This form of business consists of two or more partners. The partners are the founders of the organization. * Liability: Being co- owners, the partners have equal rights to the possession of the partnership assets. They can’t sell, assign, or transfer their individual shares of the ownership. Each partner is unlimited liable for the firms obligations. Partners are responsible for the debts. Any debt not covered could be made up from personal assets. Partners are responsible for one another. * Income taxes: There is no federal income tax imposed on the partnership. Individuals must file an informational tax return. Each partner must include his share of the profits. Partners can take advantage of the partnerships losses to offset their personal income. * Longevity/Continuity: If a partner were to die, sell, or retire his or her part of the partnership would be dissolved. Exception would be the â€Å"buy sell† agreement. Meaning the surviving partner must buy the deceased partners’ interest from the heirs. Personal ownership dies but the deceased interest possess to the decedent’s personal representative. * Control: Each partner has equal authority. In partnerships with more than two members the majority will rule. Each partner becomes an agent of the other. A partner may not assign or sell partnership property, admit another to the firm without the consent of all associates, or sell their interest to another without consent of the partners. Profit: All profits and losses are distributed evenly throughout the partnership. * Location: The rules and regulations vary from state to state . General partnership should use Schedule R to apportion income between the states. * Convenience/Burden: The main advantage of this form of buisness is low volume of paperwork needed for registration and its cheapness. Limited Partnership This busine ss has two or more partners much like the general partners. There is a few key differences though. * Liability: There is a partner that carries full liability and the others are limited liability. Income Tax: Income taxes are paid after the partners have received their share. There is four characteristics that would make a limited partnership have to pay corporate taxation. They only need two of the four to qualify. * Longevity/Continuity: In the case of a death the partnership would most likely end. * Control: The general partner would control the daily business for the partnership and the limited partners just have control over the investments. * Profit Retention: All profits are distributed evenly through the partnership. * Location: Partners should pay taxes according to the amount made in each state. Convenience/Burden: The ability to have funds from the limited partners and not having control. On a negative side there would be a risk if a partner dies or leaves the partnership . C-Corporation This corporation is also known as the regular organization. They have an unlimited amount of stockholders, allowing both residents and non-residents in. * Liability: Owners are limited to the amount of his or her investment. All personal assets are safe. * Income taxation: The C- Corporation is taxed as a corporation. Net income is paid to shareholders for dividends. They also pay personal income tax, thus meaning they are double taxed. Longevity/Continuity: The life period is unlimited, as long as they have the money to back up the debts they will not be affected by the death of a stockholder. * Control: Shareholders do not directly manage the business they elect the board of members that will manage the business. * Profit Retention: Profit can be used in two ways. One it can be invested in the business or can be paid out in dividends to shareholders. * Location: Corporate taxes are equal in all states. * Convenience/Burden: The ability to raise money for funds is a n advantage. It also benefits from the ability to continue if a shareholder leaves the business. And obviously the double taxation is a big negative. S-Corporation This corporation has all the advantages of the previous businesses but also has its own disadvantages. * Liability: Shareholders liability is limited to the amount of investment. * Taxation: Company doesn’t get taxed itself, only shareholders pay taxes. * Longevity/Continuity: Company is unlimited same as an S-Corporation. The shareholders will not affect the organization. * Control: The company is ran by the board of directors. Stockholders have corporate meetings. * Profit Retention: Same as the C-Corporations, pass through tax. Location: Must be domestic in any state. * Convenience/Burden: Business that are starting up usually pick this type of business because of the losses endured. There is a lot of paper work and the meetings are very inconvenient. Liability Limited Company Each member owns his or hers amount of shares according to their contributions. * Liability: An LLC functions much like a corporation . It’s members are unlimited liable. * Taxation: An LLC has a pass through taxation and only the shareholders are taxed individually. * Continuity/Longevity: There is a 50% rule in a LLC . If a member owning more than 50% of the business leaves or dies the LLC will end. But if a member owning less than 50% of the business the business will continue. * Control: There is two types , member –managed and managed – managed . * Profit Retention: Profits are distributed among members according to their stake. * Location: Most states allow an LLC . Different paperwork is required in different states. * Convenience: A LLC may federally be classified as a sole-proprietorship, partnership, or corporation for tax purposes. Classification can be selected or a default may apply. How to cite Social Responsibility, Papers