SOCIAL RESPONSIBILITY AND ECONOMIC PERFORMANCE

In a short essay, describe how the relationship between social involvement and economic performance ha been evaluated. What conclusions can be drawn from their relationship?

Answer
To evaluate the relationship between social involvement and economic performance, studies have been performed and socially responsible mutual stock funds have been gauged. Although the majority of studies showed a positive relationship between social involvement and economic performance, no definite association has been found: the studies did not use standardized measures of social responsibility and economic performance. Standardized measurements for these key management issues clearly need to be defined further before studies can have more conclusive results. Tracking mutual stock funds that use social screening or apply social criteria to investment decisions may be a better way to identify the relationship between social involvement and economic performance. For example, since, 2002, Morningstar shows high ratings for a larger percentage of the social funds than for large company mutual funds. Overall, little evidence shows that social actions are detrimental to long-term economic performance. Businesses should at least consider being socially involved to avoid creating significant business risks

Question
In a short essay, explain the four approaches that organizations can take with respect to environmental issues

Answer

The first approach simply is doing what is required legally: the legal approach. Under this approach, organizations exhibit little environmental sensitivity. They obey laws, rules, and regulations willingly and without legal challenge, and they may even try to use the law to their own advantage, but that’s the extent of their being green. This approach is a good illustration of social obligation: these organizations simply are following their legal obligations of pollution prevention and environmental protection. As an organization becomes more aware of and sensitive to environmental issues, it may adopt the market approach. In the market approach, organizations respond to the environmental preferences of their customers. Whatever customers demand in terms of environmentally-friendly products will be what the organization provides. Under the next approach, the stakeholder approach, the organization chooses to respond to multiple demands made by stakeholders. Under the stakeholder approach, the green organization will work to meet the environmental demands of groups such as employees, suppliers, or the community. Both the market approach and the stakeholder approach are good illustrations of social responsiveness. Finally, if an organization pursues an activist approach, it looks for ways to respect and preserve the earth and its natural resources. The activist approach exhibits the highest degree of environmental sensitivity and is a good illustration of social responsibility.

In a short essay, define values-based management and discuss the purposes of shared values.

Answer

“Values-based management” is an approach to managing in which managers establish, promote, and practice an organization’s shared values. An organization’s values reflect what it stands for and what it believes in. The values that organizational members share serve at least three main purposes. The first purpose of shared values is that they act as guideposts for managerial decisions and actions. Another purpose of shared values is the impact they have on shaping employee behavior and communicating what the organization expects of its members. Shared corporate values also influence marketing efforts. Finally, shared values are a way to build team spirit in organizations. When employees embrace the stated corporate values, they develop a deeper personal commitment to their work and feel obligated to take responsibility for their actions. Because the shared values influence the way work is done, employees become more enthusiastic about working together as a team to support values that they believe in.

1. In a short essay, identify and describe the three levels and six stages of moral development.

Answer

The three levels of moral development are preconventional, conventional, and principled. When an individual is at the preconventional level, choices are made based on personal consequences involved. This level includes stage 1: following rules to avoid punishment; and stage 2: following rules only when doing so is in the individual’s immediate interest. Ethical reasoning at the conventional level indicates that moral values reside in maintaining expected standards and living up to the expectations of others. The third and fourth stages are in the conventional level. In stage 3, an individual tries to live up to the expectations of people close to him or her. In stage 4, an individual fulfills obligations to which he or she has agreed and is limited to obeying the rules. Neither authority nor society regulates the rules that individuals at the principled level follow. Instead, they may challenge those rules or practices that violate their principles. The last two stages, 5 and 6, are in the principled level. At stage 5, an individual values the rights of others and upholds absolute values and rights over the majority’s opinion. Finally, at stage 6, an individual follows his or her own ethical principles regardless of the law.

140. In a short essay, describe how values and the stage of moral development differ. Identify and differentiate between the two personalities variables that influence individuals’ actions according to their beliefs about what is right or wrong.

Answer

Whereas the stage of moral development is a specific measurement of the effect of outside influences (e.g., the law and rules of organizations) on individuals’ independence (i.e., decision-making processes), values are broad and cover many issues. Values are fundamental beliefs about what is right and wrong that individuals begin developing at a young age. Influencing individuals’ actions are ego strength and locus of control. Ego strength is a measure of individuals’ beliefs, while locus of control measures the degree to which individuals believe they have power over their fate. Individuals with high ego strength are expected to follow their convictions and be more consistent in their moral judgments and actions than those with low ego strength. Individuals with an internal locus of control, who believe that they control their own destinies, are expected to take responsibility for their actions, use their beliefs to guide their behavior, and be more consistent in their moral judgments and actions than those with an external locus of control, who believe that luck or chance determines their fate


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