...Chapter 5 Social Responsibility and Ethics How important is it for organizations and managers to be socially responsible and ethical? In this chapter, we’re going to look at what it means to be socially responsible and ethical and what role managers play in both. Focus on the following learning outcomes as you read and study this chapter. LEARNING OUTCOMES 5.1 Discuss what it means to be socially responsible and what factors influence that decision. 5.2 Explain green management and how organizations can go green. 5.3 Discuss the factors that lead to ethical and unethical behavior. 5.4 Describe management’s role in encouraging ethical behavior. 5.5 Discuss current social responsibility and ethics issues. SPOTLIGHT: Manager at Work Chapter 5 presents contemporary concepts of managerial ethics and social responsibility to help your students explore and appreciate the critical role of these issues in today’s complex business environment. In the opening case, “A Manager at Work,” we see firsthand the complications that arise when companies are caught in the middle of unethical and illegal allegations. The case revolves around allegations of attempted bribery by three Renault executives. After an investigation, all three of the employees were dismissed, but the story doesn’t end there as the Paris prosecutor in charge of the case later dismissed the charges for lack of evidence. Renault would eventually backtrack on the firing of the executives, rehiring all three...
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...Organizational Design & Business Ethics: A Literature Review Abstract A review of the current literature regarding business ethics was conducted analyzing scholarly peer-reviewed articles about business ethics and their relation to leadership, managerial decision making, corporate social responsibility and overall corporate structure. Increased corporate scandals and the discovery of a rise in unethical business practices have thrown the topic of business ethics into the spotlight. Organizations are expected by their stakeholders to implement strong ethics within their corporate structure and culture. This expectation could be accomplished through strong ethical leadership, formal structures and regulations that place emphasis on ethics, and by making a commitment to corporate social responsibility. Using these guidelines will help organizations overcome the various challenges allowing the business to build a strong ethical foundation that will ultimately benefit the company through increased customer and employee satisfaction, which could result in increased profits, organizational sustainability and social status. The review of the literature reveals that there is still plenty of room for exploration on the topic of business ethics and particularly with the topic of ethical leadership. It is recommended that more focus be placed on understanding the influence of strong ethical leadership within an organization and how this influence flows down the organizational structure...
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...Ethics and Organizational Design- A Literature Review Abstract This literature review observes the views of organizational design and business ethics as they relate to one another in business. The first portion of this paper defines organizational design and business ethics to establish their importance and also examines managerial ethics and corporate social responsibility, sources of ethical principles. The second portion pursues to explain the relationship between business ethics and organizational design and how managers shape ethics through use of value-based leadership and formal structure systems. The third portion pursues to review the importance of ethics to organizational design and the structures that support or enforce ethical behavior in organizations. The fourth portion links literature reviewed and published over the past few years together based on their reference to ethics and organizational design. The literatures are linked together based on commonalities found in the opinions of the authors relating to a spiritual perspective, ethics and corporate structure, organizational and ethical theories, and ethical strategy. Last but not least, the review concludes with a summary of the important role that ethics plays in the organizational design and structure of a business and how it applies to members of management. Keywords: business ethics, organizational design, corporate social responsibility Outline INTRODUCTION I. Organizational Design/Business...
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...STANDARD OF ETHICAL CONDUCT FOR MANAGEMENT ACCOUNTANTS. What is the Standard of Ethical Conduct for Management Accountants? It is telling about ethics. In other word it is a code of behavior developed by the Institute of Managerial Accountants to govern the actions of managerial accountants and insure that ethics are a priority for all accountants. The code is designed to guide accountant for not practicing in wrong way. Practitioners of management accounting have an obligation to the public, their profession, the organization they serve, and themselves, to maintain the highest standards of ethical conduct. Back to the scenario, as a management accountant, I should not consider the request. The reason is all of information confidential. Practitioners have a responsibility to refrain from disclosing confidential information acquired in the course of their work except when authorized, unless legally obligated to do so. Sharing the important infomation with third party (supplier) to gain personal matters are unethical. Besides, it will face an internal conflict. The other factor which should consider is integrity. Practitioners have to avoid actual or apparent conflicts of interest and advise all appropriate parties of any potential conflict. I have to refuse any gift, favor, or hospitality that would influence or would appear to influence my duties. By avoiding all those unethical attitude, it will carry out my profession ethically. Acting my duties with competence most important...
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...Question 1 In this case the managerial accountant is faced with an ethical dilemma. It involves integrity and objectivity. The managerial accountant cannot request an immediate meeting with the Board of Directors. The appropriate way to deal with this problem is presenting the situation to the next higher managerial level firstly. According to CIMA code of ethics for professional accountants, a distinguish mark of the accountancy profession is its acceptance of the responsibility to act in the public interest. [1]Therefore, a professional accountant’s responsibility is not exclusively to satisfy the needs of an individual client or employer. In acting in the public interest a professional accountant should observe and comply with the ethical requirements of the CIMA code. [2] For instance, 100.4 of the code state that a professional accountant should be straightforward and honest in all professional and business relationships. In this case, as managerial accountants, when suspecting our immediate superior of wrongdoing, we should report and support the related information to appropriate department. [3] What's more, a managerial accountant ought to be objectivity, which means we should not allow bias, conflict of interest or undue influence of others to override professional or business judgments. Though he or she is our immediate superior, when they do something improperly, we still need to point out and impeach it. Besides, a professional account should comply with...
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...11/8/2013 1st meeting—Developing Managerial Competencies Managers have to cope with diverse and far‐reaching challenges FOR EXAMPLE 1. Strive to remain competitive in a dynamic and far reaching world 2. To keep pace with ever‐advancing technology 3. To find ways to incorporate the Internet and e‐business into their strategies and business model 1 2 2 Introductory Concepts: What Are Managerial Competencies? Communication Competency Teamwork Competency Competency – a combination of knowledge, skills, behaviors, and attitudes that contribute to personal effectiveness Managerial Competencies – sets of knowledge, skill, behaviors, and attitudes that a person needs to be effective in a wide range of positions and various types of organizations 3 Managerial Effectiveness Self-Management Competency Planning and Administration Competency Strategic Action Competency 4 Multicultural Competency 1 11/8/2013 ?????? • to what extent we believe competencies are something we are "born with or can be learned." • So what !!!!!!!!!....... everyone can develop these competencies if we are motivated, although some competencies may "come easier" to certain individuals than to others. Do we agree? 5 What Is An Organization? A formal and coordinated group of people who function to achieve particular goals These goals cannot be achieved by individuals acting alone An organization has a structure. 6 What Is A Manager? A person who...
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...Effect and Influence of Stakeholders on corporate Decisions Babatunde Adesokan BUSI 301 March 27, 2013 Dr. Phiser Annotated Bibliography Brugha, Rhuairiand and Varvazovszky Zsuzsa. (2000). Stakeholder Analysis: a review. Health Policy and Planning 15(3), pg. 239-246. Retrieved from heapol.oxford journals.org/content/15/3/239.full.pdf+html on 06/13/14 This journal engages the stakeholder analysis to generate knowledge about relevant actors so as to understand their behaviors, intentions, interrelation, agendas, interests, and the influence or resources they have brought or could bring to bear on decision making processes. Dhir, S. Krishna. (2007). Stakeholder activism through nonviolence. Corporate Communications. An International Journal, Vol. 12(1), pg.75 – 93. Dhir is of the accounting faculty, Berry College, Georgia, Atlanta. The journal examined at length the furor of activists at the Niger Delta region of Nigeria, West Africa. These are people whose land had been taken forcefully by the government of the land without adequate compensation and development of the areas involved. Worst still is the non-chalant attitude of the officials of the companies drilling oil rings on the land towards the natives. The officials have what it takes to decide to treat the natives well but they refused because they did not see them as stakeholders but events that followed showed that they paid dearly for it. Graham, Kenny. (2013). The stakeholder or the firm? Balancing the...
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...reputation of the organization. The HR Focus states (2008), “Safeguarding company reputation was the main concern among 390 senior executives and anti-corruption specialist in 14 countries” (p. 14). Senior executives and the HR department both are responsible for ensuring goal accomplishment. These parties must ensure an effective code of conduct program is established and executed in order to create a fair and responsive environment for all employers and employees; this is how a company builds a positive work environment. Employers work ethic are essential to the developmental of an ethical environment. Ghosh states (2008), “The asymmetry in the employer-employee relationship and the actual functioning of power in an organization implies that an employee or group of employees can never develop responsible and ethical behavior without the support and direction of top management” (p. 68-87). My recommendation to the Lamp Electronics company is to develop an integrity instructional ethic training to teach their employees the company’s requirements and the behaviors needed to evaluate their own decisions. Ghosh states (2008), “The current research suggests that the top management must set the tone by professing and embracing integrity” (p. 68-87). Companies such as Enron and World Cam are known today for their legal problems. Ghosh states (2008), “Enron's unrelenting emphasis on earning's...
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...ME 16 MACS 16 IE 2 * FMG-17 Joint 1. The soft copy of the weekly schedule is available on the main page of the LUMS website www.lums.edu.pk - Information For: Students\Schedules\MBA Schedule 2. Class timings may sometimes differ from the usual timetable. Please follow the timings given on the inner pages. 3. 4. * For course titles and instructors, please turn overleaf. FMG WAC is due on Sunday, April 05. Follow the timings given on the inner pages for FMG 15 & 16 and Friday, April 03. MBA CLASS OF 2016 SEMESTER II (S II) LIST OF COURSES BEING OFFERED Code Units Course Title Instructor BII FMG IE MACS ME OM 0.5 1 0.5 1 1 1 Business Integration and Innovation Financial Management Islamic Ethics Managerial Accounting and Control Systems Managerial Economics Operations Management Jamshed H Khan Syed Mubashir Ali Kamran Rashid Ayesha Bhatti / M Junaid Ashraf Tanveer Shehzad Hassan Rauf / Syed Zahoor Hassan SULEMAN DAWOOD SCHOOL OF BUSINESS MBA PROGRAMME CLASS OF 2016, SECTION B AUDITORIUM A-104 SEMESTER II 2014-2015 (SII) Assignments for the week of March 30 to April 03, 2015 *************************************************************************** MONDAY, MARCH 30 0830 - 0900 0905 - 1035 Discussion Group: Operations Management OPERATIONS MANAGEMENT HASSAN RAUF Topic: Quality Management and Process Improvement Learning Objective: Applying the statistical process control tools and techniques to address key strategic challenges Case: Florida Power...
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...CHAPTER 1 THE CHANGING ROLE OF MANAGERIAL ACCOUNTING IN A DYNAMIC BUSINESS ENVIRONMENT Learning Objectives 1. Define managerial accounting and describe its role in the management process. 2. Explain four fundamental management processes that help organizations attain their goals. 3. List and describe five objectives of managerial accounting activity. 4. Explain the major differences between managerial and financial accounting. 5. Explain where managerial accountants are located in an organization, in terms of formal organization, deployment in cross-functional teams, and physical location. 6. Describe the roles of an organization's chief financial officer (CFO) or controller, treasurer, and internal auditor. 7. Briefly describe some of the major contemporary themes in managerial accounting. 8. Understand and explain the concepts of strategic cost management and the value chain. 9. Understand the ethical responsibilities of a managerial accountant. 10. Discuss the professional organizations, certification process, and ethical standards in the field of managerial accounting. Chapter Overview I. The Management Process in Organizations A. What is managerial accounting? B. Management activities 1. Decision making 2. Planning 3. Directing operational activities 4. Controlling II. How Managerial Accounting Adds Value to the Organization A. Provides information...
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...ORGANISATION AND MANAGEMENT This prescription replaces 130 Organisation and Management. CORE PRESCRIPTION Level CREDIT VERSION INTRODUCED AIM 5 20 1 2006 Students will understand the factors that influence management and the organisation and apply a range of factors. Nil PREREQUISITES ASSESSMENT WEIGHTINGS Learning outcomes 1. Students will identify the purpose of organisations and management. 2. Students will understand the importance of the development of management philosophies and their influence on current management practices. 3. Students will demonstrate their understanding of the influence of environments on organisational behaviour, by applying knowledge to a typical situation. 4. Students will understand the importance of ethics and social responsibility within an organisation. 5. Students will understand the elements of problem solving and apply a range of techniques that aid operational decision making. 6. Students will understand the purpose of planning and control and apply processes to a given situation. 7. Students will discuss two organisational structures, evaluate and recommend a structure for a given situation. 8. Students will understand and apply knowledge of leadership, motivation and delegation. 9. Students will understand team dynamics and how teams can influence the organisation. TOTAL Assessment weighting % 8 6 10 15 8 15 10 18 10 100 All learning outcomes must be evidenced; a 10% aggregate variance is allowed. ©SBG 2010 Page 2...
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...Business Ethics in Indian Businesses Authors: 1) Ms. Swenee Shah 2) Ms. Mehal Pandya 3) Ms. Chitral Patel (Faculties of Hasmukh Goswami College Of Engineering (MBA)) Submitted to: Gujarat Technological University 1 Abstract Business ethics deals with ethical rules and principles necessary for a successful business. It explains the various ethical problems that can rise in a business setting and the responsibilities of persons who are engaged in an organization. We have here shown how the Indian Businesses follows ethical practices even though they are working globally. We have here also taken few examples MNCS to show how are they going ahead unethically. In this research paper we have tried to show that no business can get success even though they are going globally (locally) if they don’t follow ethics and legitimate values. Our research paper reflects that true and ethical business can sustain for longer time and even can survive at toughest time. ethical training ,policies procedures will help any organization to manage their work place very well .we have shown that how ethics will help to enhance reputation of business and generate loyalty from staff members. Our research paper will open new avenues to the ethical dilemmas 2 Table of Contents Particulars What is Business Ethics Ethics and military Overview of issues in Business Ethics Ethics in Indian context: Scope of business ethics Approaches to Business ethics. Importance of Ethics in Business...
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...Social responsibility and managerial ethics You may be wondering, “Why should I care about corporate social responsibility or managerial ethics or whether or not my employees have health care benefits? Aren’t these the types of issues philosophers worry about?” To answer this question, you only need to pick up a recent newspaper or business magazine. Everything from Wall Street trading scandals to accounting frauds at AIG, Lehman Brothers, Enron, Parmalat, Satyam, WorldCom, Tyco, and Global Crossing to corporate cover-ups and massive oil spills from British Petroleum’s offshore drilling rig explosion in the Gulf of Mexico seem to be in the press daily. For example, Citicorp lost billions in market value when it was revealed that a group of traders in the firm’s London office had manipulated the bond market: A small set of traders disrupted the European bond market by placing 188 sell orders simultaneously (approximately $20 billion worth of bonds) on August 2, 2004 in about 18 seconds. This drove the price of bonds, in general, down dramatically. The prices continued to drop even after the Citibank traders stopped selling. Just a few minutes later, the same traders then bought the bonds back at much cheaper prices than they had been sold. This new buying triggered buying by other traders, and prices rose. In the process, Citibank traders made about $20 million in profits in under five minutes. Although the employees did not do anything illegal, their behavior...
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...Evaluation of Business Code of Ethics Many companies and organizations employ codes of ethics that can enhance their image and endorse a form of legitimacy to that company or organization. A company such as Walmart with local and global outreach has incorporated into its system a culture of ethics and integrity that defines who they are as a company. This culture of ethics determine how customers and suppliers are treated by the company and how workers treat each other within the company. Walmart with many years of experience as a company deals with many ethical issues and there is need for constant evaluation and analysis of systems and structures to meet expectations, and remain in compliance with the demands of the corporate world of business. The company was founded by Sam Walton in 1950, started out with as a single discount store in Northwest Arkansas and grew to become one of the world’s largest retailer in less than 50 years, with thousands of stores and clubs and millions of associates. Walmart is a value-based company that has ethics at the forefront.The company has three basic beliefs, (1) Respect for individuals. (2) Service to its customers and (3) Strvving for excellence. The vision statement is to promote ownership of Walmart’s ethical culture to all stakeholders globally. The company also has some guiding principles to assist their associates in making the right decisions and acting with integrity. These principles are, to always act with integrity. Lead...
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...Ethics Behavior and Social Responsibility International Accounting Member of Group : 1. Rahmawati Yulistya C1I015026 2. Muhamad Ilham Akbar C1I015012 3. Astria Wulan P C1I015013 4. Siffa Sandi Sasmita C1I015025 5. Cita Husna Raisya C1I015026 6. Wulan Nilam Sari C1I015031 7. Karina Aprilia W C1I015037 8. Riyan Ardiyana C1I015043 Jenderal Soedirman University Faculty of Economics and Business I. Introduction I. Background Ethics Behavior and Social Responsibility Ethical behavior is that which is morally accepted as “good” and “right”. And opposed to “bad” and “wrong”. Social responsibility is a moral principle of an entity, be it an organization or individual, to act towards betterment of society at large. It is a duty that every firm and individual should perform so as to maintain the balance between the environment and economy. Their actions should lead towards sustainable development so as to safeguard the interests of the coming generations and at the same time fulfilling the needs of present population. The responsibility can be active, by performing activities that directly advance social goals, or passive, by avoiding any engagement in socially harmful act. Organizations can manage ethics in their workplaces by establishing an ethics management program. Brian Schrag, Executive Secretary of the Association for Practical and Professional Ethics, clarifies. “Typically, ethics programs convey corporate values...
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