CHAPTER 2 Environment Social Responsibility and ethics 1

CHAPTER 2 Environment, Social Responsibility and ethics 1

Learning Objectives v v v v v When you finish this chapter, you should be able to: Management Environment Internal Environment related to management Concept of Corporate Culture General environment and Task environment Managerial responses to the environment Organizational setting for management Social responsibility and Corporate social responsibility Measuring social responsibility Management Ethics Approaches to management ethics 2

I. Management Environment 3

I. Management Environment Managers have to understand from: ØSurrounding him everything (internal & external environment) ØApproaches how to resolve the problems ØControlling those environments 4

1. 1 -Internal Environment Factors that are frequently considered part of the internal environment include: v. Operation Staff v. Leadership Styles v. Organizational Culture v. Organizational Mission Statement Mission statement: guide the actions of the organization, spell out its overall goal, provide a sense of direction, and guide decision making. 5

1. 1 -Internal Environment Ø Concept of Corporate Culture Ø The elements of a corporate culture Mr. Deal and Mr. Kennedy shows 5 elements of corporate culture: 1) Business environment 2) Values: -staff, coordinate between staff, leader 3) Heroes: Sample, close relationship 4) Rite and Rituals: visit, dinner 5) The culture network 6

1. 2 External Environment factors surrounding an organization that significant influence on its growth and survivals: -Competitors -Customers -Technology -Law/Regulations -Resources: . Skilled Workers. Raw Materials. Finance 7

1. 2 External Environment 1. 2. 1 - General Environment There are 5 elements: ØPolitical-Legal Environment ØEconomics Environment ØSocial and Cultural Environment ØTechnological Environment ØInternational Environment 8

1. 2 External Environment 1. 2. 2 Task Environment v Customers v Competitors v Suppliers v Regulators 9

1. 3 Managerial Responses to Environment v. Mr. P. N. Khandwalla discovered the factors of change of environment 5 types: A. Turbulence B. Hostility C. Diversity D. Technical Complexity E. Restrictiveness 10

1. 4 Organizational Setting for Management v. Corporation v. Nonprofit organizations v. Small businesses v. Family-owned businesses 11

II. Social Responsibility Ø Company has to be responsible to defend social healthy Ø Water pollution Ø Air pollution Ø Land pollution 12

2. 1 Corporate Social Responsibility 2. 1. 1 The Stakeholder Concept Ø Government Ø Employees Ø Customers Ø Suppliers Ø Creditors 13

2. 2 Measuring Social Responsibility 2. 2. 1 What should be measured? Ø Analysis: People help program Ø Fund for Scholarship: school, ministry, government Ø Controlling on pollution 2. 2. 2 Social Audits: Is a process that enables an organization to assess and demonstrate its social, economic, and environmental benefits and limitations 14

3. Management Ethics Ø Approaches to management ethics ØNormative concepts: -How Should individual have behavior? ØContextual Concepts: - Make decision Ø Environment for ethical decision making ØCode of ethics 15