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Social Responsibility and Ethics in Strategic Management

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Rintis Eko Widodo
Rintis Eko Widodo

The concept of social responsibility proposes that a private corporation has responsibilities to society that extend beyond making a profit. Milton Friedman and Archie Carroll offer two contrasting views of the responsibilities of business firms to society.

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Jakarta, 18 October 2013
Aidina Rizki Machari Siregar 122130004 Rintis Eko Widodo 122130087 Sherly Wira Foliya 122130092
 The concept of social responsibility proposes that a private corporation has responsibilities to society that extend beyond making a profit.  Milton Friedman and Archie Carroll offer two contrasting views of the responsibilities of business firms to society.
 “There is one and only one social responsibility of business to use its resources and engage in activities designed to increase its profits so long as its stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud”
Discretionary Ethical Legal Economic
 Economic responsibilities of business organization’s management are to produce goods and services of value to society so that the firm may repay its creditors and shareholders.  Legal responsibilities are defined by governments in laws that management is expected to obey.  Ethical responsibilities of an organization’s management are to follow generally held belief about behavior in a society.  Discretionary responsibilities are the purely voluntary obligations a corporation asumes.
 Gain brand loyalty  Trustworthiness  Goodwill  Attract outstanding employees  Attract capital infusions from investors
 Concept of sustainability more than just ecological concerns and the natural environment but also include economic and social concerns.
 Primary stakeholders are directly affected by the corporation and usually include customers, employees, suppliers, shareholders, and creditors  Secondary stakeholders are indirect stake in the corporation but who are aslo affected by corporate activities, usually include activists, local communities, trade associations, competitors, and government.
 Reasons for unethical behavior it may be that the involved people are not even aware that they are doing something quetionable, cultural norms and values vary between countries and even different geographic regions.
 Naïve relativsm  Role relativism  Social group relativism  Cultural relativism
 Ultilitarian approach  Individual rights approach  Justice approach
 Positive  Negative
Social Responsibility and Ethics in Strategic Management

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Social Responsibility and Ethics in Strategic Management

  • 2. Aidina Rizki Machari Siregar 122130004 Rintis Eko Widodo 122130087 Sherly Wira Foliya 122130092
  • 3.  The concept of social responsibility proposes that a private corporation has responsibilities to society that extend beyond making a profit.  Milton Friedman and Archie Carroll offer two contrasting views of the responsibilities of business firms to society.
  • 4.  “There is one and only one social responsibility of business to use its resources and engage in activities designed to increase its profits so long as its stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud”
  • 6.  Economic responsibilities of business organization’s management are to produce goods and services of value to society so that the firm may repay its creditors and shareholders.  Legal responsibilities are defined by governments in laws that management is expected to obey.  Ethical responsibilities of an organization’s management are to follow generally held belief about behavior in a society.  Discretionary responsibilities are the purely voluntary obligations a corporation asumes.
  • 7.  Gain brand loyalty  Trustworthiness  Goodwill  Attract outstanding employees  Attract capital infusions from investors
  • 8.  Concept of sustainability more than just ecological concerns and the natural environment but also include economic and social concerns.
  • 9.  Primary stakeholders are directly affected by the corporation and usually include customers, employees, suppliers, shareholders, and creditors  Secondary stakeholders are indirect stake in the corporation but who are aslo affected by corporate activities, usually include activists, local communities, trade associations, competitors, and government.
  • 10.  Reasons for unethical behavior it may be that the involved people are not even aware that they are doing something quetionable, cultural norms and values vary between countries and even different geographic regions.
  • 11.  Naïve relativsm  Role relativism  Social group relativism  Cultural relativism
  • 12.  Ultilitarian approach  Individual rights approach  Justice approach