Social Responsibilities of Managers

Social responsibility is an ethical focus for individuals and companies that want to take action and be
accountable for practices that benefit society. It's become increasingly important to investors and consumers
who want to put their money into or purchase products from companies that take steps to contribute to the
welfare of society and the environment.

Social responsibility denotes differentiating right from wrong and doing the right thing. It means being a good
corporate inhabitant. Social responsibility is management's obligation to make choices and take actions that
contributes to the well-being and interests of society as well as the organization.

Social responsibility is defined as the obligation and commitment of managers to take steps for protecting and
improving society’s welfare along with protecting their own interest. The managers must have social
responsibility because of the following reasons:

1. Organizational Resources - An organization has a diverse pool of resources in form of men, money,
competencies and functional expertise. When an organization has these resources in hand, it is in
better position to work for societal goals.
2. Precautionary measure - if an organization lingers on dealing with the social issues now, it would land
up putting out social fires so that no time is left for realizing its goal of producing goods and services.
Practically, it is more cost-efficient to deal with the social issues before they turn into disaster
consuming a large part if managements time.
3. Moral Obligation - The acceptance of managers’ social responsibility has been identified as a morally
appropriate position. It is the moral responsibility of the organization to assist solving or removing the
social problems
4. Efficient and Effective Employees - Recruiting employees becomes easier for socially responsible
organization. Employees are attracted to contribute for more socially responsible organizations. For
instance - Tobacco companies have difficulty recruiting employees with best skills and competencies.
5. Better Organizational Environment - The organization that is most responsive to the betterment of
social quality of life will consequently have a better society in which it can perform its business
operations. Employee hiring would be easier and employee would of a superior quality. There would
be low rate of employee turnover and absenteeism. Because of all the social improvements, there will
be low crime rate consequently less money would be spent in form of taxes and for protection of land.
Thus, an improved society will create a better business environment.
 Social responsibility can be explained as "the obligation of the firm to use its resources in ways to benefit
society, through committed participation as a member of society, taking into account the society at large and
improving the welfare of society at large independent of direct gains of the company"

Social responsibility approach has some dimension which includes human resources management, health and
working in safe environment, adjustment to changing situations and smooth management of environmental
impact and natural resources. Externally, this approach considers local communities, business, collaborators,
contractors and customers, human rights and global environmental issues. Briefly, social responsibility has
positive affiliation with the social structure which is an essential factor in improving the economy of country.

social responsibility is explained in management literature as the obligation and commitment of managers to
take necessary steps to guard and improve society's welfare along with protecting their own interest.

Managerial Ethics

Ethics is the symbols of moral principles and values that direct the behavior of a person or group with respect
to what is right or wrong. Ethics sets standards as to what is good or bad in conduct and decision making.
Ethics deals with inner values that are a part of business culture and forms decisions concerning social
responsibility with respect to the external environment. A moral issue is present in a situation when the
actions of a person or organization may hurt or benefit others. Ethics can be more evidently understood when
compared with behaviors governed by laws and by free choice. The main purpose of developing in
organization is to enhance workplace behavior ethics and ethics in leadership. Ethics and ethical reasoning are
essential quality of any business culture. Basically, ethics are concerned with human action. It can be
considered as philosophy, philosophical thinking about morality, moral problems and moral judgments. Ethics
can also be described as a study of what is good or right for human beings, what goals people ought to pursue
and what actions they ought to perform.

Ethical management balances the different responsibilities of modern business organizations.

Responsibilities associated with Managerial Ethics:
 Profit: All companies are responsible to make a profit in order to survive and fulfill their other obligations.
 People: This includes employees, customers, shareholders, and the community.
 Planet: Sustainability and the preservation of resources is a growing responsibility for businesses.
 Principles: The ethics that govern the organization will help the company to act ethically in every area.
Characteristics for Managerial Ethics
 There are many different characteristics of ethical management. There are three traits, however, that people
identify with ethical management:

 Integrity: The manager behaves with integrity and leads by example.

 Transparency: The company and its managers are transparent and do not hide their actions.
 Utilitarianism: The organization and manager considers the happiness of the people involved in the
organization.

10 behaviours that outline ethics in management:

 1. Honesty

In all their dealings, ethical executives are honest and truthful. They do not purposely mislead or deceive
others by partial truths, selective omissions, or any other means.

 2. Integrity

Ethical executives show personal honesty and courage. They are principled, trustworthy and upright. They
fight for what is correct. Lastly, they will not betray morality or be duplicates.

 3. Trustworthiness

Ethical executives are worthy of faith. They make every fair effort to fulfil the letter and spirit of their
promises and commitments.

 4. Fairness

Ethical people show a commitment to fairness. They treat people equally with tolerance and acceptance of
diversity.

 5. Kindness

Ethical executives are loving, compassionate, generous and kind. They help those in need and aim to meet
their business goals with the least damage.
  6. Respect

They treat all people, regardless of sex, race or national origin, with equal respect and dignity.

 7. Lawful

Ethical managers follow rules and regulations in their company operations.

 8. Excellence

In conducting their duties, ethical employees seek excellence. They are well educated and trained. They
actively aspire to improve their competence in all areas.

 9. Leadership

Ethical employees strive to be positive role models as leaders. They help to build an atmosphere in which
they are highly respected for principled thinking.

 10. Responsible

They consider and accept responsibility for their choices and actions.

Approaches To Ethics In Management

Basically, there are 3 approaches to ethics in management. Each of them is discussed in the points below:

1. Consequence Based Approach

 Managers check their decisions through this approach. Here, the emphasis is on the action and not the
reason behind the action. It measures positive and negative outcomes. If positive effects outweigh the
negatives, company decisions are justified.
 In this approach, managers analyse the potential options before taking a specific action.
 For example, a manager might receive more revenue from fees or company donations from bringing on
a certain event in a city. It can be an adventure programme such as boxing, but it will have a harmful
effect on a number of residents.
 They might fear noise pollution or harm from competitors or loss of property during the programme.
 Here, the manager would look at this event from a cost-benefit viewpoint. He will conclude that most
people in the group would appreciate this activity. And that the company would make more money
from providing the programme. The manager will also ignore the neighbours concerned about potential
damage and noise.
 It will bring more money to the organisation. But the disappointed residents could sue for property
damage. Moreover, it might lead to an expensive case for the organisation.

 2. Moral Rights Approach

 In this strategy, managers adopt a moral code that takes care of natural and moral rights. It includes the
right to speech, life, and protection, and to express emotions, etc.
 Managers reveal all the necessary details in the annual reports. When disclosing information, its time
and validity are taken into account.
 For example, a manager may see that it is difficult for some of the workers to engage in
official training. It might be because they lack the necessary skills. Or, they might have a different
challenge in participation. Some might even have a financial crisis.
 Managers with the moral rights approach should determine specific responsibilities. They should help
group members who are facing issues. They should check whether specific duties are required.
 One clear advantage of this approach is supporting the disadvantaged person. The manager can make
some reasonable settings for the same. The downside is that it may put the disadvantaged in the
limelight. It will make them feel unjust.

 3. Social Justice Approach

 Managers who take the social justice approach look for equality and fairness. No one
is discriminated against based on caste, religion, race, or gender. But differences are justified based on
skills or performance.
 For example, workers belonging to any gender, with the same abilities are equal. But treating
employees who produce better than those who make less is justified.
 This approach has two principal theories — the liberty principle and the difference principle.

The Liberty Principle

  Every person has some fundamental freedom. Those should be consistent with other people’s equal
freedoms.

The Difference Principle

 It stands for resolving social and economic bias. It supports the equal distribution of goods and services.

Benefits of Ethics in Management

There are a number of clear benefits to managing ethically. These include:

1. it’s a Part of Our Developing Society

Without ethics, kids would still work in factories. 16-hour workdays would remain to be the norm. And sexism,
harassment, and unfair labor practices would still be part of doing business.

But, change is taking place in our society. New societal and working standards are now being developed. For all
of us, this is wonderful.

2. It Helps Maintain Morale During Tough Times

The code of ethics gives you a tool to make clear choices. It shows what is right and wrong. When making
decisions in times of crisis, this is incredibly helpful.

There is often no robust moral framework during periods of turmoil to direct leaders and managers. Continuing
commitment to workplace ethics constantly stimulates them as to how they want to behave.

3. It Supports Employee Growth

A firm evaluated several managers and executives on a series of tests. It had one most significant finding. The
more mentally healthy employees, the more they score high on ethics assessments.
Ethics allows workers in the company to face the facts, both good and bad. They feel like by operating an
ethical operation, they contribute to society in a meaningful way. This sense of obligation brings meaning and
context to what they do daily.

4. It Improves Productivity

When you enforce ethics regularly, your organisation will develop goals and collaboration. Employees who feel
aligned with the company’s ethics, respond with utmost dedication.

5. It Promotes Goodwill

Ethics help in cultivating a positive image for your company. The informed public of today is doing more
research and watching more closely. The customers check how corporations treat them, and if they really ‘walk
the talk.’