© Cambridge University Press 2012 AREA OF STUDY 2 UNIT 4 MANAGING PEOPLE AND CHANGE CHAPTER 14 CORPORATE SOCIAL RESPONSIBILTY AND BUSINESS ETHICS THE MANAGEMENT OF CHANGE

© Cambridge University Press 2012 Corporate social responsibility Social responsibility relates to the moral and ethical decisions made by organisations.

© Cambridge University Press 2012 Corporate social responsibility (cont.) These behaviours go beyond the objectives of the organisation. Often these organisations attempt to be good corporate citizens.

© Cambridge University Press 2012 Impacts of corporate social responsibility Social responsibility can impact on the organisation in a number of ways: Production process – e.g. through recycling, changing packaging and waste minimisation practices

© Cambridge University Press 2012 Impacts of corporate social responsibility (cont.) Community sponsorship – organisations may target a cause or issue and work in partnership with other organisations and community groups Corporate philanthropy – develop public policy and research.

© Cambridge University Press 2012 Pressures on organisation to become socially responsible It is advantageous for organisations to be socially responsible, as many consumers and investors judge an organisation in terms of its commitment to the community.

© Cambridge University Press 2012 Advantages of CSR for large-scale organisations There are a number of advantages for an organisation that is socially responsible: It enhances the organisation’s reputation. It strengthens the organisation’s position as an ‘employer of choice’.

© Cambridge University Press 2012 Advantages of CSR for large-scale organisations (cont.) It increases staff productivity and motivation. It allows and encourages innovation and diversity. It contributes to long- term sustainability.

© Cambridge University Press 2012 Business ethics Business ethics can be defined as individual, community or organisational beliefs and values.

© Cambridge University Press 2012 Managerial ethics Managerial ethics can be defined as the values and standards of behaviour that guide individual managers and organisations.

© Cambridge University Press 2012 Influences on ethics There are a number of influences on ethics: life experiences, individual values, family and peer influences and societal norms.

© Cambridge University Press 2012 Organisational ethics Ethics impact on the stakeholders of the organisation. These stakeholders include employees, customers, shareholders, government bodies and agencies, the public, suppliers and corporate culture

© Cambridge University Press 2012 Business ethics as a change management issue Ethics programs provide a number of benefits to the organisation: Ethics have helped improve society. Morals and ethics can guide the organisation through difficult times.

© Cambridge University Press 2012 Business ethics as a change management issue (cont.) Ethics contribute to teamwork. Ethics ensure policies are legal. Ethics promote a strong public image.

© Cambridge University Press 2012 Business ethics as a change management issue (cont.) Managers have a significant impact on the behaviours and ethics of the workplace.