1. CHAPTER 2 Environment, Social Responsibility and ethics 1

2. 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 Learning Objectives

3. 3 I. Management Environment

4. Managers have to understand from:  Surrounding him everything (internal & external environment)  Approaches how to resolve the problems  Controlling those environments 4

5. 1.1-Internal Environment Factors that are frequently considered part of the internal environment include:  Operation Staff  Leadership Styles  Organizational Culture  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

6.  Concept of Corporate Culture  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 1.1 - Internal Environment 6

7. 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

8. 1.2.1- General Environment There are 5 elements:  Political-Legal Environment  Economics Environment  Social and Cultural Environment  Technological Environment  International Environment 1.2 External Environment 8

9. 1.2.2 Task Environment  Customers  Competitors  Suppliers  Regulators 1.2 External Environment 9

10. 1.3 Managerial Responses to Environment  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

11. 1.4 Organizational Setting for Management  Corporation  Nonprofit organizations  Small businesses  Family-owned businesses 11

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

13. 2.1 Corporate Social Responsibility 2.1.1 The Stakeholder Concept  Government  Employees  Customers  Suppliers  Creditors 13

14. 2.2 Measuring Social Responsibility 2.2.1 What should be measured?  Analysis: People help program  Fund for Scholarship: school, ministry, government  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

15. 3. Management Ethics  Approaches to management ethics  Normative concepts: -How Should individual have behavior?  Contextual Concepts: - Make decision  Environment for ethical decision making  Code of ethics 15