MBA Modul B830 MAKING a DIFFERENCE

ORGANISATIONAL ETHICS AND CORPORATE SOCIAL RESPONSIBILITY

The importance of organisational ethics and corporate social responsibility:

There are three main views about why organisational ethics and corporate social responsibility are important:

1. Acting ethically is the only right way for organisations to behave.

2. Stakeholders and society expect organisations to do what is right, fair and just.

3. It is in organisations' best interests to behave ethically.

ETHICAL CLIMATE

1. Caring - this is typified by concern for the good of all the people in the organisation and people in the organisation looking out for each other.

2. Low and code - primary consideration is given to whether a decision violates any law and strict adherence to legal and professional standards is paramount.

3. Rules - everyone in the organisation is expected to observe the organisation's rules and procedures and to behave 'by the book'.

4. Instrumental - priority is given to the protection and furtherance of the individual's and the organisation's interests, irrespective of the consequences.

5. Independence - people are expected to decide for themselves and follow their own ethical and moral beliefs.