Chapter 5: Socially conscious management
L05.1
Definitions
Classical view: The view that management’s only social responsibility is to maximize
profits.
Social obligation (classical view): When a firm engages in social actions because of its
obligation to meet certain economic and legal responsibilities.
Socioeconomic view: The view that management’s social responsibility goes beyond
making profits to include protecting and improving society’s welfare.
Social responsiveness (Socioeconomic view): When a firm engages in social actions in
response to some popular social need.
Social responsibility (Socioeconomic view): A business’s intention, beyond its legal and
economic obligations, to do the right things and act in ways that are good for society.
Social responsibility (p.182)
, L05.2
Green approaches
Legal: Doing what is required legally,
which is social obligation.
Market: organizations respond to the
environmental preferences of their
customers (social responsiveness).
Stakeholder: organization works to meet
the environmental demands of multiple
stakeholders such as employees,
suppliers, or community.
Activist: An organization looks for ways to respect and preserve the earth and its
natural resources (social responsibility).
Evaluating green actions
1. examining reports that companies make about their environmental performance.
2. by looking for compliance with global standards for environmental management (ISO
14000).
3. Global 100 list of the most sustainable corporations in the world.
Definitions
Green management: Managers consider the impact of their organization on the natural
environment.
L05.1
Definitions
Classical view: The view that management’s only social responsibility is to maximize
profits.
Social obligation (classical view): When a firm engages in social actions because of its
obligation to meet certain economic and legal responsibilities.
Socioeconomic view: The view that management’s social responsibility goes beyond
making profits to include protecting and improving society’s welfare.
Social responsiveness (Socioeconomic view): When a firm engages in social actions in
response to some popular social need.
Social responsibility (Socioeconomic view): A business’s intention, beyond its legal and
economic obligations, to do the right things and act in ways that are good for society.
Social responsibility (p.182)
, L05.2
Green approaches
Legal: Doing what is required legally,
which is social obligation.
Market: organizations respond to the
environmental preferences of their
customers (social responsiveness).
Stakeholder: organization works to meet
the environmental demands of multiple
stakeholders such as employees,
suppliers, or community.
Activist: An organization looks for ways to respect and preserve the earth and its
natural resources (social responsibility).
Evaluating green actions
1. examining reports that companies make about their environmental performance.
2. by looking for compliance with global standards for environmental management (ISO
14000).
3. Global 100 list of the most sustainable corporations in the world.
Definitions
Green management: Managers consider the impact of their organization on the natural
environment.
