MGMT105 Lecture 4 1 29 14 CHAPTER 2 What are organizational values Social Responsibility Refers to the overall way in which a business attempts to balance its commitments to relevant groups and individuals in its social environment o Recycling Major Corporate Stakeholders Employees Investors Suppliers Customers and Local Communities o THE STAKEHOLDER MODEL OF RESPONSIBILITY Customers Treat customers fairly Stakeholders focus on these groups first and foremost CUSTOMERS EMPLOYEES INVESTORS Suppliers Customers Local Communities Responsibility toward the environment o Air Pollution o Water Pollution o Land Pollution Toxic Waste Recycling Responsibility toward customers o Consumer Rights CONSUMERISM Social activism dedicated to protecting the rights of consumers in their dealings with businesses o Unfair Pricing Collusion two or more firms collaborate on such wrongful acts as price fixing Price Gouging RAISING THE PRICE OF GAS WHEN HURRICANES COME HOME DEPOT RAISED THE PRICE OF LUMBER President Kennedy came up with the Consumer Bill of Rights o Consumer Bill of Rights Consumers have a right to a safe product Consumers have a right to be informed about all relevant aspects of a product Consumers have a right to be heard Consumers have a right to choose what they buy Consumers have a right to be educated about purchases Consumers have a right to courteous services Responsibility toward Investors o Insider Trading using confidential information to gain from the purchase or sale of stocks IMPORTANT o Obstructionist Stance Involves doing as little as possible and may involve attempts to deny or cover up violations Chryslers stance toward Jeep recall video from class o Defensive Stance Company meets only minimum legal requirements in it commitments to groups and individuals in its social environment Just the minimum legal requirement Please Drink Responsibly on a beer ad o Accommodative Stance A company if specifically asked to do so exceeds legal minimums in its commitments to groups o Proactive Stance A company actively seeks opportunities to contribute to the well being of groups and individuals in its social environment Ronald Mcdonald House Reaching out to contribute to society Budweiser delivers Water not Beer 01 29 2014 01 29 2014
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