Social Responsibility and Managerial Ethics -a Focus on Mncs
Global Peter Drucker Challenge Essay Contest
Social Responsibility and Managerial Ethics A Focus on MNCs
Prepared by: Kidus G.Mehalu Addis Ababa, Ethiopia
August 2011
Social Responsibility and Ethics of MNCs
The 2nd Peter Drucker’s Challenge Social Responsibility and Managerial Ethics -A Focus on MNCs
. 1.1 Introductory Remarks
Managers today are usually quite sensitive to issues of social responsibility and ethical behavior because of pressures from the public, interest groups, legal and governmental concerns, and media coverage. It is less clear where to draw the line between socially responsible behavior and the corporation’s other concerns, or between the conflicting expectations of ethical behavior among different countries. This essay on social responsibility and ethics set externally to international managers and thus in a sense outside their realm of control, is the expectation of appropriate behavior. This behavior is measured both in terms of social responsibility of the organization as such, as well as ethical behavior of individual managers. In addition to these expectations there is an onus on organizations and managers alike to manage the relationship with the host country. Having noted this, I shall now move on to the main issues this essay has set out to address in the following manner: 1.2 Global Interdependence Global interdependence is a compelling dimension of the global business environment, creating demands on international managers to take a positive stance on issues of: social responsibility and ethical behaviour; economic development in host countries; and ecological protection around the world. Multinational corporations continue to be the centre of debate regarding the benefits versus harm wrought by their operations around the world. Because of their size and economic power, the MNC will be held to a higher standard of performance. Balancing the interests of the varied stakeholders is an important consideration of top managers.
Social Responsibility and Managerial Ethics A Focus on MNCs
Prepared by: Kidus G.Mehalu Addis Ababa, Ethiopia
August 2011
Social Responsibility and Ethics of MNCs
The 2nd Peter Drucker’s Challenge Social Responsibility and Managerial Ethics -A Focus on MNCs
. 1.1 Introductory Remarks
Managers today are usually quite sensitive to issues of social responsibility and ethical behavior because of pressures from the public, interest groups, legal and governmental concerns, and media coverage. It is less clear where to draw the line between socially responsible behavior and the corporation’s other concerns, or between the conflicting expectations of ethical behavior among different countries. This essay on social responsibility and ethics set externally to international managers and thus in a sense outside their realm of control, is the expectation of appropriate behavior. This behavior is measured both in terms of social responsibility of the organization as such, as well as ethical behavior of individual managers. In addition to these expectations there is an onus on organizations and managers alike to manage the relationship with the host country. Having noted this, I shall now move on to the main issues this essay has set out to address in the following manner: 1.2 Global Interdependence Global interdependence is a compelling dimension of the global business environment, creating demands on international managers to take a positive stance on issues of: social responsibility and ethical behaviour; economic development in host countries; and ecological protection around the world. Multinational corporations continue to be the centre of debate regarding the benefits versus harm wrought by their operations around the world. Because of their size and economic power, the MNC will be held to a higher standard of performance. Balancing the interests of the varied stakeholders is an important consideration of top managers.
References: Bowie, N. (1987), “The Moral Obligations of Multinational Corporations,” Problems of International Justice, ed. LuperFay (New York: Westview Press) 97 -113. Carroll, A. B. (1979), “A three-dimensional model of corporate performance”, Academy of Management Review, 4(4), 497-505. Getz, K.A. (1990), ”International Codes of Conduct: An Analysis of Ethical Reasoning”, Journal of Business Ethics, 9 pp 567-577. Graedel, T.E and Allenby, B.R. (1985), Industrial Ecology, Upper Saddle River, NJ: Prentice Hall. Laczniak, G.R and Naor J. (1985) “Global ethics: Wrestling with the Corporate Conscience,” Business, July-August-September, 152. Peter F. Drucker (2007),People and Performance: The Best Of Peter Drucker On Management, Harvard Business Press Zachary, G.P. (1994), “Levi tries to make sure contract plants in Asia treat workers well.” Wall Street Journal, July 28. Essay Prepared for the 2nd Peter Drucker’s Challenge by Kidus G.Mehalu 9