Stages of moral development.

Preconventional level managers are mostly concerned with themselves, they blindly follow the rules to avoid punishment, and they act in their own interest in order to get rewards. Important thing for managers here is just task accomplishment

Conventional level managers try to satisfy expectations of other people; they want to seem good to others. If their colleagues, family, friends, and society think that such of behavior is good, they behave in that way. Here it is important group cooperation.

Postconventional level managers are guided by their internal values and beliefs, and they disobey rules and laws that violate their interests. They will act in ethical way regardless of expectations from others inside and outside the organization.

45. List and define the criteria of corporate social responsibility.

Corporate Social Responsibility (CSR) is the obligation of organization management to make decisions and take actions that will enhance the welfare and interests of society as well as the organization

Economic Responsibility: the first criterion of social responsibility. The business institution is the basic economic unit of society. Its responsibility is to produce goods and services that society wants and generate profits for owners and shareholders. ER is called the profit-maximizing view.

Legal responsibility: all modern societies have rules, laws, and regulations that businesses are expected to follow. Legal responsibility defines what society believes important with respect to appropriate corporate behavior. Businesses are expected to fulfill their economic goals with the legal framework. Organizations that knowingly break the law are poop performers in this society. Internationally manufacturing defective goods or billing a client for work done is illegal.

Ethical responsibility: it includes behaviors that are not necessarily codified into law and may not serve the corporation’s direct economic interests. To be ethical, organization decision makers should act with equally, fairness, and impartiality, respect the rights of individuals, and provide different treatment of individuals. Unethical behavior occurs when decisions enable an individual or company to gain at the expense of other people or society as a whole.

Discretionary Responsibility: is purely voluntary and is guided by a company’s desire to make social contributions not mandated by economics, law, or ethics. Include generous contributions that offer no payback to the company and are not expected, for ex, charity and sponsorship. Is the highest criterion of social responsibility, bcs it goes beyond social expectations to contribute to the community’s welfare.

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