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Social Irresponsibility in Management

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Author Info
JS Armstrong (The Wharton School - University of Pennsylvania)

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Abstract

Previously published research suggested that the typical manager may be expected to harm others in his role as a manager. Further support for this was drawn from the Panalba role-playing case. None of the 57 control groups in this case were willing to remove a dangerous drug from the market. In fact, 79% of these groups took active steps to prevent its removal. This decision was classified as irresponsible by 97% of the respondents to a questionnaire. Because the role exerts such powerful effects, an attempt was made to modify subject’s perceptions of their role so that managers would feel responsible to all of the firm’s interest groups. Some subjects were told that board members should represent all interest groups; other subjects were placed on boards of directors where the different groups were represented. Subjects in both groups also received information on the impact of the decisions upon stockholders, employees, and customers. The percentage of irresponsible decisions was reduced under these conditions as only 22% of the 116 groups selected the highly irresponsible decision.

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Publisher Info
Paper provided by EconWPA in its series General Economics and Teaching with number 0412031.

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Length: 29 pages
Date of creation: 10 Dec 2004
Date of revision:
Handle: RePEc:wpa:wuwpgt:0412031

Note: Type of Document - pdf; pages: 29
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Web page: http://129.3.20.41

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Related research
Keywords: obedience to authority; Panalba; role-playing; social accounting; social responsibility; stakeholder theory;

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Find related papers by JEL classification:
A - General Economics and Teaching

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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)
  1. JS Armstrong, 2005. "Strategic Planning And Forecasting Fundamentals," General Economics and Teaching 0502066, EconWPA. [Downloadable!]
  2. JS Armstrong, 2004. "The Panalba Role Playing Case," General Economics and Teaching 0412029, EconWPA. [Downloadable!]
  3. JS Armstrong, 2005. "The Manager’s Dilemma: Role Conflict in Marketing," General Economics and Teaching 0502042, EconWPA. [Downloadable!]
  4. Joseph Heath, 2008. "Business Ethics and Moral Motivation: A Criminological Perspective," Journal of Business Ethics, Springer, vol. 83(4), pages 595-614, December. [Downloadable!] (restricted)
  5. JS Armstrong, 2004. "Forecasting Methods for Conflict Situations," General Economics and Teaching 0412025, EconWPA. [Downloadable!]
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