At a recently held board meeting of your company, there was a heated argument about the need to have a corporate social responsibility (CSR) policy. While some viewed CSR as a complete waste of resources, others viewed it as an absolute necessity.

Required:
a. With the aid of the Grey, Owen, and Adams 7-point classification, analyze the possible ethical stances that could be taken by members of the board. (12 Marks)

b. Using the Johnson and Scholes cultural web, explain the elements that shape board members’ understanding of corporate ethics. (8 Marks)

(Total 20 Marks)

(a) Grey, Owen, and Adams 7-Point Classification
The Grey, Owen, and Adams framework classifies different groups of people and their views of the relationship between business, organization, and society. The positions are:

1. Pristine Capitalists: Believe the only objective of a business should be to make money for shareholders and maximize shareholder wealth.
2. Expedients: Agree with wealth maximization for shareholders but believe concessions should be made to stakeholders to strengthen the company’s strategic position.
3. Proponents of Social Contract:</strong> Believe in a social contract between businesses and society, requiring companies to act responsibly in response to societal needs.
4. Social Ecologists: Believe businesses are responsible for creating social and environmental problems and must solve them.
5. Socialists: Advocate for a significant redistribution of assets and restructuring of society.
6. Radical Feminists: Believe societies are dominated by aggressive masculine views that are harmful and argue for feminine values to guide behavior.
7. Deep Ecologists: Oppose capitalism and argue that human beings do not have greater rights than other forms of life, thus ethical decisions should consider all forms of life.

(b) Johnson and Scholes’ Cultural Web
The cultural web is made up of seven interrelated elements of culture within an organization:
1. Routines and Rituals: These represent how things are typically done and can set the tone for behavior in the organization.
2. Stories and Myths: Stories about the organization’s history and past leaders create a perception of its values and successes.
3. Symbols: These include company logos, uniforms, and other representations of organizational identity.
4. Power Structures:</strong> The influence of those in management positions can shape behavior within the organization.
5. Organizational Structures: Hierarchies and bureaucratic structures often resist change and are conservative in their outlook.
6.Control Systems: Performance management and reward systems help to determine what the organization values and prioritizes.
7. Paradigms: These are the taken-for-granted assumptions about how the organization operates.