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Chapter 4 Social Responsibility

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9 views

Chapter 4 Social Responsibility

Uploaded by

maikee.xuness17
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Corporate Social

Responsibility and Business


Ethics
Social Responsibility?
• The awareness that business activities have an
impact on society and the consideration of that
impact by firms in decision making.
• Social responsibility of business refers to the
Social obligation of business enterprises to adopt policies
Responsibility and plans of actions that are desirable in terms of
the expectation, values and interest of the society.
• Corporate social responsibility (CSR) as the notion
that corporation has an obligation to constituent
groups in society other than stockholders and
beyond that prescribed by the law.
Social Responsibility Concerns of Business

Consumers

Business
Employees Activities Environment

Investors
Consumerism: Activities of individuals,
groups and organizations aimed at
protecting consumer rights.

Responsibility to i. The Right to Safety;


Consumers ii. The Right to be Informed;

iii. The Right to Choose;

iv. The Right to be Heard;


i. Safety in the Workplace;

ii. Right to get Payment


Responsibility to
iii. Equality in the Workplace; Employees
iv. The Hard-Core Unemployed;
Pollution: Contamination of air, water and

land.
Responsibility to The
i. Water Pollution;
Environment
ii. Air Pollution;

iii. Land Pollution;


i. Proper Management of Funds;
Responsibility to
ii. Access to Information;
Investors
iii. Executive Compensation;
Business Ethics
• The word ‘Ethics’ originated from the Greek word ‘ethos’ meaning character, conduct
and activities of the people based on moral principles.

• It is concerned with what is right and what is wrong in human behavior on the basis of
standard behavior or conduct accepted by the society. Honesty, truthfulness,
compassion, sympathy, feeling of brotherhood etc. are considered ethical.

• Generally ethics is the branch of social science. It deals with moral principles and social
values. It helps us to classify what is good and what is bad? It tells us to do good things
and avoid to do bad things.

• Ethics is moral principles that govern a person's or group's behavior.


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Business Ethics
• Business ethics are moral principles that guide the way a business behaves. The same principles that

determine an individual's actions also applicable to business.

• Business ethics are standard of organizations in carrying out their business.

• The examples of business ethics:

 So the business man must give a regular supply of quality goods and services at reasonable prices to their

consumers.

 They must avoid indulging in unfair trade practices like adulteration , misleading advertising , cheating in

weights and measures, black marketing etc.

 They must give fair wages to and provide good working conditions to their workers. Etc.
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Factors influencing ethical behavior:
• The business environment: Almost daily , business managers face ethical
dilemmas resulting from the pressures of the business environment. They are
challenged to meet sales quotas, cut costs, increase efficiency, or overtake
competitors. These factors influence the ethical behavior. Conflicting interest
is another ethical problem steaming from the business environment.
• The organization: An organization is a group of people working together in a
structured and coordinated fashion to achieve a set of goals. The
organization itself also influence behavior. Individuals often learn ethical or
unethical behaviors by interacting with others in the organization. An
employee who sees a superior or co- worker behaving unethically may follow
suit.
• The individual: A persons own moral philosophy also influence his or her
ethical behavior.
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Business ethics require business managers to answer moral questions such
as:

 Is it right to inflate the price of a contract just to be able to maximize


profit?
 Is it right to use substandard materials?
 Is it right to deny a female employee an opportunity for technical
training?
 Is it right to create a monopoly situation through unfair means?
Importance of business ethics or implication of business ethics:
• Stop business malpractices like artificial high pricing, adulteration, cheating, black marketing etc.
• Improve customers confidence: through providing quality products and goods and right prices.
• Survival of business
• Safeguarding consumers’ rights
• Protecting employees and shareholders
• Develop goods relations
• Create good image
• Smooth functioning: (employees, shareholders, consumers, dealers, suppliers will work
cooperatively)
• Consumer movement: help to avoid consumer movement like boycott.
• Consumer satisfaction
• Give priority to employees/ Importance of labor: better dealings with employee that increase
productivity.
• Healthy competition – help to avoid cut-throat competition and monopoly business.

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