Achieving Business Success by Demonstrating

Behavior and Social Responsibility

Ethics:

 Ethics can be defined as the moral values, rules, or standards governing the conduct of
a particular group, profession, or culture.
 Business, must take a wide range of social issues into account including how a
decision will affects the environment, employees and customer.
 Businesses must find the delicate balance between doing what is right and doing what
is profitable.
 When that balance is skewed, they can experience serious consequences.
 In business, as in life, deciding what is right or wrong in a given situation is not
always a clear-cut choice.
 Businesses have many responsibilities to customers, to employees, to investors, and to
a society as a whole.

 Benefits of Practicing Business Ethics

 In the research study, "Does Business Ethics Pay?" by The Institute of Business
Ethics (IBE), it was found that companies displaying a "clear commitment to ethical
conduct" consistently outperform companies that do not display ethical conduct. The
Director of IBE, Philippa Foster Black, stated: "Not only is ethical behaviour in
business life the right thing to do in principle, we have shown that it pays off in
financial returns." These findings deserve to be considered as an important insight for
companies striving for long-term success and growth.

 7 Principles of Admirable Business Ethics

1. Be Trustful:
Recognize customers want to do business with a company they can trust; when trust is
at the core of a company, it's easy to recognize. Trust defined, is assured reliance on
the character, ability, strength, and truth of a business.

2. Keep An Open Mind:

For continuous improvement of a company, the leader of an organization must be open
to new ideas. Ask for opinions and feedback from both customers and team members
and your company will continue to grow.

3. Meet Obligations:
Regardless of the circumstances, do everything in your power to gain the trust of past
customer's and clients, particularly if something has gone awry. Reclaim any lost
business by honouring all commitments and obligations.

4. Have Clear Documents:

Re-evaluate all print materials including small business advertising, brochures, and
other business documents making sure they are clear, precise and professional. Most
important, make sure they do not misrepresent or misinterpret.
5. Become Community Involved:
Remain involved in community-related issues and activities, thereby demonstrating
that your business is a responsible community contributor. In other words, stay
involved.

6. Maintain Accounting Control:

Take a hands-on approach to accounting and record keeping, not only as a means of
gaining a better feel for the progress of your company, but also as a resource for any
"questionable” activities. Gaining control of accounting and record keeping allows
you to end any dubious activities promptly.

7. Be Respectful:
Treat others with the utmost of respect. Regardless of differences, positions, titles, ages,
or other types of distinctions, always treat others with professional respect and
courtesy.

Ethical Dilemma

An ethical dilemma is any situation in which guiding moral principles cannot determine
which course of action is right or wrong.
Ethical dilemmas arise when your own ethical standards conflict with those of some other
entity (e.g., your employer, a customer, etc.).
Ex:
"A customer (or client) asked for a product (or service) from us today. After telling him
our price, he said he couldn't afford it. I know he could get it cheaper from a
competitor. Should I tell him about the competitor -- or let him go without getting
what he needs? What should I do?"

Ethical Issue Categories

 Conflict of interest

Occurs when a person must choose whether to advance their own personal interest or
those of others

Loyalty versus Truth

 Business people expect their employees to be loyal and to act in the best interests
of the company. An ethical conflict can arise, however when individuals must
decide between loyalty to the company and truthfulness in business relationships

Communications

 False and misleading advertising and deceptive personal-selling tactics

anger customers and may cause a business to fail.
Acting responsibly to satisfy society

 An important issue affecting business is the question of social responsibility. In a

general sense, social responsibility is management's acceptance of the obligation
to consider profit, consumer satisfaction and societal well-being of equal value in
evaluating the firm’s performance.

 Corporate Social Responsibility

Is an ethical or ideological theory; a doctrine, how an entity whether it is a

government, corporation, organization or individuals has a responsibility to society
and can be defined as, “the obligation of business to pursue those policies, to make
those decisions or to follow those lines of actions which are desirable in terms of the
objectives and values of your society”.

 Social Responsibility is voluntary

It is about going beyond what is called for by the legal responsibility; law cannot
impose it, thus, it needs willing acceptance and self-discipline. As the golden rule
says, “Act in a way you would want others to act towards you.”

The Pyramid of Social Responsibility

Voluntary
Responsibilities
being a
“good corporate citizen;”
contributing to the
community and quality of life

Ethical Responsibilities
being ethical; doing what is right, just,
and fair; avoiding harm

Legal Responsibilities
obeying the law (society’s codification
of right and wrong)

Economic Responsibilities
being profitable

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Responsibility to the General Public

 The responsibility of business to the general public include dealing with

 public-health issues,
 Protecting the environment
 And …developing the quality of the work force
 Businesses have responsibilities to support charitable and social causes and
organizations that work toward the greater public good.

Responsibilities to the Customers

 Business people share a social and ethical responsibility to treat their customers fairly
and act in a manner that is not harmful to them.
 Consumerism is the public demand that a business considers the wants and needs of
its customers in making decisions

Responsibility to Employees

 One of the most important business resources is an organization’s work force.

 Companies that are able to attract skilled and knowledgeable employees are better
able to meet the challenges of competing on a global basis.
 Workplace Safety.
 Quality of Life Issues.
 Ensuring Equal Opportunity on the Job.

Case study on social responsibility:

COMPANY-CANARA BANK

 CANARA BANK has been in the forefront in the service of common man ever since
its inception in 1906. The illustrious founder Sri A Subbarao Pai has shown the way
how the Banks could play an important role in solving the social problems. Ever since
the birth of this Bank, a noble tradition has been built up and has set many examples
for others which has earned a high place for Canara Bank.
In order to monitor and oversee the implementation of social welfare activities through
all branches Social Action Section was formed in August 1971. It was renamed as
Social Banking Cell in July 2001. The Bank is conducting the following activities at
Head Office as well as in 30 Circles of the Bank covering all the branches/Offices

 Rural Upliftment
 1.      Rural Clinic Services-
Rural clinic service is a novel and unique rural health service scheme in vogue in our
Bank since 1983. The twin objectives of the scheme are to provide medical facilities
to backward villages not having access to basic medical care and to provide self-
 employment opportunities amongst unemployed doctors to set-up their clinics in the
remote backward villages.
 So far, the Bank has assisted 487 doctors to set up rural clinics in remote rural areas.

2.      Mobile Sales Van

 Women Empowerment
 A Pioneer Effort for Helping Women Entrepreneurs
    Canara Bank, as part of its Corporate social responsibility (CSR) initiatives has
sponsored a Retail Mobile Marketing Van for Display cum Sale of House hold
products, articles made by Self - Help Groups, Small women entrepreneurs, Artisans,
Self Employed women etc.
 This van is custom-built high tech, solar powered, equipped with computerized
billing, swiping machine for credit/debit card acceptance. This marketing van will be
stationed in important locations of Bangalore to enable the citizens of the city to see
and purchase the products manufactured by artisans and other underprivileged women
entrepreneurs. This Mobile Van thus provides a platform for publicity of products in
the entire city instead of being restricted to one area/locality.
 This is a hand holding effort by Canara Bank in support of small women
entrepreneurs, SHGs, Artisans etc to get them access to market channels for their
quality products. It is a unique effort in helping the disadvantaged groups in
marketing their products.

3. Rural Service Volunteers

 The Bank pioneered an innovative scheme called Rural Service Volunteers in the year
1982. Under the scheme, the Bank provides an opportunity to willing and interested
workmen staff to work for rural development on full time basis, for a minimum period
of 2 years. The scheme aims at bringing total transformation in socio-economic fronts
of backward villages, through coordinated approach
 So far, 146 workmen staffs have worked as RSVs.

1. TRAM Campaign
Ten Rupees a Month, popularly known as TRAM Campaign, is intended to actively involve
all staff members in the welfare activities. Under this programme student, patients suffering
from major diseases, disabled from weaker sections of society are assisted. Every year about
Rs. 6.00 lakh is contributed from the employees for helping the needy people.

2. Blood Donation
With the active cooperation of the staff, every year around 5000 units of blood is donated by
staff members and able to save many precious lives.

3. Health Camps
Canara Bank through its branches is conducting various types of health camps both in rural
and in semi urban areas which lack medical facilities.
4.Welfare Activities for Students
Every year more than One Million Rupees is spent for Primary Education by providing
Notebooks, School Bags, Uniforms, Educational Aids, etc. Poor meritorious students of
Government Schools are honored every year. Many orphan students are helped financially to
continue their education. Many orphan and slum students are sponsored free computer
training to help them to earn their livelihood.

5. Self Employment and Career Guidance

For students and unemployed youth these programmes are conducted to guide them to choose
their career path.

6. Assisting the Victims of Natural Calamities.

Initiating relief measures to the victims of drought, flood, earthquake cyclones by providing
clothes, food, utensils etc through voluntary contributions in cash and kind from our
employees and also arranging contributions from the Bank.

7. Assisting the NGOs

CANARA BANK is always assisting the NGOs working for

the welfare of disabled, orphans, senior citizens, destitute
and conducting programmes in co-ordination with them.