Business Ethics and Social Responsibility

By Akash Saxena

By Akash Saxena

Importance of Ethics
“The best chance you have of making a big success…is to decide from square one that you are going to do it ethically” - Alan Greenspan Chairman, Federal Reserve Board

By Akash Saxena

Importance of Ethics
“There is no such thing as business ethics….There’s just ethics; and we all have to practice them every day in everything we do.” – Peter Drucker

By Akash Saxena

Concept

Ethics: An individual’s personal beliefs about whether a behaviour, action, or decision is right or wrong. Ethical behaviour: Behaviour that conforms to generally accepted social norms Unethical behaviour: Behaviour that does not conform to generally accepted social norms. Managerial ethics: Standards of behaviour that guide individual managers in their work
By Akash Saxena

Managerial ethics
The three basic areas of concern for managerial ethics are the relationships of the  Firm to the employee  Employee to the firm  Firm to the other economic agents (Managers need to approach each set of relationships from an ethical and moral perspective)

By Akash Saxena

Shift to ethics

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Business create problems and should therefore help solve them Corporations are citizens in our society Business often has the resources necessary to solve problems Business is a partner in our society, along with the government and general population

By Akash Saxena

Tools of ethics

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Specialized knowledge (background of the situation) Whistle-blowing Ethical code of conduct (P&G)

By Akash Saxena

Corporate Social Responsibility

By Akash Saxena

By Akash Saxena

“The message is that whatever we do today will have an impact on future generations. It’s not just my kids or your kids or somebody else’s. It’s future generations. We should not hope that the walls we build to protect ourselves will be tall enough to protect our children. Only with very conscious effort we can make the world for them a better place to live…even if we address our most selfish needs we have to address the needs of the next generation. That’s what CSR is about.”

By Akash Saxena

“You cannot talk about CSR unless you love your people and your country”
A student from Moscow, in opening remarks for a meeting on Russian Future Leaders and CSR.

By Akash Saxena

Social responsibility

The set of obligations an organisation has to protect and enhance the societal context in which it functions.

By Akash Saxena

Areas of social responsibility
Stakeholders  Natural environment  General social welfare Natural (Some organisations Stakeholders Environment acknowledge their responsibilities in all three areas and strive diligently to meet each of them. Few others emphasize only one or two and few do not General acknowledge it at all) Social

Welfare

By Akash Saxena

Stakeholders
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Local Government Creditors Customers Local community Suppliers Employees Interest groups Trade associates

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Owners/investors Courts Colleges and universities Foreign government State/federal government

By Akash Saxena

Natural environment
Depletion of Ozone layer  Global warming  Extinction of animal species  Disposal of industrial waste  Recycling  Reusing  Recreating (Organisations like P&G and Sony are global leaders in environment protection)

By Akash Saxena

General Social welfare
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Charities Health Education Public awareness Human rights protection

By Akash Saxena

By Akash Saxena

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