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CSR ASSIGNMENT

Q1. Q1. Describe the relevance of human values in management?

Ans: Recently, there has been an increasing awareness, and more importantly increasing interest in the
field of business Ethics. This is indeed a very welcome trend! In fact, perhaps, there has not been any time
in the history of business development when the concepts and an understanding of the nature of business
ethics has been so urgently needed, so urgently felt, never before had the need for ethical practices
business so widely felt. After the epoch making effects of the Industrial Revolution on business and the
subsequent framing of labour legislations for protecting employees and the laying down of their rights
and duties in legal terms, there has been one area which has caused concern repetitively to both business
academicians and business practitioners alike, and that has been the ethical way of conducting business.
Previously, it as thought that business ethics is a contradiction of terms. The popular concept was that if it
is business, then it cannot be ethical, and if it ethical at all, it does not represent business. Fortunately,
there were people in the world, even at that time, significant people, who disagreed with this philosophy-
the notable amongst them being our very own J. R. D. Tata-and it is mainly due to the efforts of these
significant people that Business Ethics has reached the proper place in business that is due to it. Business
today far from being a profit making institution is largely looked upon as a social institution pursuing a
social mission and having a far reaching influence on the way people live and work together. Modern
corporate do not operate in isolation. The resource they make use of are not limited to those of the
proprietors and the impact of their operation is felt also by many a people who are in no way connected
with the business. The shareholders, the suppliers of resources, the consumers, the employees, the local
community and the society at large are affected by the way an enterprise functions.

Ethics is not a recent discovery. Over the centuries philosophers in their struggle with human behavior
have developed different approaches to ethics, each leading to different conclusion. The word Ethics
which is coined from the Latin word Ethics & Greek word ethikos pertains to character. Ethics is thus
said to be the science of conduct. As a matter of fact it deals with certain standard of human conduct and
morals. The field of ethics involves systematizing, defending and recommending concepts of right and
wrong behavior. Ethics is a mass of moral principles or set of values about what is right or wrong, true or
false, fair or unfair, proper or improper what is right is ethical & what is wrong is unethical . There is
growing recognition that good ethics can have a positive economic impact on the performance of firms.
The statistics support the premise that ethics, values, integrity and responsibility are required in the
modern workplace. For consumer groups and society at large, research has shown that good ethics is good
business. Ethics matters because it makes good business sense to "do the right thing". Additionally good
corporate ethics results in:
Attracting better talent .
Retaining employees
Attracting new customers
Retaining customers
A Positive effect on ROI
A Positive effect on Corporate Reputation
Scope for business ethics: The framework needs to be outlined before the business activity starts.
Criminal behavior and legal framework Every business needs to have a code of ethics pertaining to
criminal behavior and legal issues. The employees in a business need to be trained sufficiently regarding
legalities of the business and its consequences. Human values and personal behavior every business
needs to have an ethical framework or policy for human values and behavior. Employees should be given
training on how to interact with different people, be the customer, supplier or competitor. They need to be
aware of how they are expected to behave with people at different levels and that inappropriate behavior
will have its consequences. Corporate and business ethics though we are discussing business ethics,
this strictly pertains to the corporate ethics, ethical policies for business and actions that are going to be
under check and need to be in compliance with given legal framework and standards.

The Sanskrit word for value, Ishta, means the object of liking. The term value may, therefore, be defined
as that which is desired. According to Stephen P. Robbins- Values represent -"a specific mode of
conduct or end -state of existence is personally or socially preferable to an opposite or converse mode of
conduct or end- state of existence. Edward Springer' - defines the values - as the constellation of likes,
dislikes, viewpoints, inner inclinations, rational and irrational judgments, prejudices, and association
patterns that determine a person's view of the world." Values are the deep - seated ideas and feelings that
manifest themselves as behavior or conduct. The true reflection of one's values is his/ her action. Values
are what we, as a profession, judge to be right. They are more than words-they are the moral, ethical, and
professional attributes of character.

Characteristics of values:

(1) Values tend to be relatively stable and enduring. A significant portion of the values, we hold is
established in our early years from parents, teachers and others. So, these values are originally learnet.
(2) Values constitute the foundation of one's character. They are at the core of personality and a powerful
force affecting behavior.
(3) Values are abstract representation of what people believe to be right, proper and worth while to
pursue.
(4) Some values are not fixed, but they change our time & situation.
(5) Values have intensity and content attributes in which the content attribute says that a mode of conduct
or end- state of existence is important and the intensity attribute explains how important it is.
(6) The values which are internalized by an individual, becomes a part of his personality, then they go
beyond the zone of choice for the person concerned. His action based on these values then becomes
spontaneous and continuous, automotive and instinctive.
Types of Values: 1) According to M. Rokeach (The Nature of Human Values, New York; Free Press 1973)
there are two types of values

(i) Instrumental Values:- The values which concern the way we approach the end states. These relate to
means for achieving desired results. Some are like
* Hard work and achievement.
* Education & intellectual pursuits.
* Self sufficiency; independence.
* Truthfulness; honesty.
* Assertiveness; Standing up for yourself.
* Being well mannered and courteous towards others.
* Open - mindedness; receptivity to new ideas.
* Caring towards others. Terminal values:- They are those end state goals that we praise such as
comfortable life, a sense of accomplishment, equality among all people.
* Happiness; satisfaction in life.
* Peace and harmony in the world.
* Knowledge and wisdom.
* Pride in accomplishment.
* Security; freedom from threat. Both sets of values have significant influence on daily behavior at work.

2) Negative and Positive Values: The values can also be categorized as negative and positive values which
denote a sense of right or wrong, good or bad and other judgmental criteria based on our strong sense of
what the ideal ought to be.

(i) Negative Values:


Anger.
Meanness.
Arrogance.
Crookedness.
Greed.
Lust.
They generate negative thoughts.
(ii) Positive Values:
Integrity, honesty.
Truthfulness.
Kind heartedness, humility.
Friendliness.
Faith.
Self-respect.
Open mindedness.
Creativity.
Civil sense.
Simplicity.
Forgiveness.
Poise.
Detachment, etc.
They generate positive thoughts.
EXAMPLES:-

TATA GROUP TATA brand represents a sense of nationalization, reliability, assurance and a true value for
money. Today, the brand Tata can be termed as a brand that represents leadership with trust. The heritage
of Tata to return to the society that it earns has evoked trust amongst the consumers, employees,
shareholders and the community.The TATA Iron and Steel Company were India's first and the largest steel
company in the private sector. Today, Tata steel ranks among the worlds top steel company and has
emerged one of the lowest producers of steel of world. The values and the work culture were imbibed by
the legendary J.R.D Tata who believed that whether in business or life, it was people which matters the
most. Tata steel values viz. "respect for the individual" "credibility" and "excellence" are demonstrated in
everything it does. TATA has made commitment towards employee relations, environment, corporate
governance and community.

AMUL CO-OPERATIVE

The Brand name AMUL from the Sanskrit word "Amoolya" meaning priceless, has really become the
symbol of many things; specifically "the taste of India". AMUL was established in 1971 and since then
have achieved leadership position in dairy products and now the big daddy in market. This CIO
International IT excellence Award has recognized the Cooperative Movement & its Leadership under the
"Amul" brand, initiated by Dr. V Kurien, Milkman of India, who's main Motto is to build Indian Society
economically & literally strong through innovative cooperative resourceful network, so as to provide
quality service & products to the end consumers and good returns to the farmer members. Amul embarked
upon its illustrious journey as a beacon for the Indian cooperative movement in 1946. Since then, it has
been undergoing a multidimensional evolution whose overarching objective has been the same
throughout: serving the farmer and catering to consumer requirements. A structural landmark in this
evolution process was the formation of the GCMMF in 1974. Throughout these last 31 years, we have
demonstrated- again and againthat Amul both represents and reconciles diverse expectations and
aspirations.
Q2. What is the importance of Corporate Governance . What are the factors that have
contributed to the evolution of Corporate Governance?

Ans:- Importance of Corporate Governance

When people think about corporations, they usually imagine a large company with hundreds or even
thousands of employees. With so many people working within one company, there has to be an order and
structure that keeps the areas of communication clear and easy to understand. This form of structure is
known as corporate governance.

Corporate governance isnt just one structure though, but instead it consists of the various duties,
obligations, and rights that control and direct a corporation. The point of this governance is to properly
distribute the responsibilities that those who participate in the corporation have, such as the managers,
stakeholders, creditors, regulators, and of course those in the board of directors. In addition to informing
these people of their responsibilities, the corporate governance also informs people of their rights within
the company.

Corporate governance is an important aspect of business. If youve ever wanted to create a business, then
its important to explore the importance of corporate governance and how it can help your company.
Theres a lot that goes into running a business obviously, and understanding things like corporate
governance is only one small part of the big picture. On that note, consider checking out Udemy courses
such as Introduction to Business to start walking down the path of someday owning your own
corporation.

The Goals of Corporate Governance

When corporate governance is done properly, it allows the corporation to work smoothly due to the
existence of a clear level of accountability and communication amongst the organization, as well as
people understanding what their roles and responsibilities are.

To properly understand and utilize corporate governance it is important to understand and follow its most
important principles. These principles help establish the roles and responsibilities of the key members of
the corporation. The general principles of all forms of corporate governance are generally related to the
shareholders, board members, and stakeholders. In addition to this, corporate governance also places a
strong emphasis on the behavior of the corporation and how much the corporation discloses to the public.
Below you can find a detailed explanation of the principles that the corporate governance follows and the
people that these principles have an effect on.

Keep the Interest of Stakeholders in Mind

Corporate governance acknowledges that the stakeholders in the company must be recognized in all areas
of society, the market, legality, and their contracts. The stakeholders are important members of the
corporation that dont hold any shares. Stakeholders include people such as investors, creditors,
customers, suppliers, and employees.

Treating Shareholders Equally

As a corporation, the business should not only respect shareholders and their rights, but help the
shareholders when it comes to exercising their rights. The best way this is done is by allowing and
encouraging shareholders to participate in the activities in the company such as meetings.

Identifying the Roles of the Board of Directors

The board of the directors are those that stand at the head of a corporation. The responsibilities of the
board are diverse and it requires people needing both skill and knowledge to evaluate employee
performance. In addition to this, the corporate governance helps to make sure that the board has the level
of commitment and the size that it needs in order to properly run the business.

Ethical Behavior

Ethics and integrity are also key principles of corporate governance. The integrity of anyone placed
in corporate office or in the board should have a high level of integrity. They must also follow a code of
conduct and exhibit ethical behavior during the decision making process of the business.

Transparency

The final principle of corporate governance is the concept of disclosure or transparency. This is the idea
that the corporation should always let it be known what the responsibilities and duties are of those that
work for the corporation as well as who is management in order to keep stakeholders accountable.
Another aspect of transparency is disclosing material related to the corporation that should be given out in
a way that promises anyone who is invested in the company can have clear access to information.

A companys corporate governance sets the stage for how it is run, as well as what the roles and duties of
those who work in the corporation may be. When creating a business plan, it would be wise to consider
how corporate governance will be implemented into the business model. A company with a poor business
plan is essentially doomed to fail.

The Importance of Corporate Governance

Through seeing how corporate governance works, you can tell why it is important. It helps streamline the
process and gives people accountability. The point of corporate governance is to help the decision making
process. As mentioned above in the principles of corporate governance, one of the main goals is to clearly
explain to the board, the stakeholders, and the shareholders what their duties and responsibilities are
within the company.

With knowing those roles and responsibilities, the people within the corporation can understand what they
are held accountable for. For example, the board has the responsibility of properly evaluating the
management in the company. If the company has poor management, then it is the fault of the board for
not properly evaluating the manager. In this regard, the blame cannot be placed on other members of the
corporation. This prevents situations in which there is no way to know who is accountable for what
action.

Accountability is what helps people within the company make decisions, whether it is finding out
what person should be terminated from their position due to the mistakes that theyve made or who
should be acknowledged for their good work due to doing something exceptional in their field. With good
corporate governance, its pretty simple to know what the key members of the business are supposed to
do.

Lowering Risk

Another important aspect of corporate governance is mitigating or reducing the amount of risk that is
involved. Through corporate governance, scandals, fraud, and criminal liability of the company can be
prevented or avoided altogether.

Since the people involved in the organization know what they are accountable for, the actions of one
person doesnt mean the downfall of the entire corporation. Properly identifying what the roles in the
corporation are allows decisions to be made that wont have a negative effect on the overall corporation,
and it means that the offender can be much more quickly identified and punished instead.

Corporate governance is also great because it is a form of self-policing. Before outside forces are able to
do anything to a corporation, its possible for the corporation to handle matters itself. With corporate
governance, everyone is held to a specific standard and communication is made easier due to their being
an established hierarchy and role that everyone involved in the corporation plays. This level of handling
business on its own instead of being forced into making decisions outside of the company helps keep the
corporation sustaining itself.

Public Acceptance

In terms of business, a company with corporate governance is widely accepted by the public. This is
mostly due to the idea of disclosure and transparency that comes with corporate governance. With full
disclosure and the ability for people who work in the business to get information, as well as the general
public, there is a higher level of trust. Theres also the fact that due to the way that corporate governance
is setup, there is a lower chance of fraud and company-wide criminal activity, which helps gain the trust
of the public as well.

Public Image

Today many corporations hold a high level of corporate governance. This is because a corporation has a
public image to maintain. With corporate governance, the corporation takes more responsibility for its
actions, and also allows it to keep tabs on what is going on as well as helps those in charge remain more
aware of the public image of the corporation.

With the way that businesses are run today, it can be difficult for a corporation to become successful just
by having a high level of profit. Due to the fact that a corporation is also evaluated based on its image,
corporate governance is established to help ensure that image remains clean. Making sure there is a high
level of awareness, ethical behavior, and understanding of what the public wants is all encompassed in
corporate governance.

Having a Successful Business

Corporate governance is an aspect of business thats become incredibly important in recent years, but it
isnt the only part of business a person has to understand. If youve been holding on to a business idea,
but you havent gotten it up off the ground then you will need to learn quite a bit.

Factors Contributed towards evolution of Corporate Governance

Around the world, the corporate governance landscape is shifting, as efforts to improve business practices
and policies gain support and momentum. The wave of reform has become visible everywhere from
tough new regulations in Japan to sovereign wealth funds like Norways Norges Bank Investment
Management taking a more active approach to their investments and it is certain to continue to rise.
Three factors are driving these developments. First, todays deep economic uncertainty has broadened
ordinary peoples awareness of the influence that companies have on politics, policy, and their own daily
lives. And, as I have noted previously, people are not only paying greater attention; they also have more
power than ever before to make their voices heard.

Second, there has been a burgeoning awareness among governments that economic growth requires a
proactive regulatory approach. Robust and resilient economies need strong businesses, and to build strong
businesses, governments must play a role in ensuring high-integrity oversight of business activity.
Company stewardship and country stewardship are increasingly linked, and authorities now recognize
that paying to ensure good governance now is far less costly (both financially and politically) than paying
for the consequences of bad governance later.

In Japan, the Financial Services Agency enacted a Stewardship Code in 2014, with a Corporate
Governance Code from the Tokyo Stock Exchange entering into force this June. By creating a more equal
environment among shareholders, ensuring more disclosure and transparency, specifying the
responsibilities of company boards, and requiring outside independent directors on company boards, the
codes enshrine changes that make Japan more attractive for foreign investors. More generally, Prime
Minister Shinzo Abe has emphasized that good corporate governance is critical to long-term economic
growth and prosperity.

Toshibas recent accounting scandal the company was found to have inflated its profits by 151.8
billion ($1.2 billion) over several years since 2008 presents an opportunity for Japans government to
demonstrate its seriousness about the new regulations. Toshiba CEO Hisao Tanaka and other senior
executives have had to resign; the interim CEO apologized to Abes office; Norio Sasaki, the companys
vice chairman and former CEO, has quit his posts on government panels; and the former chairman of
Toshibas audit committee has stepped down from the government accounting panel.

In the United States, the Securities and Exchange Commission enacted a rule at the beginning of August
requiring public companies to disclose the pay gap between workers and CEOs. Corporate behavior and
governance has emerged as a campaign issue for US presidential candidates. Hillary Clinton gave
a speechat the end of July decrying quarterly capitalism that chases short-term growth at the expense of
sustainable business development, as well as addressing the exponential growth of CEO pay, and the need
for a minimum-wage increase.
The European Union and its member states are also taking an increasingly active approach to corporate
governance, including regulations concerning boardroom diversity. Italy, France, Spain, Norway, and
others have all enacted boardroom gender quotas, with companies required to fill 30-40% of independent
board seats with women. The latest example can be found in Germany, where, after much debate, new
quotas require that from 2016 large companies fill 30% of non-executive board seats with women.

The third, and perhaps most important, factor underpinning recent changes in corporate governance has
been the sharp rise in cross-border investing. Sovereign wealth funds, pension funds, global investment
banks, and hedge funds do not invest only in their own backyard. They scour the planet looking for places
to put their money, and they expect companies that receive it to play by rational rules.

The Olympus scandal of 2011-2012 when investigations in Japan, the United Kingdom, and the US
revealed that company executives falsified accounts to hide losses of 117.7 billion is a watershed
example of a traditional closed corporate culture coming up against international scrutiny. As the full
extent of the cover-up was revealed, foreign investors, like GIC Private Limited (Singapores sovereign
wealth fund), rebelled.

Singapore sold nearly all of its 2% stake almost immediately, and other foreign investors and analysts
reacted similarly. It was a turning point for Japan, as the countrys clubby investment culture came up
against global transparency and accounting standards. Things have not been the same since, either for
Japan or for companies understanding of the expectations and influence of international investors.

International investors are in a unique position to encourage, or even enforce, global best practices in
corporate governance. If such investors show that they are willing to withdraw financing, they will gain
real influence in bringing about sustainable change to the benefit of us all.

This is especially true if investors are guided by principles that go beyond financial returns. Global funds
that uphold high ethical standards concerning labor practices and environmental protections are
safeguarding the global ecosystem on which they, and the rest of us, depend. As they establish and
implement such principles, the resulting momentum has been changing corporate governance and
behavior across industries and regions.

This is evident from several high-profile examples. CalPERS (the California Public Employees
Retirement System), a $300 billion pension fund, has published its corporate governance principles,
which include boardroom diversity, fair labor practices, and environmental protection. Norges Bank
Investment Management, Norways $870 billion sovereign wealth fund (the largest in the world), has also
pushed for changing governance rules, including separating the role of chief executive and chairman and
better reporting by companies on how they are addressing climate change.

The shift in emphasis on best-practice corporate governance is real, and it is here to stay. It comes from
people finding and raising their voices, from politicians recognizing the importance of corporate
governance for sustainable economic growth, and from influential investors putting genuine pressure on
companies to change their behavior. Companies and boards ignore this trend at their peril.
Q3. What are the elements of business ethics? State the difficulties in establishing managerial
ethics.?

Ans: Meaning: Business ethics refers to the standards and principles which govern the business activities.
It means doing business activities with rational thinking and honesty. A business requires ethics for its
success. Now a days availability of proper safety measures for employees, satisfaction of consumers and
protection of environment are modern business standards.

Elements of business ethics: Following are the 6 elements of business ethics:


1. Identification: It means that businessmen should be competent enough to rank and identify the
ethical issues in order of importance.
2. Evaluation: It means that businessmen must develop the rules and regulations in order to evaluate
the ethical issues of the business.
3. Imagination: A businessman should be imaginative enough that he should think about the society
before taking any decision about the business. He must be aware of the areas towards which people
are sensitive.
4. Tolerance: Businessmen must have the quality to tolerate ethical disagreement.
5. Obligations: Business decision taking process should be evaluate that it must fulfill the ethical
obligations.
6. Competence: A businessman should be competent enough to integrate the business ethical issues
with the ethical issues of the society otherwise he has to pay the huge amount for the disagreement.

Ethical problems in business receive significant notoriety thanks to early 21st century technology and
electronic communication tools. The 2001 demise of energy giant Enron, thanks in large part to an
accounting scandal, brought much attention to company ethics. While several factors contribute, a driver
of bad business ethics is the desire for immediate gratification on the part of owners and managers.

Top Management Example

Company ethics begin at the highest manager level in a company. The top managers, including CEOs,
financial officers, vice-presidents and other officers, establish the vision, goals and tone of operations for
the company. Top managers who are unethical or who promote activities and decisions that are unethical,
project the image that ethics dont matter. If a small business owner routinely cheats suppliers or partners
on deals, company managers and employees get the impression that is how the business works.

Money
The vast majority of bad ethical decisions in companies tie to money in some way. In some cases, it is the
desire to avoid taxes and line the pockets of internal shareholders, which can lead to a companys
undoing. In other cases, companies dont participate in green-friendly initiatives because of the costs of
acquiring new equipment or using new production processes. A culture that promotes earnings above all
else often leads to corner-cutting.

Unclear Policies

In some cases, managers and employees exhibit poor ethical behavior because the company doesnt offer
a clear model of ethics. A company policy manual and ethical code of conduct normally establish ethical
standards and consequences for poor decisions. Some businesses have no formal ethical policy documents
and offer no guidance at all. Others have policies that are unclear, vague, inconsistent or not consistently
enforced.

Unethical Culture

A companys culture comprises the shared norms and values among workers. Influenced by top managers
and HR initiatives and trickling down through frontline management ranks, a companys ethical nature is
built into the fabric of its culture. In some businesses, peers demand high ethical standards and behaviors
among colleagues. In companies that routinely exhibit bad ethics, employees either condone or go along
with poor ethical decisions or passively condone them through inaction.

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