VIDYALANKAR SCHOOL OF

INFORMATION TECHNOLOGY

Presentation on
Business Ethics & Social Responsibility
Presented By
Ronald
Amey
Prasad
Ravikiran
Bharat
Prathamesh

Under Guidance of
Prof. Dr. Kamath
 Learning Goals

1. Explain the concepts of 5. Describe how businesses’ social

business ethics and social
responsibility.
2. Describe the factors that
influence business ethics.
responsibility is measured.
6. Summarize the responsibilities of
business to the general public,
customers, and employees.

3. Identify common ethical 7. Conclusion

dilemmas in the workplace.

4. Discuss how organizations

shape ethical behavior.
Genesis of Ethics

 Ethics is a Greek word Ethos, it means Character

or manners.

 Business Ethics are that functions which leads

to choosing right decision at right time which
leads for the welfare of not only business owners
but also society, consumers, stakeholders and
its employees.
 Business Ethics

 The value of what should be done and

what should not be done from the
business point of view.
 Business ethics involves adhering to
legal, regulatory, professional and
company standards, keeping promises
and commitments and abiding by general
principles like fairness, truth, honesty and
respect.
 Business Ethical Dilemmas

Situation in which a Telling the truth and

business decision may adhering to deeply
be influenced for felt ethical principles
personal gain. in business decisions.

Business people expect

Employee’s disclosure employees to be loyal
of illegal, immoral, or and truthful, but
unethical practices in ethical conflicts may
the organization. arise.
Ethical issues for business

 Product safety standards

 Advertising contents
 Working environment
 Unauthorized payments
 Employee’s privacy
 Environmental issues
Ethical issues for business

Fraud
Fraud is a crime of lying or pretending. Some businesses mislead
consumers and trick them to buy their products or services. The
Competition Act 2002 bans such fraud and deceptive business
practices and defines these as
• false or misleading advertising
• “bait and switch” selling
• double ticketing items for sale

Insider Trading
Insider trading is buying or selling shares of a company based on
confidential information. This type of trading is illegal.
Ethical issues for business

Accounting Scandals: Enron!

An accounting scandal occurs when accountants or senior executives
alter accounting records for personal benefit.

Accounting information is used inside and outside of the business to

make decisions. When accounting irregularities are uncovered, a forensic
accountant investigates legal and financial documents to find evidence of
tampering.

Embezzlement, a type of accounting fraud, happens when an

accountant or senior executive creates false accounts and redirects
money into them for personal gain.

Business owners rely on outside accountants, auditors, to check and

report on the validity of financial records.
 How Organizations
Shape Ethical Conduct
 Ethical Awareness

Code of Conduct
Formal statement
that defines how
the organization
expects and
requires employees
to resolve ethical
questions.
 Ethical Education

Codes of conduct
cannot detail a
solution for every
ethical situation,
so corporations
provide training in
ethical reasoning.
 Ethical Action

Helping
employees
recognize and
reason through
ethical problems
and turning them
into ethical
actions.
 Ethical Leadership

Executives must
demonstrate ethical
behavior in their actions.

Whistle-blowing
Whistle-blowing happens
when an employee
informs officials or the
public about an illegal or
ethical violation.
Social Responsibility
• Social responsibility is the obligation of organization’s
management to make decisions and take actions that will
enhance the welfare and interests of society as well as the
organization.

• Social responsibility is therefore quite important to the

society, organization and human.

• Management’s consideration of profit, consumer satisfaction,

and societal well-being of equal value in evaluating the firm’s
performance.

• Contributions to the overall economy, job opportunities, and

charitable contributions and service.
Areas of Responsibility
Responsibilities to the
General Public
• Public Health Issues. What to do about inherently dangerous
products such as alcohol, tobacco, vaccines, and steroids.
• Protecting the Environment. Using resources efficiently,
minimizing pollution.
• Recycling. Reprocessing used materials for reuse.
• Developing the Quality of the Workforce. Enhancing quality of
the overall workforce through education and diversity initiatives.
• Corporate Philanthropy. Cash contributions, donations of
equipment and products, and supporting the volunteer efforts of
company employees.
 Responsibilities to
Customers
• The Right to Be Safe. Safe operation of products,
avoiding product liability.
• The Right to Be Informed. Avoiding false or misleading
advertising and providing effective customer service.
• The Right to Choose. Ability of consumers to choose
the products and services they want.
• The Right to Be Heard. Ability of consumers to
express legitimate complaints to the appropriate parties.
 Responsibilities to
Employees
• Workplace Safety. Monitored by
Occupational Safety and Health Administration.
• Quality-of-Life Issues. Balancing work and family through
flexible work schedules, subsidized child care, and regulation
such as the Family and Medical Leave Act of 1993.
• Ensuring Equal Opportunity on the Job. Providing equal
opportunities to all employees without discrimination; many
aspects regulated by law.
• Age Discrimination. Age Discrimination in Employment Act of
1968 protects workers age 40 or older.
• Sexual Harassment and Sexism. equal pay for equal work
without regard to gender.
 Responsibilities to
Employees

• Provide adequate monetary , psychological rewards as well as

job security

• Selection of employees should be made fairly

• Providing educational opportunities & training to the employee

at company’s expense

• Working conditions should be safe & pleasant

 Responsibilities to
Investors
• Investors protected by regulation by the
Securities and Exchange Commission and state
regulations.
• Resources available are used for the benefit of the
owners/shareholders
• Stability of the enterprise

• Ensure that the company grows, so that the

shareholder gains from increase in the market price
of his shares
NABARD, Bank of India &
BPCL
 Nabard helps 101 million poor people
through micro finance program, providing
access to credit.
 Joint liability groups (JLG)- rythu mitra
program- credit access to landless farmer's
agri laborers, empowers women with micro
credit, micro enterprise, created special
funds for water shed development,
Partnering with corporate like ITC, Tata’s, M
and M, ambuja cements etc, many more.
 BPCL provides alternate source of energy,
solar energy for street lights at villages, skill
enhancement on modern farming practices,
distributes smokless chulas, training for
income generation projects.
NABARD, Bank of India
& BPCL
 State Bank of India, focuses on below poverty line,
adopted 101 villages.

 Now world is outsourcing world. Anything done most

efficiently cost effectively can be done by someone
else.. NGO have to develop new tie up with corporate
to align themselves to meet the changing needs of
society. Corporate have fund of Rs. 1 laks crores for
CSR in India alone. Not to speak of Transnational
corporation Networking of NGO and development of
search engines for various relevant social projects is
the need of the hour. .
 CONCLUSION

 The first responsibility to society is to operate at a

profit. The business is the wealth-creating and
wealth-producing organ of the society. Management
must maintain its wealth-producing resource intact
by making adequate profits to offset the risk of
economic activity. And it must beside increase the
wealth-producing capacity of these resources and
with them the wealth of society.

 Customers seek out companies who have a public

record of doing good and being good. Ultimately, by
establishing these programs we will be improving
our company from the inside & outside.
THANK YOU