Business Ethics and Social Responsibility Module 2 Grade 11 QTR 2

Business Ethics and
Social Responsibility
Grade 11
Try this! 1ST SEMESTER|Second Quarter
Directions: Read the Questions carefully. Encircle the letter of the correct answer.
t is the attempt to predict what may

happen in the future.
a. Fortune telling b. Forecasting c.
Predicting d. Prophecy
2. It involves comparison of best
practices outside the business
organization.
a. Benching b. Benchmarking c.
Standard d. touchtone
3. It refers to ideal conditions in which
the manager can make precise decision
a. Certainty b. unstructured c.
Uncertainty d. structured
4. It is the decision that is repetitive.
1|Business Ethics and Social Responsibility 12

5. It includes the people who will be
affected by the plans.
a. Benchmarking b. Participatory c.
Forecasting d. Contingency
t is the attempt to predict what may
happen in the future.
a. Fortune telling b. Forecasting c.
Predicting d. Prophecy
2. It involves comparison of best
practices outside the business
organization.
a. Benching b. Benchmarking c.
Standard d. touchtone
3. It refers to ideal conditions in which
the manager can make precise decision
4. It is the decision that is repetitive.
5. It includes the people who will be
affected by the plans.
a. Benchmarking b. Participatory c.
Forecasting d. Contingency
1. This is considered as the highest criterion of social responsibility because it goes beyond societal expectation to
contribute to the community’s welfare
a. Economic responsibilities b. Legal responsibilities
c. Ethical responsibilities d. Discretionary responsibilities
2. This concept includes behaviour that is not necessarily codified into law and may not serve the organizations direct
economic interest.
3. This concept emphasizes the business expectations to fulfill their economic goal within the legal framework.
4. This view argued that a company should be operated on a profit-orientation basis where its mission is to increase its
profit as long as it stays within the rules of ethics.
5. This is a business practice of the organization that accounts for the social and environmental impacts that the business
operation creates.
a. Corporate Social responsibility b. Legal responsibilities
6. In developing the framework of business social responsibility, one of the key considerations of every business
organization is to guarantee the safety of their services or products offered. This reflects to what particular social
responsibility
c. Duty not to cause harm d. Discretionary responsibilities
7. This means to ensure the receipt of a favorable price based on a scope of work and adhering to a code of conduct to
avoid violating public laws
c. Duty not to cause harm d. Discretionary responsibilities
8. This refers to the effort of the business organization to balance between maintaining the needs of the present and the
ability of future generations to meet their needs through the preservations to meet of the environment.
a. Sustainable development b. Legal responsibilities
c. Philanthropic social responsibility d. Discretionary responsibilities
9. Which is not a characteristic of corporate social responsibility?
a. Product safety b. Consumer rights
c. Environmental policies d. Price-fixing
10. Which statement best describes ethics in business?
a. Business is outside the realm of ethical enquiry and morally neutral or immortal
b. Ethics in business do exist but differ from ethics in other spheres and may appear immortal in spheres.
c. Business, politics and private life share the same ethics as part of moral community
d. None of the above
11. Which of the following best describes social responsibility?
a. A corporation’s rights, such as due process in a court of law, freedom of speech, and privacy
b. Adoption by a business of a strategic focus for fulfilling the economic, legal, ethical and philanthropic
responsibilities expected of it by its stakeholders.
c. A company attempt to maximize its profits in order to benefit stockholders
d. All the policies of a company that promote ethical business practices
12. The framework to understand how businesses meet their economic, legal, ethical, and philanthropic responsibilities is
developed around the assumption that social responsibility is a
a. Process
b. Specific set of rules and guidelines
c. Result that does not need further attention
d. Theory, with little relevance to business practice

Social Responsibility of
Lesson 2 Business: Meaning, Concept,
Importance and Barriers
This section aims to:
 Discuss the responsibilities and accountabilities of entrepreneurs
 formulate a morally defensible position on ethical issues in entrepreneurship like
basic
. fairness, personnel and customer relations distribution dilemmas, fraud,
G unfair competition, unfair communication, no respect of agreements, environmental
O degradation
A
L  Describe the different models and frameworks of social responsibility
S  Explain the importance of establishing and sustaining business enterprises as a
source of job opportunities and financial freedom
 Prepare and implement a proposed personal action plan to assist an existing small
business enterprise to practice ethics and social responsibility in their business
operation
Engage
yourself
Activity 1: Picture Analysis | The pictures below are related to responsibility, explain why it is related to
Business Ethics and Social Responsibility
Let’s dig
deeper
Understanding Corporate Social Responsibility (CSR)
Corporate social responsibility is a broad concept that can take many forms depending on the company and
industry. Through CSR programs, philanthropy, and volunteer efforts, businesses can benefit society while
boosting their brands. As important as CSR is for the community, it is equally valuable for a company. CSR
activities can help forge a stronger bond between employees and corporations, boost morale and help both
employees and employers feel more connected with the world around them.
 Corporate social responsibility is important to both consumers and companies.
 Starbucks is a leader in creating corporate social responsibility programs in many aspects of its
business.
 Corporate responsibility programs are a great way to raise morale in the workplace.
For a company to be socially responsible, it first needs to be accountable to itself and its shareholders. Often,
companies that adopt CSR programs have grown their business to the point where they can give back to
society. Thus, CSR is primarily a strategy of large corporations. Also, the more visible and successful a
corporation is, the more responsibility it has to set standards of ethical behavior for its peers, competition, and
industry.
1. Social Responsibility of Business: Meaning and Definitions:
The concept of social responsibility in relation to business means that the firm functions to accomplish its
financial objectives and serves the society as well. No business exists in isolation. Every organ of the society
contributes towards the success of a business. Thus it becomes imperative that business too does something
for the society in return. This responsibility of business towards the society is called social responsibility.
A socially responsible firm should not work solely for profit maximization but should also seek the welfare of
different sections of the society. Social responsibility of business refers to its obligations to take those
decisions and perform those actions which are acceptable in terms of the objectives and values of the society.
Categories of CSR
Although corporate social responsibility is a very broad concept that is understood and implemented differently
by each firm, the underlying idea of CSR is to operate in an economically, socially, and environmentally
sustainable manner.
Generally, corporate social responsibility initiatives are categorized as follows:
1. Environmental responsibility
Environmental responsibility initiatives aim at reducing pollution and greenhouse gas emissions, and the
sustainable use of natural resources.
2. Human rights responsibility

Human rights responsibility initiatives involve providing fair labor practices (e.g., equal pay for equal work) and
fair trade practices, and disavowing child labor.
3. Philanthropic responsibility
Philanthropic responsibility can include things such as funding educational programs, supporting health
initiatives, donating to causes, and supporting community beautification projects.
4.
Economic responsibility initiatives involve improving the firm’s business operation while participating in
sustainable practices – for example, using a new manufacturing process to minimize wastage.
Business Benefits of CSR

In a way, corporate social responsibility can be seen as a public relations effort. However, it goes beyond that,
as corporate social responsibility can also boost a firm’s competitiveness. The business benefits of corporate
social responsibility include the following:
1. Stronger brand image, recognition, and reputation

CSR adds value to firms by establishing and maintaining a good corporate reputation and/or brand equity.
2. Increased customer loyalty and sales

Customers of a firm that practices CSR feel that they are helping the firm support good causes.
3. Operational cost savings

Investing in operational efficiencies results in operational cost savings as well as reduced environmental
impact.
4. Retaining key and talented employees

Employees often stay longer and are more committed to their firm knowing that they are working for a business
that practices CSR.
5. Easier access to funding

Many investors are more willing to support a business that practices CSR.
6. Reduced regulatory burden

Strong relationships with regulatory bodies can help to reduce a firm’s regulatory burden.
Examples of Corporate Social Responsibility
In Canada, mining companies often engage with Aboriginal communities and groups. Converting land sites into
mines can cause a significant environmental impact on the Aboriginal communities living near the sites.
Several Canadian mining companies engage in corporate social responsibility with local communities to ensure
that the adverse effects are minimized.
For example:
 Cameco Corporation oversees education programs directed toward northern and Aboriginal peoples
through their northern Saskatchewan five-pillar strategy.

 Goldcorp Inc. strives to make a positive impact on their communities by supporting education and
health initiatives and sponsorship of special events.
 Softrock Minerals Ltd. contributes money for festivals, schools, and projects.
CSR of Starbucks
Starbucks is a well-known firm that practices corporate social responsibility. As indicated by the company:
“Starbucks’ social corporate responsibility and sustainability is about being responsible and doing things that
are good for the planet and each other.”
Starbucks’ CSR initiatives include:
 Starbucks Youth Action Grants: Awarding grants to inspire and support youth action.
 Ethos Water Fund: Raising clean water awareness and providing children with access to clean water.
 Ethical Sourcing: Commitment to buying and serving ethically traded coffee.
 Green Building: Using the U.S. Green Building Council’s LEED certification program to create energy
and water-efficient store designs.
2. Social Responsibility of Business: Justification for Social Responsibility:

Every business organization operates in an environment with which it interacts. No organization can survive in
the absence of environment. It has to draw its inputs like manpower, money, machines, material, etc., from its
environment. After converting the inputs into output, the organization sells it to the various segments of society
that are the important components of the environment. Thus, for its very existence, a business organization
depends on the society both for the procurement of required input and disposal of its output. When this is the
case, it becomes obligatory on the part of business also to do its best for the welfare of the various sections of
the society.
3. Social Responsibility of Business: Evolution of the Concept of Social Responsibility:

The evolution of the concept of social responsibility of business has passed through different stages of
struggle. Business began merely as an institution for the purpose of making money. As long as a man made
money and kept out of jail, he was considered successful. He felt no particular obligation and acknowledged no
responsibility to the public. As an owner of his business, he thought that he had a perfect right to do with it
what he pleased. Social norms and attitudes had very little influence on the practice of business.
4. Social Responsibility of Business: Nature:

The term Social Responsibility of Business reflects the impact of a corporation’s activities on society. This
embodies the performance of its economic function and other actions taken to contribute to the quality of life.
These activities may extend beyond meeting the letter of law due to the pressures of competition or the
requirements of contracts. Corporate Social Responsibility of a business is operating in a manner which meets
or excels the ethical, legal, commercial and public expectations that a society has from the business.
5. Social Responsibility of Business: Need:

Are business owners supposed to work only for profit-making or they should also see to it that different interest
groups such as investors, consumers, employees, government and society are also benefited from them? An
aspect of social responsibility is that it is voluntary in nature because some business persons may or may not
choose to discharge their social obligations.
In such a case, the following reasons have been laid down to explain the significance of social
responsibility for a business enterprise:
1. Long-Term Interest:
It is in the long-term interest of the business to discharge its social obligations by serving different interest
groups such as employees, consumers, government and citizens. Wise business persons know that unless
they serve the society by fulfilling its needs, they will not be able to climb the success ladder. Working for the
society, stakeholders and government helps an organization in establishing a strong public image. On the
other hand, a business organization with vested selfish interests may get ignored by the society.
2. Indebted to Society:
A business uses the resources of the society for its functioning. Hence, it becomes obligatory for it to pay back
its dues by serving the society. Businessmen should tend to the needs of the society and use its resources for
community welfare. This practice ultimately helps the organization in establishing itself on the strong
foundation of a pleased society and a cooperative labor force.
3. Social Power:
Business persons are endowed with a lot of social power. They have the potential to change the destiny of the
population by collectively deciding for the country on crucial issues such as rate of economic progress,
distribution of income among different income groups etc. Ideally, business persons should take up social
responsibilities in proportion to their social power.

If the business enterprise misuses its social powers for selfish motives, the society can intervene via
government controls and other laws. Therefore, it is morally right for a business to embrace its social
obligations and discharge them loyally.
4. Public Image:
A business devoted towards fulfilling its social responsibilities is regarded highly by the society. Good rapport
with employees, suppliers, customers and government helps in building a favourable public image of the
business enterprise. Moreover, a socially responsible organization is considered trustworthy by the
shareholders and investors.
5. Social Awareness:
These days, employees and customers are more informed about their rights. While consumers expect the
seller to abide by the fair trade practices, workers want fair wages and other employee benefits. If the
expectations of these interest groups are not met, they may resort to either anti-social activities or seek help
from trade unions and consumer courts. This will lead to industrial turmoil and unrest within the society which is
harmful for proper functioning of the business.
6. To Avoid Government Intervention:

If a business organization fails to acknowledge and perform its social duties, it is bound to lose its freedom and
flexibility in the long-run. The Consumer Protection Act and other legislations passed by the government
safeguard the interest of the customers against business persons indulging in black-marketing, adulteration,
hoarding and many other illegal trade practices. Since, government intervention is not welcomed by business
enterprises, social duties should be voluntarily carried out by all the organizations to avoid such situations.
7. Law and Order:

A peaceful society is congenial to the expansion of business. Unable to withstand exploitation by the business
enterprises, the weaker sections can rebel and take the law and order in their hands. As a result, the survival
of the business can be threatened.
8. Moral Justification:
A business possesses resources such as finance and talent pool to help bail out troubled masses out of social
issues like poverty, dowry, unemployment and illiteracy by organizing special campaigns and programs.
Additionally, business houses can assist the government in solving many other issues like lack of foreign
exchange etc. Moreover, business organizations increase pollution by releasing untreated sewage into the
environment. Thus, it is a moral obligation of the business to render its services in tackling these issues.
9. Socio-Cultural Norms:
India has a rich legacy of business values passed down by the legendary and morally upright business owners
like Ratan Tata, Azim Premji, etc. Only those business persons who sincerely abide by the canon of business
will get the privilege of being honored by the citizens and the government. Hence, the business should aim to
promote equal opportunity and maintain healthy inter-personal relations with all the stakeholders such as
customers, employees to carve a niche for itself as a honest enterprise.
10. Trustees
The great socio-political leader Mahatma Gandhi propounded the philosophy that owners of wealth and
property should hold and use the wealth for the welfare of the society. Therefore, company owners should
operate the business not only for their own benefit, but also for the prosperity of the society. According to Keith
Davis, since business has the resources to resolve the mounting social problems, it should try and assume the
social responsibilities.
6. Social Responsibility of Business: Concept:

Every business must conduct its operations so as to produce an overall positive impact on society. Corporate
social responsibility (CSR) requires every business to behave ethically and improve the quality of life of
society. Every business must decide voluntarily to contribute to a better society and a cleaner environment.
CSR is a concept that strikes a happy balance between economic, social, ethical and societal concerns of a
business. It forces every business to conduct the show in the best interests of society.
The essential elements of CSR may be presented thus:

i. CSR is a moral obligation to conduct operations ethically
ii. It strikes a happy balance between economic, ethical and social issues
iii. It demands every business to conduct the show in the best interests of society at large
iv. Businesses must make profits, but that cannot be at the cost of customers.
v. It is a voluntary effort undertaken by every business that goes beyond what has been dictated by law.
vi. It is, in short, a company’s sense of responsibility towards the community and environment in which it
operates. Now-a-days, the term is extended to include philanthropy (love of humanity) and volunteering
(actions undertaken without seeking any gain).
7. Social Responsibility of Business: Scope of Corporate Social Responsibility:
(i) Environment:
This area involves the environmental aspects of production, covering pollution control in the conduct of
business operations, prevention or repair of damage to the environment resulting from processing of natural
resources and the conservation of natural resources. Corporate social objectives are to found in the abatement
of the negative external social effects of industrial production, and in adopting more efficient technologies to
minimize the use of irreplaceable resources and the reduction of waste.
(ii) Energy:
This area covers conservation of energy in the conduct of business operations and increasing the energy
efficiency of the company’s products.
(iii) Fair Business Practices:
This area concerns the relationship of the company to special interest groups.
In particulars it deals with:

(a) Employment of minorities,
(b) Advancement of minorities,
(c) Employment of women,
(d) Advancement of women,
(e) Employment of other special interest groups,
(f) Support for minority business, and
(g) Socially responsible practices abroad.
(iv) Human Resources:
This area concerns the impact of organizational activities on the people who constitute the human resources of
the organization.
These activities include:

(a) Recruiting practices,
(b) Training programs,
(c) Experience building-job rotation,
(d) Job enrichment,
(e) Wage and salary levels,
(f) Fringe benefit plans,
(g) Congruence of employee and organizational goals,
(h) Mutual trust and confidence,
(i) Job security, stability of workforce, layoff and recall practices,
(j) Transfer and promotion policies, and
(k) Occupational health.
(v) Community Involvement:
This area involves community activities, health-related activities, education and the arts and other community
activity disclosures.
(vi) Products:
This area concerns the qualitative aspects of the products, for example their utility, life-durability, safety and
serviceability, as well as their effect on pollution. Moreover, it includes customer satisfaction, truthfulness in
advertising, completeness and clarity of labeling and packaging. Many of these considerations are already
important from a marketing point of view. It is clear, however, that the social responsibility aspect of the product
contribution extends beyond what is advantageous from a marketing angle.
8. Social Responsibility of Business: Reasons for the Growing Concern of CSR:

There are several reasons why CSR has become a matter of debate and discussion in recent times.
9. Social Responsibility of Business: Perspectives:

Historical Perspectives of Social Responsibility:
Expectations of society from business firms as regards corporate social responsibility have gone
through three phases:
1. Profit Maximization:
Historically, public viewed business enterprises as institutions which mainly looked after the interests of their
owners. Social responsibility was discharged to the extent of maximizing profits within the legal framework of
the country.
2. Trusteeship Management:
During later years, the concept of social responsibility widened from mere satisfaction of owners’ interest to
interests of other stakeholders also, like employees, consumers, creditors etc. Providing good working
conditions, goods of the right quality and quantity, timely repayment of loans to creditors etc., were viewed as

essential aspects of social responsibility. Business managers were trustees of business property, holding it in
trust for the welfare of society.
3. Quality of Life Management:
A still wider perspective of social responsibility developed in 1960s. It viewed business enterprises as
institutions to remove social ills and uplift the society. Business managers were supposed to change the quality
of society.
10. Social Responsibility of Business: Arguments against Social Responsibility:

Business objectives may broadly be divided into two categories: economic and social. Economic objectives are
goals with respect to the marketplace. Social objectives refer to the company’s intentions toward its
employees, shareholders and the public at large. Traditionally, the primary responsibility of the business firm
was to produce and distribute goods and services in return for a profit. Businesses have performed this
function effectively, contributing in a large measure to a tremendous improvement in standards of living
everywhere. Despite significant improvements in standards of living in the recent years, society has begun
expecting, even demanding, more out of all its institutions.
The principal arguments against social responsibility are as follows:

1. CSR Means Wasteful Spending:
A competitive business cannot be genuinely selfless. Management cannot commit funds irrationally just to
satisfy public expectations in areas where there are no direct or indirect benefits. If you spend money on CSR
and your rivals do not, then you are at the receiving end. You lose the competitive edge. Because you have
wasted crucial resources entrusted to you by your shareholders.
2. Business is an Economic Institution:
By definition, a business is there to make money on its investments. Business cannot be run like a charitable
agency. You have to allocate funds on activities that bring rich returns. Instead, if you divert funds on activities
that do not generate income, then you are killing the goose that lays the golden eggs.
3. CSR is Government’s Responsibility:
CSR activities need to be handled by the government. Government should take care of social amenities and
societal welfare, rather than business institutions.
4. Managers are not trained to Invest in CSR:
Managers are given the responsibility to commit funds to best advantage. They are not trained to invest money
on social welfare and social amenities. They do not know which CSR activity will actually benefit a company. If
managers play to the gallery and misuse funds this way, they may lose their job as well.
5. CSR Cannot Be Measured:
CSR is a vague concept. The list of CSR activities is ever-expanding. You do not know which activity should be
picked up for boosting the image of a company. If you pick the wrong ones, you end up wasting scarce
corporate resources. Even if you spend on the right ones, there is no way to measure whether it has benefited
the business or not. CSR, thus, is a confusing concept where you do not need managerial skills but social
skills. Managers, unfortunately, do not possess those skills.
6. CSR is a Costly Affair:
CSR will add to the cost of doing business. Because you are spending on activities without any return. This will
over-burden the consumer in the form of higher prices. If the business has not spent on CSR, the benefits
would have been passed on to consumers in the form of low prices, higher quality, better returns etc.
7. Anti-Business Rhetoric:
In the case of a firm, it has neither the necessary freedom nor the appropriate standards of selection for
pursuing many of the socially desirable activities blessed by society. Social responsibility is clearly anti-
business rhetoric smuggled into the economic scene just to mollify an angry public.
8. Business Managers are not Magicians:
Society cannot expect the corporation managers to perform miracles. They cannot offer goods at fair prices,
satisfy the demands of workers, offer dividends to shareholders, pay taxes and also undertake social projects
seeking no return at all. If revenue generating and profit enhancing opportunities are missed, it will sink the
business altogether. If a business does not make profits, it will spread misery, poverty and unemployment.
Think about this

Activity 2: Read the following terms and write down on the corresponding blank spaces the first word,
phrase, or statement that comes to mind after reading each.
1. Moral justification-
2. Social-Cultural Norms-
3. Trustees-
4. Law of order-
5. Social Awareness-
6. Public image-

7. Social Power-
8. Long Term Interest-
9. Quality of Life Management-
10. Environmental responsibility-
Guide questions:
1. How has CSR evolved at the company?
2. How do employees get engaged in the CSR work of your company?
Keep this in
Mind
Corporate Social Responsibility is a management concept whereby companies integrate social and
environmental concerns in their business operations and interactions with their stakeholders.
Extend your
understanding
Activity A. Match the words in column A with the phrases in column B.Write the letters of your answer on the
blank.
Column A Column B
__________1. Operational cost savings a. investing in operational efficiencies
__________2. Reduced regulatory burden b. Initiatives involve improving the firm’s business
__________3. Economic responsibility c. Strong relationships with regulatory bodies
__________4. Manufacturing business d. Support a business that practices CSR
__________5. Environmental responsibility e. Initiatives aim at reducing pollution and
Greenhouse gas emissions
f. A business uses the resources of the society for
its functioning
10 | B u s i n e s s E t h i c s a n d S o c i a l R e s p o n s i b i l i t y 1 2
Let’s dig
deeper
11. Social Responsibility of Business: Arguments for Social Responsibility:
The issue of social responsibility is a complex one since it deals with an institution that is at the heart of
society. Businesses employ a vast majority of the workforce in India and are in control of vast human and
financial resources. Any modification or decision about how these resources are put to use has obvious
consequences for the balance of society.
It is this resource power base that generates many of the arguments favoring greater social
involvement of business:
1. Create Wealth, but do not Ignore Society:

CSR does not mean that businesses have to stop creating wealth. CSR simply wants the business to grow. It
wants every business to conduct the show in sync with societal expectations. It simply requires every business
to hold the hand of every member of society in one way or the other. This can be started with by not polluting
the environment, by not indulging in black marketing, by not doing anything unethically etc.
2. A Healthy Business Cannot Exist in a Sick Society:

Businesses impact social life significantly. Simply because you have the money or better technology you
cannot go on making money ignoring societal interests. Business is an integral part of society. You cannot
measure every action through the profit calculus. You need to do things that uplift society, empower workers,
benefit community and bring smiles to consumers.
3. Managerial Decisions Impact Social Life:

Every decision taken by managers affects social life. If they increase product prices, consumers suffer. If they
pay poor wages, employees are deprived of better quality of life. If they pollute air or rivers, the community at
large will be at the receiving end. So, managers cannot escape by saying that they are not trained to serve
societal needs. Business is stuck with society.
It has to do everything keeping the larger interests of society. Managers are responsible for social impacts. It is
too late to claim incompetence and inexperience. A healthy organization should visualize these impacts
realistically and deal with them firmly, by converting these social problems into opportunities for ‘successful
performance and positive contribution’. After all, business cannot survive for long in a sick and impoverished
society.
4. Business has Surplus to Distribute:

Businesses have enormous funds at their disposal. They have enormous economic power. The managers who
run these giant corporations are viewed as role models. Society has lot of expectations from every business.
Apart from affordable prices, society also wants every business to distribute the profits for social well-being.
Corporations will have to pay a heavy price, if social expectations are neglected or dismissed as ‘trivial issues’.
They can function successfully only by public consent. Social power and social responsibility form an equation
that must be rationally balanced
5. CSR is Inexpensive Insurance:

For many firms, social responsibility provides an extremely inexpensive insurance package. If business firms
fail to learn the new language of accountability, the government with its potential for inefficiency and insensitive
bureaucratic methods will step into the arena, usurp the power and place restraints on corporate performance.
Social pressures generate legal measures; it is in the best interests of the business of pursue socially
responsible programs.
6. Profit Motive is the Villain:

CSR does not put an accusing finger against businesses making profits. It only seeks rationalization of profits.
It only wants companies to spend the surplus in an optimal way, sharing wealth with all key stakeholders and
not necessarily with shareholders alone. If the business is focused only on making money, then it is an open
invitation to trouble from different sections of society and the government as well.
7. Conflicting Interests:
CSR demands managers to behave responsibly. It does not want managers to meet every requirement of
society. A business can still seek to make profits. It can put its focus on market share. It can commit funds on
innovation and product development. CSR only requires managers to balance all these objectives in a fair and
equitable manner. There is no conflict in between these goals. Businesses can create wealth, conquer new
markets, expand their reach and scale and do many other things. But, at the end, they need to conduct
operations in a way that benefits society.
12. Social Responsibility of Business towards Society:
There are various interest groups in the society which may affect the functioning of a business organization.
Such interest groups may be identified as: 1. Shareholders 2. Customers 3. Employees 4. Government 5.
Suppliers, creditors and others 6. Society in general.
13. Social Responsibility of Business: Role of Business in Environmental Protection:

Business firms owe their existence to a number of resources. Basic resources such as labor and raw material
needed by any business organization for its proper functioning come from the Mother Nature and the society.
14. Social Responsibility of Business: Importance:

A growing body of evidence has identified a company’s role in its community as a factor in increasing
profitability, promoting company image, reducing costs, and elevating employee morale and customer loyalty,
among other benefits.
Specifically, corporate community involvement can:

1. Increase Employee Morale, Retention, Attendance and Performance:
A company’s community involvement activities directly influence employees’ feelings about their job. The more
an employee knows about the company’s programs, the more likely he or she will be loyal and positive about
the company.
2. Develop Employee Skills:
Many company programs in the community can help foster employee skills. Volunteering and other forms of
employee involvement help developing a variety of competencies, including teamwork, planning and
implementation, communication, project management, listening skills and customer focus.
3. Enhance Company Reputation:
Active involvement in community activities builds a positive reputation with stakeholders in the company.
4. Attract Investors:
Companies noted for their corporate citizenship may experience an advantage in attracting investors, business
partners, and new employees and in establishing customer preference.
5. Increase Customer Goodwill and Loyalty:
As the price and quality of products and services become increasingly standardized throughout many
industries, community involvement may help differentiate a company from its competitors and increase brand
loyalty.
6. Improve Relationships with The Community:
Many companies find that community involvement does not require sacrificing profits and, in fact, can open
new markets, reduce local regulatory obstacles, provide access to the local political process, generate positive
media coverage and increase company or brand awareness within the community. Research has shown that
the public expects companies to “give back” more to their communities, and often views negatively the
companies that are not perceived as doing their fair share.
15. Barriers to Social Responsibility:

Social responsibility is affected by the following barriers:
1. Managerial Perceptions:
If employees of the organization want to assume social responsibility, their superiors may not allow them to do
so. In such situations, they may be forced to choose between personal growth (and through it, organizational
growth) and social growth. The inevitable choice is personal growth even if it is at the cost of social values.
2. Comparison of Divisional Performance:

Overall performance of the organization is judged by the performance of its various departments. A department
which discharges social responsibility may report lower profits than its counterparts. This may not be
acceptable to top managers unless the social programs are approved by them.
3. Overall Organizational Barriers:

Low profits on account of social responsibility may not be acceptable to owners (shareholders) or employees of
the organization if they lower dividends or wages. Catering to values of one section of society at the cost of
another is not justified.
4. International Barriers:
If a multinational corporation is buying supplies from the home industry and domestic companies are selling
their supplies at a higher price (because of social costs) vis-a-vis other countries, they may lose sales in the
international market. International business may, thus, be a barrier to social responsiveness of business
enterprises. In view of the above discussion, it is advisable for business enterprises to take up social only if
their benefits are more than the costs.
15. Barriers to Social Responsibility:
Social responsibility is affected by the following barriers:
1. Managerial Perceptions:
If employees of the organization want to assume social responsibility, their superiors may not allow them to do
so. In such situations, they may be forced to choose between personal growth (and through it, organizational
growth) and social growth. The inevitable choice is personal growth even if it is at the cost of social values.
2. Comparison of Divisional Performance:
Overall performance of the organization is judged by the performance of its various departments. A department
which discharges social responsibility may report lower profits than its counterparts. This may not be
acceptable to top managers unless the social programs are approved by them.
3. Overall Organizational Barriers:
Low profits on account of social responsibility may not be acceptable to owners (shareholders) or employees of
the organization if they lower dividends or wages. Catering to values of one section of society at the cost of
another is not justified.
4. International Barriers:
If a multinational corporation is buying supplies from the home industry and domestic companies are selling
their supplies at a higher price (because of social costs) vis-a-vis other countries, they may lose sales in the
international market. International business may, thus, be a barrier to social responsiveness of business
enterprises. In view of the above discussion, it is advisable for business enterprises to take up social only if
their benefits are more than the costs.
16. Social Responsibility of Business: Voluntary Guidelines for Corporate Social Responsibility:

The Ministry of Corporate Affairs has issued voluntary guidelines for the corporate social responsibility in 2009.
These guidelines are as follows:

Preamble:
The 21st century is characterized by unprecedented challenges and opportunities, arising from globalization,
the desire for inclusive development and the imperatives of climate change. Indian business, which is today
viewed globally as a responsible component of the ascendancy of India, is poised now to take on a leadership
role in the challenges of our times. It is recognized the world over that integrating social, environmental and
ethical responsibilities into the governance of businesses ensures their long term success, competitiveness
and sustainability. This approach also reaffirms the view that businesses are an integral part of society, and
have a critical and active role to play in the sustenance and improvement of healthy ecosystems, in fostering
social inclusiveness and equity, and in upholding the essentials of ethical practices and good governance.
Fundamental Principle:
Core Elements:
Each business entity should formulate a CSR policy to guide its strategic planning and provide a roadmap for
its CSR initiatives, which should be an integral part of overall business policy and aligned with its business
goals. The policy should be framed with the participation of various level executives and should be approved
by the Board.
The CSR Policy should normally cover following core elements:

1. Care for All Stakeholders:
The companies should respect the interests of, and be responsive towards all stakeholders, including
shareholders, employees, customers, suppliers, project affected people, society at large etc. and create value
for all of them. They should develop mechanism to actively engage with all stakeholders, inform them of
inherent risks and mitigate them where they occur.
2. Ethical Functioning:
Their governance systems should be underpinned by Ethics, Transparency and Accountability. They should
not engage in business practices that are abusive, unfair, corrupt or anti-competitive.
3. Respect for Workers’ Rights and Welfare:
Companies should provide a workplace environment that is safe, hygienic and humane and which upholds the
dignity of employees. They should provide all employees with access to training and development of necessary
skills for career advancement, on an equal and non-discriminatory basis.
They should uphold the freedom of association and the effective recognition of the right to collective bargaining
of labor, have an effective grievance redress
system, should not employ child or forced labor and provide and maintain equality of opportunities without any
discrimination on any grounds in recruitment and during employment.
4. Respect for Human Rights:
Companies should respect human rights for all and avoid complicity with human rights abuses by them or by
third party.
5. Respect for Environment:
Companies should take measures to check and prevent pollution; recycle, manage and reduce waste, should
manage natural resources in a sustainable manner and ensure optimal use of resources like land and water,
should proactively respond to the challenges of climate change by adopting cleaner production methods,
promoting efficient use of energy and environment friendly technologies.
6. Activities for Social and Inclusive Development:
Depending upon their core competency and business interest, companies should undertake activities for
economic and social development of communities and geographical areas, particularly in the vicinity of their
operations. These could include – education, skill building for livelihood of people, health, cultural and social
welfare etc., particularly targeting at disadvantaged sections of society.
Extend your
understanding Activity B. Identify the correct answer. Write your answer in a space provided.
_____________1. Companies should take measures to check and prevent pollution; recycle, manage and
reduce waste, should manage natural resources in a sustainable manner
_____________2. Companies should respect human rights for all and avoid complicity with human rights
abuses by them or by third party.
_____________3. The companies should respect the interests of, and be responsive towards all stakeholders,
including shareholders, employees, customers, suppliers, project affected people, society at large etc.
_____________4. Their governance systems should be underpinned by Ethics, Transparency and
Accountability.
_____________5. If employees of the organization want to assume social responsibility, their superiors may
not allow them to do so.
_____________6. Many company programs in the community can help foster employee skills.
_____________7. CSR demands managers to behave responsibly. It does not want managers to meet every
requirement of society.
_____________8. CSR does not put an accusing finger against businesses making profits. It only seeks
rationalization of profits.
_____________9. CSR does not mean that businesses have to stop creating wealth. CSR simply wants the
business to grow. It wants every business to conduct the show in sync with societal expectations.
_____________10. If a multinational corporation is buying supplies from the home industry and domestic
companies are selling their supplies at a higher price (because of social costs) vis-a-vis other countries, they
may lose sales in the international market.
Activity C | Check your Understanding | Answer the following questions:
1. Why is it important to take care of stakeholders?
Let’s dig
deeper
Major Ethical Issues in Entrepreneurship
1. Major ethical issues in entrepreneurship (basic fairness, personnel and customer relations distribution
dilemmas, fraud, unfair competition, unfair communication, non-respect of agreements environmental
degradation, etc.
2. Models and frameworks of social responsibility in the practice of sound business the importance of doing
business beyond profit motivation. Introduction to the notion of SOCIAL ENTERPRISE (meeting a given social
objective or resolving a real social problem while making ends meet) for poverty alleviation
Types of Ethical Issues in Business

If you are to run an ethical business, you first need to know what types of issues you can expect to face and
may need to overcome.
1. Discrimination
One of the biggest ethical issues affecting the business world in 2020 is discrimination. In the last few months,
many corporations have come under fire for lacking a diverse workforce, which is often down to discrimination.
However, discrimination can occur at businesses of all sizes. It applies to any action that causes an employee
to receive unequal treatment. Discrimination is not just unethical; in many cases, it is also illegal. There are
statutes to protect employees from discrimination based on age, gender, race, religion, disability, and more.
Nonetheless, the gender and race pay gaps show that discrimination is still rampant. Other common instances
of discrimination include firing employees when they reach a certain age or giving fewer promotions to people
of ethnic minorities.
2. Harassment
The second major ethical issue businesses face is harassment, which is often related to racism or sexism. This
can come in the form of verbal abuse, sexual abuse, teasing, racial slurs, or bullying. Harassment can come
from anyone in the company, as well as from customers. In particular, it is an ethical issue for the business if a
supervisor is aware of harassment from a client and takes no action to prevent it. In addition to causing a toxic
workplace, harassment can cause employees to leave the company prematurely a second reason why some
businesses lack diversity. Harassment can have a long-term impact on employees: psychologically, in terms of
earnings, and even impacting a person’s entire career path.
3. Unethical Accounting
Publicly-traded companies may engage in unethical accounting to appear more profitable than they actually
are. In other cases, an accountant or bookkeeper may change records to skim off the top.
4. Health and Safety

Another type of ethical issue that is often protected by law is health and safety.
Companies may decide to cut corners to reduce costs or perform tasks faster. As well as injuries, failing to take
workers’ safety into account can lead to psychosocial risks (like job insecurity or lack of autonomy), which can
cause work-related stress.
5. Abuse of Leadership Authority

Abuse of power often manifests as harassment or discrimination. However, those in a leadership role can also
use their authority to pressure employees to skip over some aspects of proper procedure to save time
(potentially putting the employee at risk), punish workers who are unable to meet unreasonable goals, or ask
for inappropriate favors. In addition, abuse of authority can extend beyond the workforce. Managers can use
their position to change reports, give themselves credit for the work of a subordinate, misuse expenses, and
accept gifts from suppliers or clients.
6. Nepotism and Favoritism

Nepotism is when a company hires someone for being a family member. Favoritism occurs when a manager
treats an employee better than other workers for personal reasons. Not only are nepotism and favoritism
unfair, they are also disheartening to employees. Workers often find they have to work much harder to receive
a promotion or other rewards.
7. Privacy
Employees have recently found that the distinction between work life and personal life has become less clear.
This is mainly due to the advances in technology.
For one thing, employers may punish for posts on social media, particularly if they complain about work
conditions or the company as a whole. Employers may even fire workers who post controversial statements
that go against company values. Another ethical issue surrounds the use of devices belonging to the company.
Employers can now monitor all worker activity on laptops and cellphones. Whereas this is supposed to check
that employees are sticking to work-related activities during the business day, some employers take it further,
tracking keystrokes and reading emails. The question is where to draw the line between monitoring and spying.
8. Corporate Espionage
The opposite of the above can also happen: workers can misuse company data. An employee may steal
intellectual property or provide a competitor with information about a client. Usually, this is for monetary
purposes, but it can also help an employee secure a position at another firm.
BASIC FAIRNESS
It is the quality of making judgments that are free from discrimination.

The Fairness or Justice Approach
Substantive Fairness-This means you have a fair reason to dismiss

Procedural Fairness- This means you follow a fair, legal procedure before dismissing the employee
PRINCIPLES OF FAIRNESS
Fairness requires that we:
• Treat all people equitably based on their merits and abilities and handle all essentially similar situations
similarly and with consistency
• Make all decisions on appropriate criteria, without undue favoritism or improper prejudice.
• Never blame or punish people for what they did not do, and appropriately sanction those who violate moral
obligations or laws.
• Promptly and voluntarily correct personal and institutional mistakes and improprieties
• Not take unfair advantage of people’s mistakes or ignorance
• Fully consider the rights, interests, and perspectives of all stakeholders, approach judgments with open-minded
impartiality (setting aside prejudices and predispositions), conscientiously gather and verify facts, provide critical
stakeholders with an opportunity to explain or clarify, and carefully evaluate the information.
Environmental Issues
There are many environmental moral issues relevant to business. We will discuss (a) ecology, (b) traditional
business attitudes towards the environment, (c) problems involving environmental abuse, (d) environmental
protection, (e) methods to pay for environmental protection, and (f) other issues involving environmental ethics.
To make the grave importance of the environment clear, Shaw briefly discusses many of the environmental
issues we face today:
1. Pesticides often harm or kill fish and birds (394), and can cause illness in children (395). Too much
pesticide is dangerous to adults, so only safe levels are allowed keeping adults in mind, but such levels
are still probably too dangerous for children. A 2011 study by UC Berkeley has shown that prenatal
exposure of pesticides in pregnant women can also lower the IQ of their children.
2. Air pollution contaminates the air, despoils vegetation and crops, corrodes construction materials, and
threatens our lives and health (ibid.). A 2011 study by the EPA claims that the Clean Air Act saved over
160,000 lives in 2010, but many people still suffer illness and die from air pollution and more lives can
be saved by stricter standards. We generally assume we get sick from allergies, bacteria, or viruses;
but pollution is a very common cause of illness as well.
3. The ozone layer was damaged from chlorofluorocarbons (ibid.).
4. Carbon dioxide (and other greenhouse gasses) are causing global warming (ibid.)
5. Toxic chemicals in our environment cause many health issues (ibid.).
6. Nuclear power plants require minding, processing, and transporting of nuclear materials that causes
cancer in many people, and it’s unclear that our methods of disposing of nuclear waste are entirely safe
Business and Ecology

Businesses damage the environment when they take natural resources from the Earth and dispose of waste.
All of this is done within the natural environment, a kind of ecological system or “ecosystem.” “Ecology refers to
the science of the interrelationships among organisms and their environments. The operative term is
‘interrelationships,’ implying that an interdependence exists all entities in the environment” (397). For example,
a pond is an ecosystem that contains a large number of living organisms that exist in a complex web of
dependence and interdependence.
The ethics of environmental protection

How is the environment relevant to business ethics? First, it’s in our interest to protect the environment insofar
as we are human beings and we are often harmed by environmental damage and measures to protect the
environment can benefit us all (400). Second, many people don’t feel responsible for harming the environment
because they don’t personally do much harm to it (ibid.). Third, companies that harm the environment have
externalities (and harm others) that they unfairly benefit from, which can violate our right to non-injury (ibid.). I
would like to add that externalities can also be in the form of harm done to nonhuman animals.
The costs of pollution control

We can protect the environment by implementing stricter standards on companies and limit the amount of
pollution allowed, and we can try to heal the environment and do what is necessary to restore it back to a
balanced state. Of course, the costs of protecting and helping the environment can be expensive, and people
don’t want to pay those costs. How do we decide when we must pay greater costs to help the environment?
One possibility is a cost-benefit analysis (401). We can assess the harm and benefits done to people by
harming or benefiting the environment. Consider a company that pollutes twice as much to save $10,000 in
production costs. If the harm done to society by doubling the pollution is worth $20,000 from health costs and
sick days, then it would seem immoral for the company to double its level of pollution.
Who should pay the costs?

No one wants to have to personally pay the costs to protect and restore the environment. Most people think
that either those who are responsible for environmental damage or those who benefit from it should pay the
costs. Consider each possibility:
Those responsible – The problem with this answer is it’s not entirely clear who’s responsible for harming the
environment. Even if we all agree that big business harms the environment the most, they don’t all harm it
equally and it’s hard to assess the actual damage each business does. Some people have argued that
consumers are to blame for harming the environment because they demand products at a reduced cost and
buy products from companies that disproportionally harm the environment. However, Shaw claims that
urbanization, consumerism, and a growing population is to blame; so we are all somehow responsible for
harming the environment.
Those who would benefit – Companies that harm the environment indiscriminately can benefit the most and
it’s often others who are harmed the most from environmental damage, so it might be most appropriate for
them to pay the most to protect and restore the environment.
Cost allocation
After we decide who should pay for protecting and restoring the environment, it’s still not clear how it should be
paid: Through regulations, incentives, pricing mechanisms, and/or pollution permits. I will discuss these ways
to allocate the costs to protect and restore the environment.
Pricing mechanisms
We can charge a company for the amount they pollute (ibid.). Such pricing could be based on the area and
time. Places that already have too much pollution could raise the price of pollution because the total pollution
we encounter can reach dangerous levels, and places with very little pollution could lower the cost because the
pollution done there might do very little harm.
The value of nature

A common assumption in business is that businesses only have obligations towards people and that
nonhuman entities aren’t worth moral consideration. However, some philosophers challenge this notion.
William F. Baxter agrees that only humans are worthy of consideration, but Holmes Rolston III believes that
nature can have intrinsic value—be good just for existing and worthy of protection for its own sake (413). He
calls his position a “naturalistic ethic” and denies that things only have value insofar as they are used for
human purposes. Shaw states that a naturalistic ethic would (or could) find even mountains to have value
beyond human interests, such as hiking and skiing.
Some defenders of a naturalistic ethic think that we have a special obligation to protect each species from
extinction to help protect the diversity of life. I don’t know that each species has value in isolation, but the
concrete existence of animals could have intrinsic value and species often play unique and irreplaceable roles
in ecosystems.
Our treatment of animals

I will use the term “animal” to refer to “nonhuman animal.” Animals have interests, so it might make sense to
say that they have rights insofar as we can have duties towards them. However, even if animals don’t have
rights, it still seems like animals have implications to morality and that it’s morally preferable to help animals
rather than hurt them.
Animal testing – We tend to assume that we are more important than nonhuman animals and it’s better to test
on animals rather than humans because it’s disrespectful and harmful to treat people as guinea pigs. However,
animal testing is only morally warranted when (a) it doesn’t harm the animals or (b) we have no choice but to
test on either animals or humans. Peter Singer argues that animal testing is often unjustified and causes
needless harm to animals.
Farming – Farming might have once been humane when animals could live their lives safely protected by
people until they are killed for human consumption, but now most farm animal lives tend to be miserable in
cramped spaces on “factory farms” First, this treatment of animals seems unjustified insofar as animals have
interests and it seems important that we don’t hurt them for no good reason.
Animal ownership – It’s not obvious that we have a right to own all other animals. It might be that we have a
right to own lower organisms of sufficiently low intelligence, but not higher life forms. Elephants, dolphins,
whales, and great apes are all very intelligent, but even dogs and cats can be pretty smart. Many people have
pets and perhaps its better that we care for these animals than send them out into the wild. However, we could
care for animals without technically owning them. Perhaps we could be their “guardians” rather than owners,
much as parents should be understood as the guardians of their young children rather than owners.
Animal abuse – According to the law, people who own and sell animals have responsibilities towards those
animals, whether the animal is a pet, farmed for food, or used in experimentation. It seems plausible that such
laws are based on our moral duties, and there’s almost no reason for these laws to exist for human benefit. It
seems likely that the laws exist precisely because many people agree that animals have intrinsic value. Shaw
has already discussed how farming and experimentation often harms animals, and the law often allows such
harm. It seems likely that it’s wrong to harm animals beyond what the law allows.
Environmental destruction – Shaw rarely or never mentioned the effects environmental destruction has on
animals. Animals are harmed and destroyed when we take the world’s resources, strip forests to make
farmland, and pollute. The environment has at least two important moral considerations for animals.
Legal Issues in Entrepreneurship

Unlike working in a large corporate environment with an established structure, entrepreneurs often create and
operate a new business venture by their own rules. The pressure to create a new venture, within constraints
and limitations, inspires entrepreneurs to find innovative ways to meet potential market demands. At the same
time, the challenge to meet these expectations can create temptations and ethical pressures as entrepreneurs
make a variety of decisions. Common areas rife with potential legal issues include contracts, torts,
employment, intellectual property, conflicts of interest, full disclosure/truthfulness in product or service claims
and performance, and antitrust/competition law.
Intellectual Property: Patents, Copyrights, and Trademarks

There are multiple reasons why an entrepreneur should be aware of intellectual property rights under the law.
For example, if a new startup business comes up with a unique invention, it is important to protect that
intellectual property. Without such protection, any competitor can legally, even if not ethically, copy the
invention, put their own name or company brand on it, and sell it as if it were their own. That would severely
curtail the entrepreneur’s ability to make money off a product that they invented. Intellectual property (IP) rights
are created by federal law and protect small businesses from problems such as this. IP law also helps
establish brand awareness and secure secondary revenue streams.
Intellectual property (IP) is the output or result of the creative work of one or more individuals to turn a unique
idea into a practical and value-added product/service; this manifestation of original ideas is legally protected. IP
applies to anything that is the exclusive right of a firm, will help differentiate that organization, and will
contribute to a sustained competitive advantage.
.
Contracts and Torts
Every entrepreneur enters into contracts, usually on a regular basis, and thus should have an understanding of
basic contract concepts. Likewise, most businesses are likely to have some involvement with tort law: that area
of law that protects the rights of people not to be harmed physically, financially, or in any other way, such as a
breach of privacy. Some areas of the business world involve a combination of tort law and contract law, such
as litigation involving the wrongful termination of an employee.
Antitrust
Antitrust laws (or competition laws) were developed to ensure that one competitor does not abuse its position
and power in the market to exclude or limit competitor access to the market. A few examples of antitrust laws
are the Sherman Act, the Clayton Act, the Federal Trade Commission Act, and the Bayh-Dole Act. These acts
were created to encourage competition and provide options for consumers. In effect, these laws make it illegal
for a competitor to make agreements that would limit competition in the market.
The antitrust concept is important to the entrepreneur’s ability of entrepreneurs to form new startup businesses
that are able to compete with larger, more established corporations (which may try to discourage
competition). Table 1 summarizes the contributions of these acts to supporting antitrust efforts. It is important
to note that any deviation from these laws may result in long and costly legal problems.
Antitrust Acts
Antitrust Act Protection
Sherman Act (1890) Prohibits attempts to monopolize
Clayton Act (1914) Prohibits price fixing, related practices
Federal Trade Commission Act Prohibits unfair business practices

(1914)
Bayh-Dole Act (1980) Encourages development of

inventions
Engage
yourself
Activity 1 Answer the following question.
1. Why are legal issues important?
2. What are the environmental barriers to entreneurship?

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Business Ethics and

t is the attempt to predict what may

1|Business Ethics and Social Responsibility 12

3|Business Ethics and Social Responsibility 12

Generally, corporate social responsibility initiatives are categorized as follows:

2. Human rights responsibility

Business Benefits of CSR

1. Stronger brand image, recognition, and reputation

2. Increased customer loyalty and sales

3. Operational cost savings

4. Retaining key and talented employees

5. Easier access to funding

6. Reduced regulatory burden

Examples of Corporate Social Responsibility

5|Business Ethics and Social Responsibility 12

2. Social Responsibility of Business: Justification for Social Responsibility:

3. Social Responsibility of Business: Evolution of the Concept of Social Responsibility:

4. Social Responsibility of Business: Nature:

5. Social Responsibility of Business: Need:

6|Business Ethics and Social Responsibility 12

6. To Avoid Government Intervention:

7. Law and Order:

6. Social Responsibility of Business: Concept:

The essential elements of CSR may be presented thus:

In particulars it deals with:

These activities include:

8. Social Responsibility of Business: Reasons for the Growing Concern of CSR:

9. Social Responsibility of Business: Perspectives:

8|Business Ethics and Social Responsibility 12

10. Social Responsibility of Business: Arguments against Social Responsibility:

The principal arguments against social responsibility are as follows:

Think about this

9|Business Ethics and Social Responsibility 12

2. How do employees get engaged in the CSR work of your company?

1. Create Wealth, but do not Ignore Society:

2. A Healthy Business Cannot Exist in a Sick Society:

3. Managerial Decisions Impact Social Life:

4. Business has Surplus to Distribute:

5. CSR is Inexpensive Insurance:

6. Profit Motive is the Villain:

13. Social Responsibility of Business: Role of Business in Environmental Protection:

14. Social Responsibility of Business: Importance:

Specifically, corporate community involvement can:

15. Barriers to Social Responsibility:

2. Comparison of Divisional Performance:

3. Overall Organizational Barriers:

16. Social Responsibility of Business: Voluntary Guidelines for Corporate Social Responsibility:

These guidelines are as follows:

The CSR Policy should normally cover following core elements:

Activity C | Check your Understanding | Answer the following questions:

1. Why is it important to take care of stakeholders?

Types of Ethical Issues in Business

4. Health and Safety

5. Abuse of Leadership Authority

6. Nepotism and Favoritism

It is the quality of making judgments that are free from discrimination.

Substantive Fairness-This means you have a fair reason to dismiss

Business and Ecology

The ethics of environmental protection

The costs of pollution control

Who should pay the costs?

The value of nature

Our treatment of animals