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LESSON Corporate Social Responsibility

4
CORPORATE SOCIAL RESPONSIBILITY

CONTENTS
4.0 Aims and Objectives
4.1 Introduction
4.2 Concept of Corporate Social Responsibility (CSR)
4.2.1 A Socially Responsible Organisation – Basic Understanding
4.2.2 Ethics Postulate Responsibility
4.2.3 Language of Business Responsibility
4.3 Social Responsibility of a Business Enterprise
4.4 Ethical Issues in Corporate Governance
4.5 Corporate Governance
4.5.1 Objectives
4.5.2 Context
4.5.3 Socio-economic Character of Business
4.5.4 Core Values
4.6 Business Purpose
4.7 Structural and Organisational Aspects
4.7.1 Nominee Directors
4.7.2 Need for Strong Boards
4.8 Factors Constituting Good Governance
4.9 Right Composition of Boards
4.10 Let us Sum up
4.11 Lessons End Activity
4.12 Keywords
4.13 Questions for Discussion
4.14 Suggested Readings

4.0 AIMS AND OBJECTIVES

After studying this lesson, you should be able to understand:
z Corporate Social Responsibility
z Concepts of Corporate Social Responsibility (CSR)
z A Socially Responsible Organisation – Basic Understanding
z Ethics postulate responsibility
z Corporate Governance
z The Context
z Socio-economic Character of Business
30
Global Business Ethics 4.1 INTRODUCTION
Ethics and social responsibility are important concerns in making decisions in all
aspects of our life. The special responsibility of a business is defined as a concern of
business about both its profits seeking and its non profit seeking activities and their
intended unintended impact on groups and individuals other than management or the
owners of the corporation.

4.2 CONCEPT OF CORPORATE SOCIAL

RESPONSIBILITY (CSR)
The concept of CSR originated in the 1950’s in USA and the concept came into
prominence in public debate during late 1960’s. US had lots of pressing social
problems like poverty pollution urban blight, race and unemployment. Corporate
social responsibility became a matter of at most importance for diverse group
demanding change in the business.

4.2.1 A Socially Responsible Organisation – Basic Understanding

The society is a nexus of individual perceptions. In recent years, socially responsible
businesses have become a pervasive buzzword lending its mystique to demands for
sustainable business practices, calls for greater respect for the needs of staff,
customers, local communities and the environment for fair pricing of imported goods
from 'third world' countries, policies covering the recruitment of racial and ethnic
minorities. The paradigm now is one of global competition where business competes
against the best in the world and therefore, customers have a choice.

4.2.2 Ethics Postulate Responsibility

The Oxford dictionary's definition of 'responsible' is 'liable to be called to account,
answerable morally, accountable for actions' and its definition of 'responsibility' is
charge for which one is responsible'. Thus, corporate social responsibility is either
misleading because it suggests that there is an impersonal collective focus for the
accountability of commercial behaviour or because it allows for decision making
without involving the people. Therefore, it is necessary and desirable to establish an
agreeable terminology for our study.

4.2.3 Language of Business Responsibility

Business
The term business is used to describe any type of industrial or commercial enterprise
including both manufacturing and service activities, private or public companies,
nationalized or government subsidized utilities, profit making and non-profit
organisations and international and multinational firms.

Society
Society is not an element in the system but it is the system itself. We, therefore, define
society as a total of all those individuals, irrespective of their membership in particular
interest, who are bound together through their membership in a common political and
economic unit, protected by its laws.

Responsibility
Responsibility requires a focus and does not exist in vacuum. One cannot be
responsible if there is nobody to hold you accountable.
 31
Ethics and Morality Corporate Social Responsibility

Ethics is the study of individual and collective moral awareness, judgement, character
and conduct. Morality is customarily socio-legal practice and activities and the values
that are fostered or pursued by the conventional, socio-legal activities and other
activities.

Individual
No social entity, particularly a business organisation, can exist purely as an
abstraction and that society derives only from the individuals who comprise it.
Attitudes, patterns, customs, behavioral experiences distinguish an individual from the
rest of the group.

Authority
Without authority, there is anarchy and without individual freedom of conscience,
there is tyranny. Unlike power in the armed forces, where authority derives from the
State, power in business is vested in individuals through ownership or the financial
interest of the shareholders.
An innovation fostering culture would prosper in the firms, which would sincerely
demonstrate belief in building human capital (investing in employees' skills), a strong
ethical culture and carry an ambiance, which would promote experimentation.

Ethical Duality
A recurring topic in any discussion on social responsibility is the conflict between the
law and individual conscience, or, in the more specific context of business, between
company policy and the ethical values of the employee. Everyone needs some
framework of values to guide the personal behaviour. The dual source of ethical,
social and political standards is both natural and necessary.

Check Your Progress 1

Define the following:

1. Responsibility
………………………………………………………………………………
………………………………………………………………………………
2. Business
………………………………………………………………………………
………………………………………………………………………………

4.3 SOCIAL RESPONSIBILITY OF A BUSINESS

ENTERPRISE
There are some questions which come to mind when we talk of social responsibility in
business enterprise in the context of corporate governance such as:
z What underlies behind the growth of concern for socially responsible business?
z What are the theoretical underpinnings of this new perspective on enterprise?
z How can the theory lead to measurable accountability?
z What is the status of social and ethical assessment?
z How are such accounting methods being applied in practice?
32 Corporate social responsibility is either misleading because it suggests that there is an
Global Business Ethics
impersonal collective focus for the accountability of commercial behaviour or because
it allows for decision making without involving the people. More and more enterprises
today are becoming socially responsible for the following reasons:
z There is interpretation and analysis of the rights and privileges granted to business
activities and the inter-relationships between these activities and the well-being of
society.
z There is a growing minority of concerned and sensitive manager who are honestly
seeking to promote a ‘new ethics’ for business based on a sense of responsibility
that spans a broad spectrum of social and environmental issues.
z Social, ethical and environmental responsibilities are growing because of
transparency in the behaviour. Employees are emphasizing the need for harmony
between their personal values and those of the firm. Consumer interest groups are
keeping a sharply focused watch on product quality, environmental hazards and
discriminatory hiring policies.

4.4 ETHICAL ISSUES IN CORPORATE GOVERNANCE

Ethical issues have been brought to the forefront in Australia as the result of growing
public concern. This concern is reflected in business management education at the
advanced level in particular. It is also exhibited in the reports of illegal, scandalous, or
other questionable behaviour and practices across a wide spectrum of commercial and
government activities. Economic times in Australia are poor. The vast number of
personal, business, and corporate insolvencies in recent times has triggered public
demand for an explanation. It has become apparent that illegal and other questionable
business practices have contributed significantly to Australia's present economic
troubles, and people are asking how such behaviour can be prevented in the future.
Some believe that the problem can be solved by maintaining higher ethical standards.
Codes of professional conduct or ethics both interact with complement the law. The
law reflects the standards, expectations, and values of a society as a whole and is
enforced through the properly constituted courts of that society. Members of these
groups believe that they maintain higher expectations and values than those of society
as a whole, if ethical codes are enforced at all, it is usually by each specific group.
Possible exclusion from a particular association is an incentive to follow these
standards.
Peregrine W F Whalley, of Northern Territory University, suggests, however, that it is
naive to expect people to adhere to rules or principles that are not, and cannot be,
clearly formulated. He believes that the business community is too diverse a group to
follow standards above and beyond the law itself. The best way to ensure high ethical
standards in business is to make legislators aware of and responsive to changing social
values and conditions. Common interest groups must become active as lobbyists.
In Australia, certain large retail organisations are taking steps to develop international
common interest groups while awaiting changes in legislation. They have had limited
success in establishing clear standards for conduct and effective procedures for
securing compliance.

4.5 CORPORATE GOVERNANCE

Corporate governance can be defined as a set of systems and processes which ensured
that a company is managed in the best interests of all the stakeholders. When one talks
of the stakeholders it does not mean any shareholders: a company will typically have
five stakeholders, namely, the employees, the shareholders, the customers, the
creditors and the community. The set of systems that help in the task of corporate
governance includes certain structural and organisational aspects. The processes that 33
Corporate Social Responsibility
help corporate governance should embrace how things are done within such structures
and organisational systems.

4.5.1 Objectives
z To understand the context of corporate governance in present scenario
z To know the socio-economic character of modern business
z To learn the need of core values for any organisation
z To understand the structural and organisational aspects relating to corporate
governance

4.5.2 Context
Any discussion on corporate governance beliefs of an understanding of the context in
which businesses operate would be futile as the paradigm has shifted towards global
competition where businesses compete against the best in the world and customers
have choices. The operational word to businesses is now innovation, which means the
capability of bringing out newer products, and providing superior service most often
at a lower price. Innovation prospers in the firms, which exhibit the following
characteristics:
z Environmental sensitivity especially in relating and responding to change in the.
technology dimension of industry structure
z Customer focus: relating to serving and delighting the customer with appropriate
products, often in a proactive manner.
z Quick response time wherein bringing out new products rapidly, especially in
relation to competitors.
z Employee's empowerment by acknowledging that front-line employees are often
the best judges of appropriate responses and thereby allowing them to take
decisions at the 'local' level.
For firms to be competitive and innovative, flexibility in approach towards decision
making necessarily gains special importance. An innovation-fostering culture would
prosper in the firms which would sincerely demonstrate belief in building human
capital (investing in employees' skills), a strong ethical culture, and carry an ambience
which would promote experimentation. At the same time, to prevent organisational
drift, manipulative behaviour, and a misalignment in organisational employee goals,
firms need to be strong on core values.

4.5.3 Socio-economic Character of Business

Since corporations are constituted legal bodies they assume concomitant social and
legal responsibilities. Milton Friedman may insist that the only social responsibility of
business is to make profits. However, a larger stakeholder view of the corporation has
to be necessarily adopted rather that just adopting to a financial shareholder
perspective. Business enterprises (especially private ones) at their inception are
economic entities, but as they grow, the emphasis shifts towards a more social
character. Socially responsible tasks such as pollution control, maintaining ecological
equilibrium, community development, etc later become integral part of organisational
commitments. The integration between business policy, business ethics, social
responsibility and public policy has been shown in the figure below:
34
Global Business Ethics

Social Business Ethics Business Policy

Responsibility

Public

Figure 4.1: Public-Business-Policy Interface

The socio-economic and competitive character of a corporation entails that it has to
make a fine choice of its competitive strategy within the ambit of legal, social and
ethical boundaries. Corporate actions should be justifiable in terms of its letter and
spirit in which the society allows it to function. Timely collection and deposit of taxes
and duties, payment of minimum wages, adherence to laws such as MRTP, Labour
Act, etc. are examples of legal commitments. Corporations cannot become profitable
by not adhering to the existing laws of the land. If some of the laws are anachronistic
(such as the Official Secrets Act, or certain clauses in the Exit Policy), effort should
be made to bring about a change in them, instead of breaking them.
While corporations have to perforce function within the legal framework, it becomes
imperative for them to identify and make explicit a code of ethical behaviour to
honour its commitments to the customers, employees, and other societal stakeholders.
The grey area is what constitutes ethical dimensions of corporate behaviour and who
is to oversee this aspect of social responsibility of business.

4.5.4 Core Values

The process of laying down the ethical character of a business can be facilitated with a
clear articulation of corporate core purpose (the raison d'etre) and a concomitant set of
core values. Formulation and implementation of any strategy occurs under the context
of core values of the organisation's fey decision makers. Values govern behavioural
choices. For achieving growth should a company diversify its business, expand its
current capacities, or acquire other units? Should it go for opening up of schools and
community hospitals for the poor and needy? Should it divest a product? Should the
company pay bribes to win a lucrative tender? What should the stakeholders do when
the chief executive becomes a tyrant and starts treating company employees as his
personal servants? It is alleged that Henry Ford could introduce newer models because
of a childhood mental trauma. Many chief executives find it extremely difficult to
relinquish office, often using ingenious means to delay retirement. In a country where
99.9 per cent of all business and 70 per cent of the hundred largest corporations are
family-owned, should the progeny automatically become heirs to the corporate
throne? What happens to other stakeholders when two or three feuding sons carve up
businesses leading to inefficiency of scales and thereby losses. In a capital-intensive
industry such as tyres, where economies of scale in manufacturing and distribution are
crucial, three sons of a business house divided three tyre manufacturing units amongst
themselves leading to severe losses in what was once a profitable business. The other
side of the argument is that family-owned units have large pools of intrinsic strengths-
and investors inherently assume a larger risk in such companies in the hope of making
larger profits.

4.6 BUSINESS PURPOSE

At this point, a discussion on the concept of 'organisational purpose' mentioned earlier
becomes important. It means that an organisation (just like individuals) must have a
holistic super ordinate substance to its existence defined by the core values that it 35
Corporate Social Responsibility
holds. Therefore, ends and means are identified within which core values cannot be
dictated and are difficult to change. A vegetarian cannot be made to change his habits,
or a philanthropist cannot be asked to quantify his time-value. If Levi-Strauss insists
on its subcontractors not to use child labour, it is one of their core values. The
organisational values have to be in consonance with country-specific legal values. A
core value transcends mundane existence and provides the organisation with a sense
of well-being, pride and confidence. Existence of such values in explicit form enables
the managers to take complex value decisions. Thus Motorola's local executives in an
African country could take a decision of not paying a bribe of one million dollars and
thereby losing a lucrative contract worth several million dollars in profits, knowing of
the backing from the corporate head office.

4.7 STRUCTURAL AND ORGANISATIONAL ASPECTS

The word 'systems' includes structural and organisational aspects that facilitate better
corporate governance. It is well known that a company being an artificial and juristic
entity cannot function by itself. The person of a company is manifested through the
board of directors. In fact, the most important body in the corporate sector is its board
of directors. It is often said that the cause of corporate governance is served depending
on how well the board of directors of a company is organized and structured. The
Companies Act, 1956 does not exhaustively describe the powers and duties of the
board. It can be said that some of the shareholders' agreements talk more extensively
about the power and duties of company boards than the Companies Act, 1956.
While dealing with the issues connected with the board of directors in the context of
corporate governance, the following aspects have to be borne in mind:
a) optimum size of the board;
b) optimum composition of the board in terms of both whole-time and part-time
directors;
c) whether the Chairman of the board should be different from the CEO of the
company;
d) the role of nominee directors;
e) personal competencies and qualifications of individual directors;
f) the frequency with which the composition of the board should be changed; and
g) the different committees of the board and the optimum size of the board.
Various studies have been undertaken both in the US and the UK on what should be
the optimum size of a board. One conclusion of these studies is that a board should
ideally have about twelve directors. This, of course, does not take into account the
peculiarities that the company may have, warranting a variation from this number.
The Companies Act, 1956, one may note, also talks of a maximum number of twelve
directors. Regarding the optimum composition of the board; studies have revealed that
out of the twelve directors only three or four should be whole-time directors and the
remaining part-time directors. The ratios of whole-time directors to part-time directors
should be heavily in favor of part-time directors so as to ensure maximum
independence of company boards. Whether the Chairman should be different from the
CEO of the company: The Cadbury Committee which went into the financial aspects
of corporate governance in the U.K. had come out with a definitive recommendation
that the Chairman of the board should be a person different from the CEO of the
company. It was felt that this would ensure the right accountability of the CEO to the
board and that the independence of the board to a large extent would be whittled down
if the chairman and the CEO were one and the same person. It is of the considered
view that in the Indian context it will be advisable to have as Chairman, a person of
36 great stature and eminence, who is not in the executive management of the company.
Global Business Ethics
This will ensure greater independence and credibility in board proceedings.

4.7.1 Nominee Directors

Role of nominee directors: Although it is to a large extent that professionalisation of
company boards in India got accelerated with the induction of nominee directors by
Financial Institutions (FIs), in many cases, these nominees have remained content
with safeguarding the interests of the FIs vis-a-vis the company.
There is a general impression that whenever a conflict arises between the interests of
the term lenders (FIs) and that of the company, the nominees invariably safeguard
only the interests of the term lenders. This impression is wholly erroneous. As a
matter of fact what is good for the company should be good for the FIs too. If the
nominee directors ensure that things happen in the best interests of the company,
rarely will the interests of the financial institutions and term lenders be jeopardized.
After all, in the ultimate analysis, only if the company does well, the investments of
the public financial institutions will be protected. Hence, there is no question of a
conflict of interest between the term lenders and the company.
Personal competencies and qualities of individual directors: To be an effective
member on the board of a large company, besides stature and eminence, one also
requires certain other competencies. A company's director, apart from having an
independent mind, should have a close insight into how companies operate. It is also
important that the company's director should know the rudiments of the company 4iw.
Besides a general appreciation of commercial matters, a company's directors should
be able to think in a' top of the line' manner. He should be well informed about the
macroeconomic trends as well as the specific trends in the business in which the
company is engaged. Personal attributes like ability to listen, open-mindedness and
sound articulation will go a long way in making a company's director effective.

4.7.2 Need for Strong Boards

The importance of strong boards in laying down the driving values of the corporation
cannot be overemphasized. Directional leadership and control has to be exercised by a
representative board of directors constituted of financial institution nominees,
business executives and professional non-executive members. These must be people
of character and proven integrity and experience. Organisations are also cradles of
power games and political behaviour and only a strong board would be able to
separate organisational interest from personal empire building. Common situational
conflicts are chief executive succession, intercorporate-funds transfer, senior
executive recruitment, financial or other improprieties, continued poor managerial,
market performance, etc. A body must exist which could think strategically and if
necessary bridle the executive. Boards in USA regularly set strongly to check
executive's performance. Some of the prominent companies, which have had new
CEOs in the last few years at the instance of governing board, are General Motors,
IBM, Chrysler, and Apple Computers. In case of the last mentioned company it was
the founder- CEO that had to resign for non-performance.

4.8 FACTORS CONSTITUTING GOOD GOVERNANCE

z Independent directors have a major role play in promoting good corporate
governance, and if certain practical steps are taken to ensure the right composition
of the Board, adherence to standards and best practices, and accurate disclosures
and reviews of audit plans, then there is a greater chance of good governance, said
speakers at a recent seminar organized by the Bombay Chamber of Commerce
and Industry (BCCI).
z Global governance standards are driven by a system of accountability, checks and 37
Corporate Social Responsibility
balances, and the role of the management, the board and shareholders in achieving
greater shareholder value, according to Mr. Philip Pillai, Joint Managing Director,
Shook Lin & Bok, a Singapore law firm.
z Adherence to governance standards is important to regulators and exchanges
because of competition for foreign portfolio investment,' Mr. Pillai said, 'And
there is also evidence to suggest that investor behaviour is influenced by superior
governance, resulting in better prices.' Speaking on the role of the director in
following international best practices, he said that the UK model stresses the role
of directors, the directors' remuneration, relations with shareholders,
accountability and audit, and institutional investors.
z Accordingly, there must be an effective board to lead and control the company, a
separation of the Chairman and CEO posts, and a system of formal and
transparent appointment/re-election, as well as a supply of timely and appropriate
information. Given that there has been much shareholder anxiety over CEO pay,
the director's remuneration must also be 'sufficient and attractive - and not
excessive', and linked to corporate and individual performance, Mr. Pillai said.
z 'The practical steps to good governance are really appropriate board composition -
it must be made up of industry, financial, legal and other competencies,' Mrrillai
said. There must also be documentation of existing practices against governance
principles, standards and best practices; compliance checklists and an accurate
disclosure of existing governance, besides an annual review of market best
practices.
z Still, corporate governance is usually a delicate balance between statutory
compliance and the concept of fiduciary duties, said Mr. Rohan Shah, Managing
Partner, Economic Laws Practice. 'Who is the director the guardian angel of the
company, the shareholders or the creditors?' he said the perception is that directors
will conveniently favour the director that enhances their position, but a director
has the onus to act in the best interest of the shareholders. So we must create an
environment where independent directors feel empowered, and not paranoid, to do
what is best.'
z Finally, there must also be a mindset for obeying the law, because if legislation
alone were enough, then India would be among the most reformed societies, said
Mr. Subodh Bhargawa, Chairman, Audit Committee, VSNL. 'There is a
machinery to enforce the law, but the fundamentals are not being looked at closely
- we're just introducing laws on top of laws,' he said.
Check Your Progress 2
Fill in the blanks:
1. ___________ became a matter of at most importance for diverse group
demanding change in the business.
2. ___________ is not an element in the system but it is the system itself.
3. ___________ can be defined as a set of systems and processes which
ensured that a company is managed in the best interests of all the
stakeholders.

4.9 RIGHT COMPOSITION OF BOARDS

a) A person drawn from the field of economics;
b) A person drawn from academics, preferably from a business administration or
management school;
38 c) Two specialists drawn from the industry to which the company belongs;
Global Business Ethics
d) A corporate lawyer;
e) A former bureaucrat;
f) Two persons drawn from the financial services sector; and
g) An eminent person as the Chairman; and of the remaining three, one should be the
CEO and the other two functional directors.
Like it is important to hone competencies and skills in an ever-changing environment
for different functionaries in a company; it is also important that the directors undergo
training. The Institute of Directors, London, has come up with certain models for
training of the company directors. It will be useful to learn from their experience. The
other important aspect, which should be borne in mind, is the retirement age of
company directors. The earlier law in India had stipulated that the directors should
retire at the age of 65. With the general life expectancy going up, it has been found
that a person will be active and agile even at the age of 70. Hence, it will be advisable
for company boards to lay down a rule that directors should retire at the age of 70 or
at the latest at 75. Although the Companies Act, 1956, clearly lays down that one third
of the directors should retire every year, the spirit behind this law has not been
understood at all. Year after year, company directors retire and are re-elected. While
here is a need for continuity in the board, it is also important that the members are
changed at least every five years. This is to ensure that fresh blood and new thinking
is infused into company boards, which in a way also ensures their independence.

Different Committees of Directors

While the main board of a company should only deal with major policy decisions and
the strategic directions for the company, it is important to have different committees
of the board to have focused attention on various aspects of the company's working.
The need for different committees would depend on the size and complexity of the
operations of the company. Typically a large company should have committee of
directors; management committee of directors; shares and securities transfer
committee of directors; executive nomination and compensation committee of
directors; investment committee of directors and audit committee.
The Cadbury committee dealing with the financial aspects of corporate governance
had recognized the importance of the audit function as an effective tool. In the Indian
context, the public financial institutions also insist on the constitution of an audit
committee of directors of a certain size. A part-time director is usually the chairman of
the audit committee and normally the other members also are part- time directors. The
CEO is usually a permanent invitee to its meetings and the finance director is called
upon to assist this committee for detection and correction of systems- failure and lack
of adequate internal controls. Also, statutory financial statements are vetted by the
audit committee before being submitted for the board's approval.
Typically, the CEO heads the management committee of directors with other
functional directors as members. For ensuring independence of the management
decisions, the part-time directors are also inducted in equal number. The investment
committee should have nominee directors of financial institutions and banks as its
member and the chairman of the committee should be a part-time director. The
committee deals only with investments of the company, other than for projects and
acquisition of other companies. This set of directorial structure should facilitate better
corporate governance of companies.
 39
4.10 LET US SUM UP Corporate Social Responsibility
If corporate governance can be defined as a set of systems and processes which ensure
that a company is managed in the best interests of all the stakeholders. An innovation-
fostering culture would prosper in the firms which would sincerely demonstrate belief
in building human capital (investing in employees' skills), a strong ethical culture and
carry an ambience which would promote experimentation.
Since corporations are constituted legal bodies they assume concomitant social and
legal responsibilities. The socio-economic and competitive character of a corporation
entails that it has to make a fine choice of its competitive strategy within the ambit of
legal, social and ethical boundaries.
The formulation and implementation of any strategy occurs under the context of core
values of the organisation's key decision makers. Values govern behavioural choices.
A core value transcends mundane existence and provides the organisation with a sense
of well-being, pride and confidence. Existing of such values in explicit form enables
managers to take complex value decisions.
The word 'systems' includes structural and organisational aspects that facilitate better
corporate governance. The most important body in the corporate sector is its board of
directors. The Cadbury Committee which went into the financial aspects of corporate
governance in the UK has come out with a definitive recommendation that the
chairman of the board should be a person different from the CEO of the company.

4.11 LESSONS END ACTIVITY

Identify and discuss the ethical issues involved in corporate governance. Give
examples.

4.12 KEYWORDS
Business: Commercial enterprise including both manufacturing and service activities.
Social responsibility: An ethical theory that an entity has a responsibility to society.
Corporate governance: A set of systems which ensured that a company is managed in
the best interests of all the stakeholders.

4.13 QUESTIONS FOR DISCUSSION

1. What is social responsibility?
2. List out the importance of corporate social responsibility.
3. Elucidate corporate social responsibility in detail.
4. Define corporate governance.
5. Explain the ethical issues in corporate governance.

Check Your Progress: Model Answers

CYP 1
1. Responsibility requires a focus and does not exist in vacuum. One cannot
be responsible if there is nobody to hold you accountable.
2. The term business is used to describe any type of industrial or commercial
enterprise including both manufacturing and service activities, private or
public companies, nationalized or government subsidized utilities, profit
making and non-profit organisations and international and multinational
firms.
Contd…
40 CYP 2
Global Business Ethics
1. Corporate social responsibility
2. Society
3. Corporate governance

4.14 SUGGESTED READINGS

Manuel G. Velasquez, Business Ethics.
Laura P. Hart Man, Business Ethics.
John R. Boat Right, Ethics in Conduct of Business.
William A. Wines, Ethics Law and Business.