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topics to be covered..
Concept of Social Responsibility

Assumptions of Social Responsibility

Social Responsibility towards different interest groups.

Social Responsiveness
Business Ethics and Management

Values, morals and Ethics

Ethics and Managerial Values

Concept of Social Responsibility

Social responsibility of business means
obligation to act in a manner which will serve the best interests of the society. The obligation of an the organization's welfare and



interests of the society in which it operates.

Examples of Social Responsibility

Tata Steel Rural Development Society (TSRDS) by TISCO which has launched community development project in 600 villages spread

over in Bihar, Orissa and M.P.

Finolex Industries started the Hope

foundation in 1979 for the detection and

treatment of cancer.

Why should management assume Social Responsibility?

Assumptions of social responsibility are discussed below: Social Entity Self-Interest Moral Justification Public Image Avoidance of Govt. Intervention Consumers Awareness




Fair and regular return Safety of investment Provide regular & accurate info about the progress and financial position Strengthen financial position Safeguard assets of business

Pay reasonable wages and salaries Provide good working conditions Provides benefits Creating better human relations Respect the democratic rights of workers to form unions Provide adequate training and education

Supply right quantity and quality of goods and services at reasonable prices Provide prompt and regular supply Handle customers grievances quickly & carefully Ensure advertisements are truthful Follow fair trade practices

Ensure regular payments Placing orders with small scale suppliers Avoid exploitation Help suppliers in improving the quality of their products

Abide the laws and policies issued by the government Pay taxes honestly and in time Discourage the tendencies of monopoly Adopt fair dealings in foreign trade Encourage fair trade practices


Efficient use of natural resources Generate employment opportunities Provide high quality product Preserve and promote social and cultural values Take steps against air, water and noise pollution

Social responsiveness may be considered as the level or degree of interest exhibited by an organization in discharging social responsibility. It is generally the top management which takes the major decisions regarding social responsibility functions.

The vision and mission of an organization could be stated in such a manner

that the role of the organisation in society is clear. This should reflected in objectives setting.

An environmental appraisal, which includes an assesment of the social

environment, should help an organisation s strategy to forecast social concerns and issues that need urgent attention.


Business ethics refer to the moral principles which should govern business activities. These are mainly concerned with determining what is right or what is wrong. A few eg. of business are: To discharge fair prices, to use fair weight
It is like an umbrella which covers all business practices which are desirable

from the point of view of society.

Ethics coexist with law. They guides lawmakers to have perfect rules for all human behaviour. Ethics aim at perfection in the conduct of life. These create self-imposed discipline on

measures for commodities, to pay

taxes honestly, to charge reasonable profit from customers.

the part of the business firms.

These emphasize making a business honest, just and responsible treatment to all.

Nature of Business Ethics

Covers all business practices which are desirable from the point of view of the society It guides the law-makers to have perfect rules for all human behavior Concept of equity is implied in ethics It emphasize making a business honest, just and responsible It creates self-imposed discipline

Importance of Managerial Ethics

Bribing public officials to obtain undue favors' Using false claims in advertisement Using company property for personal use Overlooking safety norms & regulations to get the job done Artificially inflating profits to get re-elected as directors

Determinants of Business/Managerial Ethics

Social factors Economic factors Cultural factors Political factors

Organizational factors
Institutional codes

Values, Morals & Ethics

Values: They are our standards that do not encompass all beliefs, but

only those beliefs that define importance and worth. They are used
to define what is right, good and just. Morals: They are the values that we attribute to a system of belief that help the individual define right v/s wrong, good v/s bad. Ethics: It is the study of how people make those judgments about

what is good and right behavior and when one acts in ways that are
consistent our moral values we will characterize that as acting ethically.

Features of Values
Values are comprehensive standard that direct conduct of people in different situations. Values guide people to take specific position of societal issues. Values provide standards of morality.

Values are relatively stable and enduring as these are

passed from one generation to another.

Attitudes Beliefs &Values

Attitude: It can be defined as a predisposition to respond in a positive or negative way to someone or something in ones environment.

Belief: It reveals what one supposes to be true.

Values: It reveals basic idea about what is good or

bad, what is right or wrong, or what is desirable or


Levels Of Values
Individual Values: The members of business firm hold their values

regarding their personal conduct in business.

Group Values: The values held by formal as well as informal groups are of great importance in determining overall organizational values. Top Management Values: The objectives, policies, philosophy and the culture of the organization constitute these values. Environmental Values: These values are influenced by the environment in which business is operating such as investors, lenders and society as a whole.

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