BUSINESS ETHICS AND SOCIAL

RESPONSIBILITIES OF A BUSINESS
 CONTENTS
What is business ethics?

Elements of business ethics

Concept of social responsibility

Need for social responsibility

Arguments for social responsibility

Arguments against social responsibility

Kinds of social responsibility

Social responsibility towards various interest groups

 WHAT IS SOCIAL RESPONSIBILITY?
DEFINITION
• Social responsibility is defined as “the obligations of businessmen
to pursue those policies, to make those decisions, or to follow
those lines of action which are desirable in terms of the
objectives and values of our society.” (Howard R Bowen)

• corporate social responsibility is defined as "continuing

commitment by business to contribute to economic development
while improving the quality of life of the workforce and their
families as well as of the community and society at large (World
Business Council, 1998)."
INTRODUCTION TO SOCIAL RESPONSIBILITY

• Social responsibility involves an element of voluntary action

on the part of the business for the benefit of the society.
• Social responsibility is broader than legal responsibility.
• It is a firm’s recognition of social obligations even though not
covered by law, according to the obligations laid down by law.
• The idea of social responsibility is contrast to the common
notion that business exists only for maximizing the profits for
its owners and it is irrelevant to talk of public good.
KEY PRINCIPLES OF SOCIAL RESPONSIBILITY
• Organizational Governance
• Human rights
• Labor practices
• Environment
• Fair operating practices
• Consumer issues
• Community involvement and development
• Accountability
• Transparency
• Ethical behavior
• Respect for stakeholder interest
• Respect for the rule of law
• Respect for international norms of behavior
• Respect for human rights