BUSINESS MANAGEMENT

Social responsibility of business

Why a business enterprise should have social

responsibility

 Every

business enterprise is an integral

part of the society.
It uses the scarce resources of the
society to continue and grow.
Thus no activity of business should be
injurious to the interests of the society.

Social Responsibility of business

Meaning
Obligation of business enterprises to adopt
policies and plans of actions that are
desirable in terms of the
Expectation
Values
Interest of the society.
It ensures that the interests of different
groups of the public are not adversely
affected by the decisions and policies of
the business

Social Responsibilities of Business towards

Different Stake holders

Responsibility towards the shareholders or

owners.
Responsibility towards the Employees.
Responsibility towards the Consumers.
Responsibility towards the Suppliers.
Responsibility towards the Financiers.
Responsibility towards the Government.
Responsibility towards the Community.

Responsibility towards the shareholders

or owners.
Fair return on investment.
Appreciation in the value of share.
Ensuring better performance
Full disclosure of information
Organizing AGM
Voting rights

Responsibility towards the Employees

Fair wage or salary
Working Hours
Good and Safety working condition
Medical Facilities
Housing Facilities
Canteen Facilities
Leave facilities
Retirement benefits
Educational allowances for children
Reasonable amount of bonus
Provision for participation in management

Responsibility towards the Consumers

Quality of products / services
Reasonable Price.
Adulteration should be avoided.
Packaging and labeling.
Advertisements should not mislead the
customers.
After sale service.
Customers grievances should be redressed
immediately.

Responsibility towards the Government

A
business enterprise must follow the
guidelines of the government while setting up
the business.
Conduct the business in lawful manner.
Disclose the required information.
Taxes must be paid honestly and on time.
It should not indulge in any corrupt practices
or unlawful activities.

Responsibility towards the Community

Promoting social and cultural values.
Generating employment opportunities
Contribution
towards the upliftment of
weaker sections.
Protecting
the physical and ecological
environment of the society.
Contribution to the community development
programmes like public health care, sports,
cultural programmes.

Responsibility towards the Suppliers

Payment should be made promptly.
Responsibility towards the Financiers
Prompt payment of interest and repayment of
principal amount.

Business Ethics

What is meant by Ethics

Probable answers
"Ethics has to do with what my feelings tell me
is right or wrong."
"Ethics has to do with my religious beliefs."
"Being ethical is doing what the law requires."
"Ethics consists of the standards of behavior
our society accepts."
"I don't know what the word means."
The meaning of "ethics" is hard to pin down, and the
views that people have about ethics are different.

Meaning of Ethics
Ethics originated from the Greek word ethos
Culture prevalent behaviour in the society.
Character, conduct and activities of the people based
on moral principles / values.
It is concerned with what is right and what is wrong
in human behaviour on the basis of standard
behaviour or conduct accepted by the society.
honesty,
truthfulness,
compassion,
sympathy,
feeling of brotherhood etc.

Ethics is about voluntarily conforming to what is

good/acceptable/desirable behaviour without the force
of any legal/social obligation.
Choosing to do some thing that is not mandated by
the law or not doing some thing that is permitted by
the law but may cause harm to some one.
Ethics can result from
Religion
Philosophy
Family teachings
Social value

Theories of Ethics
Utilitarian Theory
Plans and actions of the business should be
evaluated by their consequences.
Basic Rights Theory
Functions / activities of the business must
not violate basic rights.
Theory of Justice
Business decisions must guided by fairness,
equity and impartiality to ensure justice.

Business Ethics

Business ethics are the moral principles, which

guide the behaviour of businessmen or business
activities in relation to the society.
It provides certain code of conduct to carry on
the business in a morally justified manner.
Doing
what's right in relationship with
stakeholders.
Normal principles and standards that define
right and wrong behavior in the world of
business.
What is right and wrong is determined by public
interest groups/ business organizations.

Elements of Business Ethics

High Business Value
Ethical evaluation of Management Decision
Adoption of fair means to achieve objectives
Discharge Social Responsibilities
Keeping Promise
Upholding Cultural & Religious value of society
Ethical Co operation

Ethical Practices of Business

Avoiding Malpractices
Black-marketing,
Artificial high pricing,
Adulteration,
Cheating in weights and measures,
Secret kick backs to administrators and politicians
Selling of duplicate and harmful products,
Hoarding, etc.
Improving Customers' Confidence
Being honest and truthful about quality and
quantity of goods,
Charging fair prices.

Safeguarding Consumers' Rights

right to health and safety,
right to be informed,
right to choose,
right to be heard,
right to redress, etc.
Protecting the rights of
Employees
Shareholders
Suppliers, Financiers & Competitors
Encouraging Healthy Competition
Paying
taxes and discharging other
obligations promptly.

Broad Areas of Business Ethics

Managerial

Mischief

Illegal, unethical, or questionable practices

of individual managers or organizations.
Moral

Mazes

Ethical problems that managers must deal

with on a daily basis

Common Misconduct in Organizations

Misrepresenting hours worked

Employees lying to supervisors

Management lying to employees, customers, public etc.

Misuse of organizational assets

Lying on reports/falsifying records

Sexual harassment

Stealing/theft

Accepting or giving bribes or kickbacks

Withholding needed information from employees,

customers, vendors or public

Common Causes of Unethical Behavior

Pressure
Fear
Greed
Convenience
Following
Meeting

bosss directives

overly aggressive business/financial

objectives

 Helping

the organization survive

Meeting

schedule pressures

Rationalizing
Resisting

that others do it

competitive threats

Advancing

own career

Ethical Dilemma
Making decisions under stress or dealing
with complex issues that have no clear
indication of what is right or wrong.

Whistleblowers Reluctance
Didnt

believe action would be taken.

Feared

retaliation from management.

Didnt

trust confidentiality.

Feared

not being a team player.

Feared

retaliation from co-workers.

Didnt

know whom to contact.

Nobody

cares, why should I?

Ethical Tips for Organizations

Develop

a code of ethics.

Communicating

ethical codes from top-

bottom.
Treat

ethics as a process.

Create
Set

open lines of communication.

good examples.

Educate
Value

employees

forgiveness.

Benefits of Managing Ethics in the Workplace

Improves

society.

Maintains

a moral course in turbulent times.

Cultivates

employee teamwork, productivity,

morale and development.

Establishes
Promotes

values for quality management.

strong public image.

Ethical Tips for Individuals

Establish
Be

aware of ethical events.

Develop
Be

personal values.

critical thinking techniques.

reflective.

Make

it a priority every day.