Social Responsibility and Ethical Behavior

1. We discussed that social responsibility covers all types of organizations and has
greater media coverage and faster reporting. E.g., of social responsibility getting
highlighted is the agitation of farmers against reliance power

2. Corporate social responsibility is seriously considering companies actions on the

society. It is the ability of a corporation to relate its operations and policies to the social
environment in ways that are mutually beneficial to the company and to society.
In Corporate social responsibility a Company must be pro-active rather than re-active.

3. The Company must not take social responsibility as if something is forced on them
but they should voluntarily do it.

4 Many companies today support Ngo’s to show that they have a social responsibility

5 We also studied about the pressures of stake holders on the Company as they have
interest rights and ownership in an organization and its activities.

5. There are different stake holders like employees, customers, suppliers, shareholders.
While fulfilling their demands there should be proper decision-making,. e.g. an employee
is looking for higher pay while a shareholder is looking for good returns.

6 We also studied about whistle blowing where employee complains to the regulatory
body about some unethical practices done by his organization
Eg An employee who is working for a stock broking company may complain about
insider trading practices done in his organization
Eg We also seen an of Mr dube who blew the whistle against the authorities who
used to claim bills but the work of construction of the road was not completed

7 We also discussed a case study of Microsoft who used to not allow the its
competetitors to grow.
We have seen that Microsoft created a monopoly by adding other services in windows
which was a major part of other companies.
Eg In polycom Video Conferencing was one of the specialization, Microsoft bundled
Video conferencing with Windows in directly affecting polycom.
Microsoft has killed many smaller companies.
Because of this Microsoft has been taken to court by the other companies who have got
affected by it .
8 We also studied the reliance example.

9. We also studied social audit which is a systematic assessment of and reporting of the
companies activities which have a that have a social impact.

10. We also discussed about the Basis of Ethical Judgements

a) Utilitarian approach
b) Moral rights approach
c) Justice approach

11) Factors Shaping Ethical Conduct

a) Cultural Forces
b) Legal and Regulatory Forces
c) Organizational Forces
d ) Individual Forces

Eg of code of ethics in a government servant

1 Put loyalty to the highest Moral principals
2 Make no private promises
3 Expose corruption
4 Do not use govt information for private purpose.
5 Give a full day’s Labour for a full day’s pay.

12 ) Example from the internet

Corporate Social Responsibility has always
been an integral part of the Mahindra
Group's vision and the cornerstone of our
Core Value of Good Corporate Citizenship.
- Keshub Mahindra, Chairman

The Mahindra Group defines Corporate

Social Responsibility as making socially
responsible products, engaging in
socially responsible employee relations
and making a commitment to the
community around it. At the Mahindra
Group, Corporate Social Responsibility
is not just a duty; it's a way of life.

In 2005, the Group celebrated its 60th

anniversary by renewing its commitment
to Corporate Social Responsibility. It
pledged to dedicate 1% of its profit (after
tax), on a continuous basis towards
Corporate Social Responsibility. A
unique kind of ESOPs - Employee
Social Options was launched to enable
Mahindra employees to involve
themselves in socially responsible
activities of their choice. The Group also
announced a special gift: to provide free
cochlear implants to 60 profoundly
hearing-impaired, under-privileged
children.

In addition to giving impetus to the

Nanhi Kali project for the girl child
and the Mahindra All India Talent
Scholarship for the economically
disadvantaged, the Mahindra Group is
planning to set up two Mahindra Pride
Schools. These schools will offer a
variety of courses, with an emphasis on
employability, including training for
Information Technology, Retail,
Automotive Engineering etc. They will
provide new skills and capabilities to the
weaker sections of society, particularly
the scheduled castes and scheduled
tribe youth. While these projects are
already underway, plans for more social
initiatives are on the anvil.