1. CORPORATE SOCIAL RESPONSIBILITY 2. SOCIAL AUDIT 3. ETHICS AND GOVERNMENT 4.

INTERNATIONAL BUSINESS ETHICS

CORPORATE SOCIAL RESPONSIBILITY CSR

Corporate social responsibility (CSR, also called corporate conscience, corporate citizenship, social performance, or sustainable responsible business) is a form of corporate self-regulation integrated into a business model. CSR policy functions as a built-in, selfregulating mechanism whereby business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms.

The term "corporate social responsibility" came in to common use in the late 1960's and early 1970's, after many multinational corporations formed CSR is titled to aid an organization's mission as well as a guide to what the company stands for and will uphold to its consumers

ISO 26000 is the recognized international standard for CSR (currently a Draft International Standard).

Preliminary definitions of CSR

The impact of a companys actions on society Corporate social responsibility (CSR) is the process by which businesses negotiate their role in society Although the two are linked in most firms, CSR activities are no guarantee of ethical behavior

Corporate Citizenship Concepts

Corporate social responsiveness emphasizes action, activity Corporate social performance emphasizes outcomes, reCorporate social responsibility emphasizes obligation and accountability to society sults

CSR in Equation Form Is the Sum of:

Economic Responsibilities (Make a profit) Legal Responsibilities (Obey the law) Ethical Responsibilities (Be ethical) Philanthropic Responsibilities (Good corporate citizen)

Ways Companies Integrate Ethics

Company codes of ethics Supply chain codes Develop, monitor, enforce ethical behavior Seek external assistance

Four Challenges to a Global Ethics

Global

rules may be viewed as an end rather than a beginning Rules can depress innovation and creativity Rules are static but globalization is dynamic

SOCIAL AUDITING The concept of a social audit was formed much earlier in the 1940s.

A social audit is a process in which the people work with the government to monitor and evaluate the planning and implementation of a scheme or programme, or indeed of a policy or law.

Social audit - conducted jointly by the government and the people, especially by those people who are affected by, or are the intended beneficiaries of, the scheme being audited.

Social Auditing is a management tool and accountability mechanism which can enhance an organizations capacity to:

Evaluate their impact on stakeholders Determine how well they are living up to the values they espouse. Improve their strategic planning process by identifying potential problems before they come up; and Increase their accountability to the groups they serve and depend on. To permit the enterprise to effectively monitor performance.

A social audit is a systematic assessment of a firms objectives, strategies, and performance in terms of social responsibility. The social audit may be performed routinely by internal or external consulting groups, as part of regular internal audits. These evaluations consider social and environmental impacts of business activities.

The Scope of a Social Audit

A social audit is conducted over the life span of a scheme or programme, and not just in one go or at one stage. It audits the process, the outputs and the outcome. It audits planning, implementation, monitoring and evaluation.

Benefits of Social Audit

Reduction of corruption. Increased effectiveness of a program or project or scheme. Benefits reach the people. Government becomes more responsible and accountable. Power in hands of the public.

III. ETHICS & GOVERNMENT

ETHICS IN INTERNATIONAL BUSINESS

18

www.worldassemblyforethics.org

Multiethics
19

As we are Multilingual, So we are multiethnic And as we are Multiethnic, so we are multiethical.

www.worldassemblyforethics.org

Ethical Issues in International Business

20

EMPLOYMENT PRACTICES
Work conditions: hot weather around toxic chemicals - # of hours and pay salaries in developing countries.

HUMAN RIGHTS
Freedom is not universally accepted. South Africa white rule until 1994 investment in China corporate downsizing, punitive actions against "whistleblowers,"
www.worldassemblyforethics.org

Ethical Issues in International Business

21

ENVIRONMENTAL POLLUTION
The emission of pollutants, the dumping of toxic chemicals Amoral management might move production to a developing nation precisely because costly pollution controls are not required. No one owns the atmosphere or the oceans, but polluting both, no matter where the pollution originates, harms all.

www.worldassemblyforethics.org

Ethical Issues in International Business

22

CORRUPTION
Economic advantages by making payments to corrupted government officials. $12.5 million payment to Japanese agents and government officials

MORAL OBLIGATIONS
BP, one of oil companies, has made social investments in Algeria, the desert town of Salah. it built two desalination plants to provide drinking water for the local

Ethical Dilemmas
in a poor nation, a 12-yearold girl works in a factory.

www.worldassemblyforethics.org

Nike code of ethics with subcontractors

23

behaving ethically required going beyond the requirements of the law.

establishment and enforcement of rules that adhere to accepted moral principles of right and wrong.

www.worldassemblyforethics.org

Recommendations
24

We have to find effective policies to: counter corruption, reduce greed and self-centeredness, encourage honor and honesty, promote parental guidance to establish a sense of values, encourage respect for legitimate authority, support the identification and success of the influence of role models, implement cost-effective strategies for global education for a more enlightened world, and find ways to make behavior match the values people say they believe in.

www.worldassemblyforethics.org

25

www.worldassemblyforethics.org