Business Ethics and Social Responsibility

Business Ethics
The value of what should be

done and what should not be done from the business point of view

Ethical issues for business

Product safety standards Advertising contents Working environment Unauthorized payments Employees privacy Environmental issues

Genesis of Ethics
Ethics is a Greek

or manners# ob$ective#

ord! it means "haracter hile morality is

Ethics is sub$ective

Ethics is about sense of belongingness to

society of business# %ormed ith a limited vision for economic generation but should resolve conflict ith society by servicing the community#

&' of Ethics#
UNITARIAN VIEW OF ETHICS

Business is a part of moral structure and moral ethics#

SEPARATISTS VIEWS OF ETHICS

(orality and ethics has no role in business# )ociety and la deals ith ethics and morality#
INTEGRATED VIEW OF ETHICS

Ethical behavior and business should be integrated in a ne era called Business Ethics#

*ntegration +ie of Ethics#

G-+E./(E/0 1AW

Business#

(orality , ethics

(arket system

BUSINESS ETHICS

)-"*E02

Ethical "onsciousness
)tage 3 corporate citizenship )tage 4 )take holder concept )tage 5 Profit (a6imization in the long term )tage & Profit (a6imization *n the short term# )tage 7 Anything for Profit )tage 8 9ungle 1a
Ethical standards +ary bet een cultures And countries# (ore evident %rom :amongst Entrepreneurs: "orporations#

1ong term profitability and Attractiveness of -rgn *s key to competitive strategy Both attractiveness , competitive Position can be shaped i#e# challenging and e6citing

Ethics in Business
0 o domains -+E.0 approach E6ternal theft Bribery etc#! "-+E.0 approach *nternal (erger , Ac;uisitions# *nsider 0rading#

Ethics 'ilemma#< Pricing! advertising! promotion! Working condition! customer service! Work force reduction=s !environment "ommunity relations! supplier relations# *mportant of trust >empathy? maturity in relationship

Ethics and morality

Ethics is about field or domain of en;uiry

morality is the ob$ect of en;uiry# Ethics or behavior accepted ith in a group is recorded as credos@ espoused value of group:-rgn# When espoused value become practiced values! then the group is said to be ethical -rganisation#

hile

Ethical theories can be classified into three sub$ect areasA< (eta ethics /ormative ethics Applied ethics#

'etails of & Ethical theories

(eta Ethics

'eals ith entire gamut of ethical issuesA< moral values e6ists independent of humans @psychological issues that deals ith psychological basis of the moral actions and linguistic issues dealing ith moral terms< reflect on reactions on photo at UB deities and others# Belief system! tradition< Bentucky launching chicken product at Bangalore#

'etails of & Ethical theories

Applied EthicsA<

'eals ith ethics dealing ith Euthanasia! TERRI SCHIAVO FLORIDA omenCC< female feticide and infanticide! displacement of tribal people due to hydel po er pro$ects! cloning! testing drugs on animals

'etails of & Ethical theories

/ormative theories<Business ethics#
0hat hich guides and controls human conduct# )ets out certain standards that determine hat is right and hat is rong# Golden principle behind this @ WE SHOULD TREAT OTHERS THE SAME WAY THAT WE WANT OTHERS TO TREAT USD 0here are 0hree leading theories of /ormative ethics< 8# )0-"B E-1'E.) 0EE-.2 7# )0ABE E-1'E.) 0EE-.2 &# )-"*A1 "-/0.A"0 0EE-.2

E0E*") A/' "-.P-.A0E G-+E./A/"E

'eals

ith determination hat is Fright=!G fair! prior and $ustG in decisions and actions made that affect stake holders# *t focuses on the business relationship ith employees! customers! stockholders! creditors! suppliers and member of the society in hich it operates#

"orporate ethics ! is a a matter of leadership# Adhere to corporate credos<code of conduct# 'evelopment of *H!EH and )H culture#

/ABA.'! Bank of *ndia! BP"1

/abard helps 8I8 million poor people through micro finance program!

providing access to credit# 9oint liability groups>91G?< rythu mitra program< credit access to landless farmer=s agri laborers! empo ers omen ith micro credit! micro enterprise! created special funds for ater shed development! Partnering ith corporate like *0"! 0atas! ( and (! ambu$a cements etc! many more# BP"1 provides alternate source of energy! solar energy for street lights at villages! skill enhancement on modern farming practices! distributes smokless chulas! training for income generation pro$ects# Bank of *ndia! focuses on belo poverty line! adopted 8I8 villages #makes use of four ( ith /G- for various services#
/e

orld is outsourcing ould# Anything done most efficiently cost effectively can be done by someone else## /G- have to develop ne tie up ith corporate to align themselves to meet the changing needs of society## "orporate have f und of .s# 8 laks crores for "). in *ndia alone# /ot to speak of 0ransnational corporation /et orking of /Gand development of search engines for various relevant social pro$ects is the need of the hour# #

5 (< "). "orporate

(any of the philanthropist activities are not monitored or measured# Unlike "orporate ").# %our ( of corporate social responsibility taken up By corporate has inbuilt 5 ( (eaningful! pro$ects (anaging the pro$ects (onitor pro$ects (easure pro$ects Bank of *ndia does check /G-s ho they operate Effectively and efficiency# /early rs 8 lak crores of fund Available ith corporate for "). activities#