ETHICS & RESPONSIBILITY

CORPORATE SOCIAL
RESPONSIBILITY
 FOCUSES ON WHAT AN
ORGANIZATION DOES THAT
AFFECTS THE SOCIETY IN WHICH
IT EXISTS.
Eg: SAIL ( VISION IN 1960’s -
EMPLOYMENT TO MANY)
 ETHICS
 BROADLY AND SIMPLY AS THE
STUDY OF HOW OUR DECISIONS
AFFECT OTHER PEOPLE.
 STUDY OF PEOPLE’S RIGHTS AND
DUTIES ,THE MORAL RULES THAT
PEOPLE APPLY TO MAKE
DECISIONS.
 ETHICS AND SOCIAL
RESPONSIBILTY TODAY
 BASICALLY QUALITY OF OUR
RELATIONSHIP OVERTIME.
 UTI SCANDAL (PUBLIC FUND)
 HARSHAT MEHTA’S STOCK
SCANDAL (SHARE HOLDERS
INTEREST)
 TIRUPUR TEXTILE PROBLEM
 KANPUR TANNERY PROBLEM
THE CHANGING CONCEPT OF
SOCIAL RESPONSIBILITY
 IN USA - GOVT REGULATIONS
CREATED IN THE WAKE OF GREAT
DEPRESSION IN 1930.
1960 - CIVIL RIGHTS
1970 - CONSUMER MOVEMENTS
 IN INDIA
- PRE INDEPENDENT ERA
- AGRICULTURAL REFORM(1950)
- INDUSTRIAL REFORM(1960)
(FACTORIES ACT)
- NATIONALIZATION (1970)
- SWADESHI MOVEMENT(1980)
- FOREIGN DIRECT INVESTMENT
(PRESENT) & GLOBALISATION
 CHARITY PRINCIPLE
MORE FORTUNATE TO ASSIST
LESS FORTUNATE
 STEWARDSHIP PRINCIPLE
WEALTHY INDIVIDUALS TO TAKE

CARE OF THEIR OWN PROPERTY

 CORPORATE SOCIAL
RESPONSIBILITY
 A THEORY OF SOCIAL
REPSONSIBILTY FOCUSES ON ‘
HOW COMPANY RESPONSES TO
ISSUES’, RATHER THAN TRYING TO
DETERMINE THEIR ULTIMATE
SOCIAL RESPONSIBILITY
 KEITH DAVIS ENLIGHTENED
SELF-INTEREST
ORGANISATION IN ENLIGHTENED
SELF-INTEREST TO BE SOCAILLY
RESPONSIBLE
 CORPORATE SOCIAL
PERFORMANCE
 A SINGLE THEORY OF CORPORATE
SOCIAL ACTION ENCOMPASSING “SOCIAL
PRINCIPLES PROCESSES & POLICIES”
eg: FREE ENTERPRISE - AN ECONOMIC
PRINCIPLE
THE PUBLIC’S RIGHT TO SAFE
WORKPLACE- A LEGAL PRINCIPLE
 EQUAL EMPLOYMENT OPPORTUNITY
- AN ETHICAL PRINCIPLE
TOGETHER THESE PRINCIPLES
CREATE A “SOCIAL CONTRACT “
BETWEEN BUSINESS AND SOCIETY
( SOCIETY IS THAT WHICH ALLOWS
COMPANY TO ACT AS MORALE
AGENT)
INDIVIDUAL COMPANY DECISIONS/
POLICiES CAN REFLECT ONE OF THE
ERROR IN ACCEPTANCE OF SOCIAL
ISSUES -
• REACTIVE
• DEFENSIVE
• ACCOMADATIVE
• PROACTIVE
FOUR LEVELS OF ETHICAL
QUESTIONS IN BUSINESS
 SOCIETAL
 STAKE HOLDER
 INTERNAL POLICY
 PERSONAL

( HOW PEOPLE SHOULD TREAT

ONE ANOTHER)
 TOOLS OF ETHICS
 VALUES
 RIGHTS AND DUTIES
 MORAL RULES
 HUMAN RELATIONSHIPS
 THE MORALITY OF CARE

Cont…….
 COMMON MORALITY
 PROMISE KEEPING
 NON MELEVOLENCE
 MUTUAL AID
 RESPECT FOR PERSONS
 RESPECT FOR PROPERTY
 APPLYING ETHICS
 INSTITUTIONALIZING ETHICS
SOCIAL AUDITS
 THE CHALLENGE OF RELATIVISM
• MORALE RELATIVISM
• NAIVE RELATIVISM
• CULTURAL RELATIVISM