session 2017-18

1(a) What Is Social Responsibility? Concept of CSR?

Social responsibility means that businesses, in addition to maximizing shareholder value, must
act in a manner that benefits society. Social responsibility has become increasingly important to
investors and consumers who seek investments that are not just profitable but also contribute to
the welfare of society and the environment. However, critics argue that the basic nature of
business does not consider society as a stakeholder. Embracing social responsibility can benefit
the prime directive: maximization of shareholder value.
 Companies can act responsibly in many ways, such as by promoting volunteering, making
changes that benefit the environment, and engaging in charitable giving.
 Consumers are more actively looking to buy goods and services from socially responsible
companies, hence impacting their profitability.
 Critics assert that practicing social responsibility is the opposite of why businesses exist.

Corporate social responsibility

Corporate social responsibility (CSR) is a company’s commitment to manage the social,

environmental and economic effects of its operations responsibly and in line with public
expectations. a self-regulating business model that helps a company be socially accountable to
itself, its stakeholders, and the public. By practicing corporate social responsibility, also called
corporate citizenship, companies can be conscious of the kind of impact they are having on all
aspects of society, including economic, social, and environmental. Through CSR programs,
philanthropy, and volunteer efforts, businesses can benefit society while boosting their brands. s
important as CSR is for the community, it is equally valuable for a company. CSR activities can
help forge a stronger bond between employees and corporations, boost morale, and aid both
employees and employers in feeling more connected to the world around them.

For a company to be socially responsible, it first needs to be accountable to itself and its
shareholders. Companies that adopt CSR programs have often grown their business to the point
where they can give back to society. Thus, CSR is typically a strategy that's implemented by
large corporations. After all, the more visible and successful a corporation is, the more
responsibility it has to set standards of ethical behavior for its peers, competition, and industry.

CSR activities may include:

 Company policies that insist on working with partners who follow ethical business
practices
 Reinvesting profits in health and safety or environmental programs
 Supporting charitable organizations in the communities where a company operates
 Promoting equal opportunities for men and women at the executive level

4 types of corporate responsibility your business can practice

Recognizing how important socially responsible efforts are to their customers, employees and
stakeholders, many companies focus on a few broad CSR categories, including: 

1. Environmental efforts: One primary focus of CSR is the environment. Businesses,

regardless of size, have large carbon footprints. Any steps a company can take to reduce
its footprint is considered good for both the company and society.

2. Philanthropy: Businesses can practice social responsibility by donating money, products

or services to social causes and nonprofits. Larger companies tend to have plentiful
resources that can benefit charities and local community programs; however, as a small
business, your efforts can make a big difference. If there is a specific charity or program
you have in mind, reach out to the organization and ask them about their specific needs
and whether a donation of money, time or perhaps your company's products would best
help them.

3. Ethical labor practices: By treating employees fairly and ethically, companies can
demonstrate CSR. This is especially true of businesses that operate in international
locations with labor laws that differ from those in the United States.

4. Volunteering: Participating in local causes or volunteering your time (and your staff's

time) in community events says a lot about a company's sincerity. By doing good deeds
without expecting anything in return, companies can express their concern (and support)
for specific issues and social causes.

1(B)Conventional morality and Ethical relativism

Preconventional

Throughout the preconventional level, a child’s sense of morality is externally controlled.

Children accept and believe the rules of authority figures, such as parents and teachers.  A child
with pre-conventional morality has not yet adopted or internalized society’s conventions
regarding what is right or wrong, but instead focuses largely on external consequences that
certain actions may bring.

Conventional

Throughout the conventional level, a child’s sense of morality is tied to personal and societal
relationships. Children continue to accept the rules of authority figures, but this is now due to
their belief that this is necessary to ensure positive relationships and societal order. Adherence to
rules and conventions is somewhat rigid during these stages, and a rule’s appropriateness or
fairness is seldom questioned.
Postconventional

Throughout the postconventional level, a person’s sense of morality is defined in terms of more
abstract principles and values. People now believe that some laws are unjust and should be
changed or eliminated. This level is marked by a growing realization that individuals are separate
entities from society and that individuals may disobey rules inconsistent with their own
principles. Post-conventional moralists live by their own ethical principles—principles that
typically include such basic human rights as life, liberty, and justice—and view rules as useful
but changeable mechanisms, rather than absolute dictates that must be obeyed without question.
Because post-conventional individuals elevate their own moral evaluation of a situation over
social conventions, their behavior, especially at stage six, can sometimes be confused with that
of those at the pre-conventional level. Some theorists have speculated that many people may
never reach this level of abstract moral reasoning.

Ethical relativism is the theory that holds that morality is relative to the norms of one's culture.
That is, whether an action is right or wrong depends on the moral norms of the society in which
it is practiced. The same action may be morally right in one society but be morally wrong in
another. For the ethical relativist, there are no universal moral standards -- standards that can be
universally applied to all peoples at all times. The only moral standards against which a society's
practices can be judged are its own. If ethical relativism is correct, there can be no common
framework for resolving moral disputes or for reaching agreement on ethical matters among
members of different societies.

1(C) Theories of CSR?

The present practice of corporate social responsibility (CSR) has been depicted and informed by
three CSR theories:

1. The stakeholder theory of CSR.

2. The business ethics theory of CSR.
3. And the shareholder value theory of CSR.

The stakeholder theory of CSR

Since the 1990s’ the stakeholder theory has become famous as a direct alternative and challenge
to the shareholder value theory (Freeman 1984). It argues that the number of stakeholder
pressure groups has developed widely since the 1960s’ and the stakeholder forces impact on
business must not be underestimated. Ethical and pragmatic as it ought to be business success
assume vast interests of stakeholders than the shareholder’s interest alone. The stakeholder
theory emphasizes special social rather than any others unrelated to the corporation. Thus CSR is
denoted as a company stakeholder responsibility.
Business ethics theory of CSR
The business ethics theory is based on wider social obligation and the moral duty that business
has towards society (Bigg, 2004). This theory justifies CSR on 3 varied but interrelated ethical
grounds:

1. Changing and emerging social responsiveness and social expectations to particular social
problems.
2. Eternal or intrinsic ethical values always inspired by Kantian ethics and denoted as some
normative and universal principles like social justice, fairness and human rights
3. Corporate citizenship i.e. corporation as a better citizen in a society to contribute to social
well being.

The business ethics theory views CSR more as philanthropic and ethical responsibilities rather
than legal and economic responsibilities. CSR initiates where legal obligation declines.

The shareholder value theory of CSR

The shareholder value theory a perspective denoted by the Nobel Laureate Milton Friedman
(1970) argues that only social responsibility of business is to develop its profits while following
legal norms. Neoclassical economists like Hayek assert that the function of business is doing
business that contributes to society and economy and its function must not be confused with
other social functions performed by not for profit organizations and governments. Otherwise, it
is not the most effective way of allocating resources in a free market. Economists like agency
theorists believe that the corporation owners are its managers and stakeholders as agents have a
fiduciary duty to serve the shareholders interest rather than any others.

2(a)Evolution of Corporate social responsibility?

While widespread adoption of CSR has been relatively recent, the concept itself has been around
for over a century. It has its roots in the late 1800s, when the rise of philanthropy combined with
deteriorating working conditions made some businesses reconsider their current production
models. Business tycoons began donating to community causes, and some business owners
(although somewhat reluctantly) reduced working hours and improved factory conditions, laying
the foundation of responsible corporations. 

The term “Corporate Social Responsibility,” however, was not coined until 1953, when
American economist Howard Bowen published Social Responsibilities of the Businessman. In
this book, Bowen identified the great power of corporations and recognized that their actions had
a tangible impact on society. Therefore, he argued, businessmen have an obligation to pursue
policies that are beneficial for the common good.  
How has corporate social responsibility evolved over the last
20 years
It’s like night and day. There were clearly some companies doing this work in the past, but so
many things have changed since then. Technology has changed. Product offerings have changed.
Transparency or the ability for the external world to see what’s going on behind the scenes at a
company has changed. As a result, companies have really shifted their focus from being good
corporate citizens to measuring impact. How many kids have we touched? How many dollars
have we given? How many things have we cleaned up? These are activity measures. What
leading companies are doing today is seeking to measure outcomes – both the business bottom
line and in society.

2(B) pros and cons of CSR.

Merits of Corporate Social Responsibility

 It helps maintain the company reputation
 It boosts value and profitability
 It keeps the employees motivated
 Draws in new financiers
 Better customer relations
 Helps draw in the prospective employees

Demerits of Corporate Social Responsibility

 It requires a higher expenditure
 It can result in investor’s resistance
 This leads to impatience among consumers
 results in greenwashing

PRINCIPLES OF PERSONAL ETHICS

Personal values are the conception of what an individual or a group regards as desirable.
Personal ethics refer to the application of these values in everything one does. Personal ethics
might also be called morality, since they reflect general expectations of any person in any
society, acting in any capacity. These are the principles we try to instill in our children, and
expect of one another without needing to articulate the expectation or formalize it in any way.2
The principles of personal ethics are:
  Concern and respect for the autonomy of others.
 Honesty and the willingness to comply with the law.
 Fairness and the ability not to take undue advantage of others.
 Benevolence and preventing harm to any creature. ...

3(a) who constitutes the ethical code of organization

A business code of ethics is a series of established principles an organization uses when

operating in business or society. Organizations often develop these codes to ensure that all
individuals working in the company operate according to the same standards. Most individuals
have an internal code of ethics or moral principles they follow in life. A situation one individual
finds ethically reprehensible may not seem so to another individual. Using a code of ethics in
business attempts to create a basic understanding of acceptable ethical behavior to be used when
handling situations involving the company, government agencies and the general public.

 Business Owner
 Organizational Mission
 Society or Culture

requirements for constituting code of Ethics

Policy brief & purpose

Our professional code of ethics policy aims to give our employees guidelines on our business
ethics and stance on various controversial matters. We trust you to use your better judgment, but
we want to provide you with a concrete guide you can fall back on if you’re unsure about how
you should act (e.g. in cases of conflict of interest). We will also use this policy to outline the
consequences of violating our business code of ethics.

Scope

This policy applies to everyone we employ or have business relations with. This includes
individual people such as employees, interns, volunteers, but also business entities, such as
vendors, enterprise customers or venture capital companies.

The components of our code of ethics:

 Respect for others. Treat people as you want to be treated.
 Integrity and honesty. Tell the truth and avoid any wrongdoing to the best of your ability.
 Justice. Make sure you’re objective and fair and don’t disadvantage others.
 Lawfulness. Know and follow the law – always.
 Competence and accountability. Work hard and be responsible for your work.
 Teamwork. Collaborate and ask for help.

4(a) what is compliance and compliance management.

Compliance is the state of being in accordance with established guidelines or specifications, or
the process of becoming so. Software, for example, may be developed in compliance with
specifications created by a standards body, and then deployed by user organizations in
compliance with a vendor's licensing agreement. The definition of compliance can also
encompass efforts to ensure that organizations are abiding by both industry regulations and
government legislation.
Compliance is a prevalent business concern, partly because of an ever-increasing number of
regulations that require companies to be vigilant about maintaining a full understanding of their
regulatory requirements for compliance. To adhere to compliance standards, an organization
must follow requirements or regulations imposed by either itself or government legislation.

What is compliance management?

Compliance management is the continual process of monitoring and assessing organizational

systems to ensure they comply with security standards, regulatory policies, and other industry
requirements. Maintaining compliance falls on the shoulders of everyone within the
organization. Of course their knowledge and understanding should directly correlate with their
role, but all employees should be equipped with a strong understanding of how to adhere to
compliance standards in order to ensure data security and smooth business processes.

4(b) aspects of sustainable development

6(a) What is an Ethical Dilemma?

An ethical dilemma (ethical paradox or moral dilemma) is a problem in the decision-making
process between two possible options, neither of which is absolutely acceptable from an ethical
perspective. Although we face many ethical and moral problems in our lives, most of them come
with relatively straightforward solutions.

corporate governance is the system by which companies are directed and controlled. Boards of
directors are responsible for the governance of their companies. The shareholders’ role in
governance is to appoint the directors and the auditors and to satisfy themselves that an
appropriate governance structure is in place.
ethical issues faced by Information Technology (IT) are:
1. Personal Privacy

2. Access Right

3. Harmful Actions

4. Patents

5. Copyright

6. Trade Secrets

7. Liability

8. Piracy