Social Responsibility and

Ethical Issues in
International Business

Dr. Harish Purohit

 Social responsibility
•
Also, known as corporate social
responsibility (CSR) refers to the
obligation of decision-makers to take
actions that protect and improve the
welfare of employees, employers and all
others.
 Social responsibility.. Differs
from Charity
•
Charity or philanthropy advocates that a
wealthy man should be bountiful to the
poor and undertake activities like poor
feeding, construction of places of worship
and the like. End use of charity is not
monitored.
 Social responsibility.. Differs
from Charity
•
CSR has reciprocal benefits. CSR benefits
society and society benefits business.
CSR is on-going and endure is monitored.
 Business ethics
•
refers to the application of moral principles
to business
 Why is ethics important?
•
Corresponds to base human needs
•
Credibility with public
•
Management credibility with employees
•
Better decision making
•
And profit go together
•
Protects society though law cannot
 Difficulties in ethical decision
making
•
Dilemmas confront decision makes
•
Facts and values clash
•
Good and evil co-exist
•
Knowledge about the consequences of an
action is limited
•
Incompatible ethical arguments to justify
unethical actions
 Difficulties in ethical decision
making
•
Ethical standards vary with the passage of
time
•
Ethical behaviour is moulded from the clay
of human imperfection
•
Contemporary issues demand a totally
new theory – yet to emerge
Evolving idea of CSR
Pros and Cons of CSR
Money spent on CSR..
Pressures leading to CSR..
CSR and international business
CSR and international business
Limits of Social Responsibility…
Sources of Business Ethics…
Managing Ethics…
Means to promote Ethical
conduct…
Decision flow chart for a MNC
Porter’s diamond of
competitiveness
 True/false statements…

1. CSR is a fad. Social actions are undertaken

to satisfy NGO’s and to avoid watchful eyes of
regulatory bodies (F)

2. CSR and charity are synonymous so far as

the objectives are concerned (F)

3. CSR and profits are not incompatible (T)

 Fill in the blanks …

1. Institutionalization of a
new social policy refers
to _____ stage
 Fill in the blanks …

4. The theory that states

that business can be
amoral is called _____