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    Kanekio Shin
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    The document discusses the social function of business and the role of businesses in addressing poverty. It outlines that unethical business practices threaten society and provides examples like the Enron scandal. The document also explains the different reasons why businesses may act ethically, including legal, public image, pragmatic and moral reasons. Furthermore, it describes how businesses can help overcome poverty through increasing capital stock, technology, supporting small and micro businesses, and providing microfinance services to low-income groups.

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    The document discusses the social function of business and the role of businesses in addressing poverty. It outlines that unethical business practices threaten society and provides examples like the Enron scandal. The document also explains the different reasons why businesses may act ethically, including legal, public image, pragmatic and moral reasons. Furthermore, it describes how businesses can help overcome poverty through increasing capital stock, technology, supporting small and micro businesses, and providing microfinance services to low-income groups.

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    © All Rights Reserved
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    3 views1 page

    2 Social Function

    Uploaded by

    Kanekio Shin
    The document discusses the social function of business and the role of businesses in addressing poverty. It outlines that unethical business practices threaten society and provides examples like the Enron scandal. The document also explains the different reasons why businesses may act ethically, including legal, public image, pragmatic and moral reasons. Furthermore, it describes how businesses can help overcome poverty through increasing capital stock, technology, supporting small and micro businesses, and providing microfinance services to low-income groups.

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    of 1

    THE SOCIAL FUNCTION OF BUSINESS

    Business without ethics threatens the survival of human


    society.

    ENRON SCANDAL – energy company

    ACCOUNTING FRAUDS -market to market, shell


    companies

    4 main reason that may persuade a business to act


    ethically:

    1. legal reasons

    2. public image

    3. pragmatic reason/practical

    4. moral reason

    Busines role in poverty

    - Relative poverty – below the proverty threshold


    in a certain country or location
    - Absolute poverty – cannot meet the most basic
    need for food, shelter, clothing
    - 12,030 per month for a family of 5
    - 80 pesos per person/day

    Continuing extreme poverty in the midst of economic


    growth

    - Afflict significant parts of the populations


    - Failure of government
    - Cultural – discrimination

    Businesses’ Role in Overcoming the Poverty Trap

    - Highere capital sctock, greater specialization,


    more advanced technology, lower fertility rate
    - SME = 250 employees – conbtributes to
    economic growth and a tool to reduce poverty
    in developing countries
    - Microfinance – banking service for low income
    earners who have no access to finance services

    Areas of Business Most in need of ethical attention

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