SOCIAL RESPONSIBILITIES AND ETHICS OF BUSINESS

Swapna Priya .R.R Mariammal . V Srinivasan . M

CONTENTS 1
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Introduction to Social Responsibility SR towards different Interest Groups

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Role of business towards Environmental Pollution Ethics of Business

Case Study

Why we need Social Responsibility in Business?

CONCEPT

What is the aim of every business ?

- To make profit

How do they make profit ?

- Society pays them for using their products or services

What a business can pay them back?

- Being socially responsible

SOCIAL RESPONSIBILITY ?
The Obligation of any Business to protect and serve public interest is known as Social Responsibility of Business

ACT OF SOCIAL RESPONSIBILITY

Some of the general Social Responsibilities of Business

Research for improving the quality

Provide necessities & healthcare to their employees

Sponsor games

Satisfactory rate of return to investors

Provide good salary, security and proper working condition to its employees

Make available quality products at reasonable price to its consumers

Maintain the environment properly

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How a Social Responsibility must be ?

CHARACTERISTICS

Social Responsibility is not Charity

Donating money to schools, orphanages, hospitals is not act of Social Responsibility

It must not be good for somebody and bad for others

Earning through smuggling or drug dealing and using the money to build a hospital is not Social Responsibility

WHY SOCIAL RESPONSIBILITY ? Public Image

Government Regulation
Survival and Growth Employee satisfaction Consumer Awareness
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INTEREST GROUPS OF BUSINESS

Competitors Suppliers Society

Customers

Business

Owners

Government
Investors

Employees

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RESPONSIBILITY TOWARDS OWNERS

Persons who contribute capital and bear the risks

Run the business efficiently Proper utilisation of capital and other resources Growth and appreciation of capital Regular and fair return on capital invested
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Those who provide finance by way of investment in debentures, bonds, deposits etc

RESPONSIBILITY TOWARDS INVESTORS

Ensuring safety of their investment Regular payment of interest Timely repayment of principal amount
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RESPONSIBILITY TOWARDS SUPPLIERS

Giving regular orders for purchase of goods.

Dealing on fair terms and conditions

Availing reasonable credit period Timely payment of dues
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RESPONSIBILITY TOWARDS CUSTOMERS

Products and services must be able to take care of the needs of the customers Products and services must be qualitative There must be regularity in supply of goods and services Price of the goods and services should be reasonable and affordable
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Contd
Let the customers know the product There must be proper after-sales service Grievances of the consumers, if any, must be settled quickly Under weighing the product, adulteration, etc. must be avoided
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RESPONSIBILITY TOWARDS COMPETITORS

Not to offer exceptionally high sales commission to distributers, agents etc Not to offer to customers heavy discounts and /or free products in every sale

Not to defame competitors through false or ambiguous advertisements

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RESPONSIBILITY TOWARDS EMPLOYEES

Timely and regular payment of wages and salaries Opportunity for better career prospects

Job security as well as social security Better living conditions like housing, transport, canteen, crches Timely training and development
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RESPONSIBILITY TOWARDS GOVERNMENT

Payment of fees, duties and taxes regularly as well as honestly Not to indulge in monopolistic and restrictive trade practices Conforming to pollution control norms set up by government Not to indulge in corruption through bribing and other unlawful activities
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RESPONSIBILITY TOWARDS SOCIETY

To help the weaker and backward sections of the society To preserve and promote social and cultural values To generate employment
To conserve natural resources and wildlife
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Contd

To promote sports and culture To support developmental research on education, medical science and technology

To protect the environment

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WHAT IS ETHICS?
The code of moral principles and values that govern the behaviors of a person or group with respect to what is right or wrong.

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DOMAINS OF HUMAN ACTION

Domain of Certified Law

(Legal Standard)

Domain of Ethics (Social Standard)

Domain of Free Choice (Personal Standard)

Amount of Explicit Control Low

High

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ETHICAL DILEMA
A situation that arises when all alternative choices or behaviors have been deemed undesirable.

Potentially negative ethical consequences, making it difficult to distinguish right from wrong.

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CRITERIA FOR MAKING ETHICAL DECISION

A conflict between needs of the part & whole The individual versus the organization The organization versus society as a whole
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IN MAKING ETHICAL DECISIONS

CONSIDERATIONS

Utilitarian Approach Individualism Approach Moral-Rights Approach Justice Approach

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UTILITARIAN APPROACH
Moral behavior produces the greatest good for the greatest number. Computations can be very complex, simplifying them is considered appropriate.
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INDIVIDUALISM APPROACH
Acts are moral when they promote the individual's best long-term interests Individualism is believed to lead to honesty & integrity since that works best in the long run.
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MORAL-RIGHTS APPROACH

Moral decisions are those that best maintain the rights of those people affected by them.

An ethical decision is one that avoids interfering with the fundamental rights of others.
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JUSTICE APPROACH

Moral Decisions must be based on standards of equity, fairness, and impartiality

Treatment of individuals should not be based on arbitrary characteristics

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POLLUTION
Pollution simply means presence of any unwanted substance that creates inconvenience in the natural behavior of living and non-living matter.

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POLLUTION BY BUSINESS
Emission of gas and smoke from manufacturing plants Use of machines, vehicles etc. contributing to noise pollution

Disposal of solid wastes in the open space

Mining and quarrying activities

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Contd
Deforestation due to acquisition of forest lands for setting up plants Growth of urbanization and industrialization

Disposal of wastes and effluents into rivers and canals

Increasing use of transport

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OZONE LAYER DEPLETION

Gene Mutation Genetic Effects Skin Cancer
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GLOBAL WARMING
Heat is not radiated back Temperature increases Natural resources extinct
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ACID RAIN
Poisonous gases in rain Damages vegetation

Damages buildings

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POLLUTED YAMUNA
Dumping garbage & dead bodies Scarcity of drinking water Yellowing of Taj Mahal
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BHOPAL GAS TRAGEDY

The Bhopal disaster also known as Bhopal Gas Tragedy was a gas leak accident in India, considered as one of the world's worst industrial disasters.

It occurred on the night of December 23, 1984 at the Union Carbide India Limited (UCIL) pesticide plant in Bhopal, Madhya Pradesh.

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