ETHICS &

SOCIAL
RESPONSIBLITIE
S
Have you heard
about a group of blind
men from “Indostan”?
So these men from Indostan
disputed loud and long each in
his own opinion. Exceedingly stiff
and strong: Though each was
partly in the right and all are in
the wrong!.... ( Saxe, 1986)
Trying to describe ethics is similar
to the blind men describing the
elephant on how we approach
the question and our own system
of values, we can come up with
different answers.
What is ethics?
 “ETHICS”COMES FROM GREEK WORD
ETHOS, MEANING CHARACTER, OR “ A
CHARACTERISTIC WAY OF ACTING.”
 “MORALITY” COMES FROM THE LATIN
WORD MORALIS, MEANING CUSTOMS
OR MANNERS.
Ethics is a set of moral principles and
values that we use to answer questions
of right and wrong. Ethics can also be
defined as the study of the general
nature of morals and of the moral
choices made by individuals in their
relationship with others.
ETHICAL RELATIVISM-

OUR CHOICES ARE BASED ON WHAT

SEEMS REASONABLE OR LOGICAL TO US
ACCORDING TO OUR PERSONAL VALUE
SYSTEM, IT CASTS ETHICS IN THE ROLE OF
BEING RELATIVE TO WHAT THE SITUATION IS
OR HOW WE FEEL ABOUT IT.
WHAT IS BUSINESS
ETHICS?
BUSINESS ETHICS OR CORPORATE ETHICS –

REFERS TO CONTEMPORARY STANDARDS OR SETS OF

VALUES THAT GOVERN THE ACTIONS AND BEHAVIOR OF AN
INDIVIDUAL IN THE BUSINESS ORGANIZATION.

IT IS A FORM OF APPLIED ETHICS OR PROFESSIONAL ETHICS

THAT EXAMINES ETHICAL PRINCIPLES AND MORAL OR ETHICAL
PROBLEMS THAT ARISE IN BUSINESS ENVIRONMENT. IT APPLIES TO
ALL ASPECTS OF BUSINESS CONDUCT AND IS RELEVANT TO THE
CONDUCT OF INDIVIDUALS AND ENTIRE ORGANIZATIONS.
WHAT IS SOCIAL
RESPONSIBILITY?
-LIKE ETHICS, MEANS DISTINGUISHING RIGHT FROM WRONG
AND DOING RIGHT.

LEADERSHIP MOVES ONE STEP FORWARD AND THAT IS

CREATING A SENSE OF MISSION THAN OTHER COMPANIES.
CERTAINLY NOT FOR PROFIT ALONE, BUT A CLEAR GOAL THAT
ATTRACTS MANY PEOPLE TO BELONG TO AN ENTERPRISE IN THE
FIRST PLACE. MANY CALL THIS MISSION THE CORPORATE SOCIAL
RESPONSIBILITY OR CSR

CSR IS MANAGEMENT’S OBLIGATIONS TO MAKE CHOICES AND

TAKE ACTIONS THAT WILL CONTRIBUTE TO THE WELFARE AND
INTERESTS OF SOCIETY AS WELL AS LTHE ORGANIZATION.
SOCIAL RESPONSIBILITY IS AN ETHICAL FRAMEWORK
WHICH SUGGESTS THAT AN ENTITY, BE IT AN ORGANIZATION OR
INDIVIDUAL, HAS AN OBLIGATION TO ACT FOR THE BENEFIT OF
SOCIETY AT LARGE.

THE SOCIAL CONTRACT- A SET OF GENERALLY

ACCEPTED RELATIONSHIPS, OBLIGATIONS, AND DUTIES
BETWEEN THE MAJOR INSTITUTIONS AND THE PEOPLE.
PHILOSOPHERS AND POLITICAL THEORISTS HAVE CALLED
THIS SET OF COMMON UNDERSTANDING.
THIS CONTRACT DIFFERS AMONGST SOCIETIES AND MAY
CHANGE OVER TIME. FOR EXAMPLE, TODAY WE EXPECT
THAT BUSINESSES WILL TAKE CARE:

• NOT TO POLLUTE THE AIR WE BREATHE AND WATER TO

DRINK
• NOT TO DAMAGE THE OZONE LAYER
• TO OFFER FAIR WAGES AND EMPLOYEE BENEFITS
• TO PROVIDE SATISFACTORY PRODUCT OR SERVICES AT
A REASONABLE PRICE, AND
• TO PARTICIPATE IN MAKING THE COMMUNITY IN WHICH
THEY OPERATE A BETTER PLACE
ETHICAL THEORY AND BUSINESS
WITH AN INCREASING URGENCY, MARKET AND SOCIAL
FORCES ARE REWRITING THE ROLES AND RESPONSIBILITIES OF
BUSINESS AS WELL. THOUGH THE PROFIT MOTIVE OF BUSINESS IS
UNDERSTOOD AND ACCEPTED, PEOPLE DO NOT ACCEPT IT AS AN
EXCUSE FOR IGNORING THE BASIC NORMS, VALUES, AND
STANDARDS OF BEING A GOOD CITIZEN. MODERN BUSINESSES ARE
EXPECTED TO BE RESPONSIBLE STEWARDS OF COMMUNITY
RESOURCES WORKING TOWARD THE GROWTH AND SUCCESS OF
BOTH THEIR COMPANIES AND THEIR COMMUNITIES.