FRAMING BUSINESS ETHICS

WHAT IS A CORPORATION? Key features

CAN A CORPORATION HAVE SOCIAL RESPONSIBILITIES? Corporate internal decision structure Organizational culture Moral responsibility

CORPORATE SOCIAL RESPONSIBILITY Why do corporations have social

responsibility? Doing so promotes its own self-interest

Socially responsible corporations are rewarded with extra or more satisfied customers

Employees attracted to work for and are committed to corporations perceived as being socially responsible

Voluntarily committing to social actions and programmes may forestall legislation and ensure greater corporate independence from the government

MORAL ARGUMENTS FOR CSR Corporations cause social problems and

hence have a responsibility to solve those that they have caused

Corporations should use their power and resources responsibly in society

All corporate activities have social impacts of one sort or another, through provision of products and services, the employment of workers, or some other corporate activity

WHAT IS THE NATURE OF CORPORATE SOCIAL RESPONSIBILITY? Corporate social responsibility includes the

economic, legal, ethical, and philanthropic expectations placed on organizations by society at a given point in time

ECONOMIC RESPONSIBILITY

LEGAL RESPONSIBILITY

ETHICAL RESPONSIBILITY

PHILANTHROPIC RESPONSIBILITY

BUSINESS ETHICS – TAKING RESPONSIBILITY

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NATURE OF SOCIAL RESPONSIBILITY

1. Economic2. Legal3. Ethical4. Voluntary (philanthropic)

4 Dimensions

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PYRAMID OF SOCIAL RESPONSIBILITY

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NATURE OF SOCIAL RESPONSIBILITY

The extent to which businesses meet the legal,ethical, economic, and voluntary responsibilitiesplaced on them by their stakeholders.

Corporate Citizenship

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NATURE OF SOCIAL RESPONSIBILITY

1. Intel Corporation2. Eaton Corporation3. Nike Inc.4. Deere and Co.

Best Corporate Citizens

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NATURE OF SOCIAL RESPONSIBILITY

Arguments For and Against Social Responsibility

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SOCIAL RESPONSIBILITY ISSUES

• Primary concern with profit or ROI• Financial community at large• Proper accounting procedures• Protecting owner’s rights and investments

Owners & Stockholders

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SOCIAL RESPONSIBILITY ISSUES

• Provide a safe workplace• Adequate compensation• Listen to grievances• Fair treatment

Employee Relations

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SOCIAL RESPONSIBILITY ISSUES

Consumerism – the activities that independent individuals, groups, and organizations undertake to protect their rights as consumers.

Consumer Relations

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SOCIAL RESPONSIBILITY ISSUES

• Animal rights• Pollution• Going Green

Environmental Issues

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CONCLUSION