2. SYLLABUS
• Topics
• 1 The importance of Business ethics
• 2 Stakeholder Relationships Social Responsibility and Corporate Governance
• 3 Emerging Business Issues
• 4. Ethical Decision-Making and Ethical Leadership
• 5. Individual Factors: Moral Philosophies and Values
• 6.Role of Ethical Culture and Relationships
3. • 7. Developing and Effective Ethics Programme
• 8. Managing and controlling Ethics Programme
• 9. Globalization of Ethical Decision—Making
• Book: Business Ethics by Ferrell, Fradrich & Ferrell, Cengage Publications Ninth
Edition, 2019.
4. • Stakeholder Relationship, Social Responsibility:
• In a business context, customers, investors and shareholders, employees,
suppliers, government agencies , communities etc. have stake in different aspects
of business.
• These groups are influenced by business but they have the ability to influence
business.
5. STAKEHOLDERS ISSUES AND ASSOCIATED
MEASURE OF CORPORATE IMPACTS
• Employees
• Compensation and Benefits: Ration of lowest wage to national minimum
wage
• Training and Development: Changes in time spent on training of
employees.
• Employee Diversity: Percentage of employees from different
genders and races
6. • Customers
• Product Safety and Quality: Number of product recalls over time
• Management of Customers Complaints: Number of customer complaints and
availability of procedures to answer them
7. • Investors:
• Transparency of shareholder Communications: Availability of procedures to
inform shareholders about corporate activities.
• Shareholder Rights: Frequency and type of litigation involving violations of
shareholder right
8. • Suppliers:
• Encouraging suppliers in developing countries: Prices offered to suppliers in
developed countries in comparison to other countries suppliers
• Encouraging minority suppliers: Percentage of minority suppliers
9. • Community:
• Public health and safety protection: Availability of
emergency response plan
• Support to Local Organizations: Annual
employee time spent in community service.
10. • Stakeholder Orientation:
• The degree to which a firm understands and addresses stakeholder demands can
be referred to as a stakeholder orientation. This orientation has three sets of
activities:
• 1. Organization wide generation of data about stakeholder groups and
assessment of the firm’s effect on these groups.
• Distribution of this information through out the firm
• The responsiveness of organization as a whole to this information
11. QUESTIONS FOR DISCUSSION
1. What kind of support employees, should be given from their companies in
current business environment.
2. What should companies expect from their employees when normalcy returns.
3. What should be expectation of community in Powai from L&T and Hiranandani
group.
12. • Social Responsibility and Importance of Stakeholder orientation
• From the perspective of social responsibility, business ethics embodies values,
norms and expectation that reflect concerns of major stakeholders, including
consumers, employees, etc.
• These stakeholders have concerns about what is fair, just or in keeping with
respect for stakeholders.
14. • Social Responsibility and Ethics
• Social responsibility and ethics are often used interchangeably but each has
distinct meaning.
• Social responsibility is an organization’s obligation to maximize its positive impact
on stakeholders and to minimize its negative impact.
15. • Social responsibility can be viewed as a contract with society whereas business
ethics involves careful thought out rules of business conduct that guide decision-
making.
1. Legal: Abiding by all laws and government regulations
2. Economic: Maximizing stakeholder wealth or value
3. Ethical: following standards of acceptable behavior as judged by stakeholders
4. Philanthropic: Giving back to society.
16. • Implementing a Stakeholder Perspective:
• Steps:
• 1. Assessing the Corporate Culture
• 2. Identifying Stakeholder Groups
• 3. Identifying Stakeholder Issues
• 4. Assessing organizational commitment to Social Responsibility
• 5. Identifying Resources and determining urgency
• 6. Gaining stakeholder Feedback.
