Gender equality is crucial for achieving economic growth and development, but women still face inequalities that stifle progress. Women make up half of the world's population but only contribute to 37% of the global Gross Domestic Production(GDP), and the gender disparity is still an important issue that the world is fighting through generations. In Africa, women entrepreneurs play a growing role in diversifying production and services. However, they are facing the problem of financial shortage; a recent report by the African Development Bank showed that there is an estimated $42 billion financing gap for female entrepreneurs in Africa. The study demonstrated that women are facing more difficult conditions than men entrepreneurs such as limited access to key resources (including land and credit), the legal and regulatory framework, and the socio-cultural environment. The economy's full potential cannot be realized if half of its population cannot fully contribute, and women have faced many hurdles in the entrepreneurship journey, prompting responsible bodies to devise affirmative solutions. Ethiopia's female population is 49.8%, but small businesses owned by women only make up 16.5% of the total number of entrepreneurs. Limited access to finance, business networks, development services, and business management skills hinders women entrepreneurs. The government is promoting women entrepreneurs through initiatives like training and financial support. The Commercial Bank of Ethiopia (CBE) is introducing a customer-centric business model to cater to its customers' needs and values. The bank aims to increase the outreach of financial products and services to a larger population, particularly women who own business enterprises. The bank has established a micro business department to adjust itself with the micro business customers. These factors can be considered as business drivers and factors enforcing CBE to come up with a gender-specific solution. To address the aforementioned issues, the micro business banking department is proposing a collateral-free loan product for women-owned enterprises to be launched by CBE. This would help to address the financing gap for formal MSMEs, ensuring comprehensive financial accessibility and services for women-owned enterprises. Furthermore, promoting financial inclusion and women's economic empowerment by financing women-owned enterprises can stimulate growth and form the backbone of vibrant economies. Based on the feasibility study of women MSME financing undertaken by MBB department team, proposal on selected women owned MSMEs financing will found crucial to bridge the financial gap. Therefore, this proposal aims to provide a method how CBE should finance for selected formal women-owned MSMEs in Ethiopia to alleviate their financing gap. It is being proposed that, the CBE shall start the product by making a pilot test for women-owned microbusinesses from Addis Ababa City Administration, with local stak

1. Social Responsibility &
Business Ethics
Balázs Hámori
bhamori@uni-corvinus.hu
„MULTIDISZCIPLINÁRIS KIHÍVÁSOK, SOKSZÍNŰ VÁLASZOK”
8. Szimpózium, 2016. október 28.
Budapesti Gazdasági Egyetem Kereskedelmi és vendéglátóipari Kar

2. Outline
CSR as creation of new institution
Corporate Social Responsibility: internal and
external aspects
Ethical issues

3. Corporate Social Responsibility as an
Institutional Innovation
o Institutional economics had, for a long time, focused on the analysis of a stable
institutional framework, and on the actors adaptation to this framework.
o It presented economic actors as embedded in the institutional network, who
consider this framework as given.
o In the past few decades, however, started to shift the focus of institutional
analysis and look at the other side of the coin.
o They emphasize how actors influence institutions and that they may create new
institutions.
o Corporate Social Responsibility is a typical case of institutional innovation

4. Like the technological innovations, the institutional
innovations can also be radical, and
their initiators, the so called „institutional entrepreneurs”
 „targets entire fields, the overall networks,
cultural-cognitive systems, organizational
archetypes, and collective action
repertoires…” Bockhaven et al, 2015, 175)
“create a whole new system of meaning that
ties the functioning of disparate sets of
institutions together.” – (Garud et al,
2002,196.)
 See also DiMaggio &Powell (1983) and the
book of Scott (2008).
 The Corporate Social
Responsibility is an excellent
example for radical institutional
innovations

5. Four Possible Ethical Stances
100
years
ago
60
years
ago
40
years
ago
20
years
ago

6. The Corparate responsibility and the ICT
revolution
 In the recent era we are witnessing
genuine institutional explosions
 New institutions come into
existence day by day, especially as a
result of ICT revolution
 “We theorize that these moments
of transition, from one historical
period to the next, are times when
institutional stability and
isomorphism may be somewhat
weakened and institutional
innovations may play a greater
role.” (Raffaely & Glynn, 2015, 411.)
 The ITC Revolution has also a major role in developing
of Corporate Social Responsibility.
 In the industrial era the reputation of the firms has
changed relatively slowly, the customers being isolated
from each others, and they had not a real influence of
the corporate behavior in the short run
 But the Web brought fundamental changes in this
regard.
 The evalulation of customers is penetrating the net in
some days or maybe some minutes, and the companies
have to take into consideration of the public opppinion
already in short run
 So the innovation of corporate responsiblity was not by
chanche in paralell with diffusion of ICT in all sphere of
life

7. Business ethics –
the societal expectations of organisations
 Macro level
Range from laissez faire to shapers of society
Ethical stance of organisation in society
Extent an organisation exceeds its minimum obligations to
stakeholders and society
 Corporate social responsibility
Specific ways to exceed minimum obligations imposed by
legislation/corporate governance
Reconcile conflicting demands of stakeholders
 Individual level
Behaviour and actions of individuals within organisations

8. Corporate social responsibility
 Corporate social responsibility (CSR, also called
corporate conscience, corporate citizenship, social
performance, or sustainable responsible business/
Responsible Business) is a form of corporate self-
regulation integrated into a business model
 CSR policy functions as a built-in, self-regulating
mechanism whereby a business monitors and ensures its
active compliance with the spirit of the law, ethical
standards, and international norms
 The goal of CSR is to embrace responsibility for the
company's actions and encourage a positive impact through
its activities on the environment, consumers, employees,
communities, stakeholders and all other members of the
public sphere who may also be considered as stakeholders.

9. Corporate Social Responsibility
Internal Aspects External Aspects
Employee welfare Environmental issues
Working conditions Products
Job design Markets and marketing
Intellectual property Suppliers
Employment
Community activity
Human rights

10. o Ecology and Environmental Quality
o Pollution cleanup and prevention
o Dispersion of industry
o Land use and beautification
o Consumerism
o Truth in lending, advertising, and business
o Product warranty and service
o Control of harmful products
o Community needs
o Use of expertise for local problems
o Aid with health-care facilities and education
o Service on voluntary groups
o Governmental relations
o Restrictions on lobbying
o Control of business political action
The most important areas of the
corporate social responsibility (1)

11. • Minorities and Disadvantages persons
– Training of unemployed
– Equal employment opportunity
– Locating plants and offices in minority areas
– Purchasing from minority businesses
• Labor relations
– Improved occupational health and safety
– Provision of day-care centers
– Options of flexible work hours
• Stockholder relations
– Public seats on the board of directors
– Improved financial disclosure
• Corporate philanthrophy
– Financial support for arts and culture
– Special scholarships and gifts to education
– Financial support for assorted charities
The Most Important Areas of the
Corporate Social Responsibility (2)

12. o Social obligation - corporate behavior at this level
conforms only to legal requirements and competitive market
pressures
o Social responsibility - Corporate behavior at this level is
congruent with prevailing norms, values, and expectations of
society.
o Social responsiveness - Corporate behavior at this level
takes preventive action to avoid adverse social impacts from
company activities and even anticipates or takes the lead in
future movement beyond current expectations.
Continuum of social responsibility

13. Stakeholders Their main interest
Suppliers Long term connections
Buyers Quality, quick reaction, low
price
Other business partners Long term connection, liquidity
Potencial entrans Stable and business-like market
Substitute product
producers
Clear roles, and conditions
Workers, and their unions Good working conditions, wages
Employer’s association Rule-following behavior
Government’s regulators Rule-following behavior
Enterprises in the industry Acceptance some mutual rules

14. Stakeholders Their main interest
Local authorities Tax, subsidy
Local communities Help, support, sponsorship
Trade unions Acceptance
Customer groups Consumer-friendly behavior
Employment association Acceptance
Government Pay tax, follow the laws
Press, media Provide infromation, and
advertise
Pressure groups Specific interest
Foreign countries Follow the local custom

15. Attitudes to Social Responsibility
oObstructionist Stance (Unconcerned)
o Do as little as possible to solve social or environmental
problems
oDefensive Stance (Damage Control)
o Do only what is legally required and nothing more
oAccommodative Stance (Compliance)
o Meet legal and ethical obligations and go beyond that in selected cases
oProactive Stance (Ethical Culture)
o Organization views itself as a citizen and proactively seeks
opportunities to contribute to society

16. Major arguments againts
social responsibility
Major arguments for social
responsibility
Loss of business profits Long-run profit for business
Increased business costs Public image of business will
improve
Dilution of business purpose Better environment for
everyone
Too mach social power for
business
Public expectations support
business social responsibility
Lack of business
accountability to public
Business may avoid more
regulation
Arguments for and againts of corporate
social responsibilities

17. Four ways of rationalize ethical misconduct
involving moral hazard and opportunism
 Convincing yourself that the
behaviour is not really illegal
 Convincing yourself that the
behavoiur is really everyone’s best
interests
 Convincing yourself that nobody will
ever find out what you have done.
 Convincing yourself that the
organization will protect you.
 Moral hazards can be present any
time two parties come into
agreement with one another.
Each party in a contract may have
the opportunity to gain from
acting contrary to the principles
laid out by the agreement.
 Economic opportunism is a
term related to the subversion of
morality to profit.

18. Critical approach to organizational culture
o Organization as a Site of Domination
o Power, Hegemony, and Concertive Control
o Power - the possibility of imposing one’s will upon the behavior of other persons
o Hegemony - the predominant influence over others
o Concertive Control - based on adherence to socially constructed norms and
values developed by organizational members as they attempt to structure the
environment
o Communication and Critical Theory
o Habermas - goal to develop a theory of society that aims at the self-emancipation
of people from domination (the ideal speech situation)
o The utterances are truthful
o There is a legitimate relationship established between the participants
o The utterances are sincere
o The utterances are comprehensible

19. UN Global Impact Initiative (1)
 Human Rights
• Principle 1: Businesses should support and respect the
protection of internationally proclaimed human rights; and
• Principle 2: make sure that they are not complicit in human
rights abuses.
 Labour
• Principle 3: Businesses should uphold the freedom of
association and the effective recognition of the right to collective
bargaining;
• Principle 4: the elimination of all forms of forced and
compulsory labour;
• Principle 5: the effective abolition of child labour; and
• Principle 6: the elimination of discrimination in respect of
employment and occupation.

20. UN Global Impact Initiative (2)
 Environment
• Principle 7: Businesses should support a precautionary approach to
environmental challenges;
• Principle 8: undertake initiatives to promote greater environmental
responsibility; and
• Principle 9: encourage the development and diffusion of
environmentally friendly technologies.
 Anti-Corruption
• Principle 10: Businesses should work against corruption in all its
forms, including extortion and bribery.
For further information, guidance material, please visit the Global Compact
website: www.unglobalcompact.org

21. Literature
o Robert C. Ellickson (1991): Order Without Law: How
Neighbors Settle Disputes, Cambridge: Harvard University
Press,
o Guiso, L., Sapienza, P.& Zingales. L.( 2013): The Value of
Corporate Culture. NBER Working paper.
o ttp://faculty.chicagobooth.edu/luigi.zingales/papers/research
/The_Value_of_Corporate_Culture.pdf
o Lewis, David (1969). Convention: A Philosophical Study.
Cambridge,Mass.: Harvard University Press,