Business ethics & social resposibility


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Business ethics & social resposibility

  1. 1. VIDYALANKAR SCHOOL OF INFORMATION TECHNOLOGY Presentation on Business Ethics & Social Responsibility Presented By Ronald Amey Prasad Ravikiran Bharat Prathamesh Under Guidance of Prof. Dr. Kamath
  2. 2. Learning Goals 1. Explain the concepts of business ethics and social responsibility. 2. Describe the factors that influence business ethics. 3. Identify common ethical dilemmas in the workplace. 4. Discuss how organizations shape ethical behavior. 5. Describe how businesses’ social responsibility is measured. 6. Summarize the responsibilities of business to the general public, customers, and employees. 7. Conclusion
  3. 3. Genesis of Ethics  Ethics is a Greek word Ethos, it means Character or manners.  Business Ethics are that functions which leads to choosing right decision at right time which leads for the welfare of not only business owners but also society, consumers, stakeholders and its employees.
  4. 4. Business Ethics  The value of what should be done and what should not be done from the business point of view.  Business ethics involves adhering to legal, regulatory, professional and company standards, keeping promises and commitments and abiding by general principles like fairness, truth, honesty and respect.
  5. 5. Business Ethical Dilemmas Situation in which a business decision may be influenced for personal gain. Telling the truth and adhering to deeply felt ethical principles in business decisions. Employee’s disclosure of illegal, immoral, or unethical practices in the organization. Business people expect employees to be loyal and truthful, but ethical conflicts may arise.
  6. 6. Ethical issues for business  Product safety standards  Advertising contents  Working environment  Unauthorized payments  Employee’s privacy  Environmental issues
  7. 7. Ethical issues for business Fraud Fraud is a crime of lying or pretending. Some businesses mislead consumers and trick them to buy their products or services. The Competition Act 2002 bans such fraud and deceptive business practices and defines these as • false or misleading advertising • “bait and switch” selling • double ticketing items for sale Insider Trading Insider trading is buying or selling shares of a company based on confidential information. This type of trading is illegal.
  8. 8. Ethical issues for business Accounting Scandals: Enron! An accounting scandal occurs when accountants or senior executives alter accounting records for personal benefit. Accounting information is used inside and outside of the business to make decisions. When accounting irregularities are uncovered, a forensic accountant investigates legal and financial documents to find evidence of tampering. Embezzlement, a type of accounting fraud, happens when an accountant or senior executive creates false accounts and redirects money into them for personal gain. Business owners rely on outside accountants, auditors, to check and report on the validity of financial records.
  9. 9. How Organizations Shape Ethical Conduct
  10. 10. Ethical Awareness Code of Conduct Formal statement that defines how the organization expects and requires employees to resolve ethical questions.
  11. 11. Ethical Education Codes of conduct cannot detail a solution for every ethical situation, so corporations provide training in ethical reasoning.
  12. 12. Ethical Action Helping employees recognize and reason through ethical problems and turning them into ethical actions.
  13. 13. Ethical Leadership Executives must demonstrate ethical behavior in their actions. Whistle-blowing Whistle-blowing happens when an employee informs officials or the public about an illegal or ethical violation.
  14. 14. Social Responsibility • Social responsibility is the obligation of organization’s management to make decisions and take actions that will enhance the welfare and interests of society as well as the organization. • Social responsibility is therefore quite important to the society, organization and human. • Management’s consideration of profit, consumer satisfaction, and societal well-being of equal value in evaluating the firm’s performance. • Contributions to the overall economy, job opportunities, and charitable contributions and service.
  15. 15. Areas of Responsibility
  16. 16. Responsibilities to the General Public • Public Health Issues. What to do about inherently dangerous products such as alcohol, tobacco, vaccines, and steroids. • Protecting the Environment. Using resources efficiently, minimizing pollution. • Recycling. Reprocessing used materials for reuse. • Developing the Quality of the Workforce. Enhancing quality of the overall workforce through education and diversity initiatives. • Corporate Philanthropy. Cash contributions, donations of equipment and products, and supporting the volunteer efforts of company employees.
  17. 17. Responsibilities to Customers • The Right to Be Safe. Safe operation of products, avoiding product liability. • The Right to Be Informed. Avoiding false or misleading advertising and providing effective customer service. • The Right to Choose. Ability of consumers to choose the products and services they want. • The Right to Be Heard. Ability of consumers to express legitimate complaints to the appropriate parties.
  18. 18. Responsibilities to Employees • Workplace Safety. Monitored by Occupational Safety and Health Administration. • Quality-of-Life Issues. Balancing work and family through flexible work schedules, subsidized child care, and regulation such as the Family and Medical Leave Act of 1993. • Ensuring Equal Opportunity on the Job. Providing equal opportunities to all employees without discrimination; many aspects regulated by law. • Age Discrimination. Age Discrimination in Employment Act of 1968 protects workers age 40 or older. • Sexual Harassment and Sexism. equal pay for equal work without regard to gender.
  19. 19. Responsibilities to Employees • Provide adequate monetary , psychological rewards as well as job security • Selection of employees should be made fairly • Providing educational opportunities & training to the employee at company’s expense • Working conditions should be safe & pleasant
  20. 20. Responsibilities to Investors • Investors protected by regulation by the Securities and Exchange Commission and state regulations. • Resources available are used for the benefit of the owners/shareholders • Stability of the enterprise • Ensure that the company grows, so that the shareholder gains from increase in the market price of his shares
  21. 21. NABARD, Bank of India & BPCL    Nabard helps 101 million poor people through micro finance program, providing access to credit. Joint liability groups (JLG)- rythu mitra program- credit access to landless farmer's agri laborers, empowers women with micro credit, micro enterprise, created special funds for water shed development, Partnering with corporate like ITC, Tata’s, M and M, ambuja cements etc, many more. BPCL provides alternate source of energy, solar energy for street lights at villages, skill enhancement on modern farming practices, distributes smokless chulas, training for income generation projects.
  22. 22. NABARD, Bank of India & BPCL  State Bank of India, focuses on below poverty line, adopted 101 villages.  Now world is outsourcing world. Anything done most efficiently cost effectively can be done by someone else.. NGO have to develop new tie up with corporate to align themselves to meet the changing needs of society. Corporate have fund of Rs. 1 laks crores for CSR in India alone. Not to speak of Transnational corporation Networking of NGO and development of search engines for various relevant social projects is the need of the hour. .
  23. 23. CONCLUSION  The first responsibility to society is to operate at a profit. The business is the wealth-creating and wealth-producing organ of the society. Management must maintain its wealth-producing resource intact by making adequate profits to offset the risk of economic activity. And it must beside increase the wealth-producing capacity of these resources and with them the wealth of society.  Customers seek out companies who have a public record of doing good and being good. Ultimately, by establishing these programs we will be improving our company from the inside & outside.
  24. 24. THANK YOU