Social responsibilities and ethics

1. Social Responsibilities
of Business
Course: BBA
Subject: Principles of Management
Unit: III

2. BUSINESS
SOCIETY
Manpower
(labor,
employee)
Energy
Money
Skills
Thoughts
Raw materials
Status
Machinery
Land
profit
gives

3. SOCIETY includes
•Share holders
•Customers
•Employees
•Creditors
•Govt
•Community

4. •Definition:
•S.R. is a moral obligation toward society that a
business has to fulfill
•S.R. involves the efforts of businessmen to safeguard
long-term interest and welfare of society.
•Decisions and actions beyond the firm’s direct
economic/profit interest
•As business takes so many things from society, it’s a
moral duty of business to give something back to
society.

5. Companies with CSR
12
34

6. •Responsibility towards shareholders
 Business must give a fair return on capital
 Providing regular and full info about org.(future
plan, changes, working of org. etc.)
 Dividend on time

7. •Responsibility towards customers
 Business should provide goods and services at reasonable
prices
 Providing better quality- standardized goods (ex. ISI)
 Solving consumers’ complaint
 Collecting info. About needs, preferences, likes-dislikes
(survey-research)
 Details of weight, price, exp.date, should be on packing
 Honest advertising
 After sales services
 Humble behavior
 Sufficient quantity

8. •Responsibility towards employees
 Business should pay salary on time
 Security of job
 Improve motivation and efficiency
 Participation in management
 Promotion on right time
 Training and development
 Recognition and dignity
 Solving grievances and complaints
 Other benefits (p.f., gratuity, incentive, music, mobile, car, allowances,
food)

9. •Responsibility towards the creditors
(Trade creditors, debenture holders, depositors, commercial
banks, and financial institutes)
 Paying interest on time
 Giving all info of working org.
 Developing good relations
 To use Money for productive purposes only

10. •Responsibility towards the govt.
Pay taxes regularly
Following rules
Avoiding bribe and corruption
Providing proper info. About org.

11. •Responsibility towards the
community/nation
Continuous flow of goods and services
Employment opportunities
Preventive measures against air, water, land pollution
(Conserving ecological balance)
Contributing for schools, libraries, hospitals
Setting example for others. Ex. Hindustan lever ltd (adopting
village)
Uplifting the society by various campaigns (ex.idea’s power
saving hour)

12. ETHICS IN MANAGEMENT
Intro to mgt.

13. Example
 Ex, code of ethics by vodafone,
http://www.vodafone.com/start/about_vodafone/corporate_governanc
e/code_of_ethics.html
 promote honest and ethical conduct, including the ethical handling of
actual or apparent conflicts of interest;
 promote the full, fair, accurate, timely and understandable disclosure of
the Company's financial results in accordance with applicable disclosure
standards, including, where appropriate, standards of materiality;
 promote compliance with applicable governmental laws, rules and
regulations;
 deter wrong doing; and
 require prompt internal reporting of breaches of, and accountability for
adherence to, the Code.
Intro to mgt.

14. Ethics
 The code of moral principles and values that
govern the behaviors of a person or group with
respect to what is right or wrong.
• Rules and principles that define right and wrong
conduct

15. Example
 A code of ethics, also called a code of conduct or ethical code, sets out the
company's values, ethics, objective and responsibilities. A well-written code
of ethics should also give guidance to employees on how to deal with
certain ethical situations. Every code of ethics is different and should reflect
the company's ethos, values and business style. Some codes are short,
setting out only general guidelines, and others are large manuals,
encompassing a huge variety of situations.
 Kraft
 The Kraft code of ethics contains just 10 short rules of ethical behavior that
all employees must follow. The introduction to the Kraft code of ethics
suggests that employees should let values guide their actions in all cases.
The code also stresses that if something seems wrong, it should be
addressed directly. The code includes a speaking-up policy that requires
employees to speak up if they are aware of any violations of the code, even
those they have committed themselves. The 10 rules are: Make food that is
safe to eat; market responsibly; treat people fairly; respect the free market;
compete fairy; respect the environment; deal honesty with the
government; keep honest books and records; never trade on inside
information; give Kraft Foods your complete business loyalty.

16. Verizon
 The Verizon code of ethics is a lengthy document
that contains four short core values, followed by 16
pages of specific rules and guidelines to follow in
certain situations. The core values are integrity,
respect, performance excellence and accountability.
The specific guidelines cover situations, such as how
to deal with workplace violence, alcohol use and
harassment. They also cover areas of integrity and
fairness, such as how to avoid conflicts of interest
and how to safeguard company information. There is
also a section on protecting Verizon's company
assets, including what to do in cases of sabotage and
how to create accurate records.

17. Colgate-Palmolive
 The Colgate-Palmolive code of ethics is a long
document, but is broken down into individual
areas of conduct. The code is intended as a guide
to all daily business interactions and is used in
conjunction with the company's business
practice guidelines. The code covers 10 areas,
including: Our Relationship with Each Other; Our
Relationship with the Company; Our
Relationship with Consumers; Our Relationship
with Government and the Law; Our Relationship
with Society and Our Relationship with the
Environment.

18. Ex. Of bus. ethics
 To give fair and equitable treatment to the
employees
 To charge fair price from the customers.
 To use fair weights for measurement of
commodities
 To pay taxes to govt., and other bodies
honestly
 To earn reasonable profit
 To become a good corporate citizen

19. THANK YOU

20. References:
1.https://c1.staticflickr.com/5/4047/4580879161
_457a3eae00.jpg
2.www.Rai university.edu
3.https://lh5.ggpht.com/ErVxE7kJ34vo36pUY5q
Irmx3dUoBP9jQKXpRwOFTjWNRleexDhaiYX
13tLdRUV2flHjy5pw=s123
3. https://lh5.ggpht.com/5ZyVY8zT89I1a-
Zlxx_F71Dt9z1oHpfBoqhq41uunnya22HTKov
XjCdGtqzG3eJh9oUJ=s85