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Business ethics
- 1. CONSUMERISM AND ITS CORPORATE SOCIAL RESPONSIBILITY IN CONTEXT TO BUSINESSES BUSINESS ETHICS
- 2. GROUP MEMBERS • Zarafshan Butt 2014-ag-4116 • Tehreem Ashraf 2014-ag-4195 • Maryam Rabia Zafar 2014-ag-4132 • Iqra Anwar 2014-ag-4115 • Shiza Shafaqat 2014-ag-4146
- 3. CONSUMERISM “The protection or promotion of the interests of consumers” • The ideology that places value upon the excessive consumption of material goods and services. • The theory that the country which produce and consume goods and services in large quantities will be better of economically.
- 4. BACKGROUND • In the early 1970’s, consumerism’s accepted term was efforts to support consumers' interests. • But in the end of 1970’s, people started using the term ‘Consumerism’ as High levels of consumption, which gains popularity. • An increase in Consumerism causes increase in capitalism which results in negative consumerism or excessive consumerism.
- 5. NEGATIVE CONSUMERISM • Consumerism can take extreme forms such that consumers sacrifice significant time and income not only to purchase but also to actively support a certain firm or brand, this creates Negative Consumerism.
- 6. EFFECTS OF NEGATIVE CONSUMERISM • Overproduction • Race to earn more • Over dependence on labor saving devices, causing unemployment • Wastage of resources; natural and manmade
- 7. ETHICAL CONSUMERISM The practice of purchasing products and services produced in a way that minimizes social and environmental damage, while avoiding products and services deemed to have a negative impact on society or the environment.
- 8. PURPOSES OF ETHICAL CONSUMERISM • To reduce massive and unnecessary consumption, by changing peoples habits and making them buy only necessary things. • To reduce pollution and acquire social equality. • Produce goods and services which do not pollute the environment
- 9. CORPORATE SOCIAL RESPONSIBILITY “The responsibility of enterprises for their impact on society” • It refers to business practices involving initiatives that benefit society. • The aim to embrace responsibility for the company's actions and to encourage a positive impact through its activities. • A business's CSR can encompass a wide variety of tactics: • from giving away a portion of a company's proceeds to charity • to implementing "greener" business operations.
- 10. TYPES OF CSR • ECONOMIC RESPONSIBILITIES • LEGAL RESPONSIBILITIES • ETHICAL RESPONSIBILITIES • PHILANTHROPIC RESPONSIBILITIES
- 11. COST-BENEFIT ANALYSIS OF CSR • A corporate has to invest at least 2% for the activities of CSR • A firm can also conduct a cost benefit analysis to determine the optimal and appropriate level of investment in CSR, as it would with any other investments.
- 12. CSR IMPORTANCE • Having polices and procedure in place which integrate social, environmental, ethical, human right or consumer concerns into business operation and core strategies. • Gives an opportunity to organizations to work towards the betterment of the society and make it a better place to live.
- 13. CONT. • Plays a crucial role in making your brand popular not only among your competitors but also media, other organizations and most importantly people who are your direct customers • Helps to create an environment in which enterprises can innovate and grow. • To achieve a positive impact on society as a whole.
- 14. CSR IN PRACTICE • As Corporate world has more power than the state, undertaking socially responsible initiatives would be a win-win situation to all; Society and Corporations.
- 15. THANK YOU
Editor's Notes
- 1. led to many organizations improving their service to the customer. 2. works well for capitalists, economists, corporations. 3. It takes many forms, form extreme ends (negative Consumerism) to most lenient ones (ethical consumerism) 4. Example: an obsession with shopping or material goods
- a movement towards consumer protection that promotes improvement in safety standards and truthful packaging and advertisement economic materialism, In protest against this, some people promote "anti-consumerism" and advocate simple living. destroys individuality and harms society. Promotes greed
- Examples of negative consumerism: Celebrities do not duplicate outfits. CEOs take private helicopter to travel across town. Wealthy man owning more cars than s/he can drive in a week
- Be ecologist and avoid pollution Before buying anything , search its process of manufacturing and its environmental impact It includes many products and services: Ethical food and drink, Eco-travel and transport, Ethical personal products, Ethical finance
- As in today’s world, corporations can be more influential than states, it is necessary to make conscious consumption; a movement of people who seek out ways to make positive decisions about what to buy and look for a solution to the negative impact consumerism is having on our world. Because where we put our money is where the power lies.
- Also called corporate conscience, corporate citizenship or responsible business CSR has become one of the standard business practice over time Companies committed to CSR means enhanced overall reputation
- 1. Economic Responsibilities: (Basic) A company needs to be primarily concerned with turning a profit, then about its social responsibilities. 2. Legal Responsibilities: (Basic) The requirements that are placed on it by the law. Next to ensuring that company is profitable, ensuring that it obeys all laws is the most important responsibility. Range from securities regulations to labor law, environmental law and even criminal law. 3. Ethical Responsibilities: A company puts on itself because its owners believe it's the right thing to do -- not because they have an obligation to do so. Ethical responsibilities could include being environmentally friendly, paying fair wages or refusing to do business with oppressive countries. 4. Philanthropic Responsibilities: They involve making an effort to benefit society -- for example, by donating services to community organizations, engaging in projects to aid the environment or donating money to charitable causes.
- As CSR do not give instant results, a far-sighted vision is necessary for the firms to see the benefits and the results of these investments. Do not provide an immediate financial benefit to the company, but instead promote positive social and environmental change. "People, planet and profit", also known as the triple bottom line form one way to evaluate CSR. The term was coined by John Elkington in 1994. "People" refers to fair labor practices, the community and region where the business operates. "Planet" refers to sustainable environmental practices. Profit is the economic value created by the organization after deducting the cost of all inputs, including the cost of the capital (unlike accounting definitions of profit). This measure was claimed to help some companies be more conscious of their social and moral responsibilities. However, critics claim that it is selective and substitutes a company's perspective for that of the community. Another criticism is about the absence of a standard auditing procedure.
- Example of business strategies working towards the betterment of the society: Accessibility Partners works with private and public IT manufacturing companies, federal agencies and other organizations to test and review products that make information technology accessible to individuals with a variety of disabilities. More than 70 percent of the company's employees have disabilities themselves, so the company promotes disability advocacy in all of its operations.
- Example of business making a positive impact on the society Charitable Agents, a network committed to helping homeowners and Realtors make a positive impact in their community. The company matches buyers and sellers with a top-performing local Realtor, and when the transaction closes, 10 percent of the agent's commission goes to charity.
- Corporations can work to improve the society and pressure the government to make policies which are better for the welfare of people; working towards the betterment of society. Doing this, corporations can build a strong image in front of the socially conscious consumers as well as their employees, winning their loyalty. Example XEROX: The printing giant offers many programs supporting corporate social responsibility. Their Community Involvement Program encourages it by directly involving employees. Since 1974, more than half a million Xerox employees have participated in the program. In 2013 alone, Xerox earmarked more than $1.3 million to facilitate 13,000 employees to participate in community-focused causes. The return for Xerox comes not only in community recognition, but also in the commitment employees feel when causes they care for are supported by their employers.