Stakeholders Perceptions regarding Usefulness of Corporate Social Responsibil...professionalpanorama
A business enterprise is considered as a social unit which conducts its activities within the
society; therefore, it is perceived that business houses should fulfil its responsibilities towards
society. Traditional management approaches have regarded the business unit as a robust
economic engine which drives shareholders wealth. But modern management approach has
hold that transparent economic and social progress should go hand in hand. This concept led
to the emergence of Corporate Social Reporting and Disclosure (CSRD). It provides better
understanding on social activities of a business towards various stakeholders like employees,
investors, consumers, government, suppliers, shareholders and the whole community which
helps an entity to make cordial relationship with its stakeholders. Unfortunately, despite of
increasing attention towards CSR, the development of CSRD is very slow especially in the
developing countries like India. There has been very little work which has studied how Indian
companies gratify perceived needs of different stakeholders for information relating to social
and environmental impacts. Thus, this paper aims at exploring the views and perceptions
amongst different stakeholders for evaluating the usefulness of corporate social reporting
and disclosure for them. The nature of study was descriptive research and data source was
primarily primary. It may also be termed as Ex post facto research because the researcher has
no control over the variables and has to report what has happened or what is happening.
Based on the research outcomes, some recommendations are suggested in relation to
corporate social reporting and disclosure practices in general and within Indian context in particular for future development of corporate social reporting and disclosures in transitional
economies like India.
Social Enterpreneurship: A Form of Social Responsibility in Indiaprofessionalpanorama
The social and economic hardships in India can be overcome through the innovation and
promotion of best practices and positive models as well as by spreading good examples of
social entrepreneurship and social responsibility. A major future challenge is not the proper
implementation of 2% Corporate Social Responsibility mandate but to ensure contribution of
businesses to reduce the problems and work for the betterment of the society by sustainable
means. The paper highlights the importance of social entrepreneurial ideas for improving the
business climate in the country. Social entrepreneurship is becoming a popular form of social
responsibility and a way to solve a variety of urgent social problems. In order for a society to
boost social entrepreneurship, it needs a specific environment where such ideas can emerge
and develop into an active business models. This paper aims to provide a comprehensive
literature review of terms social responsibility and social entrepreneurship. It also examines
the current social entrepreneurship activities in India. The paper concludes that social
entrepreneurship has a better impact and more desirable than Corporate Social
Responsibility.
Changing Dimensions of Corporate Social Responsibility in Indiaprofessionalpanorama
philanthropy to a broader set of activities and integrates the practice of CSR into
the core strategy of the organisation. CSR is evolving in response to profound external
forces, including meeting legal and regulatory obligations and responding to the broader
public opinions. For many developing countries, a major limitation to CSR studies
has been the difficulties associated with proper legislative measures and measuring
CSR practices. CSR index can be used to calculate the level of a company’s CSR
practices. Developing countries need a suitable CSR structure to implement CSR practices
in order to be able to identify the advantages for their stakeholders. Companies need
to identify the importance of cultivating a new set of CSR practices in order to compete
successfully in a global market. CSR is gradually metamorphosing from a mere philosophy
to a strong business case for Indian industry.
Changing dimensions of corporate social responsibility in indiaTapasya123
Corporate Social Responsibility is gradually moving from its historical focus on business
philanthropy to a broader set of activities and integrates the practice of CSR into
the core strategy of the organisation. CSR is evolving in response to profound external
forces, including meeting legal and regulatory obligations and responding to the broader
public opinions. For many developing countries, a major limitation to CSR studies
has been the difficulties associated with proper legislative measures and measuring
CSR practices. CSR index can be used to calculate the level of a company’s CSR
practices. Developing countries need a suitable CSR structure to implement CSR practices
in order to be able to identify the advantages for their stakeholders. Companies need
to identify the importance of cultivating a new set of CSR practices in order to compete
successfully in a global market. CSR is gradually metamorphosing from a mere philosophy
to a strong business case for Indian industry.
Stakeholders Perceptions regarding Usefulness of Corporate Social Responsibil...professionalpanorama
A business enterprise is considered as a social unit which conducts its activities within the
society; therefore, it is perceived that business houses should fulfil its responsibilities towards
society. Traditional management approaches have regarded the business unit as a robust
economic engine which drives shareholders wealth. But modern management approach has
hold that transparent economic and social progress should go hand in hand. This concept led
to the emergence of Corporate Social Reporting and Disclosure (CSRD). It provides better
understanding on social activities of a business towards various stakeholders like employees,
investors, consumers, government, suppliers, shareholders and the whole community which
helps an entity to make cordial relationship with its stakeholders. Unfortunately, despite of
increasing attention towards CSR, the development of CSRD is very slow especially in the
developing countries like India. There has been very little work which has studied how Indian
companies gratify perceived needs of different stakeholders for information relating to social
and environmental impacts. Thus, this paper aims at exploring the views and perceptions
amongst different stakeholders for evaluating the usefulness of corporate social reporting
and disclosure for them. The nature of study was descriptive research and data source was
primarily primary. It may also be termed as Ex post facto research because the researcher has
no control over the variables and has to report what has happened or what is happening.
Based on the research outcomes, some recommendations are suggested in relation to
corporate social reporting and disclosure practices in general and within Indian context in particular for future development of corporate social reporting and disclosures in transitional
economies like India.
Social Enterpreneurship: A Form of Social Responsibility in Indiaprofessionalpanorama
The social and economic hardships in India can be overcome through the innovation and
promotion of best practices and positive models as well as by spreading good examples of
social entrepreneurship and social responsibility. A major future challenge is not the proper
implementation of 2% Corporate Social Responsibility mandate but to ensure contribution of
businesses to reduce the problems and work for the betterment of the society by sustainable
means. The paper highlights the importance of social entrepreneurial ideas for improving the
business climate in the country. Social entrepreneurship is becoming a popular form of social
responsibility and a way to solve a variety of urgent social problems. In order for a society to
boost social entrepreneurship, it needs a specific environment where such ideas can emerge
and develop into an active business models. This paper aims to provide a comprehensive
literature review of terms social responsibility and social entrepreneurship. It also examines
the current social entrepreneurship activities in India. The paper concludes that social
entrepreneurship has a better impact and more desirable than Corporate Social
Responsibility.
Changing Dimensions of Corporate Social Responsibility in Indiaprofessionalpanorama
philanthropy to a broader set of activities and integrates the practice of CSR into
the core strategy of the organisation. CSR is evolving in response to profound external
forces, including meeting legal and regulatory obligations and responding to the broader
public opinions. For many developing countries, a major limitation to CSR studies
has been the difficulties associated with proper legislative measures and measuring
CSR practices. CSR index can be used to calculate the level of a company’s CSR
practices. Developing countries need a suitable CSR structure to implement CSR practices
in order to be able to identify the advantages for their stakeholders. Companies need
to identify the importance of cultivating a new set of CSR practices in order to compete
successfully in a global market. CSR is gradually metamorphosing from a mere philosophy
to a strong business case for Indian industry.
Changing dimensions of corporate social responsibility in indiaTapasya123
Corporate Social Responsibility is gradually moving from its historical focus on business
philanthropy to a broader set of activities and integrates the practice of CSR into
the core strategy of the organisation. CSR is evolving in response to profound external
forces, including meeting legal and regulatory obligations and responding to the broader
public opinions. For many developing countries, a major limitation to CSR studies
has been the difficulties associated with proper legislative measures and measuring
CSR practices. CSR index can be used to calculate the level of a company’s CSR
practices. Developing countries need a suitable CSR structure to implement CSR practices
in order to be able to identify the advantages for their stakeholders. Companies need
to identify the importance of cultivating a new set of CSR practices in order to compete
successfully in a global market. CSR is gradually metamorphosing from a mere philosophy
to a strong business case for Indian industry.
Ethics and Corporate Social Responsibility are recognized as important concerns in making decision in all aspects of our life. And it’s contributing to accelerate the process of overall development of a nation. India being the second most populous country in the world, and have the largest number of people in need of basic amenities call for more intensive efforts as part of such initiatives in the health care space of the nation. We all know that people engage in business to earn profit. However, making profit is not the sole function of the business. It performs number of social function as it is a part of society. It takes care of those who are instrumental in securing its existence and survival. Business ethics are nothing but the application of ethics in business. It proves that business can be and have been ethical and still make profits. Today more and more interest is being given to the application of ethical practices in business dealings and the ethical implications of business. The paper delves into a comprehensive understanding of how Business Ethics and Corporate Social Responsibility involves as concept and the reason that encourage company in India to be socially responsible.
Prospects and Threats of Women Entrepreneur in SME Sectors in Urban Area Bang...IOSRJBM
The aim of this paper is to explore the challenges faced by the women entrepreneur in Sylhet city as well as also exploring their prospects. Women also play a vital role for the growth of the economy especially in small and medium sector. The SME sector has higher growth rate than the industrial sector. It contributes big role for developing entrepreneurship and labor absorption. It also plays a vital role in economy and social development. it's contribute significantly for entrepreneurship development, employment generation and utilize the potentiality. Women in Bangladesh are still remaining vulnerable to poverty and social deprivation. Although the situation is now changing. A woman has to invest a lot of time for household work and child rearing but they are investing the extra time to business sector to support their family and also utilizing their hidden potentiality. A structure questionnaire has been used to collect data by survey and the target population is women entrepreneur in Sylhet city. This city has been choosing because a huge amount of remittance comes from abroad. In this study also try to find out the motivational factors that induce them to be entrepreneur. finally put some suggestion to minimize the challenges.
Strategic Corporate Social Responsibility Creates Social Value in Local Sri L...inventionjournals
This paper examines the social value creation of strategic CSR initiatives. A qualitative singlecase design is used by adopting the interpretivism approach. As per the findings strategic CSR improved skills and abilities of stakeholders and result in changing their lives positively. Further, hopes and dreams are created within the rural stakeholders and enhanced their entrepreneurial mind set. Social value creation is also occurred from strategic CSR activities in the form of increasing income and expanding life options, improving living conditions, restoring rights and duties, developing social capital and knowledge enhancement. Findings are compatible with the stakeholder theory since social value creation occurred to a greater extent when the organization builds a closer relationship with its stakeholders
Understanding Corporate Social Responsibility
Corporate Social responsibility (CSR) is the continuing commitment by businesses to integrate social and environmental concerns in their business operations. Changes in the global environment increasingly challenge businesses around the world to look beyond financial performance. It also challenges the business to integrate social and environmental concerns into their strategic management.
Social Responsibility and Ethics in Strategic ManagementRintis Eko Widodo
The concept of social responsibility proposes that a private corporation has responsibilities to society that extend beyond making a profit. Milton Friedman and Archie Carroll offer two contrasting views of the responsibilities of business firms to society.
A Study on Linkage between Corporate Social Responsibility and Return on Net ...iosrjce
The purpose of the present paper is to study the linkage of CSR initiatives taken by the Indian
companies and its impact on their RONW. For this purpose, various financial parameters have been used like
Return on net worth, profit before tax and earning per share. Researchers have taken a sample of 5 private
companies namely Tata Steel Company, RIL, Mahindra & Mahindra, Infosys and Larsen and Toubro to
examine the relationship between corporate social responsibility and RONR by considering their financial
statement of five years (from March 2010 to March 2014). The logic behind to take such samples is that these
are big private key players with respect to Indian business. After getting all the data, an analysis on the
relationship between CSR and other financial parameters like EPS, PBT and RONR are tested by Regression
analysis and ANOVA. Irrespective of this general outcome, the current study depicts evidence that there is a
insignificant relationship between CSR and Return on Net Worth (RONR) in case of these companies.
Ethics and Corporate Social Responsibility are recognized as important concerns in making decision in all aspects of our life. And it’s contributing to accelerate the process of overall development of a nation. India being the second most populous country in the world, and have the largest number of people in need of basic amenities call for more intensive efforts as part of such initiatives in the health care space of the nation. We all know that people engage in business to earn profit. However, making profit is not the sole function of the business. It performs number of social function as it is a part of society. It takes care of those who are instrumental in securing its existence and survival. Business ethics are nothing but the application of ethics in business. It proves that business can be and have been ethical and still make profits. Today more and more interest is being given to the application of ethical practices in business dealings and the ethical implications of business. The paper delves into a comprehensive understanding of how Business Ethics and Corporate Social Responsibility involves as concept and the reason that encourage company in India to be socially responsible.
Prospects and Threats of Women Entrepreneur in SME Sectors in Urban Area Bang...IOSRJBM
The aim of this paper is to explore the challenges faced by the women entrepreneur in Sylhet city as well as also exploring their prospects. Women also play a vital role for the growth of the economy especially in small and medium sector. The SME sector has higher growth rate than the industrial sector. It contributes big role for developing entrepreneurship and labor absorption. It also plays a vital role in economy and social development. it's contribute significantly for entrepreneurship development, employment generation and utilize the potentiality. Women in Bangladesh are still remaining vulnerable to poverty and social deprivation. Although the situation is now changing. A woman has to invest a lot of time for household work and child rearing but they are investing the extra time to business sector to support their family and also utilizing their hidden potentiality. A structure questionnaire has been used to collect data by survey and the target population is women entrepreneur in Sylhet city. This city has been choosing because a huge amount of remittance comes from abroad. In this study also try to find out the motivational factors that induce them to be entrepreneur. finally put some suggestion to minimize the challenges.
Strategic Corporate Social Responsibility Creates Social Value in Local Sri L...inventionjournals
This paper examines the social value creation of strategic CSR initiatives. A qualitative singlecase design is used by adopting the interpretivism approach. As per the findings strategic CSR improved skills and abilities of stakeholders and result in changing their lives positively. Further, hopes and dreams are created within the rural stakeholders and enhanced their entrepreneurial mind set. Social value creation is also occurred from strategic CSR activities in the form of increasing income and expanding life options, improving living conditions, restoring rights and duties, developing social capital and knowledge enhancement. Findings are compatible with the stakeholder theory since social value creation occurred to a greater extent when the organization builds a closer relationship with its stakeholders
Understanding Corporate Social Responsibility
Corporate Social responsibility (CSR) is the continuing commitment by businesses to integrate social and environmental concerns in their business operations. Changes in the global environment increasingly challenge businesses around the world to look beyond financial performance. It also challenges the business to integrate social and environmental concerns into their strategic management.
Social Responsibility and Ethics in Strategic ManagementRintis Eko Widodo
The concept of social responsibility proposes that a private corporation has responsibilities to society that extend beyond making a profit. Milton Friedman and Archie Carroll offer two contrasting views of the responsibilities of business firms to society.
A Study on Linkage between Corporate Social Responsibility and Return on Net ...iosrjce
The purpose of the present paper is to study the linkage of CSR initiatives taken by the Indian
companies and its impact on their RONW. For this purpose, various financial parameters have been used like
Return on net worth, profit before tax and earning per share. Researchers have taken a sample of 5 private
companies namely Tata Steel Company, RIL, Mahindra & Mahindra, Infosys and Larsen and Toubro to
examine the relationship between corporate social responsibility and RONR by considering their financial
statement of five years (from March 2010 to March 2014). The logic behind to take such samples is that these
are big private key players with respect to Indian business. After getting all the data, an analysis on the
relationship between CSR and other financial parameters like EPS, PBT and RONR are tested by Regression
analysis and ANOVA. Irrespective of this general outcome, the current study depicts evidence that there is a
insignificant relationship between CSR and Return on Net Worth (RONR) in case of these companies.
Academic presentation prepared for an IT module at Nanyang Technological University.
Key highlights:
- Devices such as smartphones and tablets
- Mobile operating systems
- Trends
- Anticipated developments and trends
Presented by:
- Celeste Choo
- Wilson Zhang
- Wong Zi Hao
- Serene Loo
- Brenda Ho
The present study addresses the influence of business ethics at global perspective and its management system. The study highlights on why society, business and ethics are intertwined with each other. This is a broad view which will be influencing how business is extensive with its involvement. Business is something which cannot be isolating itself as an entity from that of the society in it. The entire social environment needs to be taken into consideration by the business when they come up with ideas of manufacturing. This is also the main reason why ethics need to be in place for it
Art of Managing Business Ethics with Global Perspectiveijtsrd
The present study addresses the influence of business ethics at global perspective and its management system. The study highlights on why society, business and ethics are intertwined with each other. This is a broad view which will be influencing how business is extensive with its involvement. Business is something which cannot be isolating itself as an entity from that of the society in it. The entire social environment needs to be taken into consideration by the business when they come up with ideas of manufacturing. This is also the main reason why ethics need to be in place for it. Vishal Dineshkumar Soni "Art of Managing Business Ethics with Global Perspective" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-5 , August 2020, URL: https://www.ijtsrd.com/papers/ijtsrd31701.pdf Paper Url :https://www.ijtsrd.com/management/business-ethics-and-legal-issues/31701/art-of-managing-business-ethics-with-global-perspective/vishal-dineshkumar-soni
Research Paper Presentation Organizational Change - AcademicPaper.net Academic Paper Inc.,
Topic : Organizational Change
Type Of Document : Research Paper
Desired style of Citation : APA
Number Of Sources : 5
Desired Number Of Pages : 1 (Min 250 Words)
Educational Level : Undergraduate
Running head GLOBAL BUSINESS ISSUES1GLOBAL BUSINESS ISS.docxwlynn1
Running head: GLOBAL BUSINESS ISSUES
1
GLOBAL BUSINESS ISSUES
5
Global Business Issues
Scotty Strahan
October 23, 2018
Colorado Technical University
Introduction
Business ethics is a field that calls for ethical conduct when managers, supervisors, and workers are meeting the daily duties. This in compliance with applicable laws and organization’s code of conduct at all times regardless of the circumstances of a specific situation (Ferrell & Fraedrich, 2014). Ethical conduct is helpful to an organization as it helps it avoid backlashes that might surface as a result of an unethical conduct. In light of this, low and high-ranking employees should have a self-drive in upholding ethical conduct in all situations. The following section looks into the ethical make-up of giving or taking a bribe for business purposes while utilizing the Project Management Institute (PMI) steps for arriving for to an ethical decision.
Discussion
The first step entails making an assessment. This is the process where one gathers facts about the ethical dilemma mainly regarding implications on the law and policies. In this case, bribing in the country for business purposes is not perceived illegal but does not abide with the organization’s code of ethics and also does not align with ethical values fostered by the organization. Bribing is normally perceived unethical as individuals are likely to overlook best practices when meeting business goals (Kenny, 2013). They are not held accountable after bribing their way through hence likely to put consumers at risk of harm that may result. In this step, it is worth noting that an individual can as well examine their personal values before committing to the action that need to be undertaken.
The second step entails examining the available alternatives. In this case, it can be seen that the competitors are willing to bribe their way through which is amounts to a threat. There are a number of alternatives that can be undertaken to counter the threat as follows. First, the government official can be involved in a session that will make him learn about advantages that will result if the business operates in the country. For instance, through corporate social responsibility the locals will benefit from a number of offers. Also, employment will be created. The official will be shown the big picture other than pocketing a bribe. Two, another alternative entails making the official learn about the ethical values of the organization that should not be violated in any case. One needs to show him utmost commitment to the values and make him understand the weight of the compromise that needs to be done. More so, he can be shown the impact that might be suffered by the organization in the event that the action is known to the public.
The third step entails making an analysis. In the event that the action backfires, there will be a negative impact suffered by the organization such as facing litigation as well as tarnishing the org.
Good ethical conduct create business sustainability. Over the past years various factors have created opportunities for industrial growth hence requiring businesses to apply good ethical conducts that creates business stability and productivity. It is therefore important for all business operation to apply good ethical conducts. Most global leading companies have promoted a sustainable culture through good ethical motivation skills.
A Strategic Approach: GenAI in EducationPeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
1. Corporates in India cannot afford to be ethical - Zubin Mulla 1
CORPORATES IN INDIA CANNOT AFFORD TO BE ETHICAL
(Published in Management & Labour Studies, February 2003)
When questioned about their unethical practices, many companies claim that the conditions in
India do not allow them the luxury of being completely ethical. This article explores the cultural
and social issues which make it difficult for a company to remain ethical, in a predominantly
unethical environment based on studies conducted in India and other developing nations.
Is it possible for an organization to remain ethical in the face of the growing corruption,
increasing disparity between people and rapidly reducing profit margins? Thousands of
underhand deals are struck everyday and go unreported or unnoticed. There is hardly an
institution, which has not at some time or the other been either involved or suspected of some
foul play. Even companies which started off with intentions to do business in an ethical manner
have had to compromise their principles due to the highly politicized and beauraucratic business
environment in India.
The argument often given by these companies is that ethical concerns are largely a luxury of
developed countries; the Third World cannot afford this luxury. We cannot completely deny this
statement considering that all of us, despite our best intentions, have been tempted to use lax
systems to further our personal motives on some occasion.
According to Aga (1994) there are two types of corruption: political corruption (money paid for
favors done) and administrative corruption (money paid for doing what should have been done in
2. Corporates in India cannot afford to be ethical - Zubin Mulla 2
the first place). Examples of administrative corruption include "gifts" to the Factory Inspector,
Boiler Inspector, Pollution Control Board Inspectors, and the assessors for customs, excise,
income tax, sales tax and octroi. It is this administrative corruption, which most companies claim
to be forced onto them from time to time.
A casual look at the happenings in the corporate world or some experience of doing a business in
India could easily lead a person with more than average patience to believe that "Corporates in
India cannot afford to be ethical."
If this statement sounds audacious to you, it would be only right to explore the truth behind it.
Why do Indian corporates find it difficult to be ethical? What are the social and psychological
reasons behind this phenomenon and can we overcome them? If so, how?
Sims et al (1999) studied the impact of the perceived organizational environment and found that
it was significantly related to employee decision. It is a common belief among most Indians that
government officials are corrupt, the legal system is ineffective and that bribing and ingratiating
are accepted practices. A study on the ethical attitudes of Indian managers conducted by Arun
Monappa and published in 1977 (cited by Cryiac (2000)) reported that business executives
considered company policies, bad competitor practices, unethical industry climate, and
corruption in government as the major obstacles to ethical behavior.
There are two basic reasons why corporates in India are likely to be unethical. The first is the
inherent cultural and social reasons and the other is because of the sense of frustration and
helplessness that comes from existing in an unethical environment.
3. Corporates in India cannot afford to be ethical - Zubin Mulla 3
Cultural and Social Reasons for Unethical Behavior
Batten et al (1999) compared the behaviour of firms in Australia and Sri Lanka to study the
impact of the level of economic development on ethical behaviour and practice. The study
concluded that ethical management practices are likely to vary between countries due to
differences in socio-economic and cultural factors.
According to Rossouw (1998), business ethics is often regarded as a low priority in newly
formed democracies, because it seems there are more urgent demands that have to be dealt with
first. Most Indian businessmen and government officials are likely to agree with this idea. The
urgencies of day-to-day survival for businessmen and the lawmakers do not give them the scope
to worry about the ethical and moral implications of their actions. This is especially true today, in
the era of liberalization, where Indian corporates find it increasingly difficult to compete in the
new "global" markets.
Analyzing the relationship between national culture and decision-making, Robertson & Fodil
(1999), have reviewed established theories and developed a culture-based model for ethical
decision-making. They believe that cultural factors like individualism / collectivism, education
and training affect ethical decision-making. Managers from collectivistic societies are more
likely to follow the utilitarian theory of ethical decision making than the managers from
individualistic societies. The utilitarian theory supports the credo " No harm done – Nothing
wrong" which might explain why Indian corporates often use this logic to justify otherwise
unethical behaviour.
4. Corporates in India cannot afford to be ethical - Zubin Mulla 4
Cultural logic also governs the social behaviour of people (Steidlmeier (1999)). In China, gift
giving is a prevalent social custom, and hence gift giving becomes a natural outcome of a
relationship. Reciprocity is in any society a rule of life, but in some societies it is the
predominant rule of social life. In such a situation, not giving a gift in the course of business
would mean non-compliance with a social custom and could be interpreted as rudeness or
arrogance. Thus, it is possible some of our customs and values force us to commit acts that could
be construed as unethical. An appropriate example from the Indian context would be the practice
of inviting friends for dinner at one’s residence. In India, this action is the natural outcome of a
relationship. In such a situation, not inviting a business associate could be construed as impolite.
But why is it that a highly spiritual and religious country like India is grappling with the issue of
corruption? Should not our rich spiritual and cultural heritage guide us on the straight and narrow
path of righteousness?
Sinha (1997) explains that the Indian peoples' aspiration to build a strong nation in a short time
coupled with our colonial legacy has led to two divergent strands of values: the traditionally
idealized values (rooted in ancient psycho-spiritual thoughts) and the operative values (evolved
from the interaction between idealized values and India's changing socioeconomic realities). It is
the latter which are visible in people's current behavior.
Another explanation of ethics in a developing economy is given by Lea (1999): "Transition from
subsistence culture to the commercial enterprise of capitalistic culture can affect a moral chaos in
which behavior falls short of ethical expectations. In traditional sub- cultures rituals govern life.
These rituals are insufficient behavioral guides in capitalism, which increases individual
autonomy and responsibility and generates surpluses and wealth." Rapid economic growth leads
5. Corporates in India cannot afford to be ethical - Zubin Mulla 5
to the development of a distorted understanding of capitalism and growth, in which money
power, survival and profitability at any cost are considered as the primary goals of any business.
The manifestation of this idea is very apparent in India and especially in the case of some famous
"rags to riches" stories.
Compelled To Be Unethical: "If I Can’t Beat Them I May As Well Join Them"
South Africa has a major fraud and corruption problem. A study conducted in South Africa by
Zyl et al (1999), found that business people, who previously abided by rules and regulations of
the country are throwing up their hands in despair saying: "well if I can’t beat them, I may as
well join them." This refrain seems familiar to us in India, where most businesses are often heard
blaming the "system", the legal framework and the government for their own unethical actions.
Even Rossouw (1998) found that people tend to see the prevailing culture as a rational and fixed
order, which is almost impossible to change and they defend their own unethical behavior by
saying that it is impossible to act otherwise.
The need to adapt to the unethical environment is so strong that even large multinationals setting
up facilities in India have been unable to avoid cutting corners. In their eagerness to capture the
Indian market and beat the competition, many companies have grossly broken their stringent
codes of conduct, which in the west would be unthinkable. This was apparent when a major
portion of the top management of a leading FMCG multinational in India were removed on
grounds of violation of the ethical code of conduct, however there was no visible effort on the
6. Corporates in India cannot afford to be ethical - Zubin Mulla 6
part of the company to own up or reverse some of the unethical actions performed by its
erstwhile employees.
Other obstacles to ethical business practices in developing countries
The other factors affecting ethical practice in India are: fear of retrenchment; lax government
structures and regulations; sanctions and discriminations; uncertainties and fears about the
future; a belief that business and ethics were irreconcilable; an inequitable tax system (Zyl et al
(1999)); and scarcity of resources (Rossouw (1998)). These create in businessmen a sense of
helplessness which is enhanced by the strong external locus of control found in Indians (Gopalan
and Stahl (1998)).
Solutions
Having seen all the possible reasons for unethical business practices in developing countries, the
solution must be to remove or control the factors that are responsible for these practices. The
control can be effected at two levels: the Individual and the Organizational. The Individual
dimension involves behaving ethically yourself, screening prospective employees and ethical
training; while the Organizational Strategies involve developing a meaningful code of conduct,
distributing the code of ethics, communicating the code of conduct and monitoring and
enforcement (Zyl et al 1999).
There is a widely prevalent belief in the minds of people that ethics is a matter of personal choice
and that the organization can do little to enforce ethical practices in an organization. However,
7. Corporates in India cannot afford to be ethical - Zubin Mulla 7
research has proved the importance of organizational policies and practices on ethical behavior
(Verschoor, 1998, looking at case studies of 500 publicly held US corporations: J&J, Campbell
Soup, Du Pont, IBM). Statistical analysis of the Business Week rankings of corporations has
shown that mean financial performance rank of companies with a stated commitment to ethical
behavior is higher when compared to mean rank of companies that either published no
management report or did not make any reference to ethics.
Batten et al (1999), has listed three factors that account for ethical behavior in organizations: the
presence of a written code of ethics, a forum for discussion of ethics and whether respondents
considered their firms’ activity had a negative impact on the environment.
The efficacy of such corporate initiatives in the Indian environment remains to be seen. Until
then, we can rely on the personal initiative of employees and dynamic leadership to sustain the
moral and ethical character of businesses in India. The ideal would be, in the words of the late
Mr. Aga (1994): "Where profit is not only a set of figures, but of values."
The ideas expressed in this article are my personal views and do not represent the views of my
organization.
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