This presentation gives an insight to the concepts of Corporate Social Responsibility and Business Ethics. This presentation will be a good one for begineers trying to conceptualize on economics.

1. ALA COMPONENT
Subject: Engineering Economics and Management(2130004)
Topic: Corporate Social Responsibility & Business Ethics
Submitted By: Submitted To:
Nishant Narvekar(170410119061) Prof. Dr. A. K. Adhikary
A. S. & H. Dept.

2. CORPORATE SOCIAL RESPONSIBILITY (CSR)
• The concept of the corporate social responsibility (CSR) is linked to the business
as it responds to the changing environment. As business activities grew in size,
location and diversity; it impacted various stakeholders as well as the
environment adversely. The competition amongst various business entrepreneurs
to reach the peak forced them to move towards malpractices. Thus, at this point,
the workers, various stakeholders and social activists raised their voices against it,
and thus evolved the concept of “Corporate Social Responsibility”.
• Definitions of CSR
1) According to Browin, CSR is defined as “obligation to pursue those policies, to
make those lives of action which are desirable in terms of objectives and values
of our society.”
2) According to Harold Koontz and O’Donnell, CS can be defined as “the personal
obligation of the people as they act in their own interests to assure that the
rights and legitimate interests of other people are not infringed.”

3. CORE ELEMENTS OF CSR
The CSR Policy should normally cover the following core elements:
1. Care for all stakeholders
2. Ethical functioning
3. Respect for workers’ rights and welfare
4. Respect for human rights
5. Respect for environment
6. Activities for social and inclusive development

4. NINE PRINCIPLES OF NATIONAL VOLUNTARY GUIDELINES
1. Businesses should conduct and govern themselves with ethics, transparency and
accountability.
2. Businesses should provide goods and services that are safe and contribute to
sustainability throughout their life cycle.
3. Businesses should promote the wellbeing of all employees.
4. Businesses should respect the interests of, and be responsive towards all
stakeholders, especially those who are disadvantaged, vulnerable and marginalized.
5. Businesses should respect and promote human rights.
6. Businesses should respect, protect, and make efforts to restore the environment.
7. Businesses, when engaged in influencing public and regulatory policy, should do so in
a responsible manner.
8. Businesses should support inclusive growth and equitable growth.
9. Businesses should engage with and provide value to their customers and consumers
in a responsible manner.

5. IMPORTANCE OF CSR
The importance of CSR is as follows:
• Contributes in the lowering of environmental pollution
• Gives out sustainable development to the employees
• Business act as a custodian of natural resources which are scarce in nature
• Businesses are compelled to contribute in the quality of the life of the community
• Businesses are required to share the responsibilities in resolving new and
emerging problems
• The responsible behavior of business firms shall put a checks on business firms
• The primary goals of the business enterprise cannot be attained without showing
concern towards various stakeholders in particular and society in general
• Respect of human rights in corporate world
• Sustaining the environment for future generations

6. BUSINESS ETHICS
• Ethics is a branch of moral science. It deals with moral principles and moral
values. It helps us to classify what is good and what is bad? Ethics separate good
and bad, right and wrong, fair and unfair, moral and immoral & proper and
improper human action. In short, ethics means a code of conduct. It is like the 10
commandments of the holy Bible.
• Basically, ethics can be defined as “the principles, values and beliefs that define
right and wrong decision and behaviour.”
• So as to define business ethics, it can be defined a as means to conduct business
with a human touch in order to give welfare to the society.

7. CONCEPT OF BUSINESS ETHICS
The concept of business ethics is to be considered with reference to three C’s:
1. Compliance of Rules: Rules, laws and codes govern the individual behavior in a
society. The non-compliance is treated as unethical behavior.
2. Contribution of the business to the society: A business unit provides better
quality products and services, generating employment, and thus earning
valuable foreign currency.
3. Consequence of business activities: The activities of a business unit needs to
build a positive image amongst its stakeholders and customers by safeguarding
their interests.

8. FEATURES OF BUSINESS ETHICS
The features of business ethics are:
1. Code of conduct
2. Based on moral and social values
3. Gives protection to social groups
4. Provides basic framework
5. Voluntary
6. Requires education and guidance
7. Relative term
8. New concept

9. IMPORTANCE OF BUSINESS ETHICS
The importance of business ethics are:
1. Stopping business malpractices
2. Improving customers’ confidence
3. Business survival
4. Safeguarding customers’ rights
5. Protecting employees and shareholders
6. Developing good relations
7. Creating good image
8. Smooth functioning
9. Consumer movement
10. Customer satisfaction
11. Importance of labor
12. Healthy competition

10. NEED OF CSR AND BUSINESS ETHICS
The need for the business ethics and CSR was felt due to the following reasons:
1. Scarcity of resources
2. Careless and misuse of resources
3. Prioritization and effective use of economic resources which have alternative
resources
4. Judicious allocation of limited resources having alternative resources
5. To covert win-lose situation with the stakeholders into win-win situation
6. Management of information under ethical and social consideration
7. Recent awareness in the form of regulatory provisions on CSR

11. THANK
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