Three Growth Models (3G), 4G, Social Responsibility of Business, Triple Bottom Line Concept (3BL), Planet, People, Profit.

1. Profit is not always
the point
Kathmandu University School of Management (KUSOM)
Subject: Managerial Ethics and Corporate Citizenship
Term/Trimester: MBA Third Term
Year: 2018
Group Members:
Dibya Raj Sapkota
Dipesh Raj Pandey
Raj Maharjan

2. “There is one and only one social
responsibility of business- To
engage its resources and engage in
activities designed to increase its
profits
-Milton Friedman

3. Three Growth models (3G)
○ Consistent
○ Competitive
○ Profitable

4. 4g
○ Consistent
○ Competitive
○ Profitable
○ Responsible

14. The Social Responsibility of
Business

15. The Social Responsibility of
Business
○ Merck shared the secrets of how
to make penicillin with his
competitors so that they could
do so also by saving thousands
of lives in world War II.
○ Merck said, “We try never to
forget that medicine is for the
people. It is not for the profits.
The profits follow and if we
remember that, they have never
failed to appear.

16. The Social Responsibility of
Business
○ Alex Edmans studied the effect of
being a best company to work for
on future stock returns.
○ He found that the “100 best
companies to work for in
America” beat their peers by 2-
3%/year over 1984-2009.
○ The results of Alex suggest that
treating your employees well
actually pays off in terms of firm
value.

17. The Social Responsibility of
Business

18. The Social Responsibility of
Business
○ Costco’s management
believes that workers
should be spending
these holidays with
their families.
○ Profits have topped $2
billion in each of the
last 2 years.

19. The Social Responsibility of
Business
○ While Alex's study focuses on employee well
being, research by his colleague Yannis
Yanu and many others have shown that
other dimensions of social responsibility
such as customers well-being, society and
environment well-being also improve firm
value.

20. ○ So, WHY DO BUSINESSES EXIST?

21. Is profit ethical word ?
It is unethical to make loss

22. Oranagization Approach towards
○ Shareholder
○ Stakesholders

23. Triple Bottom Line concept (3BL)
○ People, planet and profit
○ Measures success of organization
based on social, ecological and
economic factors
○ Responsibility towards Stakeholder
rather than Shareholder

24. Planet
○ Maintain natural order
○ do no harm the environment or at least try to
minimize the environmental impact
○ carefully manage consumption of energy and
non-renewables and reduce manufacturing
waste

25. People
○ fair and beneficial business practices toward
labor and the community
○ The "upstreaming" of a portion of profit back to
the original producer of raw materials
○ no use of child labor
○ fair salaries to workers, safe work environment
and tolerable working hours

26. Profit
○ economic value created by the organization
○ differs from traditional accounting definitions
of profit
○ real economic benefit enjoyed by the host
society

27. “Caring about the society is not
at the expenses of profit, it
supports profit.

28. ○ THANK YOU