Business ethics & social resposibility

1. Presentation on
Business Ethics & Social Responsibility
Presented By
Ronald
Amey
Prasad
Ravikiran
Bharat
Prathamesh
Under Guidance of
Prof. Dr. Kamath
VIDYALANKAR SCHOOL OF
INFORMATION TECHNOLOGY

2. Learning Goals
1. Explain the concepts of
business ethics and social
responsibility.
2. Describe the factors that
influence business ethics.
3. Identify common ethical
dilemmas in the workplace.
4. Discuss how organizations
shape ethical behavior.
5. Describe how businesses’ social
responsibility is measured.
6. Summarize the responsibilities of
business to the general public,
customers, and employees.
7. Conclusion

3. Genesis of Ethics
Ethics is a Greek word Ethos, it means Character
or manners.
Business Ethics are that functions which leads
to choosing right decision at right time which
leads for the welfare of not only business owners
but also society, consumers, stakeholders and
its employees.

4. Business Ethics
The value of what should be done and
what should not be done from the
business point of view.
Business ethics involves adhering to
legal, regulatory, professional and
company standards, keeping promises
and commitments and abiding by general
principles like fairness, truth, honesty and
respect.

5. Situation in which a
business decision may
be influenced for
personal gain.
Telling the truth and
adhering to deeply
felt ethical principles
in business decisions.
Business people expect
employees to be loyal
and truthful, but
ethical conflicts may
arise.
Employee’s disclosure
of illegal, immoral, or
unethical practices in
the organization.
Business Ethical Dilemmas

6. Ethical issues for business
Product safety standards
Advertising contents
Working environment
Unauthorized payments
Employee’s privacy
Environmental issues

7. Ethical issues for business
Fraud
Fraud is a crime of lying or pretending. Some businesses mislead
consumers and trick them to buy their products or services. The
Competition Act 2002 bans such fraud and deceptive business
practices and defines these as
•false or misleading advertising
•“bait and switch” selling
•double ticketing items for sale
Insider Trading
Insider trading is buying or selling shares of a company based on
confidential information. This type of trading is illegal.

8. Accounting Scandals: Enron!
An accounting scandal occurs when accountants or senior executives
alter accounting records for personal benefit.
Accounting information is used inside and outside of the business to
make decisions. When accounting irregularities are uncovered, a forensic
accountant investigates legal and financial documents to find evidence of
tampering.
Embezzlement, a type of accounting fraud, happens when an
accountant or senior executive creates false accounts and redirects
money into them for personal gain.
Business owners rely on outside accountants, auditors, to check and
report on the validity of financial records.
Ethical issues for business

9. How Organizations
Shape Ethical Conduct

10. Code of Conduct
Formal statement
that defines how
the organization
expects and
requires employees
to resolve ethical
questions.
Ethical Awareness

11. Codes of conduct
cannot detail a
solution for every
ethical situation,
so corporations
provide training in
ethical reasoning.
Ethical Education

12. Helping
employees
recognize and
reason through
ethical problems
and turning them
into ethical
actions.
Ethical Action

13. Executives must
demonstrate ethical
behavior in their actions.
Whistle-blowing
Whistle-blowing happens
when an employee
informs officials or the
public about an illegal or
ethical violation.
Ethical Leadership

14. Social Responsibility
•Social responsibility is the obligation of organization’s
management to make decisions and take actions that will
enhance the welfare and interests of society as well as the
organization.
•Social responsibility is therefore quite important to the
society, organization and human.
•Management’s consideration of profit, consumer satisfaction,
and societal well-being of equal value in evaluating the firm’s
performance.
•Contributions to the overall economy, job opportunities, and
charitable contributions and service.

15. Areas of Responsibility

16. •Public Health Issues. What to do about inherently dangerous
products such as alcohol, tobacco, vaccines, and steroids.
•Protecting the Environment. Using resources efficiently,
minimizing pollution.
•Recycling. Reprocessing used materials for reuse.
•Developing the Quality of the Workforce. Enhancing quality of
the overall workforce through education and diversity initiatives.
•Corporate Philanthropy. Cash contributions, donations of
equipment and products, and supporting the volunteer efforts of
company employees.
Responsibilities to the
General Public

17. •The Right to Be Safe. Safe operation of products,
avoiding product liability.
•The Right to Be Informed. Avoiding false or misleading
advertising and providing effective customer service.
•The Right to Choose. Ability of consumers to choose
the products and services they want.
•The Right to Be Heard. Ability of consumers to
express legitimate complaints to the appropriate parties.
Responsibilities to
Customers

18. •Workplace Safety. Monitored by
Occupational Safety and Health Administration.
•Quality-of-Life Issues. Balancing work and family through
flexible work schedules, subsidized child care, and regulation
such as the Family and Medical Leave Act of 1993.
•Ensuring Equal Opportunity on the Job. Providing equal
opportunities to all employees without discrimination; many
aspects regulated by law.
•Age Discrimination. Age Discrimination in Employment Act of
1968 protects workers age 40 or older.
•Sexual Harassment and Sexism. equal pay for equal work
without regard to gender.
Responsibilities to
Employees

19. • Provide adequate monetary , psychological rewards as well as
job security
• Selection of employees should be made fairly
• Providing educational opportunities & training to the employee
at company’s expense
• Working conditions should be safe & pleasant
Responsibilities to
Employees

20. •Investors protected by regulation by the
Securities and Exchange Commission and state
regulations.
•Resources available are used for the benefit of the
owners/shareholders
•Stability of the enterprise
•Ensure that the company grows, so that the
shareholder gains from increase in the market price
of his shares
Responsibilities to
Investors

21. NABARD, Bank of India &
BPCL
Nabard helps 101 million poor people
through micro finance program, providing
access to credit.
Joint liability groups (JLG)- rythu mitra
program- credit access to landless farmer's
agri laborers, empowers women with micro
credit, micro enterprise, created special
funds for water shed development,
Partnering with corporate like ITC, Tata’s, M
and M, ambuja cements etc, many more.
BPCL provides alternate source of energy,
solar energy for street lights at villages, skill
enhancement on modern farming practices,
distributes smokless chulas, training for
income generation projects.

22. State Bank of India, focuses on below poverty line,
adopted 101 villages.
Now world is outsourcing world. Anything done most
efficiently cost effectively can be done by someone
else.. NGO have to develop new tie up with corporate
to align themselves to meet the changing needs of
society. Corporate have fund of Rs. 1 laks crores for
CSR in India alone. Not to speak of Transnational
corporation Networking of NGO and development of
search engines for various relevant social projects is
the need of the hour. .
NABARD, Bank of India
& BPCL

23. The first responsibility to society is to operate at a
profit. The business is the wealth-creating and
wealth-producing organ of the society. Management
must maintain its wealth-producing resource intact
by making adequate profits to offset the risk of
economic activity. And it must beside increase the
wealth-producing capacity of these resources and
with them the wealth of society.
Customers seek out companies who have a public
record of doing good and being good. Ultimately, by
establishing these programs we will be improving
our company from the inside & outside.
CONCLUSION

24. THANK YOU