Appendix 1

Title :
The political elite of this world are concerned
about business ethics. They promote the
concept of CSR, while singularly failing to be
responsible themselves
Subject :
OVB!"#$
Level / Semester : % semester
Programme : &.B.'
Programme Tutor : &r. Roland Bushell
Student Name : (iran (umar Reddy (an)anala
Student Registration Number
: 1!!!"#
$ate o% Submission : November 1& '!!
(ord )ount : 1#*+ ,ords
(ord Limit : 1#!! ,ords
*
Appendix - '
).ec/list to be submitted along ,it. t.e assignment placed be%ore t.e )ontents
Page0
Student +ame (iran (umar Reddy
(an)anala
Registration number
,*---./
#ate for submission of the 'ssignment. *, +ovember, 0--,
The cover page is in the correct format as indicated in the
1uidelines to writing 'ssignments2
3es
4ave done a complete spell5chec) of the assignment 3es
4ave done a complete word count for the assignment 3es
#oes the table of contents include numbers6 3es
're the pages numbered correctly6 3es
're the figures numbered correctly6 3es
're the tables!charts numbered correctly6 3es
're the captions for the tables and charts proper6 3es
're the references! bibliography listed in the assignment6 3es
're the references cited ade7uately in the te8t6 3es
're the references in the te8t in the proper format as
indicated in the 91uidelines to writing 'ssignments2
3es
' soft copy of the assignment has been enclosed with the
assignment.
3es
'll material written in this assignment are my own and %
have not used any material, content or information of
others claiming them to be mine. :herever materials have
been used, proper citation has been done in the te8t. % am
fully aware of the rules and regulations governing the
"lagiarism applicable to the dissertation and should at any
point of time my wor) is suspected!investigated and
established to have plagiarised some other wor). 'm
aware of the conse7uences if such cases are detected and
have read the Students 4andboo) in detail.
3es
Signature of the student #ate
0
1N$23
S0 No0 Topic Page No0
*. 'ppendi85* *
0. 'ppendi850 0
;.
%nde8
;
.. %ntroduction .
/.
Corporate social responsibility
.
<. %nstances of corporate social responsibility failure <
=. conclusion =
>. References ,
,.
*-.
**.
*0.
*;.
*..
1ntroduction:
;
ach and every business in this world is bound by certain rules and regulations which
are set by the respective legislatures of the countries. So, government has its
responsibility to set the rules to ma)e all the businesses run smoothly, honestly,
trustworthy and cooperatively. These ethical values are not only framed for the
commercial businesses but for government organi?ations, non5profit organi?ations,
Charities, @niversities etc. which also fall under their respective form of business
ACollins *,,.B :atson *,,.C.
4ow politicians are concerned about business ethics6
%t is the duty of the politicians to frame out certain laws for the well being of the
society as they are the representatives of the people. %t is their primary need to follow
the law and lay the road for everyone in the society. The same applies to the business
entities and it is the primary responsibility of the political world to loo) at the right
and wrong involved in business. Being, right or wrong means the business has to
follow the ethical moral values for their own prosperity and at the same time for the
sustainable development of the society. 9Business ethics involves situations, activities
and decisions where issues of right and wrong are addressed in business.2 A 'ndrew
crane and #ir) &atten, 0--.C.
%n the modern economy of the global world the dominant form of the business entity
is widely )nown as corporation. ach corporation has to abide by the laws, standards
set by the government. The rules are designed by the government for the welfare of
society in various forms.
)orporate social responsibilit4 5)SR6:
%t is completely a new phenomenon. 9Corporate social responsibility is the
commitment of business to contribute to sustainable economic development, wor)ing
with employees, their families, the local community and society at large to improve
their 7uality of life.2 Corporations on the other side should balance the share holder
values apart from improving the e8pectations of the socially, ethically and
environmentally.
.
The framewor) with a conceptual systemic reasoning was put forward in @S' for the
purpose of the Corporate social responsibility ACSRC. This was put into force in @S'
half a century ago ACarroll *,,,C. 'uthors li)e &iltan Driedman defined corporation
as only an association of people who come from different cultures to ma)e profit out
of the purpose for what they have come together. So, the main motto of the
corporation at first is to run their business in profit.
4ere is the four5part model of the corporate social responsibility
*. conomic responsibility Are7uired by the societyC
0. $egal responsibilities Are7uired by the societyC
;. thical responsibilities A e8pected by the societyC
.. "hilanthropic responsibilities Adeserved by the societyC
ASourceE Carroll *,,*.C
Companies do have economic responsibilities in a form for shareholders to whom
they are re7uired to give bac) their profit for the investment what they have done.
+e8t comes the employees who are to be treated fairly in terms of safety and wages.
Customers are the main persons who play )ey role in businesses who are to be treated
well with the 7uality products of their money. This fulfils the economic
responsibilities which is the first )ey step for the Corporate social responsibility. The
second comes the legal responsibilities which involves the competitive advantage. %n
recent years many companies are caught in such frauds related to the illegal strategies
of maintaining mar)et value. So business should be run by the legislations of law set
by the government.
's two maFor steps re7uired by the society are completed the ne8t ones are the steps
e8pected by the society. :hen the companies have the competitive advantage and
financial status they can loo) forward for the ethical issues relating to environment.
Dor e8ample the Brent spar oil platform disposal into sea was opposed by green peace
and also there was consumer boycott even after British government gave legal rights.
Dinally the disposal was reversed. This is an e8ample to show what corporations
should not do against but follow ethical values. The final responsibility is the
philanthropic responsibility which tal)s about the improving the 7uality of life of
employees, local authorities etc. The e8pectations in this form would be more of
/
service oriented for the benefit of the people, few communities in the society. To
provide education to poor, meals, clothing, hospitals etc for the well being of the
society. This is one the )ey point where goodwill of the corporation will spread by
word of mouth. That means it is a form of free mar)eting for corporations and feel
good satisfaction for all.
1nstances o% )orporate social responsibilit4 %ailure:
's Corporations have their role of corporate social responsibilities in two ways, one
in the form of responsibility to give the shareholders and employees their respect in
the form of capital which really encourages them as well as the corporate firm. One
more aspect of social responsibility is company has to protect the environment also
provide the non5profit services to the society for the uplift of the downtrodden,
orphans, poor etc. But because of the political intrusion and also the managers of the
company who are in greed of the money may leave all the ethical values to e8ploit
people. 4ere are few instances in the present day world.
The %ssue of &onsanto in %ndia is one of the good e8ample for the unethical CSR.
The @S based &+C &onsanto company is giant player in the field of agricultural
biotechnology globally. &onsanto in association with %ndian government supplied the
genetically engineered seeds A1& seedsC and &onsanto pesticides to the farmers. 's
%ndia is an agriculture based country the seed distribution, fertili?er, and pesticide
distribution are in the hands of government. So, the 1& seeds were supplied at much
higher rates when compared to the normal traditional seeds. This costed the lives of
many farmers in %ndia as they could not pay bac) their debts. %n this case &onsanto
has cheated the farmers saying that they yield more than the traditional seeds. ven
the pesticides supplied were also of high pricing. Darmers who could not pay bac)
these debts too) the pesticides supplied by them to give up their lives. %t is very
unethical from government point of view as they are the main culprits along with the
&onsanto who cheated innocent farmers.
Sir 'llen Stanford who is one of the richest persons of the Te8as, @S has made G =
billion fraud by cheating his investors who is the chairman of the Stanford Dinancial
group. 4e is the owner of three companies. This scam even involved 'ntigua
<
government connected agency official. $eroy )ing, the former administrator and chief
e8ecutive officer of the 'ntiguan financial regulatory service commission an agency
of the 'ntiguan government.
The Bullet proof scam came into limelight after 0<!** attac)s of %ndia in the year
0--> which is all because of the government not following the ethical rules as they
didnHt supply the good proof Fac)ets which costed few military officials lives. One
more thing which happened after the investigation was probed the file regarding
purchase and anti corruption bureau went missing. 'ctually the Fac)ets were brought
from the local manufacturers which even failed tests but were )ept in use by the
government.
"fi?er %nc. :ho are the manufacturers of the artificial heart valves made a few
defective products out into the mar)et which costed the lives of the ;-- patients. The
patients were dead due the immediate failure of the valves.
The maFor sugar mills in "a)istan the Tandliawal sugar mills, Brother sugar mills and
(ashmir sugar mills have holded the 0,.-,-- tonnes of the sugar purchased by the
government. 's they holded the sugar which led to a massive shortage in the mar)et.
'll this was )nown by the government but was not able to ta)e the step forward and
have not attended any action as it involved the main political parties and their leaders.
&adhu )oda the former chief minister of the remote %ndian state Ihar)hand was
involved in about .,--- crore %ndian rupee scam. 4e was also the mister of the mines
at one time. #uring his tenure of the ministry for mines as well as the chief minister
he was involved in this rigorous scam. The political and corporate governance are the
maFor challenges what %ndia is facing today for sustainable economic development.
)onclusion:
Business ethics and corporate social responsibility are interlin)ed and are not much of
different as ethics are the rules and integral values of the business. 's in this global
era the business entities are referred to as corporations each firm has to follow the
certain ethical values for the benefit of the company, its owners and shareholders,
customers, environment. So, politicians in power are involved in framing the laws of
the legislation for the business entities and every citi?en has the respect for these laws.
=
But on the other hand politicians who are the representatives of the people are failing
to put an halt to the unethical conspiracies which are going around in the present day
world but they themselves on other side are involving in such wrong activities. This
has made people to lose belief on politicians in the present day world. 'll this is the
utter failure of the politicians to live up to the e8pectations of the people. So, how will
they promote the corporate social responsibility6 :as the main 7uestion and the
answer is they do not as they are interested in their individual benefit and doesnHt
bother about the society.
Re%erences:
>
Andre, )rane and $ir/ 7atten& 5'!!"6& Business Ethics0 89P0
:osep. (0 (eiss& 5'!!+6& Business ethics, A stake holder and Issues management
approach, T.ird 2dition& Sout. ,estern )engage learning0
(illiam0 )0 ;rederic/& 5'!!<6& Corporation be good: The story of Corporate Social
Responsibility, $og 4ear publis.ing0
7alcolm 7c1ntos.& 5'!!=6& i!ing Corporate Citi"enship: Strategic routes to
socially responsible business, Prentice >all0
Carley :, A*,,*C, 'rtificial heart valves, The #all Street $ournal, pp. '*, '<.
httpE!!www.scribd.com!doc!;/-;</<!)ram5(abirs5articles5on5Corporate5Social5
Responsibility5in5Bangladesh
%e&s paper ' Times of %ndia, < +ovember, 0--,, from India.

%e&s paper J #awn, */ 'ugust, 0--,, from (akistan.
httpE!!www.youtube.com!watch6vKi#Cul:#(?m), 'llen Stanford financial fraud.
httpE!!www.youtube.com!watch6vKv31h;o%3/Bs , 0<!** bullet proof scams.
httpE!!www.youtube.com!watch6vKFeboa.TR/Lo , &onsanto %ndia J farmer suicides
,