Professional Ethics Seminar

(BG14034)

MODULE 7
Resp o n si b i l i t i es
(2/ 2 Fi r st Cl ass M eet )
 MODULE 7 Responsibility
Con ten t s:
1. Con cep t, d ef i n i ti on an d m ean i n g of
Resp on si bi l i ty
2. K i n d s of Resp on si bi l i ty
In d iv id u a l R e sp o n sib ility
So cia l R e sp o n sib ility
C o r p o r a te So cia l R e sp o n sib ility (C SR )
3 . C SR a n d Sta k e h o ld e r T h e o r y
4. C o r p o r a te So cia l Ir r e sp o n sib ility
 1. D ef i n i t i o n

Responsibility is something that it is your right or duty to deal with.

Life, in all level of individual, social, and corporate life, is a system
of rights and duties. Life, therefore, is the responsibility. The system
of rights and duties of a person could not function if a person
(individual) was not held responsible for his/her actions. In other
word, life of a person could not function if that person was not held
responsible for his/her actions. (Dr.Weeraphan)

The above message has two senses of responsibility: the

right responsibility and the duty responsibility. The right
responsibility reflects that human beings are a free will creatures
whom should shoulder the burden of helping others and supply them
with resources. The duty responsibility reflects that human beings
are choosing agents whom able to control their actions or
decisions, and to take responsibility for its results.
 Definition of Duty Responsibility
A duty or obligation to satisfactorily
perform or complete a task (assigned by
someone, or created by one's own promise or
circumstances) that one must fulfill, and
which has a consequent penalty for
failure.
Read more: http://www.businessdictionary.com/definition/responsibility.html
 C o n cep t : Responsibilit y = Account abilit y
To be responsible is to be able to answer
(accountable) these three questions before or
after executing a certain act:
What I do?
Why I do it?
Does it deserve blame or praise? (An example)
 Charact er of Responsibilit y
Only humans are responsible agents.
Humans are morally responsible for:
W h at th ey h av e d on e? (D u ty : acts,
th ou gh ts, an d w or d s)
W h at t h ey h av e f ai l ed to d o t h ei r d u t y ?
W h at th ey sh ou l d d o as good ci ti zen s?
(r i gh t)
 Three Factors of Responsibility

1.A bi l i ty to ex er ci se agen ts f r eed om of ch oi ce

(n o f r eed om , n o r esp on si bi l i t y or l ess r esp on si bi l i t y )
2.A w ar en ess of acti on s an d th ei r con sequ en ces
(m i n d f u l n ess on y ou r d eci si on )
3.A bi l i ty to ju d ge by n or m s or r u l es
(l egal , et h i cal , an d t r ad i t i on al )
H u m an s ar e ex cu sed f r om
r e sp o n sib ilit y fo r t h e ir b e h a v io r a n d
a ct io n s in t w o ca se s.

1. Im m a tu r e k id s
2 . P sy ch o lo g ica lly sick p a tie n ts
VDO: RESPONSIBILITY (Why, When and How To Take It) - Teal
Swan - https://www.youtube.com/watch?v=o-_bHdUef94 (24 M)
Conclusion on Concept, definition and
meaning of Responsibility (by philosophers)

Responsibility as Personal Characters

A person is also worthy for praise or
blame on the basis of either his/her
action or personality traits, character or
both. (A r i sto tl es, N i comachean Ethi cs
III.1- 5)
Responsibility as Personal Characters

Ch ar act er isn t so m e t h in g y o u
w e r e b o r n w it h a n d ca n 't ch a n ge ,
lik e y o u r fin ge r p r in t s. It 's
so m e t h in g y o u w e r e n t b o r n w it h
a n d m u st t a k e r e sp o n sib ilit y fo r
fo r m in g.
Ji m Ro h n
 2.
K i n d s o f Resp o n si b i l i t y
Group 1 Gr o p u 2
D i v i d ed b y i t s C h ar act er
Divided by it s Result

- I n d i v i d u al Resp on si bi li t y
- Moral Responsibility
- Soci al Resp on si bi l i ty
- Regal Resp on si bi l i t y
- Cor p or ate Soci al
Resp on si bi l i ty (CSR)
 Group 1: Legal & Moral Responsibilit ies
L egal Resp on si bi l i ti es M o r a lity R e sp o n sib ility
Cod i f i ed N o t co d ifie d
B ased on l aw or B a se d o n u n iv e r sa l
r u l e (con st i t u ti on ). e th ica l p r in cip le s
En f or ced P e r su a siv e
L i abl e Se n se o f g u ilt o r
sh a m e
 Legal & Moral Responsibilit ies

V i ol ati on of l aw or M i sbeh av e of m or al i ty
r u l es r esu l ts i n r esu l ts i n a sen se of
p u n i sh m en t. gu i l t or sh am e.
 Gr o u p 2
1. I n d i v i d u al Resp o n si b i l i t y
2. So ci al Resp o n si b i l i t y
3. C o r p o r at e So ci al Resp o n si b i l i t y (C SR)
 1. Individual Responsibilit y
You can n ot h op e to bu i l d a better w or l d
w i th ou t i m p r ov i n g i n d i v i d u al s. T o th at
en d , each of u s m u st w or k f or ou r ow n
i m p r ov em en t, an d at th e sam e ti m e, sh ar e
a gen er al r esp on si bi l i ty f or al l h u m an i ty ,
ou r p ar ti cu l ar d u ty bei n g to ai d th ose to
w h om w e th i n k w e can be m ost u sef u l .
M ar i e Cur i e
VD O : - Concept of personal responsibility
https://www.youtube.com/watch?v=E_3MUyLNgCg
- Individual Social Responsibility
https://www.youtube.com/watch?v=gWff2Ne4v78
 2. Social Responsibilit y

Governments, Corporations, Organizations, or

Individuals have a caring responsibility to society.
Negatively: refrain from acts that harm society.
Positively: contribute for the betterment of society.

Social Responsibility
https://www.youtube.com/watch?v=qOzRCoKSJwg
There is hope for bet t erment if we join hands t o
Heal t he World.
 Example
Responsibility for Future Generation
Fu t u r e gen er at i on s
m ay w el l h av e
occasi on t o ask
t h em sel v es, "W h at
w er e ou r p ar en t s
t h i n k i n g? W h y d i d n 't
t h ey w ak e u p w h en
t h ey h ad a ch an ce?"
W e h av e t o h ear t h at
qu est i on f r om t h em ,
n ow . (A l Gor e i n A n
I n con v en i en t T r u t h )
 3. Corporat e Social Responsibilit y
(CSR)
-What is the Corporate Social Responsibility?
Business Dictionary: CSR is "A companys sense of
responsibility towards the community and environment (both
ecological and social) in which it operates. CSR is the
business practices involving initiatives that benefit society
and to implementing "greener" business operations. There
are a wide variety of tactics to do CSR.
 Do businesses have to do CSR for
society?
Answers:
1. Managerial Capitalism Theory
No
2. Stakeholder Theory
Yes
Do businesses have to care for society?

1. Managerial Capitalism Theory

No, because
Business of Business is Business.
 Argument s of t he Managerial Capit alism
A bu si n ess i s cr eated sol el y to m ak e p r of i ts.
Pr of i t m ak i n g i s ju sti f i ed so l on g as i t stay s
w i th i n th e r u l es of th e gam e, w h i ch i s to say ,
en gaged i n op en an d f r ee com p eti ti on , w i th ou t
d ecep ti on or f r au d (Fr i ed m an , Fr eed om an d
Cap i t al i sm ,1975).
I n a f r ee en ter p r i se sy stem , w el f ar e i s
su p p osed to be gov er n m en ts job. Bu si n ess of
bu si n esses i s m ak i n g m on ey , n ot sw eet m u si c
( L ev i t t ).
 Result s of Managerial Capitalism Theory:
Examples of Commerce wit hout Moralit y &
Responsibilit ies
M I N A M A T A CA SE (19 30 s- E XXO N VAL D E Z C ASE (19 89 )
19 6 0 s)
Case Exxon Valdez Case
https://www.youtube.com/watch?v=_g0hP_dUHSA
(March 24, 1989)
Immeasurable Losses t o Nat ural Environment
Impact s on t he Corporat ion
Gandhis Seven Sins

W eal th w i th ou t w or k
Pl easu r e w i th ou t con sci en ce
Ed u cati on w i th ou t ch ar act er
Com m er ce w i th ou t m or al i ty
Sci en ce w i th ou t h u m an i t y
W or sh i p w i th ou t sacr i f i ce
Pol i ti cs w i th ou t p r i n ci p l e
 MINAMATA CASE
https://www.youtube.com/watch?v=iTQ5zf05
0-w

Jap an , si n ce 19 32
In 1993, almost forty
years later, victims
were still being Tomoko Uemura is bathed by her
mother.
compensated for Many children born in the town of
damages. Minimata, Japan had severe birth
defects (Photo by Eugene Smith).
Impacts on the corporation
 2. Stakeholder Theory
There comes a need for Paradigm Shift

M an ager i al Cap i t al i sm St ak eh o l d er T h eo r y

Corporate Social Responsibility

What is Stakeholder Theory?
https://www.youtube.com/watch?v=bIRUaLcvPe8 (2.57)

Yes, businesses must have

social responsibility.
Impacts of business
operation on society.
Mutual relationship between
businesses and society.
Impacts of Business Activities on Society

T h e act i o n s, d eci si o n s an d p o l i ci es o f
b u si n esses h av e p o si t i v e o r n egat i v e
m u l t i p l i ed i m p act s o n so ci et i es l i k e a
p eb b l e th r ow n i n to a pon d t h at
u n av o i d ab l y cr eat e ev er - w i d en i n g
r i p p l es (Fr ed er i ck , 19 9 2).
Mutual Relationship Between Businesses
& Society

Business is sustained by mutual

relationship (solidarity) with and

trust by stakeholders in society.
Stakeholder Model:
Three Roles of a Business Organizat ion

1. A p r o f i t m ak i n g o r gan i zati o n .
2. A p ar t y t o so ci al co n t r act i n so ci et y .
3. A co m m u n i t y m em b er .
Four Areas of Responsibilit ies of Business
 Evaluat ion of Profit Making in Business

Pr o f i t i s:
A r ew ar d f o r :
* en t r ep r en eu r sh i p
* r i sk t ak i n g
* L ab o r o m n i a v i n ci t
A n i n d i cat o r f o r :
* an accep t an ce o f t h e p r o d u ct s/ ser v i ces
* an ev al u at i o n o f an o r gan i zat i o n
p er f o r m an ce
A r eser v e f u n d f o r t h e t i m e o f
d i f f i cu l t i es an d ex p an si o n .
 Unet hical Profit -Making

C o m m er ce w i t h o u t m o r al i t y l ead s t o
u n et h i cal act i o n s an d eco n o m i cs cr i m es.

A so l e p u r su i t o f p r o f i t s i s gr eed .
 Right Underst anding of Profit s

Pr of i t i s n ot t h e en d of l i f e, bu t a m ean s f or
t h e good l i f e.

Pr of i t m u st n o t ex p l oi t oth er s an d n atu r al
r esou r ces.

Pr of i t sh ou l d b e a m ean s to en h an ce t h e
w el l - bei n g of th e w h ol e soci ety .
Check List for Et hical Profit -Making
I s i t i l l egal ?
H as i t b een ear n ed b y t h e r i gh t m ean s?
D o es i t h u r t / ch eat / co er ce an y b o d y o r v i o l at e
t h e r i gh t o f o t h er s?
D o es i t ex p l o i t n at u r al r eso u r ces ex cessi v el y ?
H as i t b een p r o p o r t i o n at el y d i st r i b u t ed t o al l
i n v o l v ed p eo p l e i n cl u d i n g t h e co m m u n i t y ?
A r e y o u p r o u d t o t el l y o u r w h o l e f am i l y an d
cl o se f r i en d s ab o u t t h e w ay y o u gai n p r o f i t s?
I f y o u ar e r eq u i r ed t o d ef en d h o w y o u gai n
y o u r p r o f i t s, ar e y o u r ead y t o d i scl o se t h e d ata
t o t h e p u b l i c?
 Resu l t s o f St ak eh o l d er
T h eo r y = Go o d Ex am p l es

Corporate Social Responsibility

River Blindness (3.40)
https://www.youtube.com/watch?v=27F0mH5g-AY
 River Blindness Disease
An en d em i c h as
af f ect ed 13 m i l l i on
p eop l e, an d an ot h er
21 m i l l i on ar e at r i sk
i n A f r i can an d L at i n
A m er i can cou n t r i es.
 Fight ing River Blindness

Dr. Azizs discovery helps Merck

develop Mectizan, an extremely
effective drug against this disease.
Problem: Target segments for
Mectizan are so poor that they
cannot buy this medicine at USD
1.50 per tablet.
 Medicine is for t he People. It is not for t he profit s.
(George W. Merck)

In w h at w ill su r el y
r an k as o n e o f t h e
cen t u r y s gr eat
m ed i cal t r i u m p h s, a
d r ead f u l sco u r ge is
co m i n g u n d er
co n t r o l .
(T h e N ew Yo r k T i m es
 Mercks Donat ion Program

M er ck d eci d ed t o gi v e t h e
d r u g (M ect i zan ) aw ay f or
f r ee an d estab l i sh an
ef f ect i v e d i st r i b u t i on
sy st em .
25 Million People Treat ed Annually Free of
Charge
M ost af f ected ar eas:

Black Fly Cycle

 Commit ment

M er ck r emai ns commi tted to donati ng as much

M ecti zan as necessar y, for as long as necessar y.
Raymond V. Gi lmar ti n
Chai r man, Pr esi dent and CEO
Local Businesses t hat maint ain CSR principles wit h
profit abilit y
Si am Cem en t Gr ou p
Ban gch ak Pet r ol eu m Pl c.
D T AC
Ban gk ok Ban k Pl c.
T oy ot a
Witness All these Good Examples With Your own Eyes
 The Siam Cement Group

A cor por ati on that

gr ow s by good
gover nance and CSR.
 Conclusion
https://www.youtube.com/watch?v=n_0TzBMf7r
w (4.08)

Thank you for your Attention