CHAPTER ONE:

Social Responsibility and

ETHICS in BUSINESS
 The term ethicsderives
from the Ancient Greek
word ethikos, which
is derived from the word
ethos (habit,
"custom").

Basic concepts and fundamental

principles of decent
human conduct
Includes study of universal values.

Ethics or moral philosophy

is the branch of philosophy
that involves systematizing,
defending, and
recommending concepts of
right and wrong conduct.
 is the idea that human beings choose, instigate, or
otherwise cause their own actions.
A corollary idea is that because we cause our actions,
we can be held morally accountable or legally liable.
The foundation of our responsibility in the society.
Example of it is our responsibility to make our life in
good.
Our responsibility to take care ourselves the persons
we love.

is an ethical framework
which suggests that an
entity, be it an organization
or individual, has an
obligation to act for the
benefit of society at
large. Social
responsibility is a duty
every individual has to
perform so as to maintain a
balance between the
economy and the
ecosystems.
Example of it is the written
laws that one should follow
as part of the nation
 are cultural products (including values,
customs, and traditions) which represent
individuals' basic knowledge of what others
do and think that they should do. Sociologists
describe norms as informal understandings
that govern individuals' behavior in society.

Example:
Be kind to the elderly, pregnant women or
handicapped person, like opening a door or
giving up your seat. (Public Behavior)
Do not talk with food in your mouth. (Dining)
Say hello when answering and goodbye when
you hang up. (Using the phone)
denotes something's
degree of importance,
with the aim of
determining what action
of life is best to do or live
, or to describe the
significance of different
actions. It may be
described as treating
actions themselves as
abstract objects, putting
value to them. It deals
with right conduct and
good life, in the sense
that a highly, or at least
relatively highly, valuable
action may be regarded
as ethically "good" and
an action of low, or at
least relatively low, value
may be regarded as
"bad".
 v
a supporting
structure : a
structural
the basic
frame
structure of
something :
a set of
ideas or
facts that
provide the larger
support for branches of a
something tree that
a skeletal, openwork, or
determine its
structural frame
shape
 Investing on potential individuals
Focuses on maintaining the
with strong set of values by
quality of business and creation
encouraging them to work by
of long-term value for policy
getting them involved in the
holders and stakeholders.
organizations activities

Continuously striving to
contribute sustainable
development by providing Building environmental
high-quality and innovative sustainability into each business
services to the fast-changing function and process.
world
 More business
Satisfies employees. opportunities

Positive PR Long term future for

your business

Costs reductions
Satisfied customers
 Strategic Management of Stakeholder
Relationships
- People and groups who have a stake in some aspect of a
companys products, operations, markets, industry, or outcomes.

- Relationships, investors, employees, and suppliers provide

inputs for a company to benefit stakeholders.

- A two-way relationship between the firm and a host of

stakeholders

- Reputation management

- Crisis management
broadly refers to the mechanisms,
processes and relations by which
corporations are controlled and
directed.
 Legal, Regulatory and Political Issues
-To influence the public officials who legislate, interpret
laws, and regulate business.

-Develop proactive organizational values and

compliance programs
* formal communication
* training
* continuous improvement of responses to
the legal and regulatory environment

-Regulating trusts
 Business Ethics and Strategic Approaches
to Improving Ethical Behavior
-Both business and society

-Should develop an organizational ethics

-Developing a code of conduct

-Codes of conduct help employees and managers

address ethical dilemmas by prescribing or limiting
specific activities.
- Job quality should be a key objective of any employer.

- The key determinants of job quality include:

* the pace of work and work stress
* opportunities for input
* job security
* work-life balance
* workplace relationships
* individual development
* physical working conditions

- Employees also look for:

* excellent employee benefits
* competitive salaries
* flexible schedules
* a focus on placing employees personal well-being front and centre