UNIT 02 Corporate Social Responsibility & Ethics

Corporate Social Responsibility 4R Concept in Waste Management

Social responsibility of business means the obligations of 1. Recycle

business to act in a manner, which will serve the best - Up cycle (Lower value higher value)
interests of the society being recognized for good practices - Down cycle (Higher value  Lower value)
2. Reuse
and good business sense.
3. Reduce
Social Responsibility towards interest groups 4. Replace
Employees Customers
Adverse effects of business activities
Equality Being Fair
- Misleading customers
Good employee relationship Minimizing damages
- Wasting resources
Job security After-sales services
- Polluting the environment
Health and Safety Business Social Protecting rights
- Being unfair to the environment
Owners Responsibility Society - Destroying the culture
Providing a fair return Waste Management - Importing and selling poor quality products
Providing economic benefits Payment of taxes on time
Protecting resources used Contribute to employment Ethics
Being honest to owners Green Products Ethics can be known as the moral guidelines that
differentiates between what is good and bad or right and
Importance of fulfilling social responsibility by a business
wrong.
 High reputation/image and goodwill
Importance/ benefits business can earn by following ethics
 Can earn trustworthiness of the external parties
 Enhance consumer loyalty and satisfaction  To earn good reputation
 Ensure business trust  To get credibility and trust
 To obtain the respect of the society
 Enhances business value
Sustainable Development

Sustainable development is the development which meets,

Business Ethics related to Business Ethics related to
the needs of the present without compromising the ability
financial managers Human Resource
of the future generations to meet their own needs. managers
Three Pillars of Sustainable Development - Accuracy in financial - Fair recruitment
reporting - Fair Salary/Wage
Economic Sustainability - Avoiding unnecessary - No discrimination within
Improving human welfare by enhancing the quality of life, and expenses the company
reducing the consumption of resources. - avoid malpractices and
Business Contribution to Economic Sustainability fraudulent activities
- Offer job opportunities Business Ethics related to Business Ethics related to
- Contribute to economic development marketing production
- Focus on innovation
- Efficient usage of resources and capital
- Provide correct - Using high quality
information materials
Environment Sustainability
Responsible management of natural resources to ensure they
- Do not mislead the - Implementing 4R
remain available and healthy for future generations consumers - Not wasting limited
Business Contribution to Environment Sustainability - Ethical advertising resources
- Produce eco-friendly products Code of Ethics/Code of Conduct is a set of principles, codes
- Not wasting the limited resources and ethics a particular business has decided to follow and
- Implementing 4R concept implement in all their business activities and functions.
- Minimizing pollution
Social Sustainability Factors to be considered when forming code of ethics
While human needs and wants can be fulfilled at a high
standard, there shouldn’t be corruption or violation of others’ - Nature of business
rights to do so - Customers
Business Contribution to Social and Cultural Sustainability - Employees
- Promoting equality - Competitors
- Safeguard human rights - Culture of the organization
- Contribute towards peace
- Practicability
- Protecting local customs, traditions and culture