1. Final project
On
“Principles of Management”
On the topic
“Corporate Social Responsibility and Business Ethics”
Presented To:
Prof. Usman Sadiq
Presented By:
Group “Supereye”
Mubeen Abdur Rehman (Group Leader) MCE 12151
Salman Anjum (Vice Leader) MCE 12157
Asfaq Salamat MCE 12155
Zohaib Ahmad MCE 12152
Shaban Cheema MCE 12169
Mutahir Bilal MCE 12147
Memona Javed MCE 12104
Nadia Izhar MCE 12170
Class M.Com
Semester 1st Evening
Superior University
Lahore.
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2. Table of contents
Introduction ……………………………………………………… 3
Definition ……………………………………………………. 4
Explanation …………………………………………………….. 4
CSR Responsibility …………………………………………………….. 5
Responsibility Types …………………………………………………… 5
The Interest Group ……………………………………………………. 6
Types ..…………………………………………………. 7
Approaches Of Business Ethics ……………………………………………….…... 8
Business Ethics Types …………………………………………………….. 9
Human Resource Ethics …………………………………………………….. 10
Importance Of business ethics …………………………………………………….. 11
12 points ………………………………………………………12
Reference ……………………………………………………….13
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3. Corporate Social Responsibility
Introduction:
Corporate Social Responsibility (CSR) is the commitment of a business or
company to continuously upgrade its processes, systems, products and services by
behaving responsibly and creating value for local communities they operate in, and by
enabling its employees, existing and possible customers to improve their standards of
living.
“HOW A COMPANY BEHAVES TOWARDS SOCIETY”
Most responsible organizations and businesses in Pakistan are making cash and
in-kind donations for humanitarian and religious reasons. About 60 per cent of Public
Listed Companies (PLCs) make some sort of contributions to charitable or social
development initiatives. (www.mallenbaker.net)
According Mallenbaker’s Definition:
“CSR is about how companies manage
business processes to produces and overall
Positive impact on society”.
Philippines say that:
'CSR is about business giving back to society'.
Definition:
1: Corporate Social Responsibility is the commitment by business to behave
ethically and contribute to economic development by improving the quality of life of the
workforce and their families as well as of the local community and society at large.
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4. 2: How companies manage the business processes to produce an overall
positive impact on society.
Examples
 Corporate Philanthropy
 Environmental Policies
 Worker Rights Policies
Categories of Corporate Social Responsibility:
For CSR to be accepted by a conscientious business person, it should be framed
in such a way that the entire range of business responsibilities is embraced. It is
suggested here that four kinds of social responsibilities constitute total CSR: economic,
legal, ethical, and philanthropic. Furthermore, these four categories or components of
CSR might be depicted as a pyramid. To be sure, all of these kinds of responsibilities
have always existed to some extent. But it has only been in recent years that ethical
and philanthropic functions have taken a significant place. Each of these four categories
deserves closer consideration. (www.csrwire.com)
Economic Responsibilities:
Historically, business organizations were created as economic entities designed
to provide goods and services to societal members. The profit motive was established
as the primary incentive for entrepreneurship. Before it was anything else, business
organization was the basic economic unit in our society. As such, its principal role was
to produce goods and services that consumers needed and wanted and to make an
acceptable profit in the process. At some point the idea of the profit motive got
transformed into a notion of maximum profits, and this has been an enduring value ever
since. All other business responsibilities are predicated upon the economic
responsibility of the firm, because without i the others become moot considerations.
Legal Responsibilities:
Society has not only run business to
operate according to the profit motive; at the
same time business is expected to comply with
the laws and regulations follow by governments
as the ground rules under which business must
operate. As a partial fulfillment of the "social
contract" between business and society firms are
expected to pursue their economic missions
within the framework of the law. Legal
responsibilities reflect a view of "codified ethics"
in the sense that they embody basic notions of
fair operations as established by our lawmakers.
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5. They are depicted as the next layer on the pyramid to portray their historical
development, but they are appropriately seen as coexisting with economic
responsibilities as fundamental precepts of the free enterprise system.
Ethical Responsibilities:
Although economic and legal responsibilities
embody ethical norms about fairness and justice, ethical
responsibilities embrace those activities and practices that
are expected or prohibited by societal members even
though they are not codified into law. Ethical
responsibilities embody those standards, norms, or
expectations that reflect a concern for what consumers,
employees, shareholders, and the community regard as
fair, just, or in keeping with the respect or protection of
stakeholders' moral rights.
Philanthropic Responsibilities:
Philanthropy encompasses those corporate actions that are in response to
society‟s expectation that businesses be good corporate citizens. This includes actively
engaging in acts or programs to promote human welfare or goodwill. Examples of
philanthropy include business contributions to financial resources or executive time,
such as contributions to the arts, education, or the community. A loaned-executive
program that provides leadership for a community‟s United Way campaign is one
illustration of philanthropy.
The pyramid of corporate social responsibility is depicted below. It portrays the
four components of CSR, beginning with the basic building block notion that economic
performance undergirds all else. At the same time, business is expected to obey the law
because the law is society's codification of acceptable and unacceptable behavior. Next
is business's responsibility to be ethical. At its most fundamental level, this is the
obligation to-do what is right, just, and fair, and to avoid or minimize harm to
stakeholders (employees, consumers, the environment, and others). Finally, business is
expected to be a good corporate citizen. This is captured in the philanthropic
responsibility, wherein business is expected to contribute financial and human
resources to the community and to improve the quality of life
In summary, the total corporate social responsibility of business entails the
simultaneous fulfillment of the firm's economic, legal, ethical, and philanthropic
responsibilities. Stated in more pragmatic and managerial terms, the CSR firm should
strive to make a profit, obey the law, be ethical, and be a good citizen corporate
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6. The pyramid of corporate social responsibility.
The Interest Group
(Stakeholders):
Corporations are motivated to
involve stakeholders in their decision-
making and toad dress societal
challenges because today's
stakeholders are increasingly aware of
the importance and impact of
corporate decisions upon society and
the environment. The stakeholders
can reward or punish corporations.
Thus, Corporate Social Responsibility
requires the identification of various
interest groups, which may affect the
functioning of a business organization
and may also be affected by its
functioning. Normally various groups
associated with a business
organization are shareholders, workers, customers, creditors, suppliers, government
and society in generalShareholders.
The first responsibility of the management is to protect the interest of shareholders. The
interests of majority of shareholders and large minority of shareholders are generally
well protected through either direct participation in the management actions or they
have real power to intervene, if necessary. They should be informed about the
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7. functioning of the organization adequately and timely. Therefore, management has a
responsibility to provide proper safeguard to the money invested by shareholders.
(Elena F Pérez Carrillo)
Workers:
Workers have direct interest in an organization because by working there, they
satisfy their needs. Thus, it is the management‟s responsibility to protect the interest of
workers in the organization. This can be done by the management in the following
ways:-Management should treat workers as another wheel of the cart-Management
should develop administrative process in such a way that promotes cooperative
endeavor between employers and employees.-The management should adopt a
progressive labor policy based on recognition of genuine trade union rights –
participation of workers in management, creating a sense of belongingness, improving
their living and working conditions.-Management should pay fair and reasonable wages
and other financial benefits to workers.
Customers:
Management owes a primary obligation to give a fair deal to the customers. This
can be done in the following ways:-Customers should be charged a fair and reasonable
price.-The supply of goods and services should be of uniform standard and of
reasonable quality.-Management should not indulge in profiteering, hoarding, or
creating artificial scarcity.-Management should not mislead the customers by false,
misleading and exaggerated advertisements.
Creditors, Suppliers and Others:
They affect the organization in various ways. Therefore, the management is
responsible to fulfill its obligations towards them. This can be done in the following
ways.-Management should create healthy and cooperative inter business relationship
between different businesses.
Management should provide accurate and relevant information to creditors and
suppliers.-Payments of price of materials, interest on borrowings, other charges should
be prompt.
Government:
It is very closely related with the business system of the country. It provides
various facilities for the development of business. Government, no doubt, exercises
control over business, but these controls are meant for overall development of business.
Management can discharge its obligation to government by:-Management should be a
law-abiding citizen-Management should pay taxes and other dues fully, timely
&honestly.-It should not corrupt government workers and public servants and the
democratic process-It should not buy political favors by any means.
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8. Society:
Organizations exist within a social system and
get facilities from the system. Therefore, they owe
obligations to the society as a whole. This can be done
by:-Management should maintain fair business policies
and practices.-It should play a proper role in civic
affairs.-It should provide and promote general amenities
and help in creating better living conditions in general.
Concept of greening Management:
The acknowledgment by the companies that there is close link between an
organization's decisions and its actions has consequences on the natural environment
is referred as greening of management. In the past the organizations did not paid much
attention to the environment which is affecting by their activities. There were small
groups who showed their concerns in protecting the environmental and natural
resources. There are many manufacturing units and
factories that are adding damage to the natural
environment for the sake of getting money and getting
rich. They have no concern for the environment.
This awareness is aroused by some environmental
protection group and they highlighted in the media for
the protection of environment so the companies started
to pay attention in cleaning and safer environment.
Managers are now involved in greening of
management. Greening of management adheres to all
safety measures for man and environment. It involves
an integrated effort to consider environment concerns.
Management is effective only when it is adaptive to
change in the external world. The 21st Century has
ushered in the need to identify and deal with global environment issues. They are no
more the concern of 'someone else'.
The Greening of Management is concerned with companies embracing
environmental protection as part of their competitive strategies. The concept is fast
catching up and is being widely accepted by concerned organizations and individuals.
Those who accept and implement greening of management, ensure that the actions of
all the members of their staff and the operations conducted within the business are
within the rules and regulations laid down by authorities for the protection of the
immediate environment. Businesses today need to be able to recognize the close link
between an organizations decisions and its impact on the natural environment.
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9. Global environment Issues:
A variety of environmental
problems now affect our entire world.
As globalization continues and the
earth's natural processes transform
local problems into international
issues, only few societies are being
left untouched by major
environmental problems. The list of
global environment problems is long.
Major five global environment issues
include;
Natural resources depletion
Global warming
Pollution (air, water, soil)
Industrial accidents
Toxic waste
How these problems occur? Much of the blame can be placed on industrial
activities in developed or affluent societies. Various reports have shown that affluent
societies account for more than 75% of the world‟s energy & resource consumption and
create most of the industrial, toxic & consumer waste. An equally disturbing picture is
that as the world population continues to grow as emerging countries become more
market oriented and affluent, global environmental problems can be expected to
worsen. The average mass produced water bottles contain small amount of heavy toxic
metal that causes cancer. The rubbers soles on pair of shoes are loaded with lead that
can last decades after shoes are thrown away this also increase environmental
pollution. Atmospheric pollution due to industrialization has increased the properties in
air which effect greenhouse and caused global warming. All these pollutions have
undesired effects on human and other living things.
Pollution and environmental degrading can only be prevented if the industries and their
individuals feel their responsibility.
Approaches of being Green:
One model of environmental responsibility uses the term shades of green to
describe the different approaches that organization may take. Approaches are:
Legal Approach (light green)
Market Approach
Stakeholder Approach
Activist Approach (dark green)
(Stephen.P.Robbins)
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10. 1. Legal Approach:
The first approach is the legal or light green approach that is simply doing what is
required legally. Under this approach organizations show little environmental sensitivity.
They obey laws, rules and regulations willingly and even try to use the law to their own
advantage. This approach is a good illustration of social obligation. These organizations
simply follow their legal obligations to prevent pollution and protect environment. For
example, many durable product manufacturers and oil refiners have taken the legal
approach and comply with relevant rules & regulations but go no further.
2. Market Approach:
As an organization become more sensitive to environmental issues, it may adopt
the market approach, where it responds to the environmental preferences of its
customers. Whatever customers demand in term of environmentally friendly product will
be what the organization provides. For example DuPont developed a new type of
herbicide that helped farmers around the world reduce their annual use of chemical by
more than 45 million pounds. Bu developing this product the company was responding
to the demands of its customers who wanted to minimize the use of chemical on their
crops. This approach is a good illustration of social responsiveness.
3. Stakeholder Approach:
Another approach is stakeholder approach. Under this approach the organization
works to meet the environmental demands of its multiple stakeholders such as
suppliers, employees or the community. Stakeholder approach is also an illustration of
social responsiveness. For example an organization may decide that it is a necessary
requirement that the employees should be ensures the health & welfare so that they
become more satisfy. In this way an organization leads to be more responsive to its
employees comparatively to its profit.
4. Activist Approach:
When an organization look the ways to respect and preserve the earth and its
natural resources than it said to be following activist approach. The activist approach
exhibits the highest degree of environmental sensitivity and is a good illustration of
social responsibility. Hanger‟s cleaners use a pollution free process to clean cloths.
Whirlpool won an industry competition and $30 million prize for developing CFC high
efficiency refrigerator (CFC is abbreviation of Chlorofluorocarbons linked to the
degradation of ozone layer around the earth). So all these industries have adapted
Activist approach which is also called dark green Approach. By taking these approaches
managers and organizations can protect & preserve the natural environment and
society.
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11. Green management:
The recognition of the close links between an organization decisions and
activities and its impact on the natural environment is referred to as the green
management.
NATURAL ENVIOURMENT PROBLEMS
Some of more serious problems are;
 Global climates change
 Air pollution
 Water pollution
 Industrial accidents
 Toxic wastes
 Global Warming
 Ozone Layer reduction
 Cutting of forests
These problems occur in these ways;
Much of the blame can be placed on industrial activities in developed
(economically affluent) counties over the half century.30Various reports have shown
that affluent societies account for more than 75 percent of the world energy and
resource consumption and create most of the industrial, toxic, and consumer waste.31
Global Warming:
The burning of coal, oil,
petrol, and, gas intensive effects on global
climate. The burning of gas and petrol produced
many gases which are to reductions of
greenhouse gases. Greenhouse gases make a
layer which recorded the earth. Our increasing
use of coal, oil and natural gas from heating,
energy and transportation has caused a large
increase in greenhouse gas emissions. These
greenhouse gases are resulting in a global
warming.
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12. Ozone Layer reduction:
Different gases damage or reduction the ozone layer and this layer
from around 50 years recorded the earth. The ozone layer protective thin screen of
ozone gas about 25, kilometres above the earth. Ozone gases protect the earth from
the harmful and ultra violet rays of the sun. Ultra violet layer are causing increased
cancers and harmful for plant growth.
Cutting of forests:
The purchase of wood, or
wood products, derived from unmanaged
tropical forest (e.g. kwila, mahogany or teak)
and temperate forests in countries such as
Canada, Russia and Poland, is helping
destroy the world‟s forests.
Air Pollution:
Modern counties like America,
Canada, New Zealand, air is safe clean, but the
counties, like India, Pakistan etc, air pollution is not
clean because of World Health Organisation
guidelines. Motor vehicles are the largest single
source of air pollution in these counties especially
older or poorly maintained cars. The transport
system has a significant impact upon the
environment in noise pollution and community
dislocation.
Water Pollution:
When the factors like leather field waste the
harmful water waste in canals and this water mix with
other water and damage and bad effecting on fish,
plants and human health.
Land Use:
Nearly two thirds of New Zealand‟s land is used for farming and forestry or for
our towns, cities and roads. Poor land use, soil erosion, unwanted plants and animals
are negatively impacting on the health of our land.
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13. There is a growing awareness in New Zealand of the problems that can occur
when land is contaminated with hazardous substances from the manufacture, use, or
storage of chemicals, industrial residues or waste products. This poses an immediate
and, or long-term risk to human health and the environment.
What manager or organization do for green management:
Organization and mangers can do many things to
protect and preserve the natural enviournment. Some do
more than what is required by law that is that is they
fulfill their social obligation. However, others have made
radical changes to make their products and production
processor cleaner. For example carpet-maker Shaw
industries of Dalton, Georgia, transfer its carpet and
wood manufacturing waste into energy. total and sa one
of the largest oil company is clearing up and greening up
by implementing tough new rules on oil tanker safety
and working with gropes such as global witness and
greenplace.ups the world largest delivery package
company, has done numerous things from retrofitting its
aircraft with advance technology and fuel efficient
engines to developing a powerful computer net work to
efficient dispatch its fleet of brown trucks and using
alternative fuel to run them.
APPROACH OF GREEN MANAGEMENT:
There are four approaches;
 Light green
 Market approach
 Stakeholder approach
 Dark green approach
Light green approach:
The first approach is light green approach or legal approach that what is simple
doing what is required is legally. In this approach the organization follow the rules, law,
and regulation. For example many durable goods manufactured have taken the follow
the rules and regulation.
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14. Market approach:
The second approach is market and in this approach an organization become
more sensitive to environment issue. In this approach where the organization effect on
the environment of their customer. For example farmers used the urea for the
increasing the annually production and company manufacturing use high quality
chemical. DuPont developed the new type of herbicide that helped the farmer to reduce
the chemical and developing this products farmer less using the chemical on the crops.
Stakeholder approach:
Under the approach the stakeholder approach the organization work to meet the
environment demand of multiple the stakeholders
such as employee suppler and the community.
BUSINESS ETHICS:
Definition:
“Knowing the difference between right and
wrong”
Business ethics are also corporate ethics.
In simple words, ethics can be defined as
'moral values and principles. It is a decision of choosing right among wrong and right.
Business ethics are that functions which help to choosing right decision at right time
which help for the welfare of not only business owners but also society, consumers,
stakeholders and its employees.
“DISCPLINE OF DEALING WITH WHAT IS GOOD AND BAD,
OR RIGHT OR WRONG, OR WITH MORALDUTY AND
OBLIGATION”
Approaches to Business Ethics:
When business people speak about “business ethics” they usually mean one of three
things:
(1) Avoid breaking the criminal law in one‟s work-related activity.
(2) Avoid action that may result in civil law suits against the company.
(3) Avoid actions that are bad for the company image.
(Bringing business ethics to life, Bjorn Andersen)
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15. 7 Principles of Admirable Business Ethics:
1. Be Trustful:
Recognize customers want to do business with a company they can trust; when
trust is at the core of a company, it's easy to recognize. Trust defined, is assured
reliance on the character, ability, strength, and truth of a business.
2. Keep An Open Mind:
For continuous improvement of a company, the leader of an organization must
be open to new ideas. Ask for opinions and feedback from both customers and team
members and your company will continue to grow.
3. Meet Obligations:
Regardless of the circumstances, do everything in your power to gain the trust of
past customers and clients, particularly if something has gone wrong. Reclaim any
lost business by honoring all commitments and obligations.
4. Have Clear Documents:
Re-evaluate all print materials including small business advertising, brochures,
and other business documents making sure they are clear, precise and professional.
Most important, make sure they do not misrepresent or misinterpret.
5. Become Community Involved:
Remain involved in community-related issues and activities, thereby
demonstrating that your business is a responsible community contributor. In other
words, stay involved.
6. Maintain Accounting Control:
Take a hands-on approach to accounting and record keeping, not only as a
means of gaining a better feel for the progress of your company, but as a resource
for any "questionable” activities. Gaining control of accounting and record keeping
allows you to end any dubious activities promptly.
7. Be Respectful:
Treat others with the utmost of respect. Regardless of differences, positions,
titles, ages, or other types of distinctions, always treat others with professional
respect and courtesy.
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16. Examples of Business Ethics
 Use of child labor and forced labor
 Violation of the basic rights of workers
 Ignoring health, safety and environmental standards
Business ethic is concerned with the behavior of all businesses that operate in the
supply chain.
•Suppliers
•Contractors
•Distributors
•Sales agents
Importance of Business Ethics in Business
Profit Maximization:
The importance of ethics in business can be
understood by the fact that ethical businesses tend
to make much more profits than the others. The
reason for this is that customers of businesses
which follow ethics are loyal and satisfied with the
services and product offerings of such businesses.
Let us take an example. Suppose, there is an
organization named XYZ which manufactures
cosmetics. XYZ greatly believes in the importance
of business ethics. When XYZ advertises its
cosmetics in the market, being an ethical
organization, it will be very truthful and honest in its
communication with the probable customers. It will
tell correctly about the kind of ingredients it has
used while manufacturing the cosmetics.
Efficient Utilization of Business Resources:
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17. In an organization, people working at the
junior levels often emulate the ones working at
the top. The same applies with ethics too. If the
management or seniors of an organization follow
ethical business practices, i.e., they do not bribe
to get their way or they do not cheat the
customers, investors, suppliers, etc., the
employees will follow suit.
Creates Goodwill in the Market:
An organization, which is well-known for its ethical practices, creates goodwill for
itself in the market. Investors or venture capitalists are more willing to put their money in
the businesses which they can trust.
APPROACHES TO BUSINESS ETHICS:
When business people speak about “business ethics” they usually mean one of
three things,
 Avoid breaking the criminal law in one‟s work-related activity.
 Avoid action that may result in civil law suits against the company.
 Avoid actions that are bad for the company image.
Businesses are especially concerned with these three things since they involve
loss of money and company reputation. In theory, a business could address these three
concerns by assigning corporate attorneys and public relations experts to escort
employees on their daily activities. Anytime an employee might stray from the straight
and narrow path of acceptable conduct, the experts would guide him back. Obviously
this solution would be a financial disaster if carried out in practice since it would cost a
business more in attorney and public relations fees than they would save from proper
employee conduct. Perhaps reluctantly, businesses turn to philosophers to instruct
employees on becoming “moral.” For over 2,000 years philosophers have systematically
addressed the issue of right and wrong conduct. Presumably, then, philosophers can
teach employees a basic understanding of morality will keep them out of trouble.
Human Resource Ethics:
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18. The application of ethical principles to human resource relationships and
activities
 A Code of Ethics
Establishes the rules by which the organizations lives Easy to talk the talk but
harder to execute
 Must breathe it
 Train its people
 Communicate the code
Topics for Code of Ethics
 Business conduct and Fair competition
 Workplace and HR issues
Reinforcing the Code of Ethics
Committee is established
 Legal
 HR, Corporate Compliance
 Corporate Communication
 External Affairs
 Training and Development
 Balding National Quality Award are changing criteria
The Ethical Behavior Formula:
Taken together, virtuous values, actions, and behavioral standards/codes can produce
a “formula,” such as that illustrated below, that may increase the likelihood of ethical
organizational behavior:
Virtuous Values + Aligned Action + Behavioral Standards/Codes –> Increased
Ethical Behavior
Consider adapting the six virtuous values and aligning them with key managerial
leadership actions such as selection, employee orientation/socialization, and allocation
of resources. Behavioral standards and/or codes of ethical conduct can be added as
appropriate. Acting on these three formula components may serve to increase the
display of ethical organizational behavior.
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19. DUTY AND OBLIGATION:
Definition:
Corporate Social Responsibility:
Corporate-wide activities carried out to improve a Company‟s image vis-à-vis various
stakeholder groups is called corporate social responsibility.
Examples
 Corporate Philanthropy,
 Environmental Policies,
 Worker Rights Policies, etc.
Business Ethics:
Refers to actions by individuals and/or groups within organizations is called business
ethics.
Examples
 Embezzlement
 Sexual Harassment
Is CRS & Business Ethics same?
There is clearly similarity between CSR and business ethics
Both concepts concern values, objectives and decision based on something than
the pursuit of profits.
CSR is about responsibility to all stakeholders and nt just shareholders where as
Ethics is about morally correct.
There are good things for society that are not good for business and this is where
social responsibility comes in. There are also good things in business that are not
good for society and this is where business ethics comes in.
Social responsibility is more of a policy or an obligation to the community, while
business ethics is more of a conscience.
Business is focused on profits but with social responsibility. It is still obliged to
perform beneficial activities for society, while business ethics should make a
positive move for society.
Without social responsibility, the community will not benefit, however.
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20. Managers and Ethical Behavior:
Business ethics is a fundamental term that is applicable to all workplaces.
Irrespective of the nature of an organization and its function, an unethical employee
promotes corruption and also could be a liability to an organization. Therefore, it
becomes important for an organization to encourage its employees to adhere to ethical
behavior.
Here are some ways for organizations to encourage ethical behavior.
1. Communicating the code of ethics:
The preliminary step to promote ethical behavior among employees is by
establishing a code of ethics. The code of ethics provides the direction and guidelines
for employees‟ ethical behavior. Employees need to be familiarized with the code of
ethics either through a company manual or posters. This enables the employees to
have a clear idea of the management‟s expectation with respect to employee code and
conduct.
2. Making the managers as role model:
Having managers as role models is another way of promoting ethical behavior. For
this purpose, managers need to be chosen with care and due consideration. This will be
beneficial in the following ways.
a) Employees will have a guiding force to promote ethical behavior
b) Employees tend to emulate their managers and if they are ethical in their
behavior, it lends more credibility to the code of ethics
c) If managers strictly adhere to ethical standards themselves, employees will feel
less reluctant to oppose the guidelines laid out for ethical behavior
3. Disciplinary actions for unethical behavior:
Condemning any malpractice or unethical behavior in the initial stages itself is
better than allowing it to proliferate to other areas of the organization. Imposing
sanctions on unethical behavior helps the employees to understand the implications
of inappropriate behavior. Therefore, the management needs to lay down
disciplinary actions that will be taken against employees found guilty of violating the
rules. If management promotes sales „at all costs‟, then employees might resort to
any methods to achieve their targets. However, if management is serious about the
means as much as the results, they should make sure that it is conveyed in no
uncertain terms to their employees.
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21. 4. Rewards for ethical behavior:
When an employee is rewarded for positive behavior, it is likely that the
employee will not only continue to adhere to ethical practices but also be an inspiration
to his colleagues. Therefore, it is important.
Importance Of Ethical Behavior:
Why is it important for top managers to ensure that organizational culture
supports ethical conduct and social responsibility??
In today‟s society people don‟t always do what‟s right. They may know that doing
certain things will cause greater consequences that they would like but still do it
anyways. It is the top managers responsibility to ensure that the organizational culture
supports ethical conduce and social responsibility because they are who the team
members look to for guidance. As stated in chapter 1, ethics is a branch of philosophy
concerned with human values and conduct, moral, duties and obligations. Managers
have to be the voice that people look to; to know what they want to do may not always
be the best thing for themselves or the company.
Top managers need to ensure organizational structure to make sure that
harassment, discrimination and stealing are not happening within their company. And if
it does happen then it will immediately be taken care of. For example, if I am the office
manager and I know that Monica is stealing money from the office drawer it is my job to
handle that situation either by termination or verbal discipline. I have to act ethically and
make the best decision for the company, no mater how much or bad she needed it.
When discrimination happens it puts a dark cloud over the employees. They tend to feel
that the company does not care about them as employees so they begin not to care
about they job and tend to slack off.
Managers need to make it an on going habit to treat each employee fairly.
They need to make sure that they keep their ethics in check while they are in the
presents of employees. Social responsibility is described in the text as obligations to
protect and benefit others and to avoid actions that could harm them. This basically
means don‟t do anything that will put anyone else in harms way, or cause another
employee bodily harm.
Encouraging ethical behavior:
Ethics is about behavior. In the face of dilemma, it is about doing the right thing.
Ethical managerial leaders and their people take the “right” and “good” path when they
come to the ethical choice points.
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22. The purpose of this article is to steer your thinking and action toward creating
and sustaining an ethical workplace culture. Managerial leaders and their people are
invited to explore how values, actions, and behavioral standards can help steer
organizational behavior. (www.springerlink.com)
Wisdom and Knowledge:
The capacity to take information and convert it to something useful. Wisdom
comes from capitalizing on one‟s experience to interpret information in a knowledgeable
manner to produce wise decisions. A prerequisite to doing the right thing when facing
an ethical dilemma is knowing what to do, knowing the difference between right and
wrong.
Self Control:
The ability to avoid unethical temptations. The capacity to take the ethical path
requires a commitment to the value of acting with temperance. Ethical people say “no”
to individual gain if it is inconsistent with institutional benefit and goodwill.
Justice and Fair Guidance:
The fair treatment of people. Justice is served when individuals perceive that
they receive a fair return for the energy and effort expended. For example, a leader‟s
commitment to justice is tested continually with the allocation of organizational
resources. Are certain individuals and groups given special treatment without regard to
objective criteria by which to judge fairness? Ethical leaders value and embrace fair
advice and guidance.
Transcendence:
The recognition that there is something beyond oneself more permanent and
powerful than the individual. Without this value, one may tend toward self-absorption.
Leaders who are motivated predominately by self-interest and the exercise of personal
power have restricted effectiveness and authenticity.
Love and Kindness:
The expression through words and deeds of love and kindness. Researchers
have documented that there appear to be different types of “love.” In an organizational
context, love refers to an intense positive reaction to another co-worker, group and/or
situation. An organization “with heart” allows for the expression of love, compassion and
kindness among and between people, the goodwill which can be drawn upon when one
faces ethical challenges.
Courage and Integrity:
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23. The courage to act ethically and with integrity. These values involve discerning
right from wrong and acting accordingly. They impel one to consistently do what is right
without concern for personal consequences, even when it is not easy.
Reference:
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24. o Bringing business ethics to life, Bjorn Andersen
o Stephen.P.Robbins, Principal of management.
o Corporate Ownership & Control / Volume 4, Issue 4, Summer 2007 Elena
F Pérez Carrillo
o http://www.csrwire.com/categories
o http://www.springerlink.com/content/q61281231617p44u/
o http://www.mallenbaker.net/csr/definition.php
o http://www.responsiblebusinessevent.org/page.cfm/Link=9/t=m/goSection
=4/trackLogID=96372_7972F7D055
o http://www.mallenbaker.net/csr/definition.php
o http://en.wikipedia.org/wiki/Corporate_social_responsibility
o http://businesscasestudies.co.uk/anglo-american/business-ethics-and-
corporate-social-responsibility/introduction.html
o http://managementhelp.org/businessethics/index.htm
o http://business-ethics.com/
http://books.google.com.pk/books/about/Bringing_business_ethics_to_life.
html?id=BseLWTK-iLIC&redir_esc=y
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