Social Responsibilities of Business

Course: BBA

Subject: Principles of Management

Unit: III

BUSINESS

SOCIETY

Manpower(labor, employee) EnergyMoneySkillsThoughtsRaw materialsStatusMachineryLandprofit

gives

SOCIETY includes

•Share holders•Customers•Employees•Creditors•Govt•Community

•Definition:

•S.R. is a moral obligation toward society that a

business has to fulfill

•S.R. involves the efforts of businessmen to safeguard

long-term interest and welfare of society.

•Decisions and actions beyond the firm’s direct

economic/profit interest

•As business takes so many things from society, it’s a

moral duty of business to give something back to

society.

Companies with CSR

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•Responsibility towards shareholders

Business must give a fair return on capital

Providing regular and full info about org.(future

plan, changes, working of org. etc.)

Dividend on time

•Responsibility towards customers

Business should provide goods and services at reasonable

prices

Providing better quality- standardized goods (ex. ISI)

Solving consumers’ complaint

Collecting info. About needs, preferences, likes-dislikes

(survey-research)

Details of weight, price, exp.date, should be on packing

Honest advertising

After sales services

Humble behavior

Sufficient quantity

•Responsibility towards employees

Business should pay salary on time

Security of job

Improve motivation and efficiency

Participation in management

Promotion on right time

Training and development

Recognition and dignity

Solving grievances and complaints

Other benefits (p.f., gratuity, incentive, music, mobile, car, allowances,

food)

•Responsibility towards the creditors

(Trade creditors, debenture holders, depositors, commercial

banks, and financial institutes)

Paying interest on time

Giving all info of working org.

Developing good relations

To use Money for productive purposes only

•Responsibility towards the govt.

Pay taxes regularly

Following rules

Avoiding bribe and corruption

Providing proper info. About org.

•Responsibility towards the community/nationContinuous flow of goods and services

Employment opportunities

Preventive measures against air, water, land pollution

(Conserving ecological balance)

Contributing for schools, libraries, hospitals

Setting example for others. Ex. Hindustan lever ltd (adopting

village)

Uplifting the society by various campaigns (ex.idea’s power

saving hour)

ETHICS IN MANAGEMENT

Intro to mgt.

Example

Ex, code of ethics by vodafone,

http://www.vodafone.com/start/about_vodafone/corporate_governance/code_of_ethics.html

promote honest and ethical conduct, including the ethical handling ofactual or apparent conflicts of interest;

promote the full, fair, accurate, timely and understandable disclosure ofthe Company's financial results in accordance with applicable disclosurestandards, including, where appropriate, standards of materiality;

promote compliance with applicable governmental laws, rules andregulations;

deter wrong doing; and

require prompt internal reporting of breaches of, and accountability foradherence to, the Code.

Intro to mgt.

Ethics

The code of moral principles and values that

govern the behaviors of a person or group with

respect to what is right or wrong.

• Rules and principles that define right and wrong

conduct

Example A code of ethics, also called a code of conduct or ethical code, sets out the

company's values, ethics, objective and responsibilities. A well-written codeof ethics should also give guidance to employees on how to deal withcertain ethical situations. Every code of ethics is different and should reflectthe company's ethos, values and business style. Some codes are short,setting out only general guidelines, and others are large manuals,encompassing a huge variety of situations.

Kraft

The Kraft code of ethics contains just 10 short rules of ethical behavior thatall employees must follow. The introduction to the Kraft code of ethicssuggests that employees should let values guide their actions in all cases.The code also stresses that if something seems wrong, it should beaddressed directly. The code includes a speaking-up policy that requiresemployees to speak up if they are aware of any violations of the code, eventhose they have committed themselves. The 10 rules are: Make food that issafe to eat; market responsibly; treat people fairly; respect the free market;compete fairy; respect the environment; deal honesty with thegovernment; keep honest books and records; never trade on insideinformation; give Kraft Foods your complete business loyalty.

Verizon

The Verizon code of ethics is a lengthy documentthat contains four short core values, followed by 16pages of specific rules and guidelines to follow incertain situations. The core values are integrity,respect, performance excellence and accountability.The specific guidelines cover situations, such as howto deal with workplace violence, alcohol use andharassment. They also cover areas of integrity andfairness, such as how to avoid conflicts of interestand how to safeguard company information. There isalso a section on protecting Verizon's companyassets, including what to do in cases of sabotage andhow to create accurate records.

Colgate-Palmolive

The Colgate-Palmolive code of ethics is a longdocument, but is broken down into individualareas of conduct. The code is intended as a guideto all daily business interactions and is used inconjunction with the company's businesspractice guidelines. The code covers 10 areas,including: Our Relationship with Each Other; OurRelationship with the Company; OurRelationship with Consumers; Our Relationshipwith Government and the Law; Our Relationshipwith Society and Our Relationship with theEnvironment.

Ex. Of bus. ethics

To give fair and equitable treatment to theemployees

To charge fair price from the customers.

To use fair weights for measurement ofcommodities

To pay taxes to govt., and other bodieshonestly

To earn reasonable profit

To become a good corporate citizen

THANK YOU

References:

1.https://c1.staticflickr.com/5/4047/4580879161_457a3eae00.jpg

2.www.Rai university.edu

3.https://lh5.ggpht.com/ErVxE7kJ34vo36pUY5qIrmx3dUoBP9jQKXpRwOFTjWNRleexDhaiYX13tLdRUV2flHjy5pw=s123

3. https://lh5.ggpht.com/5ZyVY8zT89I1a-Zlxx_F71Dt9z1oHpfBoqhq41uunnya22HTKovXjCdGtqzG3eJh9oUJ=s85