Ethics and Social Responsibility

Overview of
SOCIAL
RESPONSIBILITY
PERSONAL INTEGRITY
Personal integrity involves Integrity is one of the
the best, most honest and fundamental values that
morally-sound version of employers seek in the
yourself. Your integrity may employees that they hire. It is
stem from your religious the hallmark of a person who
beliefs, your personal goals in demonstrates sound moral
life, or from some other and ethical principles at
formative experience. work.
SOCIAL
RESPONSIBILITY
Social Responsibility is an
ethical framework and suggest
that an entity, be it an
organization or individual, has
an obligation to act for the
benefit of society at large.
It is a duty every individual has
to perform so as to maintain a
balance between the economy
and the ecosystems.
BUSINESS ETHICS
By definition, business ethics are the
moral principles that act as guidelines
for the way a business conducts itself
and its transactions.
CORPORATE SOCIAL RESPONSIBILITY
Corporate social
responsibility (CSR) is a
self-regulating business
model that helps a
company be socially
accountable—to itself,
its stakeholders, and
the public.
TREND
A general DIRECTION in which something is DEVELOPING or CHANGING.
SOCIAL RESPONSIBILITY
Is an ETHICAL FRAMEWORK and suggest that an ENTITY, be it an
ORGANIZATION or INDIVIDUAL, has an OBLIGATION to act for the benefit of
SOCIETY at large.
How Corporate Social Responsibility CHANGED over the
past years?
From giving money to CHARITABLE groups to focusing on STRAEGIC GIVING.
Why does Corporate Social Responsibility are still being
develop today?
Because of many issues being addressed to satisfy the present needs.
Why Corporate Social Responsibility is a growing trend in
corporate culture?
Because of the expectations of the society to the companies
KPMG INTERNATIONAL SURVEY ON CORPORATE SOCIAL
RESPONSIBILITY
In 2008, 70 % of the world’s largest companies issued separate reports on CSR

compared to 52% in 2005.
Japan being the highest CSR reporting at 88% (National level), and the UNITED
KINGDOM at 84%
Why is it so relevant?
The CSR disclosure by corporations worldwide signals the significance of CSR for
SUSTAINABLE DEVELOPMENT.
TRENDS IN SOCIAL RESPONSIBILITY
The top trends in the area of corporate social responsibility include increased
transparency, investment in green technologies, local community and employee
engagement.
● Creation of New Resources/Utilization of Sustainable Product
● Global Companies Acting Locally
● Investing in Employees
● Equity, Diversity and Inclusion

CHARACTERISTICS OF SOCIAL RESPONSIBILITY
Coordination between
Individual and Social
Continuous Process
Interests
This is a continuous process,
The concept of social
because till accomplishment of
responsibility of the person lays
activities will continue, the
stress on establishing
social responsibilities of a
coordination between his
person will also go on fulfilling.
Individual interest and social
interests.
Two way Traffic Universal Concept

This is two-way traffic because the The concept of social responsibilities
person fulfill their responsibilities of the person is a Universal concept
towards various sections of the because it has been accepted by all
society. countries, each area of the society,
Similarly, various sections of the and is being pursued by everyone.
society should also fulfill
responsibilities towards the person.
Recognition of Doctrine of It is innate
Trusteeship
The feeling of social
This concept subordinates the Trusteeship
principle of Mahatma Gandhi, because it responsibility is the natural
lays stress on the fact that the person and spontaneous spirit of
should utilize various resources of the
the person.
society for fulfilling the overall interest of
the society, and not for their own interest
alone, and they should regard themselves
as the trustees of those resources and not
as their Masters.
Collective and Social

Basis of Success
Institution
The fulfillment of social
responsibilities is an These responsibilities are
important element for success. organized and executed for the
benefit of the society, and not for
the individual.
Dynamic and Elastic Based on ethical standards

and good faith
Concept
Morality and good faith
With the changes in the culture of
towards various sections of the
society, moral values also undergo
society alone enable them to
changes and the social
fulfill their social
responsibilities also change with
the cultural changes. responsibilities.
ETHICS AND SOCIAL RESPONSIBILITY
Social responsibility is an ethical theory, in which
individuals are accountable for fulfilling their civic duty;
the actions of an individual must benefit the whole of
society. In this way, there must be a balance between
economic growth and the welfare of society and the
environment. If this equilibrium is maintained, then
social responsibility is accomplished.
TRADITIONAL THEORIES OF CSR
Friedman’s Theory
- Corporations has NO RESPONSIBILTY except making profit in a legal

way.
Social Contract Theory
- Business should be regulated as a social institution and should join with other
social structures like the family.
Instrumental Theory
- Business may choose to support some social programs for reasons of

GOOD IMAGE and for COMPETITIVE ADVANTAGE
Legitimacy Theory
- Business Act in response to the environmental pressures involving

SOCIAL, POLITICAL and economic forces for its survival
Stakeholder’s Theory
- Pay’s attention to the needs and rights of all the stakeholders of a

business as a useful way of developing socially responsible behavior by
managers.
DIFFERENCE BETWEEN ETHICS AND SOCIAL RESPONSIBILITY
(ETHICS VS. SOCIAL RESPONSIBILITY)
Ethics speak to individual, occupational,

organizational, or societal morals and
values, while social responsibility is the
practical application of ethical concerns
for the benefit of society as a whole.
What it means to be socially responsible and ethical?
The theory of social responsibility is built on a
system of ethics, in which decisions and actions
must be ethically validated before proceeding. If
the action or decision causes harm to society or
the environment then it would be considered to
be socially irresponsible.
When do social responsibility and ethics apply?
The theory of social
Businesses have developed a
responsibility and ethics applies
system of social responsibility
in both individual and group
that is tailored to their company
capacities. It should be
environment. If social
incorporated into daily
responsibility is maintained
actions/decisions, particularly
within a company than the
ones that will have an effect on
employees and the environment
other persons and/or the
are held equal to the company’s
environment. In the larger,
economics. Maintaining social
group capacity, a code of social
responsibility within a company
responsibility and ethics is
ensures the integrity of society
applied within said group as
and the environment are
well as during interactions with
protected.
another group or an individual.
IMPORTANCE OF ETHICS
AND SOCIAL RESPONSIBILITY
“ETHICS AND SOCIAL RESPONSIBILITY ACTUALLY GO HAND IN HAND”
Business Ethics and Social Responsibility

aim to open the perspective of business
leaders to promote good morals and values
within an industry. Ethical behavior
and corporate social responsibility can
bring significant benefits to a business.
RELEVANCE TO BUSINESS STUDENTS?
It is important that we students are

compelled to comprehend the
consequences of our actions since our
career paths involved highly tempting
aspects in which the biggest facet is
MONEY.
References:
https://corporatefinanceinstitute.com/resources/knowled
ge/other/business-ethics/
 https://www.investopedia.com/terms/c/corp-social-
responsibility.asp
https://study.com/academy/lesson/difference-between-
ethics-social-responsibility.html
https://www.youtube.com/watch?v=Lfou__zWvXQ

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Ethics and Social Responsibility

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Overview of

In 2008, 70 % of the world’s largest companies issued separate reports on CSR

● Creation of New Resources/Utilization of Sustainable Product

● Global Companies Acting Locally

● Equity, Diversity and Inclusion

Two way Traffic Universal Concept

Collective and Social

Dynamic and Elastic Based on ethical standards

- Corporations has NO RESPONSIBILTY except making profit in a legal

Social Contract Theory

- Business may choose to support some social programs for reasons of

- Business Act in response to the environmental pressures involving

- Pay’s attention to the needs and rights of all the stakeholders of a

Ethics speak to individual, occupational,

Business Ethics and Social Responsibility

It is important that we students are

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