UNIT 5: BUSINESS ETHICS AND SOCIAL RESPONSIBILITY

The wider society also has wider expectations on organizations Organizations do have obligation imposed through regulation and corporate governance The wider society also has wider expectations on organizations These expectations have an impact on organizations and their operations i.e. visions, missions, objectives and strategies They have resource implications

Based on society expectations and changes in these expectations over time, businesses have various roles and responsibilities Economic responsibility Ethical responsibility Social responsibility

Economic Responsibilities Making profits for shareholders Providing employment Paying taxes to government Producing quality products

Ethical Responsibilities Being a good corporate citizen Obeying laws of the country Complying with the regulatory frame work Upholding good corporate governance Business has a responsibility to society going beyond economic

Social Responsibilities Exceeding the minimum obligations to stakeholders specified through regulations and corporate governance Direct involvement/participation in solving society problems Working alongside government in social development issues Acts of irresponsibility’s can trigger increased regulations and stringent corporate governance requirements