BUSINESS ETHICS & SOCIAL RESPONSIBILITY

What you know  Write down your definition of  Ethics  Social Responsibility  And….an example of a business that did not act in a responsible or ethical manner

Objectives  Understand the meaning of  Business Ethics  Social Responsibility  Apply your understanding to a case involving a major US corporation in India  Understand the term “stakeholder” and appreciate the conflicts between them  Offer suggestions to solve conflicts between stakeholders

Types of External Influences

Business Ethics

Stakeholders

Responsibility to Stakeholders  Shareholders – Generate profits and pay dividends  Customers – provide good quality products at reasonable prices. Safety, honesty, decency and truthfulness  Employees – health and safety at work, security, fair pay  Suppliers – pay on time, pay fair rates for the work done, provide element of security

Responsibility to Stakeholders  Local Community – provide employment, safe working environment, minimize pollution, donations?  Government – obey laws & regulation, pay taxes  Environment – Pollution, congestion, healthy development

In pairs, identify where conflicts between stakeholders might arise Production of goods that bring salesvs.Pollution caused by that product AND/OR the production

Stakeholder Conflicts  Profits versus higher wages  Expansion versus development  Production versus pollution  Supplier benefits versus consumer prices/lower costs  Survival of the business versus needs of stakeholders

Examples  Production of children's toys  Coffee  Oil  Jewellery – diamonds and gold  Chemical industry  Others??

Solutions  Taxation  Self Regulation/Social Responsibility  Government regulation  Pressure Groups  Demands of consumers

You decide