 Obligation of managers to take actions that protect and improve the welfare of society as a whole along with their own interests

 To produce customized products  To establish fair prices of products consistent with quality, efficiency and reasonable profit to the firm.  To provide prompt, adequate, courteous, and friendly service to customers.  To ensure fairly wide distribution of products among all sections of consumers.  To improve their standard of living in society by producing goods and services which they need

 Fair remuneration  Job security and safety  Proper working conditions and employee welfare  Trade union rights  Employee promotion and code of conduct  Employee participation in management.

 Help the local civic administration to provide better public services  Promote community help by indulging into philanthropical activities  Aid schools, colleges and other educational institutions  Promote cultural enrichment of the community by encouraging greater appreciation of art, music and drama.  Encourage sports and provide recreational facilities.  Organize community forums and discussion groups and thus promote better understanding of national and local affairs.  Minimize the problem of pollution and help community efforts in this direction.  Abandon ostentatious living and display of wealth, and develop socially desirable standards of living for themselves.

1. Take corrective action before it is required. 2. Work with affected constituents to resolve mutual problems. 3. Work to establish industry-wide standards and self- regulation. 4. Publicly admit your mistakes. 5. Get involved in appropriate social programs. 6. Help correct environmental problems. 7. Monitor the changing social environment. 8. Establish and enforce a corporate code of conduct. 9. Take needed public stands on social issues. 10. Strive to make profits on an ongoing basis.

Changed public expectations Better environment for business Balance power with responsibility Business has resources Prevention is better Moral responsibility Globalization Better employees

Profit maximization Society has to pay the cost Lack of social skills Social overhead cost Lack of broad support Experts’ views

Corporate social responsibility programmes Government programmes Shareholder/invest or pressures Philanthropic requests and initiatives Competitive advantage Environmental concerns Community forces

Factor conditions Demand conditions Context for strategy and rivalry Related and supporting industries

Cost Social responsibility scopeRelevance efficiency

 Ethics-system of moral principles- a sense of right and wrong, and goodness and badness of actions and their motives and consequences

religion Legal system BUSINESS ETHICS culture

Ethical behaviors Code of ethics Top management Ethics committees Ethics audit Training programs Ethics hotline

 is an identification and examination of the activities of the firm in order to assess, evaluate, measure and report their impact on the immediate social environment  It helps to determine the areas where the firm could be vulnerable to public criticism.  Organizations can inform the public regarding their activities for society.  The true picture of corporate accountability can be given to the society.