Development Planning & Administration MPA – 403 Lecture-10 FACILITATOR Prof. Dr. Mohammad Majid Mahmood Bagram ,

Reflections Risk Management has a vital role in Development Planning & Administration. 3

Corporate Social Responsibility & Ethics in Development Planning & Administration

CSR & Ethics In the business world, ethics is the study of morally appropriate behaviors and decisions, examining what "should be done” 5

CSR & Ethics Corporate Social Responsibility (CSR) is the process by which businesses negotiate their role in society 6

Corporate Social Responsibility  Organizations have obligations to society beyond their economic obligations to owners or stockholders.  Social responsibility relates to an organization’s impact on society 7

Recent Evidence of CSR Interest An Internet search turns up 100,000 plus responses to “CSR” Research Journals increasingly “rate” businesses (and NGOs) on socially responsive criteria: –Best place to work –Most admired –Best (and worst) corporate reputation 8

Reasons for CSR Activities CSR activities are important to and even expected by the public –And they are easily monitored worldwide CSR activities help organizations hire and retain the people they want CSR activities contribute to business performance 9

Businesses CSR Activities Philanthropy: –give money or time or in kind to charity –Integrative philanthropy—select beneficiaries aligned with company interests Philanthropy will not enhance corporate reputation if a company: –fails to live up to its philanthropic image or –if consumers perceive philanthropy to be manipulative 10

Corporate Social Responsibility (CSR) CSR is the Sum of:  Economic Responsibilities (Make a profit)  Legal Responsibilities (Obey the law)  Ethical Responsibilities (Be ethical)  Discretional Responsibilities (Good corporate citizen) 11

CSR- two viewpoints CSR is Inevitable Vs CSR is a Burden 12

Arguments for CSR  Not just profits!  Power vs. Responsibility  Stake holder relations

Arguments against CSR  From the shareholder point of view  Hindrance in maximizing profits

Choosing “moderate strategy” Businesses need to balance economic, legal, and social responsibilities in order to achieve long- run success. More generally, there is a relationship between good social and good financial performance. 15

The word ethics is derived from the Greek word ethos meaning character and Latin word mores meaning customs Ethics defines what is good for the individual and for society and establishes the nature of duties that people owe to oneself and others in society The principle of conduct – professional ethics A set of moral principles or values. ETHICS 16

Why be ethical ?  Expectation of stakeholders  To prevent harm to general public  It pays to organization  A sense of trust among partners  Personal reason

Purpose of Ethics Ethics are the guiding principles. Ethics help make relationships mutually pleasant and productive. Ethics Create a sense of community and a sense of belongingness to society. 18

Are Ethics Limited to Humans? Are ethics limited to humans only or do they extend to animals too? –pure vegetarianism Likewise, issues of responsibility to the environment have also been raised. In other words, philosophy is not far from the religious view of total non-violence 19

The Evolving Context for Ethics  Ethical absolutism - they adapt to us  Ethical relativism - we adapt to them 20

Emergence of a Global Business Ethic Growing business need for integrative mechanisms such as: –Ethics reduce operating uncertainties –Voluntary guidelines avoid government impositions Ethical conduct is needed in an increasingly interdependent world — everyone in the same game Companies wish to avoid problems and/or be good public citizens 21

Reasons for Businesses to Engage in Development of a Global Code of Business Ethics Create the same opportunity for all businesses Level the playing field They are needed in an interconnected world 22

Ways Companies Integrate Ethics Top management commitment in word and deed Company codes of ethics Develop, monitor, enforce ethical behavior Seek external assistance 23

 No discrimination should be done on the basis of caste, color, and religion  The polices should be fair and transparent  Proper provision of safety should be provided by the company to the employees.  There should be honesty, loyalty, and integrity in the employees.  The company’s resources should not be utilized by the employees for their personal usage. Ethical Principles of CG 24

Information about employee’s personal lives, health, and work evaluations should be kept confidential. To neither give nor take any illegal payment, remuneration, gift, donation, or benefits to obtain business or favors. To comply with all regulations regarding preservation of the environment. Ethical Principles of CG 25

Ethical Principles of CG Rights and equitable treatment of shareholders Interests of stakeholders Role and responsibilities of the Board Integrity and ethical behavior Disclosure and transparency 26

Advantages of Ethical Behavior Brand image Greater loyalty Greater commitment of employees Employees become more creative 27

Why have a Code of Ethics? To define acceptable behavior To promote high standards of practice To provide a benchmark for self-evaluation To establish a framework for professional behavior and responsibilities 28

CODE OF ETHICS -TRANSITION Compliance Enforcement Punishment Directive Secretive Compliance Enforcement Punishment Directive Secretive Integrity Inspiration Motivation Educational Open Integrity Inspiration Motivation Educational Open

Thank you for your kind attention! Thank you for your kind attention! FACILITATOR Prof. Dr. Mohammad Majid Mahmood ,