Tuesday, 10 March 2020

Business Ethics and Corporate Social Responsibility

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Business Ethics and Corporate Social Responsibility


Ethical problems bring about conflicts between an organisation’s economic performance
and its social performance.
Ethical principles can be classified into two categories: teleological and deontological.
The teleological theories determine the ethics of an act by looking at the consequences of
the decision (the end), while deontological theories determine the ethics of an act by
looking to the process of the decision (the means).
Business is not merely an economic but also a social function. It is the only activity, that
influences every aspect of the society and nation.
There are four important groups that influence and are influenced by business, which in
turn supposed to accept its responsibilities towards them:
The owner of the business, i.e. shareholders
The employees
Notes The customer
The society at large
Major social responsibilities of business the use the resources in a judicious manner, to
shun waste, misuse, damage or resources at its disposal. A business should offer quality
products at fair prices to society and should follow fair trade practices of business.
Most big Indian corporations are engaged in some CSR activities. As is the case in many
countries, the private sector is generally more active in this area than the governmental/
public sector.


Business Ethics: It refers to the measurement of the business behaviour on standards of right and
wrong.
Corporate Social Responsibility: A company’s sense of responsibility towards the community
and environment (both ecological and social) in which it operates.
Deontological Ethical System: In this system, ethics are measured by the rightness of an act and
depend little on the results of the act.
Utilitarianism Ethical System: Here, morality of a decision is determined by measuring the
probable outcome.


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