Social Responsibilities of Business

Course: MBA

Subject: Introduction to Management

Unit: IV

BUSINESS

SOCIETY

Manpower(labor, employee) EnergyMoneySkillsThoughtsRaw materialsStatusMachineryLandprofit

gives

SOCIETYincludes

•Share holders•Customers•Employees•Creditors•Govt•Community

•Definition:

•S.R. is a moral obligation toward society that a

business has to fulfill

•S.R. involves the efforts of businessmen to safeguard

long-term interest and welfare of society.

•Decisions and actions beyond the firm’s direct

economic/profit interest

•As business takes so many things from society, it’s a

moral duty of business to give something back to

society.

Companies with CSR

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Business must give a fair return on capital

Providing regular and full info about org.(future

plan, changes, working of org. etc.)

Dividend on time

•Responsibility towards shareholders

•Responsibility towards customers

Business should provide goods and services at reasonable

prices

Providing better quality- standardized goods (ex. ISI)

Solving consumers’ complaint

Collecting info. About needs, preferences, likes-dislikes

(survey-research)

Details of weight, price, exp.date, should be on packing

Honest advertising

After sales services

Humble behavior

Sufficient quantity

Business should pay salary on time

Security of job

Improve motivation and efficiency

Participation in management

Promotion on right time

Training and development

Recognition and dignity

Solving grievances and complaints

Other benefits (p.f., gratuity, incentive, music, mobile, car, allowances,

food)

•Responsibility towards employees

Paying interest on time

Giving all info of working org.

Developing good relations

To use Money for productive purposes only

•Responsibility towards the creditors

(Trade creditors, debenture holders, depositors, commercial

banks, and financial institutes)

•Responsibility towards the govt.

Pay taxes regularly

Following rules

Avoiding bribe and corruption

Providing proper info. About org.

Continuous flow of goods and services

Employment opportunities

Preventive measures against air, water, land pollution

(Conserving ecological balance)

Contributing for schools, libraries, hospitals

Setting example for others. Ex. Hindustan lever ltd (adopting

village)

Uplifting the society by various campaigns (ex.idea’s power

saving hour)

•Responsibility towards the community/nation

Intro to mgt.

Ethics in Management

Example

Intro to mgt.

Ex, code of ethics by vodafone,

http://www.vodafone.com/start/about_vodafone/corporate_governance/code_of_ethics.html

promote honest and ethical conduct, including the ethical handling ofactual or apparent conflicts of interest;

promote the full, fair, accurate, timely and understandable disclosure of theCompany's financial results in accordance with applicable disclosurestandards, including, where appropriate, standards of materiality;

promote compliance with applicable governmental laws, rules andregulations;

deter wrong doing; and require prompt internal reporting of breaches of, and accountability for

adherence to, the Code.

Ethics

Intro to mgt.

The code of moral principles and values that govern the

behaviors of a person or group with respect to what is

right or wrong.

• Rules and principles that define right and wrong

conduct

Example A code of ethics, also called a code of conduct or ethical code, sets out

the company's values, ethics, objective and responsibilities. A well-written code of ethics should also give guidance to employees on how todeal with certain ethical situations. Every code of ethics is different andshould reflect the company's ethos, values and business style. Somecodes are short, setting out only general guidelines, and others are largemanuals, encompassing a huge variety of situations.

Kraft The Kraft code of ethics contains just 10 short rules of ethical behavior

that all employees must follow. The introduction to the Kraft code ofethics suggests that employees should let values guide their actions inall cases. The code also stresses that if something seems wrong, itshould be addressed directly. The code includes a speaking-up policythat requires employees to speak up if they are aware of any violationsof the code, even those they have committed themselves. The 10 rulesare: Make food that is safe to eat; market responsibly; treat peoplefairly; respect the free market; compete fairy; respect the environment;deal honesty with the government; keep honest books and records;never trade on inside information; give Kraft Foods your completebusiness loyalty.

Verizon

The Verizon code of ethics is a lengthy document thatcontains four short core values, followed by 16 pages ofspecific rules and guidelines to follow in certainsituations. The core values are integrity, respect,performance excellence and accountability. The specificguidelines cover situations, such as how to deal withworkplace violence, alcohol use and harassment. Theyalso cover areas of integrity and fairness, such as how toavoid conflicts of interest and how to safeguard companyinformation. There is also a section on protectingVerizon's company assets, including what to do in casesof sabotage and how to create accurate records.

Colgate-Palmolive

The Colgate-Palmolive code of ethics is a longdocument, but is broken down into individual areasof conduct. The code is intended as a guide to alldaily business interactions and is used inconjunction with the company's business practiceguidelines. The code covers 10 areas, including: OurRelationship with Each Other; Our Relationship withthe Company; Our Relationship with Consumers;Our Relationship with Government and the Law;Our Relationship with Society and Our Relationshipwith the Environment.

Ex. Of bus. ethics

Intro to mgt.

To give fair and equitable treatment to theemployees

To charge fair price from the customers.

To use fair weights for measurement of commodities

To pay taxes to govt., and other bodies honestly

To earn reasonable profit

To become a good corporate citizen

Theory Z

William Ouchi, a management researcher developed this new theory of management in the 1980s

Theory Z is a business management theory that integrates Japanese and American business practices. The Japanese business emphasis is on collective decision making, whereas the American emphasis is on individual responsibility.

Japanese Type Organization

1. Lifetime employment

2. Collective decision making

3. Collective responsibility

4. Slow evaluation and promotion

5. Implicit (understood, implied) control mechanisms

6. Non-specialized career path

7. Holistic concern for employee as a person

American Type Organization

1. Short-term employment

2. Individual decision –making

3. Individual responsibility

4. Rapid evaluation and promotion

5. Explicit (clear, precise, unambiguous) control mechanisms

6. Specialized career path

7. Segmented concern for employee as an employee.

Theory Z Type Organization

1. Long-term employment

2. Consentual, participative decision-making

3. Individual responsibility

4. Slow evaluation and promotion

5. Implicit, informal control with explicit, formalized measures

6. Moderately specialized career path

7. Holistic concern, including family

THANK YOU

References:

1.https://c1.staticflickr.com/5/4047/4580879161_457a3eae00.jpg

2.www.Rai university.edu

3.https://lh5.ggpht.com/ErVxE7kJ34vo36pUY5qIrmx3dUoBP9jQKXpRwOFTjWNRleexDhaiYX13tLdRUV2flHjy5pw=s123

3. https://lh5.ggpht.com/5ZyVY8zT89I1a-Zlxx_F71Dt9z1oHpfBoqhq41uunnya22HTKovXjCdGtqzG3eJh9oUJ=s85