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 programmesShareholder/

investor 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

scope Relevance

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 systemBUSINESS

ETHICSculture

Ethical behaviors

Code of ethicsTop

management

Ethics committees

Ethics auditTraining

programsEthics 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.