1

Final project

On

“Principles of Management”

On the topic

“Corporate Social Responsibility and Business Ethics”

Presented To:

Prof. Usman Sadiq

Presented By:

Group “Supereye”

Mubeen Abdur Rehman (Group Leader) MCE 12151Salman Anjum (Vice Leader) MCE 12157Asfaq Salamat MCE 12155Zohaib Ahmad MCE 12152Shaban Cheema MCE 12169Mutahir Bilal MCE 12147Memona Javed MCE 12104Nadia Izhar MCE 12170

Class M.Com

Semester 1st Evening

Superior University

Lahore.

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Table of contents

Introduction ……………………………………………………… 3

Definition ……………………………………………………. 4

Explanation …………………………………………………….. 4

CSR Responsibility ……………………………………………………..5

Responsibility Types …………………………………………………… 5

The Interest Group ……………………………………………………. 6

Types ..…………………………………………………. 7

Approaches Of Business Ethics ……………………………………………….…... 8

Business Ethics Types …………………………………………………….. 9

Human Resource Ethics …………………………………………………….. 10

Importance Of business ethics ……………………………………………………..11

12 points ………………………………………………………12

Reference ……………………………………………………….13

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Corporate Social ResponsibilityIntroduction:

Corporate Social Responsibility (CSR) is the commitment of a business or company to continuously upgrade its processes, systems, products and services by behaving responsibly and creating value for local communities they operate in, and by enabling its employees, existing and possible customers to improve their standards of living.

“HOW A COMPANY BEHAVES TOWARDS SOCIETY”

Most responsible organizations and businesses in Pakistan are making cash and in-kind donations for humanitarian and religious reasons. About 60 per cent of Public Listed Companies (PLCs) make some sort of contributions to charitable or social development initiatives. (www.mallenbaker.net)

According Mallenbaker’s Definition:

“CSR is about how companies manage

business processes to produces and overall

Positive impact on society”.

Philippines say that:

'CSR is about business giving back to society'.

Definition:

1: Corporate Social Responsibility is the commitment by business to behave ethically and contribute to economic development by improving the quality of life of the workforce and their families as well as of the local community and society at large.

2: How companies manage the business processes to produce an overall positive impact on society.

Examples

Corporate Philanthropy

Environmental Policies

Worker Rights Policies

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Categories of Corporate Social Responsibility:

For CSR to be accepted by a conscientious business person, it should be framed in such a way that the entire range of business responsibilities is embraced. It is suggested here that four kinds of social responsibilities constitute total CSR: economic, legal, ethical, and philanthropic. Furthermore, these four categories or components of CSR might be depicted as a pyramid. To be sure, all of these kinds of responsibilities have always existed to some extent. But it has only been in recent years that ethical and philanthropic functions have taken a significant place. Each of these four categories deserves closer consideration. (www.csrwire.com)

Economic Responsibilities:

Historically, business organizations were created as economic entities designed to provide goods and services to societal members. The profit motive was established as the primary incentive for entrepreneurship. Before it was anything else, business organization was the basic economic unit in our society. As such, its principal role was to produce goods and services that consumers needed and wanted and to make an acceptable profit in the process. At some point the idea of the profit motive got transformed into a notion of maximum profits, and this has been an enduring value ever since. All other business responsibilities are predicated upon the economic responsibility of the firm, because without i the others become moot considerations.

Legal Responsibilities:

Society has not only run business to operate according to the profit motive; at the same time business is expected to comply with the laws and regulations follow by governments as the ground rules under which business must operate. As a partial fulfillment of the "social contract" between business and society firms are expected to pursue their economic missions within the framework of the law. Legal responsibilities reflect a view of "codified ethics" in the sense that they embody basic notions of fair operations as established by our lawmakers. They are depicted as the next layer on the pyramid to portray their historical development, but they are appropriately seen as coexisting with economic responsibilities as fundamental precepts of the free enterprise system.

Ethical Responsibilities:

Although economic and legal responsibilities embody ethical norms about fairness and justice, ethical responsibilities embrace those activities and practices that are expected or prohibited by societal members even though they are not codified into law. Ethical responsibilities embody those standards, norms, or

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expectations that reflect a concern for what consumers, employees, shareholders, and the community regard as fair, just, or in keeping with the respect or protection of stakeholders' moral rights.

Philanthropic Responsibilities:

Philanthropy encompasses those corporate actions that are in response to society’s expectation that businesses be good corporate citizens. This includes actively engaging in acts or programs to promote human welfare or goodwill. Examples of philanthropy include business contributions to financial resources or executive time, such as contributions to the arts, education, or the community. A loaned-executive program that provides leadership for a community’s United Way campaign is one illustration of philanthropy.

The pyramid of corporate social responsibility is depicted below. It portrays the four components of CSR, beginning with the basic building block notion that economic performance undergirds all else. At the same time, business is expected to obey the law because the law is society's codification of acceptable and unacceptable behavior. Next is business's responsibility to be ethical. At its most fundamental level, this is the obligation to-do what is right, just, and fair, and to avoid or minimize harm to stakeholders (employees, consumers, the environment, and others). Finally, business is expected to be a good corporate citizen. This is captured in the philanthropic responsibility, wherein business is expected to contribute financial and human resources to the community and to improve the quality of life

In summary, the total corporate social responsibility of business entails the simultaneous fulfillment of the firm's economic, legal, ethical, and philanthropic responsibilities. Stated in more pragmatic and managerial terms, the CSR firm should strive to make a profit, obey the law, be ethical, and be a good citizen corporate

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The pyramid of corporate social responsibility.

The Interest Group (Stakeholders):

Corporations are motivated to involve stakeholders in their decision-making and toad dress societal challenges because today's stakeholders are increasingly aware of the importance and impact of corporate decisions upon society and the environment. The stakeholders can reward or punish corporations. Thus, Corporate Social Responsibility requires the identification of various interest groups, which may affect the functioning of a business organization and may also be affected by its functioning. Normally various groups associated with a business organization are shareholders, workers, customers, creditors, suppliers, government and society in generalShareholders.

The first responsibility of the management is to protect the interest of shareholders. The interests of majority of shareholders and large minority of shareholders are generally well protected through either direct participation in the management actions or they have real power to intervene, if necessary. They should be informed about the functioning of the organization adequately and timely. Therefore, management has a responsibility to provide proper safeguard to the money invested by shareholders. (Elena F Pérez Carrillo)

Workers:

Workers have direct interest in an organization because by working there, they satisfy their needs. Thus, it is the management’s responsibility to protect the interest of workers in the organization. This can be done by the management in the following ways:-Management should treat workers as another wheel of the cart-Management should develop administrative process in such a way that promotes cooperative endeavor between employers and employees.-The management should adopt a progressive labor policy based on recognition of genuine trade union rights – participation of workers in management, creating a sense of belongingness, improving their living and working conditions.-Management should pay fair and reasonable wages and other financial benefits to workers.

Customers:

Management owes a primary obligation to give a fair deal to the customers. This can be done in the following ways:-Customers should be charged a fair and reasonable

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price.-The supply of goods and services should be of uniform standard and of reasonable quality.-Management should not indulge in profiteering, hoarding, or creating artificial scarcity.-Management should not mislead the customers by false, misleading and exaggerated advertisements.

Creditors, Suppliers and Others:

They affect the organization in various ways. Therefore, the management is responsible to fulfill its obligations towards them. This can be done in the following ways.-Management should create healthy and cooperative inter business relationship between different businesses.

Management should provide accurate and relevant information to creditors and suppliers.-Payments of price of materials, interest on borrowings, other charges should be prompt.

Government:

It is very closely related with the business system of the country. It provides various facilities for the development of business. Government, no doubt, exercises control over business, but these controls are meant for overall development of business. Management can discharge its obligation to government by:-Management should be a law-abiding citizen-Management should pay taxes and other dues fully, timely &honestly.-It should not corrupt government workers and public servants and the democratic process-It should not buy political favors by any means.

Society:

Organizations exist within a social system and get facilities from the system. Therefore, they owe obligations to the society as a whole. This can be done by:-Management should maintain fair business policies and practices.-It should play a proper role in civic affairs.-It should provide and promote general amenities and help in creating better living conditions in general.

Concept of greening Management:

The acknowledgment by the companies that there is close link between an organization's decisions and its actions has consequences on the natural environment is referred as greening of management. In the past the organizations did not paid much attention to the environment which is affecting by their activities. There were small groups who showed their concerns in

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protecting the environmental and natural resources. There are many manufacturing units and factories that are adding damage to the natural environment for the sake of getting money and getting rich. They have no concern for the environment.

This awareness is aroused by some environmental protection group and they highlighted in the media for the protection of environment so the companies started to pay attention in cleaning and safer environment. Managers are now involved in greening of management. Greening of management adheres to all safety measures for man and environment. It involves an integrated effort to consider environment concerns. Management is effective only when it is adaptive to change in the external world. The 21st Century has ushered in the need to identify and deal with global environment issues. They are no more the concern of 'someone else'.  The Greening of Management is concerned with companies embracing environmental protection as part of their competitive strategies. The concept is fast catching up and is being widely accepted by concerned organizations and individuals. Those who accept and implement greening of management, ensure that the actions of all the members of their staff and the operations conducted within the business are within the rules and regulations laid down by authorities for the protection of the immediate environment. Businesses today need to be able to recognize the close link between an organizations decisions and its impact on the natural environment.

Global environment Issues:

A variety of environmental problems now affect our entire world.  As globalization continues and the earth's natural processes transform local problems into international issues, only few societies are being left untouched by major environmental problems. The list of global environment problems is long. Major five global environment issues include;

Natural resources depletion Global warming Pollution (air, water, soil) Industrial accidents Toxic waste

How these problems occur? Much of the blame can be placed on industrial activities in developed or affluent societies. Various reports have shown that affluent

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societies account for more than 75% of the world’s energy & resource consumption and create most of the industrial, toxic & consumer waste. An equally disturbing picture is that as the world population continues to grow as emerging countries become more market oriented and affluent, global environmental problems can be expected to worsen. The average mass produced water bottles contain small amount of heavy toxic metal that causes cancer. The rubbers soles on pair of shoes are loaded with lead that can last decades after shoes are thrown away this also increase environmental pollution. Atmospheric pollution due to industrialization has increased the properties in air which effect greenhouse and caused global warming. All these pollutions have undesired effects on human and other living things.Pollution and environmental degrading can only be prevented if the industries and their individuals feel their responsibility.

Approaches of being Green:

One model of environmental responsibility uses the term shades of green to describe the different approaches that organization may take. Approaches are:

Legal Approach (light green) Market Approach Stakeholder Approach Activist Approach (dark green)

(Stephen.P.Robbins)

1. Legal Approach:

The first approach is the legal or light green approach that is simply doing what is required legally. Under this approach organizations show little environmental sensitivity. They obey laws, rules and regulations willingly and even try to use the law to their own advantage. This approach is a good illustration of social obligation. These organizations simply follow their legal obligations to prevent pollution and protect environment. For example, many durable product manufacturers and oil refiners have taken the legal approach and comply with relevant rules & regulations but go no further.

2. Market Approach:

As an organization become more sensitive to environmental issues, it may adopt the market approach, where it responds to the environmental preferences of its customers. Whatever customers demand in term of environmentally friendly product will be what the organization provides. For example DuPont developed a new type of herbicide that helped farmers around the world reduce their annual use of chemical by more than 45 million pounds. Bu developing this product the company was responding to the demands of its customers who wanted to minimize the use of chemical on their crops. This approach is a good illustration of social responsiveness.

3. Stakeholder Approach:

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Another approach is stakeholder approach. Under this approach the organization works to meet the environmental demands of its multiple stakeholders such as suppliers, employees or the community. Stakeholder approach is also an illustration of social responsiveness. For example an organization may decide that it is a necessary requirement that the employees should be ensures the health & welfare so that they become more satisfy. In this way an organization leads to be more responsive to its employees comparatively to its profit.

4. Activist Approach:

When an organization look the ways to respect and preserve the earth and its natural resources than it said to be following activist approach. The activist approach exhibits the highest degree of environmental sensitivity and is a good illustration of social responsibility. Hanger’s cleaners use a pollution free process to clean cloths. Whirlpool won an industry competition and $30 million prize for developing CFC high efficiency refrigerator (CFC is abbreviation of Chlorofluorocarbons linked to the degradation of ozone layer around the earth). So all these industries have adapted Activist approach which is also called dark green Approach. By taking these approaches managers and organizations can protect & preserve the natural environment and society.

Green management:

The recognition of the close links between an organization decisions and activities and its impact on the natural environment is referred to as the green management.

NATURAL ENVIOURMENT PROBLEMS

Some of more serious problems are;

Global climates change Air pollution Water pollution Industrial accidents Toxic wastes Global Warming Ozone Layer reduction Cutting of forests

These problems occur in these ways;

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Much of the blame can be placed on industrial activities in developed (economically affluent) counties over the half century.30Various reports have shown that affluent societies account for more than 75 percent of the world energy and resource consumption and create most of the industrial, toxic, and consumer waste.31

Global Warming : The burning of coal, oil, petrol, and, gas intensive effects on global climate. The burning of gas and petrol produced many gases which are to reductions of greenhouse gases. Greenhouse gases make a layer which recorded the earth. Our increasing use of coal, oil and natural gas from heating, energy and transportation has caused a large increase in greenhouse gas emissions. These greenhouse gases are resulting in a global warming.

Ozone Layer reduction: Different gases damage or reduction the ozone layer and this layer from around 50 years recorded the earth. The ozone layer protective thin screen of ozone gas about 25, kilometres above the earth. Ozone gases protect the earth from the harmful and ultra violet rays of the sun. Ultra violet layer are causing increased cancers and harmful for plant growth.

Cutting of forests:

The purchase of wood, or wood products, derived from unmanaged tropical forest (e.g. kwila, mahogany or teak) and temperate forests in countries such as Canada, Russia and Poland, is helping destroy the world’s forests.

Air Pollution :

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Modern counties like America, Canada, New Zealand, air is safe clean, but the counties, like India, Pakistan etc, air pollution is not clean because of World Health Organisation guidelines. Motor vehicles are the largest single source of air pollution in these counties especially older or poorly maintained cars. The transport system has a significant impact upon the environment in noise pollution and community dislocation.

Water Pollution :

When the factors like leather field waste the harmful water waste in canals and this water mix with other water and damage and bad effecting on fish, plants and human health.

Land Use :

Nearly two thirds of New Zealand’s land is used for farming and forestry or for our towns, cities and roads. Poor land use, soil erosion, unwanted plants and animals are negatively impacting on the health of our land.

There is a growing awareness in New Zealand of the problems that can occur when land is contaminated with hazardous substances from the manufacture, use, or storage of chemicals, industrial residues or waste products. This poses an immediate and, or long-term risk to human health and the environment.

What manager or organization do for green management:

Organization and mangers can do many things to protect and preserve the natural enviournment. Some do more than what is required by law that is that is they fulfill their social obligation. However, others have made radical changes to make their products and production processor cleaner. For example carpet-maker Shaw industries of Dalton, Georgia, transfer its carpet and wood manufacturing waste into energy. total and sa one of the largest oil company is clearing up and greening up by implementing tough new rules on oil tanker safety and working with gropes such as global witness and greenplace.ups the world largest delivery package company, has done numerous things from retrofitting its aircraft with advance technology and fuel efficient engines to developing a powerful computer net work to efficient dispatch its fleet of brown trucks and using alternative fuel to run them.

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APPROACH OF GREEN MANAGEMENT:

There are four approaches;

Light green Market approach Stakeholder approach Dark green approach

Light green approach:

The first approach is light green approach or legal approach that what is simple doing what is required is legally. In this approach the organization follow the rules, law, and regulation. For example many durable goods manufactured have taken the follow the rules and regulation.

Market approach:

The second approach is market and in this approach an organization become more sensitive to environment issue. In this approach where the organization effect on the environment of their customer. For example farmers used the urea for the increasing the annually production and company manufacturing use high quality chemical. DuPont developed the new type of herbicide that helped the farmer to reduce the chemical and developing this products farmer less using the chemical on the crops.

Stakeholder approach:

Under the approach the stakeholder approach the organization work to meet the environment demand of multiple the stakeholders such as employee suppler and the community.

BUSINESS ETHICS:

Definition:

“Knowing the difference between right and wrong”

Business ethics are also corporate ethics.

In simple words, ethics can be defined as 'moral values and principles. It is a decision of choosing right among wrong and right. Business ethics are that functions which help to choosing right decision at right time

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which help for the welfare of not only business owners but also society, consumers, stakeholders and its employees.

“DISCPLINE OF DEALING WITH WHAT IS GOOD AND BAD, OR RIGHT OR WRONG, OR WITH MORALDUTY AND

OBLIGATION”

Approaches to Business Ethics:

When business people speak about “business ethics” they usually mean one of three things:

(1) Avoid breaking the criminal law in one’s work-related activity.

(2) Avoid action that may result in civil law suits against the company.

(3) Avoid actions that are bad for the company image.

(Bringing business ethics to life, Bjorn Andersen)

7 Principles of Admirable Business Ethics:

1. Be Trustful :

Recognize customers want to do business with a company they can trust; when trust is at the core of a company, it's easy to recognize. Trust defined, is assured reliance on the character, ability, strength, and truth of a business.

2. Keep An Open Mind:

For continuous improvement of a company, the leader of an organization must be open to new ideas. Ask for opinions and feedback from both customers and team members and your company will continue to grow.

3. Meet Obligations:

Regardless of the circumstances, do everything in your power to gain the trust of past customers and clients, particularly if something has gone wrong. Reclaim any lost business by honoring all commitments and obligations.

4. Have Clear Documents:

Re-evaluate all print materials including small business advertising, brochures, and other business documents making sure they are clear, precise and professional. Most important, make sure they do not misrepresent or misinterpret.

5. Become Community Involved:

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Remain involved in community-related issues and activities, thereby demonstrating that your business is a responsible community contributor. In other words, stay involved.

6. Maintain Accounting Control :

Take a hands-on approach to accounting and record keeping, not only as a means of gaining a better feel for the progress of your company, but as a resource for any "questionable” activities. Gaining control of accounting and record keeping allows you to end any dubious activities promptly.

7. Be Respectful :

Treat others with the utmost of respect. Regardless of differences, positions, titles, ages, or other types of distinctions, always treat others with professional respect and courtesy.

Examples of Business Ethics

Use of child labor and forced labor

Violation of the basic rights of workers

Ignoring health, safety and environmental standards

Business ethic is concerned with the behavior of all businesses that operate in the supply chain.

•Suppliers

•Contractors

•Distributors

•Sales agents

Importance of Business Ethics in Business

Profit Maximization:

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The importance of ethics in business can be understood by the fact that ethical businesses tend to make much more profits than the others. The reason for this is that customers of businesses which follow ethics are loyal and satisfied with the services and product offerings of such businesses. Let us take an example. Suppose, there is an organization named XYZ which manufactures cosmetics. XYZ greatly believes in the importance of business ethics. When XYZ advertises its cosmetics in the market, being an ethical organization, it will be very truthful and honest in its communication with the probable customers. It will tell correctly about the kind of ingredients it has used while manufacturing the cosmetics.

Efficient Utilization of Business Resources:

In an organization, people working at the junior levels often emulate the ones working at the top. The same applies with ethics too. If the management or seniors of an organization follow ethical business practices, i.e., they do not bribe to get their way or they do not cheat the customers, investors, suppliers, etc., the employees will follow suit.

Creates Goodwill in the Market:

An organization, which is well-known for its ethical practices, creates goodwill for itself in the market. Investors or venture capitalists are more willing to put their money in the businesses which they can trust.

APPROACHES TO BUSINESS ETHICS:

  When business people speak about “business ethics” they usually mean one of three things,

Avoid breaking the criminal law in one’s work-related activity. Avoid action that may result in civil law suits against the company. Avoid actions that are bad for the company image.

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  Businesses are especially concerned with these three things since they involve loss of money and company reputation. In theory, a business could address these three concerns by assigning corporate attorneys and public relations experts to escort employees on their daily activities. Anytime an employee might stray from the straight and narrow path of acceptable conduct, the experts would guide him back. Obviously this solution would be a financial disaster if carried out in practice since it would cost a business more in attorney and public relations fees than they would save from proper employee conduct. Perhaps reluctantly, businesses turn to philosophers to instruct employees on becoming “moral.” For over 2,000 years philosophers have systematically addressed the issue of right and wrong conduct. Presumably, then, philosophers can teach employees a basic understanding of morality will keep them out of trouble.

Human Resource Ethics:

The application of ethical principles to human resource relationships and activities

A Code of Ethics

Establishes the rules by which the organizations lives Easy to talk the talk but harder to execute

Must breathe it

Train its people

Communicate the code

Topics for Code of Ethics

Business conduct and Fair competition

Workplace and HR issues

Reinforcing the Code of Ethics

Committee is established

Legal

HR, Corporate Compliance

Corporate Communication

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External Affairs

Training and Development

Balding National Quality Award are changing criteria

The Ethical Behavior Formula:

Taken together, virtuous values, actions, and behavioral standards/codes can produce a “formula,” such as that illustrated below, that may increase the likelihood of ethical organizational behavior:

Virtuous Values + Aligned Action + Behavioral Standards/Codes –> Increased Ethical Behavior

Consider adapting the six virtuous values and aligning them with key managerial leadership actions such as selection, employee orientation/socialization, and allocation of resources. Behavioral standards and/or codes of ethical conduct can be added as appropriate. Acting on these three formula components may serve to increase the display of ethical organizational behavior.

DUTY AND OBLIGATION:

Definition:

Corporate Social Responsibility:

Corporate-wide activities carried out to improve a Company’s image vis-à-vis various stakeholder groups is called corporate social responsibility.

Examples

Corporate Philanthropy,

Environmental Policies,

Worker Rights Policies, etc.

Business Ethics:

Refers to actions by individuals and/or groups within organizations is called business ethics.

Examples

Embezzlement

Sexual Harassment

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Is CRS & Business Ethics same?

There is clearly similarity between CSR and business ethics Both concepts concern values, objectives and decision based on something than

the pursuit of profits. CSR is about responsibility to all stakeholders and nt just shareholders where as Ethics is about morally correct. There are good things for society that are not good for business and this is where

social responsibility comes in. There are also good things in business that are not good for society and this is where business ethics comes in.

Social responsibility is more of a policy or an obligation to the community, while business ethics is more of a conscience.

Business is focused on profits but with social responsibility. It is still obliged to perform beneficial activities for society, while business ethics should make a positive move for society.

Without social responsibility, the community will not benefit, however.

Managers and Ethical Behavior:

Business ethics is a fundamental term that is applicable to all workplaces. Irrespective of the nature of an organization and its function, an unethical employee promotes corruption and also could be a liability to an organization. Therefore, it becomes important for an organization to encourage its employees to adhere to ethical behavior.

Here are some ways for organizations to encourage ethical behavior.

1. Communicating the code of ethics:

The preliminary step to promote ethical behavior among employees is by establishing a code of ethics. The code of ethics provides the direction and guidelines for employees’ ethical behavior. Employees need to be familiarized with the code of ethics either through a company manual or posters. This enables the employees to have a clear idea of the management’s expectation with respect to employee code and conduct.

2. Making the managers as role model:

Having managers as role models is another way of promoting ethical behavior. For this purpose, managers need to be chosen with care and due consideration. This will be beneficial in the following ways.

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a) Employees will have a guiding force to promote ethical behavior

b) Employees tend to emulate their managers and if they are ethical in their behavior, it lends more credibility to the code of ethics

c) If managers strictly adhere to ethical standards themselves, employees will feel less reluctant to oppose the guidelines laid out for ethical behavior

3. Disciplinary actions for unethical behavior:

Condemning any malpractice or unethical behavior in the initial stages itself is better than allowing it to proliferate to other areas of the organization. Imposing sanctions on unethical behavior helps the employees to understand the implications of inappropriate behavior. Therefore, the management needs to lay down disciplinary actions that will be taken against employees found guilty of violating the rules. If management promotes sales ‘at all costs’, then employees might resort to any methods to achieve their targets. However, if management is serious about the means as much as the results, they should make sure that it is conveyed in no uncertain terms to their employees.

4. Rewards for ethical behavior:

When an employee is rewarded for positive behavior, it is likely that the employee will not only continue to adhere to ethical practices but also be an inspiration to his colleagues. Therefore, it is important.

Importance Of Ethical Behavior:

Why is it important for top managers to ensure that organizational culture supports ethical conduct and social responsibility??

      In today’s society people don’t always do what’s right. They may know that doing certain things will cause greater consequences that they would like but still do it anyways.   It is the top managers responsibility to ensure that the organizational culture supports ethical conduce and social responsibility because they are who the team members look to for guidance. As stated in chapter 1, ethics is a branch of philosophy concerned with human values and conduct, moral, duties and obligations. Managers have to be the voice that people look to; to know what they want to do may not always be the best thing for themselves or the company.

              Top managers need to ensure organizational structure to make sure that harassment, discrimination and stealing are not happening within their company. And if it does happen then it will immediately be taken care of.   For example, if I am the office

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manager and I know that Monica is stealing money from the office drawer it is my job to handle that situation either by termination or verbal discipline. I have to act ethically and make the best decision for the company, no mater how much or bad she needed it. When discrimination happens it puts a dark cloud over the employees. They tend to feel that the company does not care about them as employees so they begin not to care about they job and tend to slack off.

              Managers need to make it an on going habit to treat each employee fairly. They need to make sure that they keep their ethics in check while they are in the presents of employees. Social responsibility is described in the text as obligations to protect and benefit others and to avoid actions that could harm them. This basically means don’t do anything that will put anyone else in harms way, or cause another employee bodily harm.

Encouraging ethical behavior:

Ethics is about behavior. In the face of dilemma, it is about doing the right thing. Ethical managerial leaders and their people take the “right” and “good” path when they come to the ethical choice points.

The purpose of this article is to steer your thinking and action toward creating and sustaining an ethical workplace culture. Managerial leaders and their people are invited to explore how values, actions, and behavioral standards can help steer organizational behavior. (www.springerlink.com)

Wisdom and Knowledge :

The capacity to take information and convert it to something useful. Wisdom comes from capitalizing on one’s experience to interpret information in a knowledgeable manner to produce wise decisions. A prerequisite to doing the right thing when facing an ethical dilemma is knowing what to do, knowing the difference between right and wrong.

Self Control:

The ability to avoid unethical temptations. The capacity to take the ethical path requires a commitment to the value of acting with temperance. Ethical people say “no” to individual gain if it is inconsistent with institutional benefit and goodwill.

Justice and Fair Guidance:

The fair treatment of people. Justice is served when individuals perceive that they receive a fair return for the energy and effort expended. For example, a leader’s commitment to justice is tested continually with the allocation of organizational

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resources. Are certain individuals and groups given special treatment without regard to objective criteria by which to judge fairness? Ethical leaders value and embrace fair advice and guidance.

Transcendence:

The recognition that there is something beyond oneself more permanent and powerful than the individual. Without this value, one may tend toward self-absorption. Leaders who are motivated predominately by self-interest and the exercise of personal power have restricted effectiveness and authenticity.

Love and Kindness:

The expression through words and deeds of love and kindness. Researchers have documented that there appear to be different types of “love.” In an organizational context, love refers to an intense positive reaction to another co-worker, group and/or situation. An organization “with heart” allows for the expression of love, compassion and kindness among and between people, the goodwill which can be drawn upon when one faces ethical challenges.

Courage and Integrity:

The courage to act ethically and with integrity. These values involve discerning right from wrong and acting accordingly. They impel one to consistently do what is right without concern for personal consequences, even when it is not easy.

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Reference:

o Bringing business ethics to life, Bjorn Anderseno Stephen.P.Robbins, Principal of management.o Corporate Ownership & Control / Volume 4, Issue 4, Summer 2007 Elena

F Pérez Carrilloo http://www.csrwire.com/categorieso http://www.springerlink.com/content/q61281231617p44u/o http://www.mallenbaker.net/csr/definition.phpo http://www.responsiblebusinessevent.org/page.cfm/Link=9/t=m/

goSection=4/trackLogID=96372_7972F7D055o http://www.mallenbaker.net/csr/definition.php o http://en.wikipedia.org/wiki/Corporate_social_responsibility o http://businesscasestudies.co.uk/anglo-american/business-ethics-and-

corporate-social-responsibility/introduction.htmlo http://managementhelp.org/businessethics/index.htm o http://business-ethics.com/

http://books.google.com.pk/books/about/Bringing_business_ethics_to_life.html?id=BseLWTK-iLIC&redir_esc=y