Stakeholders: people or groups that have an interest in the organization.Stakeholders include employees, customers, shareholders, suppliers, and others.Stakeholders often want different outcomes and managers must work to satisfy as many as possible.

Ethics: a set of beliefs about right and wrong.Ethics guide people in dealings with stakeholders and others, to determine appropriate actions.Managers often must choose between the conflicting interest of stakeholders.

High profile investigations and arrests in headlines.Vast majority of businesses ethical.New corporate officers charged with deterring wrongdoing and ensuring ethical standards.The ContemporaryEthical Environment

Ethics is a conception of right and wrong behavior, defining for us when our actions are moral and when they are immoral.

Business ethics, on the other hand is the application of general ethical ideas to business behavior.

Business ethics is the art and discipline of applying ethical principles to examine and solve complex moral dilemmas.

Ethics is different from religionEthics is not synonymous with lawEthical standards are different from cultural traitsEthics is different from feelingEthics is not just a collection of Values.

Situation in which a business decision may be influenced for personal gain.Telling the truth and adhering to deeply felt ethical principles in business decisions.Businesspeople expect employees to be loyal and truthful, but ethical conflicts may arise.Employees disclosure of illegal, immoral, or unethical practices in the organization.On-the-Job EthicalDilemmas

IntegrityImpartialityAccountabilityHonestyTransparencyResponsiveness to public interest.

Individuals can make the difference in ethical expectations and behaviorPutting own interest ahead of the organizationLying to employeeMisrepresenting hoursSafety violationsInternet AbuseTechnology is expanding unethical behavior Individuals MakeA Difference

To protect its own interestTo protect the interests of the business community as a whole so that the public will have trust in it.To keep its commitment to society to act ethicallyTo meet its stakeholder expectationTo prevent harm to public interestTo build trust with key stakeholder groupTo protect themselves from the abuse of unethical employees and competitorsTo protect their own reputationTo protect their own employeesTo create an environment in which workers can act in ways consistent with their values.

There is evidence showing that ethical managers benefit over the long run.

Ethical Control System: a formal system to encourage ethical management.Firms appoint an ethics ombudsman to monitor practices.Ombudsman communicates standards to all employees.

Ethical culture: firms increasingly seek to make good ethics part of the norm and organizational culture.

CSR is a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis. -European Union

We define CSR as business' commitment to contribute to sustainable economic development, working with employees, their families, the local community, and society at large to improve their quality of life.

-World Business Council for Sustainable Development

It urges businesses to embrace the triple bottom-line approach whereby its financial performance can be harmonized with the expectations of society, the environment and the many stakeholders it interfaces with in a sustainable manner.

-The Social, Environmental & Economic Responsibilities of Business, MCA, July, 2011.

Corporate Social Responsibility is a companys commitment to its stakeholders to conduct business in an economically, socially and environmentally sustainable manner that is transparent and ethical.- DPE guidelines on CSR and Sustainability

Levitt (1958) could be credited with setting the agenda for the debate about the social responsibility of business in his Harvard Business Review article 'The Dangers of Social Responsibility', in which he cautions that 'government's job is not business, and business's job is not government'.

Friedman (1970), The business of business is to maximise profits, to earn a good return on capital invested and to be a good corporate citizen obeying the law no more and no less.

Edward Freeman (1984) introduced the stakeholder theory and argued that socially responsible activities helped business in building strong relationships with stakeholders, and that management must pursue actions that are optimal for a broad class of stakeholders rather than those that serve only to maximise shareholder interest

John Elkington( 1998) first introduced the concept of Triple Bottom line to emphasise that a companys performance is best measured by the economic, social and environmental impact of its activities.

Porter and Kramer (2011) Creating Shared value - Michael Porter, while explaining the concept of creating shared value at the 2011 World Economic Forum at Davos said that We need to understand that whats good for the community is actually good for business. Michael Porter and Mark R.Kramer authored the concept of Shared Values

PhasesApproach ProponentEthicalVoluntary Commitment by organisations to public welfare Mahatma Gandhi

StatistState ownership and legal requirements determine corporate responsibilities Jawaharlal Nehru Liberal Corporate responsibilities limited to private owners (shareholders) Milton Freidman Stakeholder Organisations respond to the needs of stakeholders- Customers, creditors, employees and communities etc. R Edward Freeman

Corporate Sustainability 3-Legged StoolSustainability = Sustainable Development (SD)= Corporate Social Responsibility (CSR)= Triple Bottom Line (TBL) = 3Es = 3PsEconomy - ProfitsGrowth, Jobs, TaxesProductsServicesEquity - People Employees Community / Culture WorldEnvironment - PlanetEco-efficienciesEco-effectiveness

Satisfied employeesSatisfied customersBranding and creating Goodwill Costs reductionsBusiness Sustainability

Improved financial performanceEnhanced brand image and reputationIncreased sales and customer loyaltyIncreased ability to attract and retain talentReduced regulatory oversightInnovation and learningRisk ManagementEasier Access to capitalReduced operating cost

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