BUSINESS ETHICS &
SOCIAL RESPONSIBILITY
What you know

Write down your definition of
 Ethics
 Social

Responsibility
And….an example of a business that did not act in
a responsible or ethical manner
Objectives

Understand the meaning of
 Business
Ethics
 Social Responsibility



Apply your understanding to a case involving a
major US corporation in India
Understand the term “stakeholder” and appreciate
the conflicts between them
Offer suggestions to solve conflicts between
stakeholders
Types of External Influences
Business Ethics
Stakeholders
Responsibility to Stakeholders
Shareholders – Generate profits
and pay dividends
 Customers – provide good quality products
at reasonable prices. Safety, honesty,
decency and truthfulness
 Employees – health and safety at work,
security, fair pay
 Suppliers – pay on time, pay fair rates
for the work done, provide element of
security

Responsibility to Stakeholders
Local Community – provide employment,
safe working environment, minimize pollution,
donations?
 Government – obey laws & regulation, pay
taxes
 Environment – Pollution, congestion, healthy
development

In pairs, identify where conflicts
between stakeholders might arise
Production of goods that bring sales
vs.
Pollution caused by that product
AND/OR the production
Stakeholder Conflicts
Profits versus higher wages
 Expansion versus development
 Production versus pollution
 Supplier benefits versus consumer
prices/lower costs
 Survival of the business versus needs of
stakeholders

Examples
Production of children's toys
 Coffee
 Oil
 Jewellery – diamonds and gold
 Chemical industry
 Others??

Solutions
Taxation
Self
Regulation/Social
Responsibility
Government regulation
Pressure Groups
Demands of consumers
You decide