Development Planning &
Administration
MPA – 403
Lecture-10
FACILITATOR
Prof. Dr. Mohammad Majid Mahmood Bagram
0333-5188677, majidbagram@yahoo.com
Reflections
• Risk Management has a vital role in Development
Planning & Administration.
3
Corporate Social Responsibility & Ethics
in Development Planning &
Administration
CSR & Ethics
• In the business world, ethics is the study of
morally appropriate behaviors and decisions,
examining what "should be done”
5
CSR & Ethics
• Corporate Social Responsibility (CSR) is the
process by which businesses negotiate their role
in society
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Corporate Social Responsibility
Organizations have obligations to society beyond their
economic obligations to owners or stockholders.
Social responsibility relates to an organization’s
impact on society
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Recent Evidence of CSR Interest
• An Internet search turns up 100,000 plus
responses to “CSR”
• Research Journals increasingly “rate” businesses
(and NGOs) on socially responsive criteria:
– Best place to work
– Most admired
– Best (and worst) corporate reputation
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Reasons for CSR Activities
• CSR activities are important to and even
expected by the public
– And they are easily monitored worldwide
• CSR activities help organizations hire and retain
the people they want
• CSR activities contribute to business
performance
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Businesses CSR Activities
• Philanthropy:
– give money or time or in kind to charity
– Integrative philanthropy—select beneficiaries
aligned with company interests
• Philanthropy will not enhance corporate
reputation if a company:
– fails to live up to its philanthropic image or
– if consumers perceive philanthropy to be
manipulative
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Corporate Social Responsibility (CSR)
CSR is the Sum of:




Economic Responsibilities (Make a profit)
Legal Responsibilities (Obey the law)
Ethical Responsibilities (Be ethical)
Discretional Responsibilities (Good corporate citizen)
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CSR- two viewpoints
CSR is Inevitable
Vs
CSR is a Burden
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Arguments for CSR
Not just profits!
Power vs. Responsibility
Stake holder relations
Arguments against CSR
From the shareholder point of view
Hindrance in maximizing profits
Choosing “moderate strategy”
Businesses need to balance economic, legal, and
social responsibilities in order to achieve longrun success.
More generally, there is a relationship between
good social and good financial performance.
15
ETHICS
• The word ethics is derived from the Greek word ethos
meaning character and Latin word mores meaning
customs
• Ethics defines what is good for the individual and for
society and establishes the nature of duties that people
owe to oneself and others in society
• The principle of conduct – professional ethics
• A set of moral principles or values.
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Why be ethical ?
Expectation of stakeholders
To prevent harm to general public
It pays to organization
A sense of trust among partners
Personal reason
Purpose of Ethics
• Ethics are the guiding principles.
• Ethics help make relationships mutually
pleasant and productive.
• Ethics Create a sense of community and a sense
of belongingness to society.
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Are Ethics Limited to Humans?
• Are ethics limited to humans only or do they
extend to animals too?
– pure vegetarianism
• Likewise, issues of responsibility to the
environment have also been raised.
• In other words, philosophy is not far from the
religious view of total non-violence
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The Evolving Context for Ethics
Ethical absolutism - they adapt to us
Ethical relativism - we adapt to them
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Emergence of a Global Business
Ethic
• Growing business need for integrative mechanisms such
as:
– Ethics reduce operating uncertainties
– Voluntary guidelines avoid government impositions
• Ethical conduct is needed in an increasingly
interdependent world—everyone in the same game
• Companies wish to avoid problems and/or be good
public citizens
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Reasons for Businesses to Engage in
Development of a
Global Code of Business Ethics
• Create the same opportunity for all businesses
• Level the playing field
• They are needed in an interconnected world
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Ways Companies Integrate Ethics
•
•
•
•
Top management commitment in word and deed
Company codes of ethics
Develop, monitor, enforce ethical behavior
Seek external assistance
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Ethical Principles of CG
No discrimination should be done on the basis of caste,
color, and religion
The polices should be fair and transparent
Proper provision of safety should be provided by the
company to the employees.
There should be honesty, loyalty, and integrity in the
employees.
The company’s resources should not be utilized by the
employees for their personal usage.
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Ethical Principles of CG
• Information about employee’s personal lives, health, and work
evaluations should be kept confidential.
• To neither give nor take any illegal payment, remuneration, gift,
donation, or benefits to obtain business or favors.
• To comply with all regulations regarding preservation of the
environment.
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Ethical Principles of CG
•
•
•
•
•
Rights and equitable treatment of shareholders
Interests of stakeholders
Role and responsibilities of the Board
Integrity and ethical behavior
Disclosure and transparency
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Advantages of Ethical Behavior
•
•
•
•
Brand image
Greater loyalty
Greater commitment of employees
Employees become more creative
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Why have a Code of Ethics?
•
•
•
•
To define acceptable behavior
To promote high standards of practice
To provide a benchmark for self-evaluation
To establish a framework for professional behavior
and responsibilities
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CODE OF ETHICS -TRANSITION
Compliance
Integrity
Enforcement
Inspiration
Punishment
Motivation
Directive
Educational
Secretive
Open
Thank you
for your kind attention!
FACILITATOR
Prof. Dr. Mohammad Majid Mahmood
0333-5188677, majidbagram@yahoo.com