1. Ethics and
Corporate Social
Responsibility
Lesson 01

2. Lesson's Objectives
Identify the meaning of management
 Define organization and society
 identify the relationships among society
& organization
 Define CSR and Identifying the values and
expectations of stakeholders
 Social & Economic consideration and
values


3. Basic Approach for CSR

Management
◦ The process of planning, organizing leading and
controlling the work of organization members
and of using all available organizational resources
to reach stated organizational goals.

Organization
◦ A group of people working together in a
structured way to achieve a specific goal or set of
goals.

Who we are

For most of our lives, we are members of
one organization or another.

4. Basic Approach for CSR

The purpose of that an organization strive
to achieve
◦ Organizations often have more than one goals
◦ Goals are fundamental elements of
organizations
◦ All organizations have some program for
achieving goal-plan

5. The management Process
Inputs
Transformation
system
Monitoring and control
Outputs
Environment
Environment
Environment

6. Cont…



Firm takes resources from environment and
gives products/solutions to environment
Solutions must have a value than its inputted
Protect the value of stake holders
◦ “groups and individuals who can affect or are
affected by, the achievements of an
organization’s mission”
◦ Stakeholder is a party who are directly or
indirectly affecting to the organization and being
affected by organizational decisions.
◦ Primary/Secondary stakeholders

7. Expectation/ Value of Stakeholders
Customers
Media
Employees
Suppliers and
business
partners
Unions
Stakeholders
N.G.O
Communities
Investors
Government

8. Corporate Social Responsibility
Corporate social responsibility (CSR) also called
corporate conscience, corporate
citizenship, social performance, or sustainable
responsible business/Responsible Business
 CSR it is totally based on holistic concern of the
business and its output.
 CSR is form of corporate self regulation integrated
into a business model. CSR policy functions as a
built in, self-regulating mechanism whereby a
business monitors and ensures its active
compliance with the spirit of the law, ethical
standards, and international norms.


9. Corporate Social Responsibility
CSR is a process with the aim to embrace
responsibility for the company's actions
and encourage a positive impact through
its activities on the environment and its
stakeholders.
 CSR is founded upon the premise that
businesses do have another responsibility
apart from its economic responsibilities a responsibility towards the society and
its people - a 'social' responsibility.


10. Corporate Social Responsibility


Keith Davis 1960, Corporate Social
Responsibility can be defined as
businessmen's decisions and actions taken
for reasons at least partially beyond the
firms direct economic and or technical
interests.
Jules Backman 1975, Corporate Social
Responsibility "refers to the objectives or
motives that should be given weight, by
business in addition to those dealing with
economic performances".

11. Corporate Social Responsibility
"the obligation of decision make to take
actions which protect and improve the
welfare of society as whole along with their
own Internet".(Keith Daris and Robert L
Blomstom 1975)
 "the continuing commitment by business to
behave ethically and contribute to economic
development, while improving the quality of
Life of the work Force and their families as
well as of the local community and society at
Large".(Lord Holms and Richard Watts)


12. Corporate Social Responsibility

Accordingly at CSR an organization must
obligate with economic consideration,
legal consideration, and also ethical
consideration under the concepts of
corporate social responsibility context.

13. Value
Values are standards to guide your
action, judgments, and attitudes.
 It is qualities, characteristics, or ideas
about which we feel strongly.
 A belief or feeling that someone or
something is worthwhile.

◦ Our values affect our decisions, goals and
behavior.
◦ Values define what is of worth, what is
beneficial, and what is harmful.

14. Value
Values give direction and consistency to
behavior.
 Values help you know what to and not to
make time for.
 Values set the direction for one’s life.
 Following are the major philosophical
views of value:

◦ Objective
◦ Subjective

15. Value
Following are the major philosophical views of
value:
Objective - The objective value view holds
that value is inherent in the object itself.
 Subjective - The subjective value
philosophical position holds that value is
in the eyes of the beholder, not in the
object itself.


16. Value

We are acquiring values from everything
◦ Ages 1-7
--parents
◦ Ages 8-13
--teachers, heroes (sports
rock, TV)
◦ Ages 14-20
--peers (values because of
peers or peers because of values?)
◦ Ages 21+
--Yours values are
established, but you may test your values from
time to time.

But 14-20 & 21+ groups may work with
organization with objective values than
subjective.

17. Value vs. Price

Price relates to the actual number of rupees a
commodity or service brings when it is sold. Price
is therefore a fact.

Value relates to the worth of a commodity. This is
more of a theoretical concept rather than an
actual fact.
“Price is what you pay. Value is what
you get.”

19. Market Value

“Market value” means: The most probable
price which a property should bring in a
competitive and open market under all
conditions requisite to a fair sale, the buyer
and seller, each acting
prudently, knowledgeably, and assuming the
price is not affected by undue stimulus.

Values is identified with a two perspective as
◦ western value
◦ Eastern Value

20. Western Vs Eastern Value

Western culture is a body of knowledge derived from
reason. This foundation of reason has made possible
a vast accumulation of understanding related to
reality or nature, including human nature.
This understanding is represented in several core
ideas and values, which include
individualism, happiness, rights, capitalism, science
and technology.
 Western culture can also be referred to as advanced
culture; this is because its ideas and values promote
the development and sustainment of advanced
civilization


21. Western Vs Eastern Value
Non-western culture is a body of ideas and values
derived fundamentally from
mysticism/spiritualism or subjectivism, as
opposed to reason. And it is characterized
essentially by anti-individualism, self-sacrifice,
tyranny-dominations, the view that humanity is
depraved and/or helpless, and a hostility or
indifference to economic progress, science and
technology.
 Nonwestern culture can also be referred to as
uncivilized culture. This is because it’s essential
ideas and values are fundamentally opposed to
the ideas and values that lead to the
development and sustainment of civilization.


22. Differences – East and West
East
West
Internal self control
Communal
Hierarchy
Modesty
Harmony
Saving face
Silence oriented
Time is life
Respect for status
Truth oriented
Nosy and curious
Hypocritical
Sharing
Accept
Long term oriented
Indirect
Interdependent
Being
External control
Individual
Equality
Achievement
Winning
Pride
Noise oriented
Time is money
Respect for results
Fact oriented
Value privacy
Open
Selfish
Control
Short term oriented
Direct
Independent
Doing

23. Owner/Entrepreneur – Cultural
Differences
In UK
Everyone tries to
discourage the owner by
explaining why it is likely
to fail and then scratch his
car
In US
Friends put up their
money for the owner
In Hong Kong
When someone starts a
new business venture, the
entire family works
around the clock to make
it a success
In Sri Lanka
Friends will ask the
owner to hire their
sons and nephews
In India
The administrative
system will put up
monumental red tape

24. Asian vs. Western Family Controlled
Firm
Asian Family Firm
To hold the family together
and family infighting exists
To give family members a job
The family’s prestige and
honor
Western Family firm
Family loyalties are weak
Communications are
bureaucratized
Outside directors or close
associates of the controlling
family
To honor the ancestral
founders of the firm
Succession challenges
Loyalty is valued over
professional and bureaucratic
status
Unemotional - determined by
impersonal and economic
criteria

25. Asian vs. Western - Values
Asian
Group
Trust
Compromise
Flexible
Western
Individualistic
Stick to rules
Confront
Reasoning

26. Asian vs. Western - Action
Asian
Western
Long term
Collaborative
Customer
focused
Short term
Control
“Show me the
money”

27. Asian vs. Western – Management Style
Asian
Western
Relationship
Flexible
Adaptive
Understanding
Rational
Structured
Directive
Doing

28. Asian vs. Western - Organization
Asian
Western
Informal
“Jack of All
Trades”
Integrated
Co-operative
Formal
“Master of
None”
Fragmented
Competitive

29. Cultural Stereotyping & Global
Manager !!
The Humanity of the FRENCH
The Generosity of the DUTCH
The Candor of the JAPANEESE
The Charm of the GERMAN
The Punctuality of the SPANIARD
The Compassion of the ENGLISH
The team Spirit of ARAB
The Gentle Tact of the AUSTRALIAN
The Efficiency of the RUSSIAN
The Discipline of the ITALIAN
The Patience and Language Ability of the AMERICAN

30. Did you know
The 19th Century belonged to Europe, the
20th to America and the 21st will be the
Asian century”
Goldman Sach’s BRICS study predicts that
by the year 2050, three of the four largest
economies in the world will be Asian:
China, USA, India and Japan (in that
order) and no European economy will be
among the top four.