Business Ethics and Corporate Social Responsibility

Dr. Pooja Gupta

August, 2015

KRCHE

Business Ethics and Corporate Social Responsibility

Objectives: To acquaint students with the basics of business ethics and
corporate social responsibility of business
Unit I
Political Thought: Liberty, equality, justice, Rights and recognition. The idea
of good society, domain of politics and ethics: Democracy and welfare state,
market and Globalisation.
Unit II
Freedom and Determinism, Libertarianism, Morality and Society, Theories of
moral reasoning-teleological, and Deontological Theories.

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What is Ethics?

The branch of knowledge that deals with moral

principles.

What is everyday ethics?

Consider:
The ATM spits out an extra Rs.1000 in your favor.
Keep the money and your mouth shut?
You can avail yourself of a free wireless connection by
accessing the account of your next-door neighbor.
Silly not to?
Your colleague is forever taking credit for your and
other peoples work. Is it okay to exact a little revenge
and for once take credit for her labors?
Employees often don't know what to do if they see one
of their co-workers harassing another employee,

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What is Business Ethics?

Business ethics are moral principles that

guide the way a business behaves. The
same principles that determine an
individuals actions also apply to business.

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Reasons for having high ethical

standards
A higher moral within your employees and
the organization
It helps to attract new customers
It builds higher customer loyalty
It helps to make a positive impact on the
community

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Basis of business ethics

Honesty
Keeping Your Promises
Loyalty
Fair
Caring
Respect
Obeying the law
Excellence

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LIBERTY

The idea of a good society

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What is Liberty
The word Liberty stands derived from
the Latin word Liber which means free
The freedom to act as one likes
Liberty is the most essential condition for
the enjoyment of rights.
Liberty is violated when someone else
interferes with it
liberty means that each one of us in some
essential ways, is free from coercion by
others

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Essential to Liberty in Modern

Democracy
the right to live in a place of one's own
choice; subject only to constraints set by
his/hers ability to pay and willingness to
do so;
the right to move about freely without
substantial risk of violent coercion
the right to educate one's children on
terms approximating genuine equal
opportunity, meaning that individual effort
will be encouraged;

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the right of a roughly equal opportunity to

compete for good jobs; and
the right to participate on more or less
equal terms in the politics which impose
laws and other directives on oneself and
one's family.

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Types of Liberty
Sir Isaiah Berlin's classic 'Two concepts of
liberty' (1969).He was a philosopher.
two basic types of Liberty

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Negative Liberty
Positive Liberty

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Negative Liberty
Negative liberty meansfreedom
frominterference.
I am normally said to be free to the degree
to which no man interferes with my
activity
What is the area within which a person or
group of persons should be left to do
without interference by other

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If I say that I am unable to jump more than

ten feet in the air, or cannot read because I
am blind,
Mere incapacity to attain a goal is not lack
of liberty.

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Which of the following involve limitations

on an individual's negative freedom
The state prevents you from purchasing certain kinds of movie.
You aren't tall enough to pick oranges from the tree in your
garden.
You aren't tall enough to join the police force.
You aren't rich enough to buy a private island.
You aren't permitted to own a handgun.
The law forces you to wear a seatbelt when driving.
No one has ever selected you to play football for your country.
You are forced to study philosophy against your will.
Someone has handcuffed you to a lamppost.
You can't read because you are blind.
You are too poor to buy a loaf of bread because you've spent
all your money on champagne.

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The clearest cases in which freedom is

restricted are
You

might be forced to join the army

Your partner might force you to tidy
up the kitchen

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Positive Liberty
Means

moral freedom, not absence

of restraints on our freedom.
It consists of being ones own master
It relates to the idea of selfrealisationand personal
development.

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Higher rational side

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Those who defend positive freedom believe

thatjust because no one is preventing you
from doing something, it does not follow
that you are genuinely free. Positive
freedom is a matter of achieving your
potential, not just having potential.
mere negative freedom from external
constraints is useless if people do not have
the physical and economic means to pursue
the things

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Liberty or Freedom in the

Constitution of India
1. Freedom of speech and expression which
enables an individual to participate in public
activities.
2.Freedom to assemble peacefully without arms,
on which the State can impose reasonable
restrictions in the interest of public order
3. Freedom to form associations or unions on
which the State can impose reasonable
restrictions in the interest of the integrity of
India.

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4. Freedom to move freely throughout the territory

of India though reasonable restrictions can be
imposed on this right in the interest of the general
public, for example, restrictions may be imposed on
movement and travelling, so as to control
epidemics.

5. Freedom to reside and settle in any part of the

territory of India which is also subject to reasonable
restrictions by the State in the interest of the
general public.
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6.Freedom to practise any profession or to

carry on any occupation, trade or business
on which the State may impose reasonable
restrictions in the interest of the general
public. Thus, there is no right to carry on a
business which is dangerous or immoral.

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EQUALITY
Liberty and Equality are two most valuable rights of
the people. These constitute two basic pillars of
democracy.
Equality means, that whatever conditions are
guaranteed to us, in the form of rights, shall also in the
same measure be guaranteed to others, and that
whatever rights are given to others shall also be given
to us.
the state of being equal, especially in terms of status,
rights, and opportunities.

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Equality: Meaning:

Equality does not mean absolute

equality:
It is said that all men are born natural and free.
the notion of natural and absolute equality of all
cannot be fully accepted and realised. Men are
neither equal in respect of their physical features
nor in respect of their mental abilities. Some are
stronger others weaker and some are more
intelligent and capable than others.

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Equality really means equal opportunities

for development. In fact, when we talk of
equality of all men we really mean general
and fair equality and not absolute
equality.
Equality means absence of all
unnatural and unjust inequalities:
In society there are present two
types of inequalities:
(1) Natural inequalities, and
(2) Man-made unnatural inequalities.

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Concept of Equality

negatively equality implies abolition of all

special privileges and facilities which may be
available to some classes or some persons in
society. It also stands for the abolition of all manmade inequalities and discriminations. Positively
Equality stands for equal rights, equitable
distribution of resources , equal opportunities for
development and relative equality with due
recognition of merit, abilities and capacities of
various persons.
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KINDS OF EQUALITY
Natural Equality
Civil Equality
Political Equality
Social Equality
Economic Equality

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Natural Equality

It implies that all men are born free and equal

and are endowed with equal gifts and
talents.Despite the fact that men differ in respect
of their physical features, psychological traits,
mental abilities and capacities, all humans are to
be treated as equal humans. All are to be
considered worthy of enjoying all human rights
and freedoms.

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Civil Equality : It implies of all before law.

Irrespective of their status and position, all people

should be treated equal and no discrimination should
be made on the basis of caste, place of birth etc.
Political Equality : Political equality is best
guaranteed in a democracy. All citizens should have
the right to participate in all affairs of the state
without any discrimination on grounds of caste,
religion,etc. Everything should be open to all people.
It means the enjoyment of political rights such as
right to vote, right to contest in the election.
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Social Equality

Social equality implies that no one should be

regarded as high or low on the basis of his caste,
colour, race or religion and no one person should be
given special privileges on any of these
consideration. It stands for equality of status and
absence of social barriers. It implies the abolition of
social distinctions . All citizens In India enjoy social
equality. It has abolished untouchability by law.
Though untouchability still exists in some part of the
country in spite of legal prohibition, efforts are being
made to ensure social equality.
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Economic Equality

It means that there should be equal opportunity to all

citizens in matters of availability of consumer goods,
wealth and property. Similarly every one should have
the same facility for jobs, work and in industry. There
should be equal wages for equal work. It also implies
abolition of poverty. The basic minimum of an
individual should be fulfilled. If primary needs of an
individual are not fulfilled, there cannot be real
democracy. Political equality is said to be meaningless
unless it is accompanied by economic equality.

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Relationaship between Liberty

and Equality

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Justice
It is derived from the Latin word justitia
It means joining or to bind

Richard T. De.George Justice consists of

giving a person his due, treating equals
equally and unequals unequally.
Justice implies that each person should be
treated in the right way, no matter whether
the society he belongs is rich or poor.

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Features of Justice
1.Equal treatment of all
2.Relates to laws of morality rather than
legality
3.It ensures that rights of all the people are
protected.
4.improves the standard of society
5. It is closely related to liberty and equality.

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Elements of Justice
1.
2.
3.
4.

Consistency
Relevance
Idea of proportion
Procedure

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Principles of Justice
1.
2.
3.
4.

Procedure
Fairness
Need
Desrving

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Kind of Justice
Distributive Justice
Retributive Justice
Procedural Justice
Compensatory Justice

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