Business Ethics and Social Responsibility

The obligation of a business to make decisions and act in ways that are beneficial to society.

Actions that harm society, even if they increase a business's profits.

The goal of maximizing profits for business owners.

Acting in a morally upright way that benefits society.

Products that do not meet quality standards or contain harmful substances.

Marketing that misleads consumers to purchase products.

Ethical considerations extend beyond simple legal requirements.

A business with a responsibility to contribute to society's well-being.

The Companies Act mandates CSR for companies with an annual turnover exceeding Rs. 1,000 crore, net worth over Rs. 500 crore, or net profit exceeding Rs. 5 crore.

Companies under CSR regulations must establish a CSR committee comprising board members, including at least one independent director.

Companies are encouraged to allocate 2% of their average net profit over the past three years towards CSR activities.

Schedule VII of the Companies Act outlines indicative CSR activities a company can undertake.

Only CSR activities undertaken within India are considered for compliance.

CSR activities exclusively benefiting employees and their families are not recognized under the Act.

Some argue that a business's sole responsibility is maximizing profits for its owners.

Others believe firms have a broader responsibility to serve society, considering the impact of their decisions and actions.

Pollution alters air, water, and land by introducing harmful substances, harming living organisms and degrading the environment.

The manufacturing process is a major contributor to pollution, releasing byproducts and waste that can harm the environment.

The environment can only handle a certain amount of pollutants and waste before it becomes overwhelmed.

Some waste products are particularly toxic and pose a serious threat to the environment because they cannot be easily broken down or absorbed.

Pollution affects different aspects of the environment, including air, water, land, and sound.

Various business activities like production, distribution, and consumption can contribute to pollution by releasing harmful substances.

Businesses should strive to minimize pollution by using environmentally friendly technologies and processes.

Businesses have a responsibility to protect the environment by adhering to environmental regulations and minimizing their impact.

Measures taken to reduce or eliminate pollutants released into the environment, leading to improved health, reduced risks, and cost savings.

Pollutants in the environment can trigger health problems like cancer, heart disease, and lung complications.

Excessive sound from factories, vehicles, and other sources can cause hearing loss, heart problems, and mental health issues.

Businesses can be held legally responsible for environmental damage caused by their waste and pollutants, leading to financial penalties.

Investing in pollution control techniques can reduce waste disposal costs and improve production efficiency, ultimately saving money.

A company's commitment to environmental responsibility improves its public image and strengthens its brand reputation.

All forms of pollution degrade the quality of the environment, potentially making it unsuitable for human life and other living organisms.

Factors pushing businesses to consider social impact beyond profits, including consumer demand, government regulations, and public scrutiny.

The idea that businesses operate within a society and have a responsibility to contribute to its well-being, not just maximize profits.

Businesses need to adopt pollution control measures to minimize environmental damage, comply with regulations, and maintain a positive public image.

Businesses can protect the environment through sustainable practices, reducing waste, using renewable resources, and investing in clean technologies.

These include honesty, fairness, integrity, responsibility, and respect for others, guiding ethical decision-making in business operations.

A comprehensive program includes defining ethical standards, training employees, establishing compliance mechanisms, and measuring program effectiveness.

Processes and systems that ensure the company's actions align with ethical principles, preventing unethical decisions and behavior.

Assess the effectiveness of an ethics program by monitoring compliance with ethical standards and identifying areas for improvement.

Universal virtues that guide ethical conduct, such as trustworthiness, respect, responsibility, fairness, caring for others, and good citizenship.

A business's obligation to make decisions and take actions that benefit society, beyond legal requirements.

Businesses need to act responsibly to fulfill their obligations to society and protect their own interests.

Reasons why social responsibility is beneficial, such as improving brand reputation, attracting investors, and boosting employee morale.

Reasons why some argue against social responsibility, such as higher costs, reduced profits, and potential unfair competition.