Lesson 2: The Social Function of Business PDF

Business Ethics and Social Lesson 2 Reponsibility Objective s: the social responsibilities of businesses 1. Define 2. Discuss the role of businesses in promoting ethical labor practices, including fair wages, company reputation, and employee loyalty 3. Identify and explain the k...

Business Ethics and Social Lesson 2 Reponsibility Objective s: the social responsibilities of businesses 1. Define 2. Discuss the role of businesses in promoting ethical labor practices, including fair wages, company reputation, and employee loyalty 3. Identify and explain the key stakeholders impacted by a business's social actions (e.g., employees, customers, community, environment, shareholders) 4. Analyze the business role in poverty alleviation and the three approaches to business and society 5. Evaluate the role of businesses in contributing to a sustainable future. Business ethics is a set of moral principles and values that guide the behavior of individuals and organizations in the business world.  Role of Business in Promoting Ethical Labor Practices 1. Fair Wages 2. Employee Loyalty 3. Business Reputation FAIR WAGES Fair wages are key to ethical labor practices. Businesses should pay living wages, be transparent about salaries, and review them regularly. By fostering fair wages, companies build a positive reputation, attract talent, and contribute to a more just society. EMPLOYEE LOYALTY Treating employees ethically can garner long-term employee trust and loyalty, which conveys a range of distinct benefits to employers. Loyal employees gain more experience working with their employers, BUSINESS REPUTATIO N is how the public perceives a business based on its products, ethics, leadership, and social impact. A good reputation builds trust, attracts customers, and helps the business thrive. A bad reputation can harm sales and make it difficult to succeed.  BUSINESS RESPONSIBILITIES TOWARDS 1. To help the weaker and SOCIETY 3. To generate backward sections of society employment 2. To preserve and promote 4. To protect the social and cultural values environment A business's social actions impact key stakeholders  Shareholders: Concerned with long-term financial performance and risk. Employees: Affected by Community: Impacted working conditions, wages, and by local engagement and opportunities. environmental impact. Customers: Influenced Environment: Affected by product ethics and by the business's sustainability. sustainability practices. Business Role in Poverty Alleviation Poverty is a condition where Poverty due to hunger and people's basic needs for malnutrition weakens foods, clothing and shelter business primary are not being met. resource_our people.  Three Approaches to Business and Society: 1. Corporate Social Responsibility (CSR): Companies voluntarily integrate social and environmental concerns into their operations and interactions with stakeholders. 2. Bottom of the Pyramid (BOP) Businesses: Businesses focus on creating products and services for low-income consumers at the base of the economic pyramid.  Three Approaches to Business and Society: 3. Business Simply Being Business: Companies prioritize maximizing profits and shareholder value, adhering to legal and ethical standards. This approach focuses on core business operations and sees social responsibility as a separate issue. Businesses play a crucial role in creating a sustainable future. Their economic power, innovation capacity, and global reach enable them to reduce their environmental footprint through sustainable practices, promote ethical and sustainable supply chains, develop eco-friendly products, invest in green technologies, and advocate for supportive policies. By embracing sustainability, businesses not only contribute to environmental and social well-being but also enhance their long-term profitability and reputation. THANK YOU!