Question: 1 When faced with ethical dilemmas, what questions can you ask yourself

that might help you make ethical decisions?

Answer: Ethics are principles of behavior that distinguish between right and wrong. But
sometimes it is very difficult to make an ethical decision oneself. Because an ethical
point of view has draw backs from a personal and professional point of view. And
sometimes there is no desirable alternative. Such situations are calling ethical dilemma
because one must choose between equally unsatisfactory alternatives.

It is very difficult to maintain a balance between ethics and other goals. Such as pleasing
stakeholders or advancing in ones career. So it is helpful to ask one self the following
question when facing an ethical dilemma:

1. It is legal? Am I violating any law or company policy?

This question is the most basic one in behaving ethically in business, but it is only
the first.
2. Is it balanced? Am I acting fairly? Would I want to be treated this way? Will I
win everything at the expense of another party?

Not every situation can be completely balanced, but it is important to the health of
our relationships, that we avoid major imbalances over time. An ethical business
person has a win-win attitude. In other words, such a person tries to make decisions
that benefits all parties involved.
3. How will it make me feel about myself? Decisions that go against our sense of
right and wrong make us feel bad they corrode our self-esteem. That is why an
ethical businessperson does what is proper as well as what is profitable.

There are no easy solutions to ethical dilemmas. Individuals and companies that
develop a strong ethics code and use the three ethics-check questions just presented
above, have a better chance than most of behaving ethically.

Question: 2 What are the six steps to follow in establishing an effective ethics
program in business?

Answer: the six steps towards establishing an effective ethics program in business are
following :

Steps towards establishing business ethics:

1. Top management must adopt and unconditionally support an explicit corporate
code of conduct.

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2. Employees must understand that expectation for ethical behavior begins at the top
and that senior management expects all employees to act accordingly.
3. Manager and others must be trained to consider the ethical implication of all
business decisions.
4. An ethical office must be set up. Phone lines to the office should be established so
that employees, who don’t necessarily want to be seen with an ethics officer, can
inquire about ethical matters anonymously .whistleblowers (people who report
illegal or unethical behavior) must feel protected from relation.
5. Outsiders such as, suppliers, subcontractors, distributors and customers must be
told about the ethics program. Pressure to put aside ethical considerations often
comes from outsiders, and it helps employees resist such pressure when everyone
knows what the ethical standards are.
6. The ethics code must be enforced. It is important to back any ethics program with
timely action if any rules are broken. That is the best way to communicate to all
employees that the code is serious.

This last step is perhaps the most critical .no matter how well intended a company’s
ethics code is, it is worthless if it is not enforced.

Question:3 What is corporate social responsibility , and how does it relate to

each of the business’s major stakeholders?

Answer:

Corporate Social responsibility:

Corporate Social responsibility is concern businesses have for the welfare of the
society.
It goes well beyond merely being ethical .the social performance of a company has
several dimensions; like corporate philanthropy, corporate responsibility and
corporate policy.

But thing s seems to be complicated, when it appears that even those who want to be
socially responsible can’t agree on what it involves. May be it would be easier to
understand social responsibility if we looked at the concept through the eye of the
stakeholder (all the people who stand to gain or lose by business) to whom business
are responsible; customers, investors, employees, and society in general.

How Corporate Social Responsibility Relates to Stakeholders:

The major stake holders of businesses are; the customers, the investors, the
employees, and the society and the environment in general. The corporate social
responsibility however relates each of these stakeholders. how it is related this factor
is given below:

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 1. Customers
2. Investors
ders
stakehol
s major
Busines
3. Employees
4. Society and
5. Environment.

Responsibility to Customers
Corporate social responsibility creates an opportunity for the customer to have the
best service and to rely on a company or organization. In the below the responsibility
to customer is given below:

 Ensure safety of goods and services.

 Offering goods and services of real value.
 Giving necessary information about goods and services.
 Response to customer complains etc.

Responsibility to Investors:
Corporate also have a Responsibility to the people who invest money in them. In the
below the responsibility to the investors is given below:

 Proper management of fund : corporate have responsibility to manage funds

properly so as to return a fair profit to the investors.
 Access to Information: corporate have the responsibility to make stock
available to all potential investor.
 Executive Compensation: executive who run companies carry tremendous
responsibility and deserve to be compensated accordingly.

Responsibility to Employees:
Companies have responsibility to the employees. In the below the responsibility
to the employees is given below:

 Create jobs for the employees.

 Give the employees appropriate facilities.
 Paying sufficient salary
 Rewarding hard work

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  Ensuring secured future
 Treating employees with respect and
 Above all inspiring them to work efficiently.

Responsibility to Society:
Businesses major responsibility to society is to create new wealth. Businesses are also
partially responsible for promoting social justice.

Responsibility to Environment:
Businesses are clearly taking responsibility for helping to make their own
environment a better place. Businesses make mainly three types of environment
pollution. Theses are:
 Water pollution
 Air pollution
 Land pollution

Business should concern about these kind of pollution and follow the laws and
regulations about environment.

Question: 4 what is special audit, and what kinds of activities does it monitor?

Answer: A social audit is a systematic evaluation of an organization’s progress

toward implementing programs that are socially responsible and responsive.

One of the major problems of conducting a social audit is establishing procedures for
measuring a firm’s activities and their effect on society.

Activities Monitored by Social Audit

Here, an outline of business activities that could be considered socially responsible is

given:

• Community related activities such as participating in local; m-fund

raising campaigns, donating executive time to various non-profit
organizations (including local government) and participating in
urban planning and developing.

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 • Employee related activities such as establishing equal opportunity
programs, offering flextime and other benefits, promoting job
enrichment, ensuring job safety, and conducting employee
development programs.

• Political activities such as taking apposition on nuclear safety, gun

control, pollution control , consumer protecting , and other social
issues, and working more closely with local state and federal
government officials.

• Support for higher education, the art s and the other non-profit social
agencies.

• Consumer activities such as ensuring product safety, creating truthful

advertisements, handling complaints promptly ,setting fair prices,
and conducting extensive consumer education programs.

At last we can say that social audit can be useful tool in assessing social responsibility.

THE END