ETHICS & CORPORATE SOCIALRESPONSIBILITY INDEX EthicsWhat are Ethics ------------- 2Types of Managerial Ethics ------------- 2Example 1 ------------3Factors

that Influence Ethical Behavior ------------- 5Stages of Moral Development ------------6Example 2 ------------- 9Ethical Guidelines for Managers ------------- 10Corporate Social ResponsibilityWhat is CSR -------------- 12 Nature of CSR -------------- 13Past Conceptualisation of CSR ------------- 15CSR Management Capacity Model ------------- 16Corporate Social Cost Benefit Analysis ------------ 18Arguments for CSR -------------- 19Arguments against CSR -------------- 20Conclusion ------------- 21Questions --------------

ETHICS Leading World Organizations like the World Bank and IMF are concerned about the the aid provided being used in the proper manner and that whether the aid reaches the intended affected people. The incidences of such aid being frittered away by corrupt Govt. Officials are on ther i s e . T o m o n i t o r a n d k e e p a t a b o n s u c h o c c u r r e n c e s o r g a n i z a t i o n s l i k e T r a n s p a r e n c y International bring out yearly ratings for countries on an index of corruption that is intended toserve as a guideline for investors & donor agencies.In the past few years, many newspapers and magazines have reported on ethical problems in business. The term ethics is generally used to refer to the rules or principles that define rightand wrong conduct. In Websters Ninth New Collegiate Dictionary, ethics is defined as the discipline dealing with what is good and bad and with moral duty and obligation. According toClarence D. Walton and La Rue Tone Hosmer, business ethics is concerned with truth and j u s t i c e a n d h a s a v a r i e t y o f a s p e c t s such as the expectations of society, fair competition,advertising, public relations, social responsibilities, consumer a u t o n o m y , a n d c o r p o r a t e behavior in the home country as well as abroad. Practically speaking it can be said to be as y s t e m o f v a l u e s a n d i s c o n c e r n e d p r i m a r i l y w i t h t h e r e l a t i o n s h i p o f b u s i n e ss goals &techniques to specifically human ends, It means viewing the need s a n d a s p i r a t i o n s o f individuals as a part of society, it also means realization of the personal dignity of human beings.In the present day scenario it is a major task for the leadership to inculcate personal values &impart a sense of business ethics to the organisation, Managers, especially top-level managers,are responsible for creating an organizational environment that fosters ethical decision-making.Theodore Purcell and James Weber suggested three ways for applying and integrating ethicalconcepts with daily action s: (1) establishing a company policy regarding ethical behavior or developing a code of ethics, (2) appointing an ethics committee to resolve ethical issues, and (3)teaching ethics in management development programs. These concepts should be applieda p p r o p r i a t e l y t a k i n g i n t o c o n s i d e r a t i o n t h e t h e s i g n i f i c a n t S o c i a l , C u l t u r a l , P o l i t i c a l , Technological, and Economic factors that affect the state of personal values and business ethicswithin in each industry, especially in a diverse environment like India. Types of Managerial Ethics Archie B. Carroll, an eminent researcher in the area of social responsibility, identified threetypes of management, depending on the extent to which their decisions were ethical or moral:(i) moral management, (ii) amoral management, an d (iii) immoral management (see Figure below). 1) Moral management

Moral management strives to follow ethical principles and doctrines. Moral managers strive tosucceed without violating ethical standards. They seek to succeed while remaining within the bounds of fairness and justice. Such managers undertake activities which ensure that even though they engage in legal and ethical behavior, they continue to make a profit. Realizing thatmoral management calls for more than what is mandatory, moral managers follow the law notonly in letter but also in spirit. Moral managers always seek to determine whether their actions,decisions, or behavior are fair to themselves as well as to all the other parties involved. In thel o n g r u n , t h e m o r a l m a n a g e m e n t a p p r o a c h i s l i k e l y t o b e i n t h e b e s t i n t e r e s t s o f t h e organization. Types of Managerial EthicsExample 1:Unethical Practices at Snow Brand Milk Company An outbreak of food poisoning can bring a food products company to the brink of disaster. Theyear 2000 spelt doom for Snow Brand, one of Japans premier dairy foods companies. The disaster: On June 27, 2000, a large number of people, especially in Western Japan, fell illafter consuming milk or related products made by Snow Brand. It was later revealed that around10,000 people had been affected by Snow Brands products. The problem was caused due to the presence of a bacteria, Staphylococcus aureus , on the production line at the Osaka factory of theSnow Brand Company. The bacteria was found in a valve which should have be en cleanedregularly. Inspections revealed that production facilities at the plant did not meet the establishedstandards of hygiene. The companys response: The S n o w B r a n d M i l k P r o d u c t s C o m p a n y d i d n o t a d d r e s s t h e concerns of the public immediately. It gave the impression of being more worried about itsreputation than about the victims. Instead of voluntarily recalling its products, the companymade an attempt to limit the extent of product recall. The Osaka City Health Cent er issued arecall order for two products, and requested the company to voluntarily recall other products. The company recalled the two products as ordered by the city officials. The company agreed torecall the other products only after being pestered by city officials. It also asked city officials nott o a n n o u n c e t h e r e c a l l o r d e r p u b l i c l y s o a s t o g i v e a n i m p r e s s i o n t h a t t h e c o m p a n y w a s voluntarily recalling its products. The city officials did not accede to the request and publicized both the recall order and the companys request to the city officials not to announce the recallorder.The company also tried to cover up the incident and did not provide full details regarding then a t u r e o f t h e i n c i d e n t . I n i t i a l l y , S n o w c l a i m e d t h a t t h e v a l v e w h i ch was found to be