ETHICS AND SOCIAL

RESPONSIBILITY
Lec # 3
By Hareem Siddiqui
 After studying this chapter, you should be able to:
Explain the relationship between Ethics and Law
Understand different approaches to Ethics and Ethical
Behavior
Understand why is ethical behavior important to Managers
Understand Corporate Social Responsibility

LEARNING OBJECTIVES
 The inner guiding moral principles, values,
and beliefs that people use to analyze or
interpret a situation and then decide what is
the right or appropriate way to behave.

Broadly, ethics is the discipline that examines

ones moral standards or the moral standards
of a society to evaluate their reasonableness
and their implications for ones life.

NATURE OF ETHICS
 Rules and principles that define right and wrong conduct.

Ethics is a universal human trait, found everywhere.

These notions of right and wrong come from different

sources and may vary from person to person or society to
society.

ETHICS
 Morality The standards that an
individual or a group has about
what is right and wrong, or good and
evil.

Value A set of personal principles

formalized into a code of behavior.

MORALITY AND VALUES

 First Level: Pre-conventional Stages
Stage One: Punishment and Obedience orientation
Stage Two: Instrumental Orientation

Second Level: Conventional Stages

Stage One: Interpersonal orientation
Stage Two: Law and Order orientation

Third Level: Post-conventional Stages

Stage One: Social contract orientation
Stage Two: Universal principles orientation

KOHLBERGS MODEL OF
MORAL DEVELOPMENT
 Ethics are social guidelines based on moral principles and
values. These are actually the Abstract Principles set by
the individual or societies.

Laws are rules and regulations which have specific

penalties and consequences when violated. These are
governed by the Government and expressed in writing.

ETHICS AND LAW

 A form of applied and professional ethics that examine
ethical principles and moral or ethical problems that
arise in a business environment.

BUSINESS ETHICS
 Unsafe working conditions
Deceptive sales practices
Mishandling confidential information
Violations of privacy rights
Shipping or selling unsafe products
Employment discrimination
Sexual harassment
Altering product quality
Unfair competitive practices
Environmental breaches

ETHICAL ISSUES IN
BUSINESSES
STAKEHOLDERS AND ETHICS
RULES FOR ETHICAL DECISION
MAKING
WHY SHOULD MANAGERS BEHAVE
ETHICALLY?
WHY SHOULD MANAGERS BEHAVE
ETHICALLY?
SOURCES OF ETHICS
A business firms obligation, beyond that required by law
and economics, to pursue long term goals that are good for
society as well as organization.

Do things that make society better and avoid those that

could make it worse.

SOCIAL RESPONSIBILITY
APPROACHES TO SOCIAL
RESPONSIBILITY
 The degree to which a person or entity can meet its
present needs without compromising the ability of other
people or entities to meet their needs in the future.

SUSTAINABILITY
 Increased productivity
Increased profit
Increased innovation

WHY SUSTAINABLE
ORGANIZATION?