Professional Documents
Culture Documents
1. Corporate Social Responsibility (CSR), Arguments for and against CSR, 2. Pressures leading to social responsibility, Business ethics, 3. Sources of Ethics, 4. Managing Ethics,
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Community forces
Environment concerns
Crises
Competitive advantage
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Crises Firms that do not plan to deal with crises may suffer seriously.
So crisis management is an area where proactive prepartion may prevent a crisis or deal with it effectively if it comes.
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Cost
Social responsibility
Efficiency
Scope
Relevance
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Business ethics
Ethics refers to a system of moral principles-a sense of right and
wrong and goodness and badness of actions and their motives and consequences.
Business ethics
Two theories about the nature of ethics. The theory of moral unity essentially advocates the principle that business actions should be judged by the general ethical standards of society. There exists only one ethical standard which applies to business and to non-business situations. The theory of amorality, which argues that business can be amoral, and the actions of businessmen need not be guided by general ethical standards. Managers may act selfishly because the market mechanism distills their actions into benefits to shareholders and society at large. Adam Smith argued that the 'invisible hand' of the market assures that by "pursuing his own interest (a merchant) frequently promotes that of the society more effectively than when he really intends to promote it." In this way, capitalism provides moral justification for the pursuit of profit through behaviour which is not purposefully ethical. However, the theory of amorality is not acceptable to anybody.
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Sources of Ethics
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Managing Ethics
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Managing Ethics
Top Management Top management commitment is necessary to ensure
ethical standards in a firm. The chief executive should consciously avoid strategies and actions harmful to employees and society.
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