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Ba7402 Business Ethics, Corporate Social Responsibility & Governance BA7402 BUSINESS ETHICS, CORPORATE SOCIAL RESPONSIBILITY & GOVERNANCE A Course Material on Business Ethics, Corporate Social Responsibility and Governance By Mr. K.Thulasivelu HEAD & ASSOCIATE PROFESSOR DEPARTMENT OF MANAGEMENT SCIENCES SASURIE COLLEGE OF ENGINEERING VIJAYAMANGALAM – 638 056 1 SCE DEPARTMENT OF MANAGEMENT SCIENCES BA7402 BUSINESS ETHICS, CORPORATE SOCIAL RESPONSIBILITY & GOVERNANCE QUALITY CERTIFICATE This is to certify that the e-course material Subject Code : BA7402 Subject : Business Ethics, Corporate Social Responsibility and Governance Class : II Year MBA being prepared by me and it meets the knowledge requirement of the university curriculum. Signature of the Author Name : K.THULASIVELU Designation: HEAD & Associate Professor This is to certify that the course material being prepared by Mr.K.Thulasivelu is of adequate quality. He has referred more than five books amongst them minimum one is from abroad author. Signature of HD Name : SEAL 2 SCE DEPARTMENT OF MANAGEMENT SCIENCES BA7402 BUSINESS ETHICS, CORPORATE SOCIAL RESPONSIBILITY & GOVERNANCE BA7402 BUSINESS ETHICS, CORPORATE SOCIAL RESPONSIBILITY AND GOVERNANCE LTPC 3 0 0 3 . UNIT I INTRODUCTION 9 Definition & nature Business ethics, Characteristics, Ethical theories; Causes of unethical behavior; Ethical abuses; Work ethics; Code of conduct; Public good. UNIT II ETHICS THEORY AND BEYOND 9 Management of Ethics - Ethics analysis [ Hosmer model ]; Ethical dilemma; Ethics in practice- ethics for managers; Role and function of ethical managers- Comparative ethical behaviour of managers; Code of ethics; Competitiveness, organizational size, profitability and ethics; Cost of ethics in Corporate ethics evaluation. Business and ecological / environmental issues in the Indian context and case studies. UNIT III LEGAL ASPECTS OF ETHICS 9 Political – legal environment; Provisions of the Indian constitution pertaining to Business; Political setup – major characteristics and their implications for business; Prominent features of MRTP & FERA. Social – cultural environment and their impact on business operations, Salient features of Indian culture and values. 30 UNIT IV ENVIRONMENTAL ETHICS 9 Economic Environment; Philosophy of economic grow and its implications for business, Main features of Economic Planning with respect to business; Industrial policy and framework of government contract over Business; Role of chamber of commerce and confederation of Indian Industries. UNIT V CORPORATE SOCIAL RESPONSIBILITY AND GOVERNANCE 9 Definition- Evolution- Need for CSR; Theoretical perspectives; Corporate citizenship; Business practices; Strategies for CSR; Challenges and implementation; Evolution of corporate governance; Governance practices and regulation; Structure and development of boards; Role of capital market and government; Governance ratings; Future of governance- innovative practices; Case studies with lessons learnt. TOTAL: 45 PERIODS TEXTBOOKS 1. S.A. Sherlekar, Ethics in Management, Himalaya Publishing House, 2009. 2. William B. Werther and David B. Chandler, Strategic corporate social responsibility, Sage Publications Inc., 2011 3. Robert A.G. Monks and Nell Minow, Corporate governance, John Wiley and Sons, 2011. REFERENCES 1. W.H. Shaw, Business Ethics, Cengage Learning, 2007. 2. Beeslory, Michel and Evens, Corporate Social Responsibility, Taylor and Francis, 1978. 3.Philip Kotler and Nancy Lee, Corporate social responsibility: doing the most good for company and your cause, Wiley, 2005. 4.Subhabrata Bobby Banerjee, Corporate social responsibility: the good, the bad and the ugly, Edward Elgar Publishing, 2007. 5. Satheesh kumar, Corporate governance, Oxford University, Press, 2010. 3 SCE DEPARTMENT OF MANAGEMENT SCIENCES BA7402 BUSINESS ETHICS, CORPORATE SOCIAL RESPONSIBILITY & GOVERNANCE BA7402 BUSINESS ETHICS, CORPORATE SOCIAL RESPONSIBILITY AND GOVERNANCE CONTENTS S.No. Topics Page No. UNIT I 1. INTRODUCTION 6 - 26 1.1. Definition & nature of business ethics, 1.2. Characteristics of business ethics 1.3. Ethical theories 1.4. Causes of unethical behavior 1.5. Work ethics 1.6. Code of conduct 1.7. Public good. UNIT II 2. ETHICS THEORY AND BEYOND 27 – 45 2.1. Management of Ethics – 2.2. Ethics analysis [ Hosmer model ] 2.3. Ethical dilemma 2.4. Ethics in practice 2.5. ethics for managers 2.6. Role and function of ethical managers 2.7. Comparative ethical behaviour of managers 2.8. Code of ethics 2.9. Competitiveness 2.10. Organizational size 2.11. Profitability and ethics 2.12. Cost of ethics in Corporate ethics evaluation 2.13. Business and ecological / environmental issues in the Indian context and case studies. UNIT III 3 LEGAL ASPECTS OF ETHICS 46 - 58 3.1 Political – legal environment 3.2 Provisions of the Indian constitution pertaining to Business 3.3 Political setup – major characteristics and their implications for business 3.4 Prominent features of MRTP & FERA 3.5 Social – cultural environment and their impact on business operations 3.6 Salient features of Indian culture and values. 4 SCE DEPARTMENT OF MANAGEMENT SCIENCES BA7402 BUSINESS ETHICS, CORPORATE SOCIAL RESPONSIBILITY & GOVERNANCE UNIT IV 4 ENVIRONMENTAL ETHICS 59 - 82 4.1 Economic Environment 4.2 Philosophy of economic grow and its implications for business 4.3 Main features of Economic Planning with respect to business; 4.4 Industrial policy and framework of government contract over Business; 4.5 Role of chamber of commerce and confederation of Indian Industries. UNIT V 5 CORPORATE SOCIAL RESPONSIBILITY AND GOVERNANCE 83 – 106 5.1 Definition- Evolution- Need for CSR 5.2 Theoretical perspectives 5.3 Corporate citizenship 5.4 Business practices 5.5 Strategies for CSR 5.6 Challenges and implementation 5.7 Evolution of corporate governance 5.8 Governance practices and regulation 5.9 Structure and development of boards 5.10 Role of capital market and government 5.11 Governance ratings 5.12 Future of governance- innovative practices 5.13 Case studies with lessons learnt. Question Bank 107 – 109 University Question paper 110 -113 5 SCE DEPARTMENT OF MANAGEMENT SCIENCES BA7402 BUSINESS ETHICS, CORPORATE SOCIAL RESPONSIBILITY & GOVERNANCE UNIT – I - INTRODUCTION OF BUSINESS ETHICS Unit Structure: 1.0 Objectives 1.1 Introduction 1.2 Definition & nature of business ethics, 1.3 Characteristics of business ethics 1.4 Ethical theories 1.5 Causes of unethical behavior 1.6 Ethical abuses 1.7 Work ethics 1.8 Code of conduct 1.9 Public good. Objectives After reading this unit you should be able to understand: The meaning of ethics and business ethics. The importance of business ethics. The various types of Ethics. Code of conduct etc., Introduction Some years ago, one sociologist asked business people, "What does an ethic mean to you?" Among their replies were the following: "Ethics has to do with what my feelings tell me is right or wrong." "Ethics has to do with my religious beliefs." "Being ethical is doing what the law requires." "Ethics consists of the standards of behavior our society accepts." "I don't know what the word means." 1.1 Definition & Nature of business ethics: The term "ethics" is derived from the Greek word "ethos" which refers to character or customs or accepted behaviors. The Oxford Dictionary states ethics as "the moral principle that governs a person's behaviour or how an activity is conducted". The synonyms of ethics as per Collins Thesaurus are - conscience, moral code, morality, moral philosophy, moral values, principles, rules of conduct, standards. 6 SCE DEPARTMENT OF MANAGEMENT SCIENCES BA7402 BUSINESS ETHICS, CORPORATE SOCIAL RESPONSIBILITY & GOVERNANCE Ethics refers to well-founded standards of right and wrong that prescribe what humans ought to do, usually in terms of rights, obligations, benefits to society, fairness, or specific virtues. Ethics is a set of principles or standards of human conduct that govern the behavior of individuals or organizations. Using these ethical standards, a person or a group of persons or an organization regulate their behavior to distinguish between what is right and what is wrong as perceived by others. It is not a natural science but a creation of the human mind. For this reason, it is not absolute and is open to the influence of time, place and situation. In bygone times, kings used to keep food testers who ate the food prepared for the king before it was offered to him. This was royal clinical research to find out if the food was poisoned. The practice did not raise eyebrows because the king was regarded as the most important person in the kingdom, and his life was more precious than that of anyone else. It was the ethics of the time. — Ethics can be defined as the discipline dealing with moral duties and obligation, and explaining what is good or not good for others and for us. — Ethics is the study of moral decisions that are made by us in the course of performance of our duties. — Ethics is the study of characteristics of morals and it also deals with the moral choices that are made in relationship with others. — Ethics is concerned with truth and justice, concerning a variety of aspects like the expectations of society, fair competition, public relations, social responsibilities and corporate behavior. Business Ethics Business ethics is a form of applied ethics. In broad sense ethics in business is simply the application moral or ethical norms to business. Business ethics refers to a 'code of conduct' which businessmen are expected to follow while dealing with others. 'Code of conduct' is a set of principles and expectations
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