Business Ethics and Corporate Social Responsibility

Ethics
these are rules that help us tell the difference between right or wrong and encourage us to do the right things.
All about ethics
1) they help individuals in situations where they aren’t sure what to do.
2) they vary from person-to-person, situation-to-situation and culture-to-culture.
3) they are based on both individual beliefs and standards
Behaviour
this is based on: caring, respect, trustworthiness, justice and good citizens, adherence to moral rules and responsibility
Values
what we think are important which helps to make decisions between right or wrong.
Morals
rules we use to decide what is good or bad.
Business ethics
tied to society’s ethics and the ethics of individuals who work for and buy products from the company
Importance of Business Ethics
• Protects assets and properties of business. If you are missing from the workplace, workers would do as they like and may even steal from the business

• Fosters teamwork and co-operation. The code of ethics in the workplace is made with a common goal and vision of employee(s). Mutual knowledge promotes teamwork. This enhances motivation.

• Used to protect any basis right of a person for work

• Increases reputation and builds strong relationship with public

Integrity
this begins with the decision of a person between what is right or wrong. Individuals who possess integrity, commit to choosing right before they find themselves in a situation which requires action.

Without integrity, individuals are untrustworthy.

Code of ethics
A code of ethics is important because it provides individuals within a group, organization, club or society with a set of rules, standards and guidelines to operate within.
When employees don’t have a code of ethics, they could engage in less-than-socially acceptable behavior. This can establish a bad reputation for an organization.
Corporate social responsiblity
when the business must listen to all stakeholders if they are to achieve their objectives. When a firm accepts legal and moral obligations to stakeholders, other than investors, it is said to be corporate responsibility.
Obligations to stakeholders
Shareholder – Good return on investment

Employee -Fair pay and working conditions

Supplier – Regular business and prompt payment

Customer – Fair price and safe product

Local community – Jobs and minimum disruption

Government – Employment for local community

Environment – Less pollution

Good Corporate Governance