1. Corporate Responsibility And Ethical Dilemma Managerial Ethics By: Anupam Agrawal Deepshikha Chakraborty Nidhi Rajani Paras Panchamia Rajat Kejriwal Urmimala Tah

2. Agenda Corporate Responsibility oEvolution of Corporate Responsibility oTypes of Corporate Responsibility oAreas of Responsibility oThe Crossroads Ethical Dilemma oOn-the-Job Dilemma oFactors Influencing Ethical Behavior oSome Examples oResolving the Dilemma

3. Corporate Responsibility Definition: Corporate Responsibility, also known as Corporate Social Responsibility, is a form of corporate self-regulation integrated into a business model. In other words: Corporate social responsibility is a concept whereby organizations consider the interests of society by taking responsibility for the impact of their activities on customers, suppliers, employees, shareholders, communities and other stakeholders, as well as the environment.

4. Early 20 th Century Middle Early 21 st Century MaximizeProfits Provide Jobs and Pay Taxes Balance Ethics and Profits Evolution of Corporate Responsibility

5. Types of Corporate Responsibility Types of Responsibility Societal Expectation Explanations EconomicRequired by society Be profitable. Make sound strategic decisions. Provide adequate and attractive returns on investment. LegalRequired by society Obey all laws and regulations. Fulfill all contractual obligations. Honor warranties and guarantees. EthicalExpected by society Avoid questionable practices Respond to spirit as well as letter of law. Assume law is floor of behavior and operate above minimum required. Do what is right, fair, and just. PhilanthropicDesired/expect ed by society Be a good corporate citizen. Give back. Improve quality of life overall.

6. Area of Responsibility

7. Responsibilities to the General Public Public Health Issues Protecting the Environment Developing the Quality of the Workforce Corporate Philanthropy

8. Responsibilities to Customers The Right to Be Safe: The Right to Be Informed The Right to Choose The Right to Be Heard

9. Responsibilities to Employees Workplace Safety Quality-of-Life Issues Ensuring Equal Opportunity on the Job Sexual Harassment and Sexism

10. Responsibilities to Investors and the Financial Community Obligation to make profits for shareholders. Expectation of ethical and moral behavior. Investors protected by regulation by the Securities and Exchange Commission and state regulations.

11. Acting Responsibility to Satisfy Society Management’s acceptance of the obligation to consider profit, consumer satisfaction, and societal well-being of equal value in evaluating the firm’s performance. For example: Contributions to the overall economy, job opportunities, and charitable contributions and service. Measured through social audits.

12. Arguments against : o Higher business costs; o Reduced business profits; o Dilution of business purpose; o Too much social involvement for business; o Increased public accountability. Arguments for : o Adds long-run profits; o Better public image; o Avoids more government regulation; o Businesses have resources and ethical obligation; o Better environment; o Public wants it. The Crossroads

13. Ethical Dilemma A situation in which a person must decide whether or not to do something that, although beneficial to oneself or the organization, may be considered unethical and perhaps illegal. Examples of Ethical Dilemmas o Should I conduct personal business on company time? o Should we spend more on pollution control? o Is it O.K. to give a friend a special rate? o If I find out that my boss took a bribe, should I tell someone?

14. On – the – Job Ethical Dilemma’s Situation in which a business decision may be influenced for personal gain. Telling the truth and adhering to deeply felt ethical principles in business decisions. Businesspeople expect employees to be loyal and truthful, but ethical conflicts may arise. Employee’s disclosure of illegal, immoral, or unethical practices in the organization.

15. Factors Influencing Ethical Managerial Behaviour

16. Some Examples CompanyAllegationAction KPMG 2003 Establishing fake tax shelters for wealthy clients. Allowed $2.5 billion tax dollars to be evaded. Paid $456 million to avoid indictment by DOJ. Xerox 2002 Applying inappropriate accounting manuveurs which caused them to overstate financial statements. Paid $10 million penalty and restate financial statements in years 1997-2000.

17. Resolving Ethical Dilemma Recognize the problem Identify the source of conflict Engage all involved parties and brainstorm the “ BEST ” course of action Develop/modify the Code of Practice Anticipate likely trouble spots

18. Thank You!!!