Outcome 5

Ethics and Corporate Social Responsibility

Stakeholders of an organization

Competitors Society

Stakeholders of organization

Stakeholder• is an individual or a group• who can affect or is affected by the

organization’s objectives.

Stakeholders of organization

Stakeholder• is an individual or a group• which either is harmed by or benefited from

the organization.

Corporate Social Responsibility

Responsibilities and obligations that an organization should commit to the society are called as ‘Corporate Social Responsibility (CSR)’.

Types of Corporate Social Responsibility

A. Economic Responsibility

B. Environmental Responsibility

C. Philanthropic Responsibility

D. Legal Responsibility

A. Economic Responsibility

• To make profit• To produce jobs • To give good wages to work force• To search technological improvements • To develop new products

B. Environmental Responsibility

• Adoption of high-tech technology to protect water, soil, and air

• To abide by the national and international environmental laws

• To encourage green concept in the company

Encourage green concept

• Reduce plastic bag usage• Proper disposal of wastes

C. Philanthropic Responsibility

Philanthropic responsibility means the obligation of an organization in promoting human welfare and goodwill. •Give donation of money for poor people’s education, housing, health, etc.•Assist governments and social agencies during natural calamities such as earthquakes, tsunami, etc.

D. Legal Responsibility

• To carry out the organization’s operations accordance with the government laws and regulations.

5.3 Advertisement Ethics

Companies should uphold truthfulness, social responsibility, and human dignity in their advertisement practices.

Product safety

Organizations are legally obliged to supply products and services which are safe and fit for the purpose for which it was made.