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Business ethics (also known as corporate ethics) is a form of applied ethics or professional ethics that

examines ethical principles and moral or ethical problems that arise in a business environment. It
applies to all aspects of business conduct and is relevant to the conduct of individuals and entire
organizations.[1] These ethics originate from individuals, organizational statements or from the legal
system.

Business ethics refers to contemporary organizational standards, principles, sets of values and norms
that govern the actions and behavior of an individual in the business organization. Business ethics has
normative and descriptive dimensions. As a corporate practice and a career specialization, the field is
primarily normative. Academics attempting to understand business behavior employ descriptive
methods. The range and quantity of business ethical issues reflects the interaction of profit-maximizing
behavior with non-economic concerns.

Interest in business ethics accelerated dramatically during the 1980s and 1990s, both within major
corporations and within academia. For example, most major corporations today promote their
commitment to non-economic values under headings such as ethics codes and social responsibility
charters.

Adam Smith said, "People of the same trade seldom meet together, even for merriment and diversion,
but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices."[2]
Governments use laws and regulations to point business behavior in what they perceive to be beneficial
directions. Ethics implicitly regulates areas and details of behavior that lie beyond governmental control.
The emergence of large corporations with limited relationships and sensitivity to the communities in
which they operate accelerated the development of formal ethics regimes
Relationship between ethics and business

The relationship between business and ethics is intrinsically entwined. A


successful company is one which can effectively recognise and cultivate the
relationship which exists between the two.

Businesses that exhibit and promote strong corporate codes of ethics are more
prosperous in the long run because they show a commitment to an expectation of
sound moral behavior. This demonstrates a dedication to society, customers,
employees and the business itself. It also enhances a company's reputation if they
become commonly known as an ethical company, and this brings more value to
the organisation.

The highly competitive environment in today's global economy puts pressures on


company leaders to remain profitable and to show a good return to stakeholders.
Often this pressure can result in unethical decisions being made in order to
deliver positive results. When this occurs it usually results in a pattern that gets
passed down through the organisation.
As leaders show unethical behaviour, and perhaps even justify such behaviour
while knowing it to be wrong, this eventually becomes a part of organisational
culture. People follow by example, and the lack of moral judgment will spread.

It's easy to blame "the system", yet many fail to realise "the system" is comprised
of decision making individuals. The relationship between business and ethics is
inherently linked, but there are some who fail to make this connection.
To say "business is business" is not justified, as responsible (ethical) decision
making is an important component of doing good business.
Today's society is an instant gratification one, and people expect immediate
results. This is perhaps part of the reason why some companies exhibit bad
business practices. Not the only reason, but perhaps a common one. Obviously
one's individual moral compass impacts choices made in a business, and when the
cultural environment nurtures sound moral philosophies and does not tolerate
bad business practices, the immoral acts will decline.

Granted the unethical companies may initially make significant gains financially
and deliver the profits, but at what cost? When companies make unethical
decisions, it can result in defective or rushed products, unsubstantiated firing of
employees, and false presentations of products to consumers.

Is this good for the company? The fact is the only thing it creates is an illusion.
Yes, these factors will all cut costs and give the appearance of profit, but it's
inevitable that poor choices will negatively impact the business and be more
costly in the long run.

While the immediate bottom lines show a healthy profit through immoral acts,
the reputations of these companies ultimately suffer. Over the course of time this
can really hurt a business and its profits. All too often we hear about CEOs who
have either stolen funds, or ruined a company's reputation, due to corrupt
practices.

In the long run, managers and leaders who promote an atmosphere with low
ethical standards bring harm the business. While it may not necessarily shut the
business down, it will impact the opportunity to increase revenues to its fullest
potential.

Good business practices starts with management setting standards of what's


expected, and they should lead by example. The establishment of higher levels of
ethical behaviour within a business benefits the company in many ways. It
displays strong values have been set for a commitment to company philosophy
and mission.

There is no good reason why a company cannot make ethically sound decisions,
and still turn a profit. Cheating and/or lying do not bring value to a business, and
it also affects employee morale. Employees and reputation are two very valuable
assets, and by promoting a morally sound environment for both employees and
customers; this can only enhance those assets.

Consumer trust and confidence in a business can only serve to benefit the
company. Economic rules dictate that the larger a network, the more value is
added to that network. If customers can accurately rely on the fair treatment,
expertise and knowledge of a company, this will further expand their reputation
as honest and as a result attract more customers. This ultimately economically
benefits the company as well, and their network will grow. This being the case, it
would be in a company's best interest to promote universal ethically good
behavior in the workplace.

A positive reputation leads to higher profits and provides better service for the
public. Ethics and business go hand in hand, and cannot effectively be separated.
Ultimately implementing a strong ethical policy is a win-win situation for all. In
today's competitive environment why wouldn't a company want to do all they can
do to promote success on all levels?
importance for ethics in business.

Use of Resources: Society bestows upon businesses, the authority town and use
land and natural resources. In return, In return, society has the right to expect
that productive organization (i.e. business enterprises) will cater to the general
interests of consumers employees and community.
Fairness: Society may also expect that business enterprises honour existing
rights and limit their activities within the bounds of justice, equity and fairness.
Implied Contract: All productive enterprises can be viewed as engaging in an
implied contract with the Society. So, under this “social contract” between society
and business, the behaviour of business enterprises is guided by “Business
Ethics”.
Corporate governance: in the process of corporate decision – making, managers
contribute, consciously or unconsciously to the shaping of human society – it is
not a choice between profits and ethics, but profits in an ethical manner. This has
lead to the evolution of “corporate governance”.

Stakeholders must support organizational ethics initiatives because it makes good


business sense in the long term. Comment.

The advantages / benefits of Business ethics are –

Social Well – being: Focus on business Ethics has improved social will –being.
Exploitation of workers, monopolistic price fixing and profiteering, intimidation
and harassment of employees at workplace, etc. cannot be practiced by business
enterprises now. The Society has demanded that business enterprises place high
value on fairness and equal rights, thus resulting in improved social welfare.
Public Image: the fact that an organization regularly gives attention to its ethics
can portray a strong and positive corporate image to the public. Society regards
organizations as valuing people more than profit, and striving to operate with
utmost integrity, fairness and equity.
Maintaining moral course in times of change: Business ethics is useful during
times of fundamental change, where there is no clear moral compass to guide
leaders though complex conflicts about what is right or wrong. Continuing
attention to ethics in the workplace sensitizes leaders and staff for maintaining
consistency in their actions.
Teamwork and Productivity: Where a Firm finds disparity between its preferred
value and the values actually reflected by workplace behaviour, continuous
attention and dialogue regarding values, builds openness, integrity and
community, all critical ingredients of strong terms in the workplace. Employees
feel strong alignment between their values and those of the organization. They
react with strong motivation and performance.
Employee- Friendly Policies: Attention to ethics ensures highly ethical policies
and procedures in the workplace. For example, in the matter of ethical treatment
of employee vis-a –vis hiring, evaluating,, disciplining, training, terminating, etc.
most Firms feel that it is far better to incur the cost of mechanisms to ensure
ethical practices than to incur costs of litigation later..
Perfect Competition
In a perfectly free competitive market, no buyer or seller has the power to
significantly affect
the price of a good. Seven features characterize such markets:
1. There are numerous buyers and sellers, none of whom has a substantial share
of the
market.
2. All buyers and sellers can freely and immediately enter or leave the market.
3. Every buyer and seller has full and perfect knowledge of what every other
buyer and
seller is doing, including knowledge of the prices, quantities, and quality of all
goods
being bought and sold.
4. The goods being sold in the market are so similar to each other that no one
cares from
whom each buys or sells.
5. The costs and benefits of producing or using the goods being exchanged are
borne
entirely by those buying or selling the goods and not by any other external
parties.
6. All buyers and sellers are utility maximizers: Each tries to get as much as
possible for as
little as possible.
7. No external parties (such as the government) regulate the price, quantity, or
quality of
any of the goods being bought and sold in the market.
In addition, free competitive markets require an enforceable private property
system and a system of contracts and production.
In such markets, prices rise when supply falls, inducing greater production. Thus,
prices and quantities move towards the equilibrium point, where the amount
produced exactly equals the amount buyers want to purchase. Thus, perfectly
free markets satisfy three of the moral criteria:
justice, utility, and rights. That is, perfectly competitive free markets achieve a
certain kind of justice, they satisfy a certain version of utilitarianism, and they
respect certain kinds of moralrights.

The movement towards the equilibrium point can be explained in terms of two
principles: the principle of diminishing marginal utility and the principle of
increasing marginal costs. When a buyer purchases a good, each additional item
of a certain type is less satisfying than the earlier ones. Therefore, the more goods
a consumer purchases, the less he will be willing to pay for them. The more one
buys, the less one is willing to pay. On the supply side, the more units
of a good, a producer makes, the higher the average costs of making each unit.
This is because a producer will use the most productive resources to make his or
her first few goods. After this point, the producer must turn to less productive
resources, which means that his costs will rise.
Since sellers and buyers meet in the same market, their respective supply and
demand curves will meet and cross at the equilibrium point
PERFECT COMPETITION
Though some agricultural markets approximate the model of the perfectly
competitive free market, in actuality there is no real example of such a market.
Markets that do not have all seven features of the perfectly free market are,
therefore, correspondingly less moral.
In the capitalist sense of the word, justice is when the benefits and burdens of
society are distributed such that a person receives the value of the contribution
he or she makes to an enterprise. Perfectly competitive free markets embody this
sense of justice, since the equilibrium point is the only point at which both the
buyer and seller receive the just price for product. Such markets also maximize
the utility of buyers and sellers by leading them to use
and distribute goods with maximum efficiency.
Efficiency comes about in perfectly competitive free markets in three main ways:
1. They motivate firms to invest resources in industries with a high consumer
demand and move away from industries where demand is low.
2. They encourage firms to minimize the resources they consume to produce a
commodity and to use the most efficient technologies.
3. They distribute commodities among buyers so that they receive the most
satisfying commodities they can purchase, given what is available to them and the
amount they have to spend.
First, in a perfectly competitive market, buyers and sellers are free (by definition)
to enter or leave the market as they choose. That is, individuals are neither forced
into nor prevented from engaging in a certain business, provided they have the
expertise and the financial resources required.
Second, in the perfectly competitive free market, all exchanges are fully
voluntary. That is, participants are not forced to buy or sell anything other than
what they freely and knowingly consent to buy or sell. Third, no single seller or
buyer will so dominate the market that he is able to force the others to accept his
terms or go without. In this market, industrial power is decentralized among
numerous firms so that prices and quantities are not dependent on the
whim of one or a few businesses. In short, perfectly competitive free markets
embody the negative right of freedom from coercion. Thus, they are perfectly
moral in three important
respects: (a) Each continuously establishes a capitalist form of justice; (b) together
they maximize utility in the form of market efficiency; and (c) each respects
certain important negative rights of buyers and sellers. No single seller or buyer
can dominate the market and
force others to accept his terms. Thus, freedom of opportunity, consent, and
freedom from coercion are all preserved under this system.
Several cautions are in order, however, when interpreting these moral features of
perfectly competitive free markets. First, perfectly competitive free markets do
not establish other forms of justice. Because they do not respond to the needs of
those outside the market or those who have little to exchange, for example, they
cannot establish a justice based on needs. Second, competitive markets maximize
the utility of those who can participate in the market given the constraints of each
participant's budget. However, this does not mean that society's total utility
is necessarily maximized. Third, although free competitive markets establish
certain negative rights for those within the market, they may actually diminish the
positive rights of those outside those whose participation is minimal. Fourth, free
competitive markets ignore and even
conflict with the demands of caring. As we have seen, an ethic of care implies that
people exist in a web of interdependent relationships and should care for those
who are closely related to them. A free market system, however, operates as if
individuals are completely independent of each other and takes no account of the
human relationships that may exist among them. Fifth, free competitive markets
may have a pernicious effect on people's moral character. The competitive
pressures that are present in perfectly competitive markets can lead people to
attend constantly to economic efficiency. Producers are constantly pressured to
reduce their costs and increase their profit margins. Finally, and most important,
we should note that the three values of capitalist justice, utility, and negative
rights are produced by free markets only if they embody the seven conditions
that define perfect competition. If one or more of these conditions are not
present in a given real market, then the claim can no longer be made that
these three values are present.
DEFINITION:

What Is Technology? Technology is a body of knowledge devoted to creating


tools, processing actions and extracting of materials. The term ‘Technology” is
wide and everyone has their own way of understanding the meaning of
technology. We use technology to accomplish various tasks in our daily lives, in
brief; we can describe technology as products, processes or organizations. We use
technology to extend our abilities, and that makes people as the most important
part of any technological system.

Technology is also an application of science to solve a problem. But what you


have to know is that technology and science are different subjects which work
hand-in-hand to accomplish a specific task or solve a particular problem.

We apply technology in almost everything we do in our lives, we use technology


at work, we use it to , extract materials , we use technology for communication,
transportation, learning, manufacturing, creating artifacts, securing data, scaling
businesses and so much more. Technology is human knowledge which involves
tools, materials and systems. The application of technology results in artifacts or
products. If technology is well applied, it can benefit humans, but if it is wrongly
applied, it can cause harm to human beings.

Many businesses are using technology to stay competitive, they create new
products and services using technology, and they also use technology to deliver
those products and services to their customers on time. A good example is,
mobile phones companies like Apple & Samsung, these two electronics
companies, use high end technology to create new smartphones and other
electronic devices to stay competitive. This competitive edge is gained through
employing advanced technology.

Types of technology
ADVANCING TECHNOLOGY:

Technology is dynamic; it keeps on improving because even our needs and


demands for technology keep on changing. We have moved from the industrial
age (industrial revolution) to an information age. During the industrial age,
companies with large sums of capital had the potential of employing expensive
technological tools to gain competitive advantage; small businesses had less
potential because they could not afford expensive manufacturing or processing
technological tools. But, the advancement in technology has created a new
economic environment which depends on information and that is what I call
‘’INFORMATION AGE’’, the information age provides a different work
environment and this has helped small businesses gain position in highly
competitive markets.

Communication Technology: This is a system that uses technical means to


transmit information or data from one place to another or from one person to
another. Communication is used for many purposes; it is used to convey ideas,
exchange information and express emotions. Humans use communication
technology tools like phones, computers, emails, fax, text messaging tools to stay
in touch with friends and family, then, businesses use communication technology
tools to facilitate the flow if information in a workplace, to help in decision
making , to serve customers’ needs and requests, to promote new products or
services to targeted consumers and so much more.

Construction Technology: This is the study of advanced methods and equipments


which can be used to build structures. Construction builds two types of structures.
These include buildings and heavy engineering structures. Construction uses
various technological actions to erect a structure on the site where it will be. The
use of construction technological tools like heavy tractors to prepare land where
the construction will be, computer design software to create designs for
structures on computers and in 3D format, using various construction
technologies to enclose structures and install utilities has helped in advancing
both residential buildings and commercial buildings today.
Assistive Technology: This is the type of technology which is used by people with
disabilities to accomplish specific tasks which seem to be difficult or impossible to
perform. The term ”Assistive” means helping or providing an extra hand. Assistive
technology is being used in schools to help students with Autism to learn better, it
is used to help people with disabled bodies’ move, speech recognition application
help people who can’t type with a keyboard to use a computer and so much
more. Due to advancement in technology, we have a variety of assistive
technologies which can assist you accomplish anything which might seem difficult.
Medical Technology: This is the type of technology which is used to extend and
improve human life. Medical technology reduces patient’s pain, and injury.
Developed countries have benefited from the use of medical technology in their
health care systems and this explains the reason why people in developed
countries leave longer than people in developing countries. Medical technology is
used to diagnose infections, treat diseases and to make research on diseases
affecting humans.
Information Technology: Information Technology is a set of hardware and
software tools used to store information. Information technology tools help in
providing the right people with the right information at the right time. Knowledge
workers in organization use information technology to complete various tasks and
these can include; transferring of information which facilitates decision making
with in an organization, improve customer service, and so much more. In this
information age, it is very important to manage information systems to ensure
accuracy and efficiency. Management information systems (MIS) involves
planning for, development, management, and use of information technology tools
to help knowledge workers and people perform all tasks related to information
processing and management. Big financial institutions like ”BANKS” use
information technology to operate their entire businesses as well as serve their
customers.
Entertainment Technology: This is a process of using various technological
components to create an entertainment experience. Since entertainment is too
broad, every one gets entertained in their own way. Technology is used to build
theaters, it is used to create video games, to develop musical systems and so
much more. Entertainment technology includes things like video, sound,
automation. Animations, scenery fabrication, computer simulations. Interactive
environments and so much more.
Business Technology: This is the type of technology which is made up of various
hardware tools and software applications used to run a business and enhance
various business operations. Many businesses are using technology to scale and
grow big. Small businesses have used technology to create new ways of
competing with well established companies. To some extent, some business
technologies can make a small company look like a big company and this can help
a small business gain position in a competitive market
Educational Technology: Is the type of technology which aims at improving
performance by creating and managing various technological processes and
resources. It is an academic discipline which prepares individuals to acquire
deeper understanding and knowledge. It helps them learn how to devise solutions
to problems through research, design, evaluation and utilization. Educational
technology helps in improving the way we learn, some of the benefits of
educational technology include:

– It motivates students and it encourages individual learning.

– It makes the access of educational material easy.

– It helps students learn new subjects and languages through Gamification


Technology and business growth
Technology in business is a growing necessity. As the years go by, the
business world is leaning more and more toward it, making it almost
impossible to separate the two from each other. Innovation breeds
business, and since technology paves the way for it, it can be gathered
here that business needs technology to be sustained.

Business has always existed since the early times of man. Even though
it only began with the simplistic barter system, business would not be
the same as it is today without the advancements in technology. All the
major industries would fall into a catastrophic collapse if one were to
take away technology from business, since majority of business
operations and transactions somehow involve the use of technology.
Technology as a Business Necessity

The role of technology in business caused a tremendous growth in


trade and commerce. Business concepts and models were
revolutionized as a result of the introduction of technology. This is
because technology gave a new and better approach on how to go
about with business. It provided a faster, more convenient, and more
efficient way of performing business transactions.

Some of actions of technology in business include accounting systems,


management information systems, point of sales systems, and other
simpler or more complicated tools. Even the calculator is a product of
technology. It is indeed unfathomable to summon the idea of going
back to the days where everything was done manually, which basically
means starting all over again from scratch.

Use of Technology in Business – To Gain Competitive Advantage

Businesses can use technology to gain competitive advantage and increase on their (ROI) return
on investment. A business is driven by five major forces and these include; (1) Buyer power, (2)
Supplier power, (3) Threat of substitute products or services, (4) Threat of new entrants, (5)
Rivalry among existing competitors. All these five forces will determine the success of any
business, so business people can use technology to gain their competitive advantage basing on
those five factors. In brief let me explain about each of the above factor and on the later stage
we shall see how a business can use technology to gain competitive advantage.

(1) Buyer power: buyer power is high when buyers have many choices of whom to buy from,
and its low when their choices are few. As a business person, this is what you need to
understand, if the buyers in a particular industry hold a lot of power that industry is less
attractive to enter, because these buyers can easily shift their interest towards your
competition and your business will be left hanging.

(2) Supplier power: supplier power is high when buyers have few choices of whom to buy from ,
and low when there are many choices. As a business person, this is what you need to know, If
the suppliers in a particular market hold a lot of power, that market or industry will be less
attractive to enter. A good example is ”THE OIL INDUSTRY” in this industry, suppliers hold a lot
of power, in many cases they hold the supply of oil with an intention of increasing prices. So
when the industry has a few suppliers, it will be risky to enter such an industry. In economics,
forces of demand and supply are key factors in business growth. You as a business person, you
will be in the middle of these two forces.
The Five Forces Model

(3) Threat of substitute products or services: If their very few alternatives to using a product or
service the threat of substitute products or service will be low, so this will be a lucrative
industry to enter because customers will have less choices. This can result when there are
switching costs associated with the product or service, some customers will feel reluctant to
switch to another product or service which is good news to a business person.

(4) Threat of new entrants: The threat of new entrants is high when it is easy for competitors to
enter the market. As a business person, this is what you need to know. If it is easy for others to
enter the market, shy away from that market, and if it is difficult for them, then this can be
good news for you. Business owners can use technology to make it hard for others to enter
their markets.

(5) Rivalry among existing competitors: An industry is less attractive when the rivalry among
existing competitors is high and more attractive when it is low. As a business person, you must
always consider the intensity of competition in any given industry.

‘’ Now that you have learned the five forces which drive a business, lets learn how you can use
technology to gain competitive advantage’’

Use technology to Increase buyer’s power for a specific product or service: In a any
competitive market, buyers will have many choices. So for any small business to gain
competitive advantage in such a tight market, it will have to use technological tools to attract
customers’ attention towards its services or products. In this case a business can do various
things which can include, using the internet to promote rewards and coupons to its customers,
you can services like woobox.com to help you in setting up coupons and rewards on various
social networks. Rewards can be set in such a manner, that whenever a customer purchases a
product or use a service, they get points which can be converted into shopping points. The
business can also use shopping coupons to attract customers attention, in this case, a business
can use medias like social networks (facebook or Pinterest) to promote these shopping
coupons, so each customers to comes to their store with that coupon they get a X% discount.
With such offers, customers will divert their power to your services or products and this will
keep you a head of the competition.

Use technology to reduce supplier power: As we saw in the points above, that a high supplier
power can affect a business especially when the supplier decides to hold goods or services with
an aim of increasing prices. For any business to succeed, it must find ways to decrease
supplier’s power, and the best way to do this is to locate alternative sources of supply.
Technological tools like the internet can help a business find more suppliers in their niche.
Internet has a chain of B2B marketplaces which can help small businesses find alternative
suppliers. A B2B marketplace is an internet-based service which brings together buyers and
sellers. In this case the buyer is a small business owner and a seller is a supplier. A good
example of popular Business to Business online marketplaces is Alibaba.com, aliexpress.com,
made-in-china.com to mention but a few.

Use technology to create entry barriers: Use technology to create entry barriers: For any
business to succeed, it must create barriers to its market using technology. If the market is so
easy to enter, the business will not survive for so long. Businesses should not settle for survival,
they have to plan and make sure that they will rule the market for a longer period. Most
successful companies like” Google , Facebook , Coca cola , Apple , Nike , Amazon , Dell ,
Microsoft , Zappos have used technology to stay a head of the market, they have found ways of
blocking competition and this has gained them competitive advantage in the market. If you own
a small business, you can also use technology to get in the top. An entry barrier is a product or
service feature that customers have come to expect from companies in a particular industry.
Entry barriers make it more difficult for competitors to enter a particular market. Let’s look at
an example on how Google is using its technology to gain competitive advantage over
Facebook. Recently Google introduced its new social network called ‘’Google Plus +’’ , this
network has taken advantage of Google search technologies to show case profiles of business
using ‘’Google Plus’’ in the search results of Google.com , this has enticed many business
owners to jump on ‘’Google plus and create profiles for their business.
Characteristics of Directive principles of Indian constitution
Features

In a nutshell, the Directive Principles consist of the following guidelines


for the States:

1) The State should strive to promote the welfare of the people.


2) Maintain social order through social, economic and political justice.
3) The State should strive towards removing economic inequality.
4) Removal of inequality in status and opportunities.
5) To secure adequate means of livelihood for the citizens.
6) Equal work opportunity for both men and women.
7) Prevent concentration of wealth in specific pockets through
uniform distribution of the material resources amongst all the strata of
the society.
8) Prevention of child abuse and exploitation of workers.
9) Protection of children against moral and material abandonment.
10) Free legal advice for equal opportunities to avail of justice by the
economically weaker section.
11) Organization of Village Panchayats which will work as an
autonomous body working towards giving justice.
12) Assistance to the needy including the unemployed, sick, disabled
and old people.
13) Ensure proper working conditions and a living wage.
14) Promotion of cottage industries in rural areas.
15) The state should endeavour towards a uniform civil code for all
the citizens of India.
16) Free and compulsory education for children below the age of
14years.
17) Economic and educational upliftment of the SC and ST and other
weaker sections of the society.
18) Prohibition of alcoholic drinks, recreational drugs, and cow
slaughter.
19) Preservation of the environment by safeguarding the forests
and the wild life.
20) Protection of monuments, places and objects of historic and
artistic interest and national importance against destruction and
damage.
21) Promotion and maintenance of international peace and security,
just and honourable relations between nations, respect for
international law and treaty obligations, as well as settlement of
international disputes by arbitration.
Arguments for and against Social Responsibility of Business
Arguments for Social Responsibility

There are several core ideas about social responsibility of business.


Over the period of time, the things have changed too much giving new
thoughts and replacing the classical economic view of profit
maximization in the business. Based on this feature in the present
context, arguments for social responsibility are as follows:
1. Business is a part of society

Business is a part of society. Society is a system and business is one of


its subsystems. Every subsystem of a system functions for the
betterment of the whole system and not for its own betterment only.
This version applies to business too. Therefore, business is responsible
for the society as a whole and profit motive of the business cannot
have precedence over other motives of the society.
2. Long-term Self-interest of Business

Social responsibility is in the long-term self-interest of the business.


Existence of any business is because of existence of various social
organs like financiers, employees, customers, society as a whole, etc.,
and not otherwise. Therefore, business should provide satisfaction to
all these organs on continuous basis for its continued existence. By
discharging social responsibility, the business may provide this
satisfaction.
3. Moral Justification

Social responsibility has moral justification. This moral justification


emerges from the fact that if any one takes something from others, he
must give something to them in return. On moral ground, this equation
must be based on equity so that it continues. A business takes various
inputs (money, materials, people, information, etc.) from the society
and gives outputs (goods and services) to the society by using various
inputs. System of taking inputs and giving outputs works well only if it
fulfills social requirements.
4. Creating Better Public Image

Any business which involves in fulfilling the aspirations of the society


creates better image in the public. Creation of this type of image is a
source of satisfaction itself for those who operate business. This also
helps in increasing the business volume, both in terms of taking inputs
and giving outputs.
5. Avoidance of Government Regulations

Government aims at maintaining equilibrium in the society on long-


term basis. For this purpose, it tries to ensure that every organ of
society meets social requirements. If any organ fails to do so,
government has power to take actions against it. Since business is an
organ of the society, government may take actions against those
business organizations which involve in activities not meeting social
requirements. In order to avoid such actions having long-term negative
impact, it is preferable to adopt social responsibility.
6. Maintenance of Society

For maintaining society, there are legal provisions but these provisions
cannot be comprehensive because of social changes on continuous
basis. Therefore, the business has to be socially responsible in order to
avoid anti-social activities so that society is maintained on continuous
basis.
Arguments against Social Responsibility

There are various arguments against social responsibility though most


of these are based on classical economics. These arguments are as
follows:
1. Contrary to Basic Function of Business

The basic function of a business is to provide a product to its customers


at a price which is lower than the level of satisfaction provided by the
use of the product or, at the most, equal to that. If this relationship is
reversed, the product becomes meaningless. Generally, cost of
production is a significant factor in determining the product price.
Discharge of social responsibility adds to cost, hence product price
which may reverse the above equation and business may not remain
viable in the long term. Because of this phenomenon, Milton Friedman,
a noted economist, has observed,

there is one and only one responsibility of business — to use its


resources and engage in activities designed to increase its profit so long
as it stays within the rules of the game.
2. Conflict with Profit Motive

Social responsibility is in conflict with profit motive of business.


Undertaking business involves assuming risk. Earning profit is the
reward for this risk. If social responsibility is added as an objective of
business, it reduces profit margin which is against the concept of profit
optimization even if not profit maximization. Thus, social responsibility
and profit motive do not proceed in the same direction.
3. Distortion in Resource Allocation

Social responsibility leads to distortion of resource allocation.


Resources in an economic system are allocated on the principle that
every resource finds its most optimum utilization. This utilization is best
possible without social responsibility and not with it. Thus, social
resources may go in waste if the concept of social responsibility is
added to business operations.
4. Imposition of Business Values

Discharging social responsibility involves lot of influence of the business


on the society. Therefore, by undertaking social responsibility, a
business is likely to impose its own values on the society, thereby
replacing the social values with business values. This phenomenon has
taken place in many cases. This is highly undesirable from social point
of view.
5. Inefficiency in the System
Social responsibility brings inefficiency in the system. There is no
substitute for the power of self-interest to get people to act. Any
replacement of self-interest will, therefore, be fatal to the efficiency of
the system. Social responsibility tends to replace self-interest of
business defined in terms of profit motive to a great extent, thus,
making the business as a system inefficient.
6. Operational Problems

There are certain operational problems in implementing social


responsibility. Conceptually as well as operationally, social
responsibility is a confusing term. Therefore, managers involved in
managing business affairs are not very clear about what they are
expected to do under social responsibility. As a result, actions ranging
from mere showing lip sympathy to undertaking multi-crore concrete
programmes are included in social responsibility
Global warming
Global warming, also referred to as climate change, is the observed
century-scale rise in the average temperature of the Earth's climate
system and its related effects. Multiple lines of scientific evidence show
that the climate system is warming. Many of the observed changes
since the 1950s are unprecedented in the instrumental temperature
record which extends back to the mid-19th century, and in
paleoclimate proxy records covering thousands of years.

In 2013, the Intergovernmental Panel on Climate Change (IPCC) Fifth


Assessment Report concluded that "It is extremely likely that human
influence has been the dominant cause of the observed warming since
the mid-20th century."[7] The largest human influence has been the
emission of greenhouse gases such as carbon dioxide, methane and
nitrous oxide. Climate model projections summarized in the report
indicated that during the 21st century, the global surface temperature
is likely to rise a further 0.3 to 1.7 °C (0.5 to 3.1 °F) in the lowest
emissions scenario, and 2.6 to 4.8 °C (4.7 to 8.6 °F) in the highest
emissions scenario. These findings have been recognized by the
national science academies of the major industrialized nationsand are
not disputed by any scientific body of national or international
standing.

Future climate change and associated impacts will differ from region to
region around the globe.] Anticipated effects include warming global
temperature, rising sea levels, changing precipitation, and expansion of
deserts in the subtropics. Warming is expected to be greater over land
than over the oceans and greatest in the Arctic, with the continuing
retreat of glaciers, permafrost and sea ice. Other likely changes include
more frequent extreme weather events such as heat waves, droughts,
heavy rainfall with floods and heavy snowfall;[ ocean acidification; and
species extinctions due to shifting temperature regimes. Effects
significant to humans include the threat to food security from
decreasing crop yields and the abandonment of populated areas due to
rising sea levels. Because the climate system has a large "inertia" and
greenhouse gases will remain in the atmosphere for a long time, many
of these effects will persist for not only decades or centuries, but for
tens of thousands of years to come.

Possible societal responses to global warming include mitigation by


emissions reduction, adaptation to its effects, building systems resilient
to its effects, and possible future climate engineering. Most countries
are parties to the United Nations Framework Convention on Climate
Change (UNFCCC), whose ultimate objective is to prevent dangerous
anthropogenic climate change. Parties to the UNFCCC have agreed that
deep cuts in emissions are required and that global warming should be
limited to well below 2.0 °C (3.6 °F) compared to pre-industrial
levels,[b] with efforts made to limit warming to 1.5 °C (2.7 °F).

Public reactions to global warming and concern about its effects are
also increasing. A global 2015 Pew Research Center report showed a
median of 54% of all respondents asked to consider it "a very serious
problem". Significant regional differences exist, with Americans and
Chinese (whose economies are responsible for the greatest annual CO2
emissions) among the least concerned
Kyoto Protocol

The Kyoto Protocol is an international treaty which extends the 1992


United Nations Framework Convention on Climate Change (UNFCCC)
that commits State Parties to reduce greenhouse gas emissions, based
on the scientific consensus that (a) global warming is occurring and (b)
it is extremely likely that human-made CO2 emissions have
predominantly caused it. The Kyoto Protocol was adopted in Kyoto,
Japan, on December 11, 1997 and entered into force on February 16,
2005. There are currently 192 parties (Canada withdrew effective
December 2012)to the Protocol.

The Kyoto Protocol implemented the objective of the UNFCCC to fight


global warming by reducing greenhouse gas concentrations in the
atmosphere to "a level that would prevent dangerous anthropogenic
interference with the climate system" (Art. 2). The Protocol is based on
the principle of common but differentiated responsibilities: it puts the
obligation to reduce current emissions on developed countries on the
basis that they are historically responsible for the current levels of
greenhouse gases in the atmosphere.

The Protocol's first commitment period started in 2008 and ended in


2012. A second commitment period was agreed on in 2012, known as
the Doha Amendment to the protocol, in which 37 countries have
binding targets: Australia, the European Union (and its 28 member
states), Belarus, Iceland, Kazakhstan, Liechtenstein, Norway,
Switzerland, and Ukraine. Belarus, Kazakhstan and Ukraine have stated
that they may withdraw from the Protocol or not put into legal force
the Amendment with second round targetsJapan, New Zealand and
Russia have participated in Kyoto's first-round but have not taken on
new targets in the second commitment period. Other developed
countries without second-round targets are Canada (which withdrew
from the Kyoto Protocol in 2012) and the United States (which has not
ratified the Protocol). As of July 2016, 66[9] states have accepted the
Doha Amendment, while entry into force requires the acceptances of
144 states. Of the 37 countries with binding commitments, 7 have
ratified.

Negotiations were held in the framework of the yearly UNFCCC Climate


Change Conferences on measures to be taken after the second
commitment period ends in 2020. This resulted in the 2015 adoption of
the Paris Agreement, which is a separate instrument under the UNFCCC
rather than an amendment of the Kyoto protocol
Ethics in workplace
Ethics in the Workplace
the application of moral principles, standards of
behavior, or set of values regarding proper
conduct in the workplace as individuals and in a
group setting

Ethics allow you to distinguish the difference
between right and wrong

The Essentials
Every company is different but
they all should take the following
into consideration:

Trustworthiness

Respect

Responsibility

Fairness

Caring
Relationships and Ethics

Ethics applies to any relationship between
the
following individuals:

Management/Supervisors

Colleagues/Employees

Customers

Communication is key among
management,
employees, and customers in order for
respect
to be extended to each person within the
organization, and promote relationships that
are
based on honesty and integrity

Be cautious to cross the line between
personal
friendships in the workplace and
professionalism

What are
some examples
of good ethics in the
workplace?
Good Workplace Ethics

Staying productive

Be accountable for your actions

Take initiative

Think critically to be able to solve problems

Blowing the whistle

Be punctual

Stay positive

Stay professional

Take pride in your work

Immediately attempting to correct an issue

Set the example
How to Encourage
Good
Ethics
in the Workplace

Fair consequences

Fair treatment

Recognition

Communication (be clear and
consistent)

Have office policies

Transparency

Trainings

Have plans of action

Constructive feedback
Benefits of Good Ethics in
the
Workplace

Loyalty

Desirable work environment

Produce results

Build good references

Good office morale

Growth and expansion

Recognition