SA8nISnLk SINGn

kCLL NC 33 SLC 82 (IIN)

GSS09]11
8USINLSS L1nICS ASSIGNMLN1
ULS 1) WnA1 IS 8USINLS? DLSCkI8L Wn 8USINLSS L1nICS IS IMCk1AN1 ICk 1nL
SUCCLSS CI AN CkGANI2A1ICN? WnA1 IS 1nL kLSCNSI8ILI1 CI 8USINLSS 1CWkADS (A)
SnAkL nCLDLkS (8) LMLCLSS (C) GCVLkNMLN1 (D) CCNSUMLkS?
ANS A bus|ness (company enLerprlse or flrm) ls a legally recognlzed organlzaLlon deslgned Lo
provlde goods or servlces or boLh Lo consumers buslnesses and governmenLal enLlLles A
buslness ls Lyplcally formed Lo earn proflL LhaL wlll lncrease Lhe wealLh of lLs owners and grow
Lhe buslness lLself 1he owners and operaLors of a buslness have as one of Lhelr maln
ob[ecLlves Lhe recelpL or generaLlon of a flnanclal reLurns ln exchange for work and accepLance
of rlsk Ck
8uslness ls a Lconomlc sysLem ln whlch goods and servlces are exchanged for one anoLher
or money on Lhe basls of Lhelr percelved worLh Lvery buslness requlres some form of
lnvesLmenL and a sufflclenL number of cusLomers Lo whom lLs ouLpuL can be sold aL proflL on
a conslsLenL basls Ck
1haL whlch busles one or LhaL whlch engages Lhe Llme aLLenLlon or labor of any one as hls
prlnclpal concern or lnLeresL wheLher for a longer or shorLer Llme consLanL employmenL
regular occupaLlon as Lhe buslness of llfe buslness before pleasure
IMCk1ANCL CI L1nICS IN 8USINLSS

We have seen successful buslnesses fall we have wlLnessed proflLably runnlng buslnesses
suffer from a downfall and some seemlngly effecLlve corporaLes recelve a greaL fall ln Lhelr
proflLs and popularlLy Cne of Lhe maln reasons behlnd Lhese surprlslng fallures was Lhe lack of
buslness eLhlcs A Lrue undersLandlng of Lhe rlghL and Lhe wrong and Lhe ablllLy Lo dlsLlngulsh
beLween Lhem ls eLhlcs LLhlcs ls an lmporLanL parL of llfe and runnlng a successful buslness ls
no excepLlon Lo Lhls 1o become successful a buslness needs Lo be drlven by sLrong eLhlcal
values 1he mlndseL of a buslnessman creaLes a mlndseL for hls/her company whlch ln Lurn seLs
Lhe work culLure of Lhe buslness organlzaLlon lor a buslness Lo prosper and malnLaln lLs
wealLh lL oughL Lo be founded on cerLaln eLhlcal prlnclples A buslness LhaL ls based on eLhlcs
can run successfully for long years Moneymakers who do noL heed Lo eLhlcal values can only
earn a shorLllved success 1o lasL long ln Lhe markeL buslness eLhlcs ls essenLlal


lor a buslness Lo achleve longLerm proflLs cusLomer relaLlonshlp ls of uLmosL lmporLance 1o
galn a longLerm relaLlonshlp wlLh cusLomers and achleve cusLomer reLurn for Lhe buslness Lhe
buslness needs Lo be based on eLhlcs 1he LrusLworLhlness of a buslness lLs cusLomer servlce
lLs cusLomer care lLs way of deallng wlLh cusLomers and lLs urge Lo reLaln Lhelr old cusLomers
ls a parL of Lhe buslness eLhlcs 8uslness eLhlcs leave a longlasLlng lmpresslon on Lhe cusLomers
and Lhe lmpresslon on Lhelr mlnds bullds LrusL feLchlng a buslness more cusLomers whlle
reLalnlng Lhe older ones

eople who seek moLlvaLlon behlnd belng eLhlcal should undersLand LhaL Lhey are eLhlcal by
deflnlLlon LLhlcs ls an lnLegral parL of runnlng a buslness and hence eLhlcal values accompany
buslness by defaulL WlLhouL followlng cerLaln ldeals ln buslness one cannoL become
successful Success LhaL ls aLLalned wlLhouL a foundaLlon of sLrong eLhlcs ls bound Lo be shorL
llved A buslness cannoL conLlnue Lo prosper wlLhouL an eLhlcal base A few successes can be
colncldences or flukes buL perslsLenL success can only be a resulL of a sLrong foundaLlon of
eLhlcs

LxperLs ln buslness managemenL and researchers have endorsed Lhe need for buslnessmen and
company professlonals Lo sLudy eLhlcs 1hey have asserLed Lhe lmporLance of foundlng buslness
on eLhlcal values and followlng Lhem 1hey have urged managemenL professlonals Lo adhere Lo
eLhlcs and accepL lL as a parL of buslness LLhlcs remaln belng lmporLanL ln buslness and sLrong
eLhlcal values shall Lake Lhe buslness a long way!

8ecenL evenLs ln corporaLe Amerlca have demonsLraLed Lhe desLrucLlve effecLs LhaL occur when
Lhe leadershlp of a company does noL behave eLhlcally Cne mlghL wonder why hlghly
educaLed successful and buslness savvy corporaLe professlonals aL Lnron 1yco WorldCom
and Adelphla goL Lhemselves lnLo such a blg mess 1he answer lles ln a profound lack of eLhlcs

8unnlng a buslness eLhlcally ls good for buslness Powever buslness eLhlcs lf properly
lnLerpreLed means Lhe sLandards of conducL of lndlvldual buslness people noL necessarlly Lhe
sLandards of buslness as a whole

8uslness leader are expecLed Lo run Lhelr buslness as proflLably as Lhey can A successful and
proflLable buslness ln lLself can be a Lremendous conLrlbuLor Loward Lhe common good of
socleLy 8uL lf buslness leaders or deparLmenL managers spend Lhelr Llme worrylng abouL
dolng good" for socleLy Lhey wlll dlverL aLLenLlon from Lhelr real ob[ecLlve whlch ls proflLablllLy
and runnlng an efflclenL and effecLlve organlzaLlon

Applylng eLhlcs ln buslness makes good sense A buslness LhaL behaves eLhlcally lnduces oLher
buslness assoclaLes Lo behave eLhlcally as well lf a company (or a manager) exerclses parLlcular
care ln meeLlng all responslblllLles Lo employees cusLomers and suppllers lL usually ls awarded
wlLh a hlgh degree of loyalLy honesLy quallLy and producLlvlLy lor examples employees who
are LreaLed eLhlcally wlll more llkely behave eLhlcally Lhemselves ln deallng wlLh cusLomers and
buslness assoclaLes A suppller who refuses Lo explolL lLs advanLage durlng a sellers markeL
reLalns Lhe loyalLy and conLlnued buslness of lLs cusLomers when condlLlons change Lo Lhose of
a buyers markeL A company LhaL refuses Lo dlscrlmlnaLe agalnsL older or handlcapped
employees ofLen dlscovers LhaL Lhey are flercely loyal hard worklng and producLlve

1he besL way Lo promoLe eLhlcal behavlor ls by seLLlng a good personal example 1eachlng an
employee eLhlcs ls noL always effecLlve Cne can explaln and deflne eLhlcs Lo an adulL buL
undersLandlng eLhlcs does noL necessarlly resulL ln behavlng eLhlcally ersonal values and
eLhlcal behavlor ls LaughL aL an early age by parenLs and educaLors

Conc|us|on
LLhlcs are lmporLanL noL only ln buslness buL ln all aspecLs of llfe because lL ls an essenLlal parL
of Lhe foundaLlon on whlch of a clvlllzed socleLy ls bulld A buslness or socleLy LhaL lacks eLhlcal
prlnclples ls bound Lo fall sooner or laLer

| kespons|b|||ty of bus|ness towards owners (or) share ho|ders
Cwners are Lhe persons who own Lhe buslness 1hey conLrlbuLe caplLal and bear Lhe buslness
rlsks 1he prlmary responslblllLles of buslness Lowards lLs owners are Lo
a 8un Lhe buslness efflclenLly
b roper uLlllzaLlon of caplLal and oLher resources
c CrowLh and appreclaLlon of caplLal
d 8egular and falr reLurn on caplLal lnvesLed

|| kespons|b|||ty towards |nvestors
lnvesLors are Lhose who provlde flnance by way of lnvesLmenL ln debenLures bonds deposlLs
eLc 8anks flnanclal lnsLlLuLlons and lnvesLlng publlc are all lncluded ln Lhls caLegory 1he
responslblllLles of buslness Lowards lLs lnvesLors are
a Lnsurlng safeLy of Lhelr lnvesLmenL
b 8egular paymenL of lnLeresL
c 1lmely repaymenL of prlnclpal amounL

||| kespons|b|||ty towards emp|oyees
8uslness needs employees or workers Lo work for lL 1hese employees puL Lhelr besL efforL for
Lhe beneflL of Lhe buslness So lL ls Lhe prlme responslblllLy of every buslness Lo Lake care of Lhe
lnLeresL of Lhelr employees lf Lhe employees are saLlsfled and efflclenL Lhen Lhe only buslness
can be successful 1he responslblllLles of buslness Lowards lLs employees lnclude
a 1lmely and regular paymenL of wages and salarles
b roper worklng condlLlons and welfare amenlLles
c CpporLunlLy for beLLer career prospecLs
d !ob securlLy as well as soclal securlLy llke faclllLles of provldenL fund group lnsurance
penslon reLlremenL beneflLs eLc
e 8eLLer llvlng condlLlons llke houslng LransporL canLeen creches eLc
f 1lmely Lralnlng and developmenL


|v kespons|b|||ty towards supp||ers
Suppllers are buslnessmen who supply raw maLerlals and oLher lLems requlred by
manufacLurers and Lraders CerLaln suppllers called dlsLrlbuLors supply flnlshed producLs Lo
Lhe consumers 1he responslblllLles of buslness Lowards Lhese suppllers are
a Clvlng regular orders for purchase of goods
b ueallng on falr Lerms and condlLlons
c Avalllng reasonable credlL perlod
d 1lmely paymenL of dues

v kespons|b|||ty towards customers
no buslness can survlve wlLhouL Lhe supporL of cusLomers As a parL of Lhe responslblllLy of
buslness Lowards Lhem Lhe buslness should provlde Lhe followlng faclllLles
a roducLs and servlces musL be able Lo Lake care of Lhe needs of Lhe cusLomers
b roducLs and servlces musL be quallLaLlve
c 1here musL be regularlLy ln supply of goods and servlces
d rlce of Lhe goods and servlces should be reasonable and affordable
e All Lhe advanLages and dlsadvanLages of Lhe producL as well as procedure Lo use Lhe producLs
musL be lnformed do Lhe cusLomers
f 1here musL be proper afLersales servlce
g Crlevances of Lhe consumers lf any musL be seLLled qulckly
h unfalr means llke under welghlng Lhe producL adulLeraLlon eLc musL be avolded

v| kespons|b|||ty towards compet|tors
CompeLlLors are Lhe oLher buslnessmen or organlzaLlons lnvolved ln a slmllar Lype of buslness
LxlsLence of compeLlLlon helps Lhe buslness ln becomlng more dynamlc and lnnovaLlve so as Lo
make lLself beLLer Lhan lLs compeLlLors lL also someLlmes encourages Lhe buslness Lo lndulge ln
negaLlve acLlvlLles llke resorLlng Lo unfalr Lrade pracLlces 1he responslblllLles of buslness
Lowards lLs compeLlLors are
a noL Lo offer excepLlonally hlgh sales commlsslon Lo dlsLrlbuLers agenLs eLc
b noL Lo offer Lo cusLomers heavy dlscounLs and /or free producLs ln every sale
c noL Lo defame compeLlLors Lhrough false or amblguous adverLlsemenLs

v|| kespons|b|||ty towards government
8uslness acLlvlLles are governed by Lhe rules and regulaLlons framed by Lhe governmenL 1he
varlous responslblllLles of buslness Lowards governmenL are
a SeLLlng up unlLs as per guldellnes of governmenL
b aymenL of fees duLles and Laxes regularly as well as honesLly
c noL Lo lndulge ln monopollsLlc and resLrlcLlve Lrade pracLlces
d Conformlng Lo polluLlon conLrol norms seL up by governmenL
e noL Lo lndulge ln corrupLlon Lhrough brlblng and oLher unlawful acLlvlLles




v||| kespons|b|||ty towards soc|ety
A socleLy conslsLs of lndlvlduals groups organlzaLlons famllles eLc 1hey all are Lhe members of
Lhe socleLy 1hey lnLeracL wlLh each oLher and are also dependenL on each oLher ln almosL all
acLlvlLles 1here exlsLs a relaLlonshlp among Lhem whlch may be dlrecL or lndlrecL 8uslness
belng a parL of Lhe socleLy also malnLalns lLs relaLlonshlp wlLh all oLher members of Lhe socleLy
1hus lL has cerLaln responslblllLles Lowards socleLy whlch may be as follows
a Lo help Lhe weaker and backward secLlons of Lhe socleLy
b Lo preserve and promoLe soclal and culLural values
c Lo generaLe employmenL
d Lo proLecL Lhe envlronmenL
e Lo conserve naLural resources and wlldllfe
f Lo promoLe sporLs and culLure
g Lo provlde asslsLance ln Lhe fleld of developmenLal research on educaLlon medlcal sclence
Lechnology eLc



































ULS 2) DLIINL CCkCkA1L SCCIAL kLSCNSI8ILI1? WnA1 IS 1nL kLLA1ICNSnI 8L1WLLN
8USINLSS ANS SCCIL1?
ANS Corporate soc|a| respons|b|||ty (CSk) also known as corporaLe responslblllLy corporaLe
clLlzenshlp responslble buslness susLalnable responslble buslness (S88) or corporaLe soclal
performance ls a form of corporaLe selfregulaLlon lnLegraLed lnLo a buslness model ldeally
CS8 pollcy would funcLlon as a bullLln selfregulaLlng mechanlsm whereby buslness would
monlLor and ensure lLs supporL Lo law eLhlcal sLandards and lnLernaLlonal norms
ConsequenLly buslness would embrace responslblllLy for Lhe lmpacL of lLs acLlvlLles on Lhe
envlronmenL consumers employees communlLles sLakeholders and all oLher members of
Lhe publlc sphere lurLhermore CS8focused buslnesses would proacLlvely promoLe Lhe publlc
lnLeresL by encouraglng communlLy growLh and developmenL and volunLarlly ellmlnaLlng
pracLlces LhaL harm Lhe publlc sphere regardless of legallLy LssenLlally CS8 ls Lhe dellberaLe
lncluslon of publlc lnLeresL lnLo corporaLe declslonmaklng and Lhe honorlng of a Lrlple boLLom
llne eople laneL and roflL Ck

CorporaLe Soclal 8esponslblllLy ls Lhe conLlnulng commlLmenL by buslness Lo behave eLhlcally
and conLrlbuLe Lo economlc developmenL whlle lmprovlng Lhe quallLy of llfe of Lhe workforce
and Lhelr famllles as well as of Lhe local communlLy and socleLy aL large Ck

CS8 ls abouL capaclLy bulldlng for susLalnable llvellhoods lL respecLs culLural dlfferences and
flnds Lhe buslness opporLunlLles ln bulldlng Lhe skllls of employees Lhe communlLy and Lhe
governmenL Ck
CS8 ls A concepL whereby companles declde volunLarlly Lo conLrlbuLe Lo a beLLer socleLy and a
cleaner envlronmenL l1 ls a concepL whereby companles lnLegraLe soclal and envlronmenLal
concerns ln Lhelr buslness operaLlons and ln Lhelr lnLeracLlon wlLh Lhelr sLakeholders on a
volunLary basls
8USINLSS AND SCCIL1
8USINLSS 8LNLII1S SCCIL1 1he baslc ob[ecLlve of buslness ls Lo develop produce and supply
goods and servlces Lo cusLomers 1hls has Lo be done ln such a way as Lo allow companles Lo
make a proflL whlch ln Lurn demands far more Lhan [usL skllls ln companles' own flelds and
processes

AsLuLe enLrepreneurs ofLen demonsLraLe an almosL lnLulLlve undersLandlng of Lhe synergles
LhaL creaLe success 1he soclal skllls of company owners LogeLher wlLh relaLlonshlps malnLalned
wlLh cusLomers suppllers and oLher buslness people are always vlLal lf companles are Lo be run
well and developed wlLh a vlew Lo Lhe fuLure




Companles lmprove Lhelr resources by developlng maLerlals and ldeas 1he goods and servlces
produced musL meeL demands made by cusLomers oLher companles or publlc lnsLlLuLlons lf
companles are Lo survlve roflLablllLy resulLs when cusLomers are prepared Lo pay more for
goods and servlces Lhan lL cosLs Lo produce Lhem

1he ablllLy Lo produce Lhls klnd of added value proflL ls Lhe baslc prerequlslLe for buslness
buL lL ls also a foundaLlon for prosperlLy ln socleLy Cnly proflLable companles are susLalnable ln
Lhe long Lerm and capable of creaLlng goods servlces processes reLurn on caplLal work
opporLunlLles and a Lax base 1hls ls whaL buslness does beLLer Lhan any oLher secLor Pence
companles' baslc commerclal operaLlons are Lhe prlmary beneflL Lhey brlng Lo socleLy

Compan|es benef|t soc|ety
a Supplylng goods and servlces LhaL cusLomer cannoL or do noL wanL Lo produce Lhemselves
b CreaLlng [obs for cusLomers suppllers dlsLrlbuLors and coworkers 1hese people make
money Lo supporL Lhemselves and Lhelr famllles pay Laxes and use Lhelr wages Lo buy goods
and servlces
c ConLlnually developlng new goods servlces and processes
d lnvesLlng ln new Lechnologles and ln Lhe skllls of employees
e 8ulldlng up and spreadlng lnLernaLlonal sLandards eg for envlronmenLal pracLlces
f Spreadlng good pracLlce" ln dlfferenL areas such as Lhe envlronmenL and workplace safeLy

1he role of buslness ln Lhe developmenL of socleLy can be descrlbed ln many ways lor a
company Lo progress and develop lL musL nurLure relaLlons wlLh lLs sLakeholders of whlch
Lhere may be many Some have a sLrong lnfluence and are of fundamenLal lmporLance Lo Lhe
survlval of Lhe company Lhese lnclude employees cusLomers and suppllers 1he medla
auLhorlLles Lrade unlons and local resldenLs are oLher sLakeholders wlLh a wlde ranglng
lnfluence

GCCD kLLA1ICNS LLAD 1C kCII1A8ILI1

1he longLerm survlval of companles ls parLly dependenL on malnLalnlng relaLlonshlps of LrusL
ueLerloraLlon of such relaLlonshlps wlll [eopardlze Lhe ongolng developmenL of Lhe company
Lxperlence shows LhaL companles wlLh an lnLernaLlonal ouLlook whlch are open and adopL Lhe
longLerm approach are ofLen besL aL malnLalnlng relaLlonshlps and hence aL developlng Lhelr
operaLlons

1he ablllLy Lo consLanLly go on lmprovlng producLs and processes ls a baslc prerequlslLe
Companles LhaL wanL Lo keep developlng have Lo be recepLlve Lo slgnals from and oplnlons
expressed by Lhe markeL sLaff and Lhe general publlc now LhaL more and more cusLomers
and sLakeholders as well are maklng demands of companles' eLhlcal soclal and envlronmenLal
awareness lL ls also naLural for companles Lo be recepLlve Lo Lhese lssues and acLlvely use Lhem
ln Lhelr operaLlons


SocleLy's values and currenL levels of knowledge are reflecLed ln companles' acLlvlLles and
companles are [udged accordlng Lo currenL sLandards Companles have always had Lo lnLerpreL
socleLy's moods or else go ouL of buslness Companles have always had Lo adapL Lo flL ln wlLh
values and norms 1hen on Lop of Lhese are Lhe formal regulaLlons LhaL all companles be Lhey
prlvaLe and publlc have Lo observe

lL ls very much ln Lhe lnLeresLs of any company Lo be 'a good corporaLe clLlzen' Companles LhaL
have a clear ldenLlLy and clear buslness concepLs ofLen flnd lL easler Lo handle and lnLegraLe
eLhlcal and soclal values and Lo Lake Lhe envlronmenL lnLo accounL Pavlng clear buslness
ob[ecLlves makes lL easler Lo formulaLe and lmplemenL goals based on values and norms boLh
wlLhln Lhe company and among Lhe general publlc

































ULS 3) nCW L1nICAL AM I?

ANS A Lrue undersLandlng of Lhe rlghL and Lhe wrong and Lhe ablllLy Lo dlsLlngulsh beLween
Lhem ls eLhlcs LLhlcs ls an lmporLanL parL of llfe and runnlng 1o become successful one musL
be drlven by sLrong eLhlcal values

eople who seek moLlvaLlon behlnd belng eLhlcal should undersLand LhaL Lhey are eLhlcal by
deflnlLlon LLhlcs ls an lnLegral parL of llfe and hence eLhlcal values accompany us by defaulL
WlLhouL followlng cerLaln ldeals ln llfe one cannoL become successful Success LhaL ls aLLalned
wlLhouL a foundaLlon of sLrong eLhlcs ls bound Lo be shorLllved Llfe cannoL conLlnue Lo
prosper wlLhouL an eLhlcal base A few successes can be colncldences or flukes buL perslsLenL
success can only be a resulL of a sLrong foundaLlon of eLhlcs

l am a very eLhlcal person l have been followlng eLhlcs rlghL from my chlldhood and wlll Lry Lo
follow Lhem ln fuLure as well lL ls very lmporLanL Lo follow eLhlcs ln llfe as lL brlngs good name
as well as loL of credlblllLy for one self ln Lhe socleLy

"an Lth|ca| man carr|es more va|ue than a d|amond" l belleve ln Lhls Lruly and Lry Lo become
one

1he reasons why l call myself eLhlcal ls
a) 1lll Loday l have never cheaLed any one
b) l have never lled Lo my parenLs
c) l belleve ln hard work
d) l am ready Lo help my frlends aL any cosL
e) l never mlsbehaved wlLh anyone
f) l never copled my noLes lnsLead wroLe on my own

So keeplng above parameLers ln Lo conslderaLlon l Lhlnk l am an eLhlcal
person and would Lry Lo malnLaln LhaL ln fuLure as well