Good Governance and Social Responsibilities, Lecture notes of Business Ethics

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SOCIAL RESPONSIBILITY

TOWARDS THE CONSUMERS,

END USERS AND GENERAL

PUBLIC

Corporate social responsibility is an important consideration in investment decisions.

DECEPTIVE PRACTICES  Refer to acts that cause one to believe what is not true ; or cause one not to believe what is true – the intention of which is to take unfair advantage of another.  Example: If you asked somebody who is under intoxicated condition, or with defective mental capacity to sign a contract or any legal document.

TYPES OF DECEPTION IN

BUSINESS:

False advertising and other misrepresentations.  Deceptive pricing.  Deception to employees can happen from hiring to firing of a worker.  Unfair competition.

VARIOUS

RESPONSIBILITIES THAT A

BUSINESS HAS TOWARDS

DIFFERENT GROUP

RESPONSIBILITY TOWARDS

OWNERS:

Owners are the person who owns the business. They contribute capital and bear witness risks. The primary responsibilities of business towards its owners are: - Run the business efficiently. - Proper utilization of capital and other resources. 

• growth and appreciation of capital. 
• regular and fair return on capital invested.

RESPONSIBILITY TOWARDS

EMPLOYEES:

Business needs employees or workers to work for it. These employees put their best effort for the benefit of the business. - Timely and regular payment of wages and salaries. - Proper working conditions and welfare amenities. 

• Opportunity for better career prospects. - Better living conditions like housing, transport, canteen, etc. - Timely training and development.

RESPONSIBILITY TOWARDS

SUPPLIERS:

 Suppliers are businessmen who supply raw materials and other items required by manufacturers and traders: 

• Giving regular orders for purchase of goods. 
• Dealing on fair terms and conditions. 
• Availing reasonable credit period.



• All the advantages and disadvantages of the product as well as procedure to use the products must be informed to the customers. 
• There must be proper after- sales service. 
• Grievances of the consumers, if any, must be settled quickly.

RESPONSIBILITY TOWARDS

GOVERNMENT:

 Business activities are governed by the rules and regulations framed by the government. 

• Setting up units as per guidelines of government. 
• Payment of fees, duties and taxes regularly as well as honesty. 
• Not to indulge in monopolistic and restrictive trade practices.

RESPONSIBILITY TOWARDS

SOCIETY:

 A society consists of individuals, groups, organizations, families, etc. 

• To help the weaker and the backward sections of the society. 
• To preserve and promote social and cultural values. 
• To generate employment. 
• To protect the environment



• To conserve natural resources and wildlife. 
• To promote sports and culture. 
• To provide assistance in the field of developmental research on education, medical science, technology, etc.

ESSENTIAL RIGHTS OF

CONSUMERS:

The right to safety.  The right to be informed.  The right to choose.  The right to be heard.