Ethical theories in business ethics is a normative study, i. In recent years, many organizations have embraced corporate social responsibility csr, a philosophy introduced in why ethics matter, in which the companys expected actions include not only producing a reliable product, charging a fair price with fair profit margins, and paying a fair wage to employees, but also caring for the. The business ethics theory is based on wider social obligation and the moral duty that business has towards society bigg, 2004. Students can download the study materials and pdf books and they can use them in their academic preparation. John bosco azigwe, aboteyure roger awuni school of business, bolgatanga polytechnic, p. The paper studies csr as a concept and also as a set of actions embedded in the ethicality of the business. Definitions vary, and in fact many supposed definitions of csr do not read like definitions at all. Corporate social responsibility and business ethics final project report for legal aspects of management submitted to prof. Teleological ethics theories determine the ethics of an act by looking to the probable outcome or consequences of the decision. The paper delves into a comprehensive understanding of how business ethics and corporate social responsibility involves as concept and the reason that encourage company in india to be socially responsible. Categorical imperative of immanuel kant kantianism is an ethic of duty. Business ethics and corporate social responsibility is. Practice, theory, and challenges find, read and cite all the research you.
Business performance with business ethics implementation implementation of well formulated ethical business policy has many benefits in a corporation. This article tries to clarify the situation, mapping the territory by classifying the main csr theories and related approaches in four groups. The essential point here is, that the ethics of business are game ethics, different from the ethics of religion. Pdf corporate social responsibility and business ethics in. Theories of business ethics virtue ethics capitalism. Corporate social responsibility and sustainable business. Business ethics the study of business situations, activities and decisions where issues of right and wrong are addressed.
The comprehensive approach organisations take to meet or exceed the expectations of stakeholders beyond such measures as revenue, profit and legal obligations. This study aims to trace the conceptual evolutionary path of theories on corporate social responsibility csr and to reflect on the implications of the development. The article concludes by describing ways of assessing corporate. Aug 26, 2018 corporate social responsibility csr is also termed to as responsible business, sustainable, responsible business or corporate citizenship. Business ethics binu kuriachan definition of ethics ethics as a moral and normative science refers to principles that define human behavior as right, good and proper.
Introducing business ethics in this chapter we will. As a specific theory of the way corporations interact with the surrounding community and larger world, corporate social responsibility csr as a specific theory of business ethics, a package of four obligations the corporation holds as an independent ethical actor in society. Includes not only commercial business, but also government organisations, pressure groups, notforprofit organisations, charities, and others. Corporate social responsibility csr business ethics. The paper addresses the concepts of business ethics and corporate social responsibility in the old visavis the new economy. Dec 31, 2005 he is a most viewed writer on quora, for the topics business ethics, csr, and ethical dilemmas. Theories of corporate social responsibility the implementation theories correspond to the basis to create a model that describes a csr implementation process according to carol, 1991 business and politics communities have been influenced by the globalisation process and the displacement of values from material to immaterial values that. Corporate social responsibility corporate social responsibility csr is the process by which businesses negotiate their role in society. Theories of corporate social responsibility management essay. Business ethics is the attitude and ways in which a business is formed and the way in which a business deal with the world. In fact, both corporate social responsibility and business ethics are part of the other, which means that business ethics are part of corporate social responsibility or vice versa. The current study focuses particularly on the instrumental theories on csr, which are. Sengar professor, iim lucknow submitted by group 9 abhinav bansal, pgp31186 chheda adarsh jayesh, pgp31199 manideep akarapu, pgp312.
However, researched evidence suggests that there is a small, but positive relationship between ethical and socially responsible behaviour and the organisations financial performance, as baker 2009 observes that best practice of csr can be underpinned in the cases where csr enables. Models and theories in stakeholder dialogue, authorlinda oriordan and jenny fairbrass, journaljournal of business ethics, year2008, volume83, pages745758. In our paper, we aim to explore corporate social responsibility csr in the context of business ethics. Definition of ethics ethics as a moral and normative science refers to principles that define human behavior as right, good and proper ethical theories in business ethics is a normative study, i. Other leading journals also date from this period, with business ethics quarterly appearing in 1991, and business ethics. Business ethics ethical theory linkedin slideshare. The effects of globalization and its impact on the transition from.
Theories of business ethics ethical theories stakeholder. Business ethics lecture notes man1090 surrey studocu. In practice, each csr theory presents four dimensions. Corporate ethical responsibility in management research. Like business ethics, the term csr corporate social responsibility is used in multiple, and not always compatible, senses. The concepts of ethical behavior and corporate social responsibility have come to. Chris has three times been declared one of the top 100 thought leaders in trustworthy business behavior, and has several times been named one of the 100 most influential people in business ethics. The shareholder value theory a perspective denoted by the nobel laureate milton friedman 1970 argues that only social. In addition, locating an organizations pressure points that highlight the need for csr action is recommended.
Some theoretical issues valon lluka, mba banka ekonomike, prishtina abstract ethics can be defined as a process of evaluating actions according to moral principal of values. Analyzing the concept of corporate social responsibility diva. There are 4 modern ethical normative theories, which try to offer a certain rule which can be applied. Pdf on jan 1, 2018, wlodzimierz sroka and others published corporate social responsibility and business ethics in controversial sectors. Pdf business ethics and corporate social responsibility. Business ethics and corporate social responsibility of paul griseri, nina seppala 1st first edition on 25 february on free shipping on. Corporate social responsibility and business ethics. Business ethics theories include the moral principles or codes a company implements to ensure that all individuals working in the company act with acceptable behavior.
Business ethics can be described as principle and standard that is guiding behavior of people in the business. Business ethics and corporate social responsibility from accounting scandals to pollution to executive compensation, business ethics has always been a hot topic. Theories and models of corporate social responsibility get. Categorical imperative in the ethics of kant is the absolute command of the moral law. We feel an obligation to consider not only our own personal wellbeing but also that of other human beings this meaning is similar to the precept of the golden rule. Perhaps, some of them obtain both, but every time it could have roused ethical. Jul 16, 2012 the business ethics theory views csr more as philanthropic and ethical responsibilities rather than legal and economic responsibilities. Keywordscorporate social responsibility, economic growth, gdp, amenity, health.
This research guide is meant as a resource for your research on csr, business ethics, sustainability or other related topics. Models and theories in stakeholder dialogue, authorlinda oriordan and jenny fairbrass, journaljournal of business ethics. Sophie pottermordant whilst ethical theories are the rules and principles that determine between right and wrong for any given situation, normative ethical theories propose to prescribe the morally correct way of acting. A 2015 study surveyed more than 300 companies in an effort to characterize how companies created and applied ethical policies. It then looks at some theories to explain how and why business might undertake csr stakeholder theory, social contracts theory and legitimacy theory. Stakeholder theory states that all stakeholders must be considered in the. The current market environment is characterized with fierce competition, which pressures all corporations to strive for more success capitalizing on every business strategy or tool to secure sustainability in the market. The famous missionary physician and humanitarian albert schweitzer defined ethics as our concern for good behavior.
It is related to the broader field of corporate social responsibility csr, plays a role in ethical investing and may or may not influence sustainable green business as well. Analysis of research results find, read and cite all. The latter phrase has been used to refer to not only normative theories, which attempt to identify the philosophically verifiable ethical obligations of businesses and business persons, but also to. However, researched evidence suggests that there is a small, but positive relationship between ethical and socially responsible behaviour and the organisations financial performance, as baker 2009 observes that best practice of csr can be underpinned in the cases where csr enables companies to manage the. Feb 26, 2020 this research guide is meant as a resource for your research on csr, business ethics, sustainability or other related topics. This document was created with prince, a great way of getting web content onto paper. Csr is the proactive acceptance of responsibility for the impact of business activities on the environment, consumers, communities and all other members of the public sphere aka stakeholders. Many businesses behave in divert or different ways depend on the way its formed by the owners of the business. Our paper draws inspiration from the interpretation of freemans 1984 normative stakeholder theory as cited in parmar et al 2010. Three of the main csr theories and models have been represented. Pdf corporate social responsibility and business ethics.
The business ethics theory views csr more as philanthropic and ethical responsibilities rather than legal and economic responsibilities. It can also be defined as the good ends and or results determine the ethical value of actions eternal law, hedonism, and utilitarianism. A few different business ethics theories exist, such as the utilitarian, rights. This theory justifies csr on 3 varied but interrelated ethical grounds. Therefore, due to the significant benefits of businesses in their environments, growing research in all areas of ethics and corporate social responsibility has. Contrasting instrumental views on corporate social responsibility. Business ethics and corporate social responsibility essay.
Business owners and managers can use an ethics theory they deem most appropriate for use in their operations. Triple bottom line triple bottom line is the framework for companies to experience a broader perspective to evaluate performance and increase business value. Responsibility csr1 and business ethics there is a vast literature on why businesses engage in activities associated with social and environmental. The retrospection has revealed that the trend has been a progressive rationalization of the concept with a particular focus on tighter coupling with organizations financial goals. Download business ethics, corporate social responsibility, and governance notes for mba pdf. These theories can be used on their own or in combination with each other. This is three theories of corporate social responsibility, section. Most organizations can be placed somewhere in between. Apr 09, 2020 business owners and managers can use an ethics theory they deem most appropriate for use in their operations. A few different business ethics theories exist, such as the utilitarian, rights, justice, common good and virtue approach. Theories and approaches business ethics is the attitude and ways in which a business is formed and the way in which a business deal with the world. Ethical responsibility entails corporate commitment to respect the ethics.
Business ethics, corporate social responsibility, and governance notes for mba pdf. Corporate social responsibility csr is also termed to as responsible business, sustainable, responsible business or corporate citizenship. Ethical theories can be said either descriptive or normative. Csr and stakeholders corporate social responsibility has been described as a paradigm that is in a state of emergence crane et al. In 2010 it published seven volumes volumes 91 to 97 and 39 separate issues, each containing several articles. Business ethics, corporate social responsibility, and. Corporate responsibility or sustainability is therefore a prominent feature of the business and society literature, addressing topics of business ethics. In recent years, many organizations have embraced corporate social responsibility csr, a philosophy introduced in why ethics matter, in which the companys expected actions include not only producing a reliable product, charging a fair price with fair profit margins, and paying a fair wage to employees, but also caring for the environment and. Changing and emerging social responsiveness and social expectations to particular social problems. It is a type of a corporate selfregulation that is incorporated in a business model to ensure that the business runs as per the set regulations and strives to create a positive change on the society. Corporate social responsibility and business ethics 8391 words 34 pages.
Business ethics and corporate social responsibility. The analysis and discussion about the concept of csr indicates that the monetary and ethical theories can not be considered to have the only impact on the. Business ethics and corporate social responsibility for business success and growth godfrey adda, dr. The result indicated that many businesses had ethics. The corporate social responsibility csr field presents not only a landscape of theories but also a proliferation of approaches, which are controversial, complex and unclear. You can easily adapt the mba lecture notes, study materials. This study explores contributions of theories of the firm in explicating why and how integrating corporate social responsibility csr and corporate sustainability cs into business strategic decisions and operation processes helps to improve the viability of corporations. Clarkson 29 introduced stakeholder theory into the research of csr. Narayan and others published corporate social responsibility. Corporate performance, business ethics and corporate governance. He is a most viewed writer on quora, for the topics business ethics, csr, and ethical dilemmas. Corporate social responsibility csr refers to strategies corporations or firms conduct their business in a way that is ethical, society friendly and beneficial to community in terms of development. As a result, they are often expressed as though they apply only to corporations rather than to businesses generally.