What is social responsibility?
Social responsibility is the obligation a business assumes to: maximize its positive impact minimize its negative impact help to improve society help to solve social problems
Why act in a socially responsible way?
3. To be socially responsible also benefits businesses. Customers shun firms that
- turn out inferior or shoddy products; - cheat them out of their money; - pollute the environment; and - engage in unethical practices.
It is only right for businesses to serve society’s goals.
Why act in a socially responsible way?
2. Businesses are a component of society. As overall social conditions improve, all the components of society – including businesses – will benehat is consumerism?
Consumerism is the public demand for more protection of the buyer’s rights.
Consumerism
Right to Safety
Right to information
A Basic Business Reader
Chapter 1 Business and Society
Objectives
After studying this chapter you will be able to:
Define the term “social responsibility”.
Ethics vs. Law


While many ethical standards are defined by laws, the law does not cover all unethical conduct. Abiding by the law defines a minimum guide for ethical behavior. People’s ethical code is influenced by laws, culture, professional codes, and individual values.
Workshop
Presentation work
Find information from media and introduce a socially responsible/irresponsible business.
Discussion topic
Do you agree with people who say “it is simply good business to be ethical”? Give your reasons.
2. The right to information
- detailed information about ingredients - instructions for use
Basic areas of consumerism
3. The right to choose
- customers having access to a variety of products/services at competitive prices - competition free to flourish
Business ethics
Unethical business behavior:
- law-defying - cheating customers - misrepresenting products/services - polluting the environment - offering bribes/kickbacks/payoffs - price-fixing ……
Why act in a socially responsible way?
1. Society provides conditions for businesses to exist.
- social setting including laws, customs, etc. - other social and cultural norms - professional/technical personnel - labor
4. The right to be heard
- consumers’ interests receiving full consideration - consumers able to appeal beyond a company
Ethics and business ethics
What is ethics?
Understand why businesses should act in a socially responsible way. Identify the four basic areas of consumerism. Find and discuss examples of ethical/unethical business behavior. Understand why ethical companies thrive better in the long run.
Right to choose
Right to Be heard
Basic areas of consumerism
1. The right to safety
- product safe for intended use - explicit directions for use - properly tested to ensure reliability & quality
Why act in a socially responsible way?
4. A company will make greater profits in the long run if it considers benefits to society. They will find it easier to hire better employees and win more customers. For socially irresponsible businesses, people tend to: - boycott its goods/services; - influencing officials against it; - condemning it in the media; - buy goods/services in other firms
Ethics is the study of morals and moral choices.
What is business ethics?
Business ethics refers to moral principles that define right and wrong behavior in the world of business.
Business ethics
Ethical business behavior:
- law abiding - providing satisfactory products/services - offering reasonable prices - offering fair wages and employee benefits - raising fund for charities - protecting the environment ……