Ethics in CSR
The term ‘ethics’ is generally used to refer to the rules or principles that define right and wrong conduct.
Ethics is defined as “the discipline dealing with what is good & bad and with moral duty and obligation.”
Ethics is the set of rules prescribing what is good or evil, or what is right or wrong for people. In other words, ethics is the values that form the basis of human relations, and the quality and essence of being morally good or evil, or right or wrong. Business Ethics means honesty, confidence, respect and fair acting in all circumstances.
The certain actions are right or wrong in themselves and so there are absolute ethical standards which need to be upheld.
The problems with this position are concerned with how we know which acts are wrong and how we distinguish between a wrong act and an omission.
Parts to Utilitarian Model
focusing on maximizing profits. Profits are seen as the reward for satisfying customers.
achieved by both minimizing inputs (e.g. labor, land, and capital) and maximizing productive outputs.
Types of Managerial Ethics
An eminent researcher in the area of social responsibility, identified three types of management, depending on the extent to which their decisions were ethical or moral:
The Ethical Organization
- Clear Set of Values
- Open and Effective Communication of Values
- Leaders Exhibit the Values
- Values embodied in policies and procedures
- Open dialogue about value decisions
- Accountability: everyone held to these values
- Consistency: words and actions