Development Planning & Administration

MPA – 403Lecture-10

FACILITATORProf. Dr. Mohammad Majid Mahmood Bagram

0333-5188677, majidbagram@yahoo.com

Reflections

• Risk Management has a vital role in Development Planning & Administration.

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Corporate Social Responsibility & Ethics in Development

Planning & Administration

CSR & Ethics

• In the business world, ethics is the study of morally appropriate behaviors and decisions, examining what "should be done”

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CSR & Ethics

• Corporate Social Responsibility (CSR) is the process by which businesses negotiate their role in society

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Corporate Social Responsibility

Organizations have obligations to society beyond their economic obligations to owners or stockholders.

Social responsibility relates to an organization’s impact on society

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Recent Evidence of CSR Interest

• An Internet search turns up 100,000 plus responses to “CSR”

• Research Journals increasingly “rate” businesses (and NGOs) on socially responsive criteria:– Best place to work– Most admired– Best (and worst) corporate reputation

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Reasons for CSR Activities

• CSR activities are important to and even expected by the public– And they are easily monitored worldwide

• CSR activities help organizations hire and retain the people they want

• CSR activities contribute to business performance

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Businesses CSR Activities

• Philanthropy:– give money or time or in kind to charity– Integrative philanthropy—select beneficiaries

aligned with company interests• Philanthropy will not enhance corporate reputation

if a company: – fails to live up to its philanthropic image or – if consumers perceive philanthropy to be

manipulative 10

Corporate Social Responsibility (CSR)

CSR is the Sum of:

Economic Responsibilities (Make a profit) Legal Responsibilities (Obey the law) Ethical Responsibilities (Be ethical) Discretional Responsibilities (Good corporate citizen)

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CSR- two viewpoints

CSR is InevitableVs

CSR is a Burden

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Arguments for CSR

Not just profits!

Power vs. Responsibility

Stake holder relations

Arguments against CSR

From the shareholder point of view

Hindrance in maximizing profits

Choosing “moderate strategy”

Businesses need to balance economic, legal, and social responsibilities in order to achieve long-run success.

More generally, there is a relationship between good social and good financial performance.

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• The word ethics is derived from the Greek word ethos meaning character and Latin word mores meaning customs

• Ethics defines what is good for the individual and for society and establishes the nature of duties that people owe to oneself and others in society

• The principle of conduct – professional ethics

• A set of moral principles or values.

ETHICS

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Why be ethical ?

Expectation of stakeholdersTo prevent harm to general

publicIt pays to organizationA sense of trust among

partnersPersonal reason

Purpose of Ethics

• Ethics are the guiding principles.

• Ethics help make relationships mutually pleasant and productive.

• Ethics Create a sense of community and a sense of belongingness to society.

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Are Ethics Limited to Humans?

• Are ethics limited to humans only or do they extend to animals too?– pure vegetarianism

• Likewise, issues of responsibility to the environment have also been raised.

• In other words, philosophy is not far from the religious view of total non-violence

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The Evolving Context for Ethics

Ethical absolutism - they adapt to us

Ethical relativism - we adapt to them

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Emergence of a Global Business Ethic

• Growing business need for integrative mechanisms such as:– Ethics reduce operating uncertainties– Voluntary guidelines avoid government impositions

• Ethical conduct is needed in an increasingly interdependent world—everyone in the same game

• Companies wish to avoid problems and/or be good public citizens

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Reasons for Businesses to Engage in Development of a

Global Code of Business Ethics

• Create the same opportunity for all businesses

• Level the playing field

• They are needed in an interconnected world

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Ways Companies Integrate Ethics

• Top management commitment in word and deed• Company codes of ethics• Develop, monitor, enforce ethical behavior• Seek external assistance

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No discrimination should be done on the basis of caste, color, and religion

The polices should be fair and transparentProper provision of safety should be provided by the

company to the employees.There should be honesty, loyalty, and integrity in the

employees.The company’s resources should not be utilized by the

employees for their personal usage.

Ethical Principles of CG

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• Information about employee’s personal lives, health, and work evaluations should be kept confidential.

• To neither give nor take any illegal payment, remuneration, gift, donation, or benefits to obtain business or favors.

• To comply with all regulations regarding preservation of the environment.

Ethical Principles of CG

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Ethical Principles of CG

• Rights and equitable treatment of shareholders

• Interests of stakeholders

• Role and responsibilities of the Board

• Integrity and ethical behavior

• Disclosure and transparency

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Advantages of Ethical Behavior

• Brand image

• Greater loyalty

• Greater commitment of employees

• Employees become more creative

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Why have a Code of Ethics?

• To define acceptable behavior• To promote high standards of practice• To provide a benchmark for self-evaluation• To establish a framework for professional behavior

and responsibilities

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CODE OF ETHICS -TRANSITION

Compliance

Enforcement

Punishment

Directive

Secretive

Compliance

Enforcement

Punishment

Directive

Secretive

Integrity

Inspiration

Motivation

Educational

Open

Integrity

Inspiration

Motivation

Educational

Open

Thank you for your kind attention!

Thank you for your kind attention!

FACILITATORProf. Dr. Mohammad Majid Mahmood

0333-5188677, majidbagram@yahoo.com