Development Planning & Administration MPA – 403 Lecture-10

2. Development Planning & Administration MPA – 403 Lecture-10 • FACILITATOR • Prof. Dr. Mohammad Majid Mahmood Bagram • 0333-5188677, majidbagram@yahoo.com

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

4. Corporate Social Responsibility & Ethics in Development Planning & Administration

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

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

7. 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

8. 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

9. 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

10. 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

11. 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)

12. CSR- two viewpoints CSR is Inevitable Vs CSR is a Burden

13. Arguments for CSR • Not just profits! • Power vs. Responsibility • Stake holder relations

14. Arguments against CSR • From the shareholder point of view • Hindrance in maximizing profits

15. 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.

16. ETHICS • 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.

17. Why be ethical ? • Expectation of stakeholders • To prevent harm to general public • It pays to organization • A sense of trust among partners • Personal reason

18. 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.

19. 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

20. The Evolving Context for Ethics • Ethical absolutism - they adapt to us • Ethical relativism - we adapt to them

21. 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

22. 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

23. Ways Companies Integrate Ethics • Top management commitment in word and deed • Company codes of ethics • Develop, monitor, enforce ethical behavior • Seek external assistance

24. Ethical Principles of CG • No discrimination should be done on the basis of caste, color, and religion • The polices should be fair and transparent • Proper 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.

25. Ethical Principles of CG • 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.

26. 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

27. Advantages of Ethical Behavior • Brand image • Greater loyalty • Greater commitment of employees • Employees become more creative

28. 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

29. Compliance Enforcement Punishment Directive Secretive • Integrity • Inspiration • Motivation • Educational • Open CODE OF ETHICS -TRANSITION

30. Thank you for your kind attention! • FACILITATOR • Prof. Dr. Mohammad Majid Mahmood • 0333-5188677, majidbagram@yahoo.com