Business Ethics and Corporate Social Responsibility Notes
Subject Overview
Business Ethics and CSR covers ethical theories and the firm's relationship with stakeholders, ethical dilemma resolution and ethics across functional areas (marketing, finance, HR, environment), the concept, models and drivers of CSR and corporate sustainability, and CSR under the Companies Act 2013 alongside an introduction to corporate governance. A 4-credit core theory paper.
Subject at a glance
4
Units
29
Topics
4
Credits
4
Infographics
Unit-wise Syllabus
4 units — open any unit for detailed topic-wise notes, diagrams and important exam questions
- Characteristics
- principles
- types and importance of business ethics
- myths about business ethics
- ethical values and theories
- absolutism vs relativism
- teleological and deontological approaches
- Kohlberg's stages of moral development
- code of ethics
- firm's relationship with stakeholders
- 1
Pre-conventional 1
Avoid punishment
- 2
Pre-conventional 2
Self-interest
- 3
Conventional 3
Good relationships, approval
- 4
Conventional 4
Law and order
- 5
Post-conventional 5
Social contract, rights
- 6
Post-conventional 6
Universal ethical principles
Study guide
This unit covers the characteristics, principles and importance of business ethics, myths, ethical theories (absolutism, relativism, teleological, deontological), Kohlberg's stages, codes of ethics and stakeholder relationships. Learn Kohlberg's stages in order.
- Characteristics of ethical dilemmas
- ethical decision making and reasoning
- dilemma resolution process
- ethical considerations in marketing/accounting/finance/HR/environment
- 1
Recognise the ethical issue
- 2
Get the facts
- 3
Identify stakeholders
- 4
Evaluate options
Utility, rights, justice
- 5
Decide and test
Would I be comfortable if it were public?
- 6
Act and reflect
Study guide
You study ethical dilemmas, ethical decision making and reasoning, dilemma resolution and ethics in marketing, accounting, finance, HR and the environment. Practise analysing a dilemma from several viewpoints.
- Concept
- need
- arguments for and against CSR
- historical phases and perspectives of CSR
- models and drivers of CSR
- CSR and corporate governance
- corporate sustainability and the triple bottom line
- GRI guidelines
- national voluntary guidelines
- Philanthropic
Desired: give back
- Ethical
Expected: do what is right
- Legal
Required: obey the law
- Economic
Required: be profitable
Study guide
You study the concept, need and arguments for and against CSR, its history, models, drivers, CSR and governance, sustainability, the triple bottom line, GRI and national voluntary guidelines. Know both sides of the CSR debate.
- CSR within the organization
- strategic planning and CSR
- environmental aspects
- CSR under the Companies Act 2013
- CSR practices and case studies in India
- introduction to corporate governance — need and models
Applies if (any one)
Net worth ≥ ₹500 crore, turnover ≥ ₹1,000 crore or net profit ≥ ₹5 crore
CSR spend
At least 2% of average net profit of the last 3 years
Activities
Schedule VII: education, health, environment and more
Unspent amount
Transfer to a specified fund or an unspent CSR account
Study guide
You study CSR within an organisation, strategic CSR, environmental issues, CSR under the Companies Act 2013, Indian case studies and an introduction to corporate governance and its models. Review a company's annual CSR report.
Why Business Ethics and Corporate Social Responsibility Matters
Ethical judgement and responsible business are now part of how organisations are evaluated, and ethical dilemmas are a frequent topic in case interviews.
How to Prepare for Business Ethics and Corporate Social Responsibility
- Analyse real corporate ethics cases.
- Learn the CSR rules under the Companies Act 2013.
- Prepare balanced arguments for and against CSR.
Business Ethics and Corporate Social Responsibility: Frequently Asked Questions
What does the Companies Act say about CSR?
Companies meeting specified net worth, turnover or profit thresholds must spend a prescribed share of average net profit on CSR activities.