Business Ethics Report: CSR, Theories, and Stakeholder Perspectives

This report provides a comprehensive overview of business ethics, focusing on corporate social responsibility (CSR) and its various aspects. It begins with an introduction to business ethics, defining key terms and concepts, and then delves into the importance of ethical practices within organizations. T...Read More

BUSINESS ETHICS

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK -2...........................................................................................................................................3
PART -1.......................................................................................................................................3
Corporate social responsibility....................................................................................................3
Importance of business ethics......................................................................................................4
PART -2.......................................................................................................................................5
Theories of corporate social responsibility..................................................................................5
PART -3.......................................................................................................................................7
Stakeholder perspectives on business behaviour.........................................................................7
CONCLUSION................................................................................................................................9
REFRENCES.................................................................................................................................10

INTRODUCTION
Business ethics cab be defined as set of values, standards, principles and norms that help in
governing the behaviour of a person at the workplace. It refers to the study of business policies
and practices in an organization (Adeleye and et.al., 2020). It includes, insider trading,
discrimination, fiduciary responsibilities. In the present report Corporate social responsibility is
being taken and elements that are present. Carroll’s pyramid model is described, stakeholder
perspective, importance of business ethics at an academic level, business ethics theories. Various
approaches to corporate social responsibility and current values, claims of organization.
TASK -2
PART -1
Corporate social responsibility
CSR is a type of charitable trust or international business self regulation that works for the
development of society or people. Corporate social responsibility is an internal policy of an
organization that is made by managers to build good image in market or attract more customers.
It is a concept in which companies combine social and environmental concern in business and
communicate with stakeholders. It is important for every company to give some part of profit for
CSR activities so that necessary steps can be taken for development of society. The main purpose
of CSR is to build positive environment in the organization as well as among people. CSR is
giving back to the community, as companies take resources from society so they are having some
responsibility towards them. So, they give some amount for growth of organization and this
helps in increasing productivity (Asad and et.al., 2018). As there is scarcity of resources so
managers should make proper plans or strategies so that employees should use resources
efficiently. There must be minimum wastage and make productive use of resources.
Corporate social responsibility is not mandatory for organizations but they can apply it
according to their choice. In this fast moving world, as competition is increasing day by day so
all the companies want that they should provide better services. Nowadays, almost all the
companies are giving some part of their profit for CSR. In the given case of Apple’s slowed
down prices, company has deliberately slowed down older iPhones to compensate for decaying
batteries. The company had purposely slowing down old models when a new version came out in
a bid to force consumers to buy new products and this will increase sales of Apple company and
hence more revenue will be generated (Crane and et.al., 2019). This was not appropriate reason

applied by managers of Apple company to attract people or increase their sales. Every company
has some rules and policies that are made by managers and followed by every employee in the
organization. As people in society want that good services should be provided and at reasonable
price. Ethics are important in all companies as employees who are working in the company are
provided training so that they can develop skills and work effectively.
Every employee should be given equal treatment and there should be no discrimination
among employees on the basis gender, caste or income. These are some ethics which are to be
followed at workplace to create healthy and safe environment of company. Managers while
making policies, procedures, rules and regulations they should mention that every employee
should be given equal opportunity to share their views and work efficiently. As in the given case
of Apple slowed down iPhones because they want that customers must buy new product. This
step was wrong as it is unethical, to generate more profit managers cannot force consumers. For
this mistake they apologised for slowing down iPhones, calling it a misunderstanding, offer to
sell battery replacements. So, company is having some responsibility towards people and they
must take necessary initiatives to satisfy needs and wants of consumers (Davani, 2020).
Importance of business ethics
Business ethics is important in organization as it helps in creating healthy and safe
environment. It enhances law by following rules and regulations made by the government and
this helps in better control in company. There are some principles of ethics in business which
must be followed for smooth running of business such as, honesty, integrity, loyalty, fairness,
concern for others, respect for others, law abiding, trust. Business ethics plays a crucial role in
company as it provides guidelines for how an individual person has to work. Business ethics is
an essential skill as it helps in avoiding negative implications and organizations are more
focusing towards development of society. Managers are making formal structures and also trying
to create ethical workplace by recruiting right person for the right job. Business ethics drives
employee behaviour as if good working environment will be provided then employees will be
satisfied and their behaviour will change (Dierksmeier and Seele, 2018). As in the given case
Apple slow down prices of iPhones but later they realise that this was not the correct way, it was
against business ethics. So, they apologise for this thing and promise to sell battery replacement.
Business ethics is beneficial for bottom line people as rules are made that everyone should
be given equal treatment and there should be no discrimination so this will help in creating

ethical environment at workplace. Some benefits of corporate social responsibility are, improve
public image, increase brand awareness and recognition, saves money, increase customer
engagement, more employees are engaged, helps in gaining competitive advantage. Implication
of business ethics is that it helps people in guiding what is wrong or right, what is correct or
incorrect, what is ethical or unethical. Business ethics are important to maintain good
environment in organization and every employee should get equal opportunity to share their
views and give suggestions (Evana, Metalia and Mirfazli, 2019).
In Apple company culture is good and there is o discrimination among employees on the
basis of race, caste, gender, income or any other issue. In organization all people are having right
to share their ideas or give suggestions which is beneficial for growth of company. As customers
are attracted by products they are making and how employees are being treated. To maintain a
healthy and safe environment in company managers should recruit candidates having appropriate
skills and qualification.
PART -2
Theories of corporate social responsibility
There are three main theories of corporate social responsibility that can be applied in an
organization are, The Carroll Theory, The Triple Bottom Line Theory and The Stakeholder
Theory. It is essential for every organization to adopt one theory for smooth running of business
and for future growth. These theories also help in identifying strengths, weakness, opportunity
and threats for the company (Grosser, Moon and Nelson, 2017).
The Carroll Theory
This theory of corporate social responsibility refers to a pyramid which consists of four
parts i.e., economic, legal, ethical and discretionary. It means that these are some expectations
that society has from the organization. The first part is economic responsibility which can be
refer to as society want that business should earn more profit. Society also want that business
should provide them good services and make products according to need and desire of
customers. As companies are taking resources from the society so it is their responsibility to
fulfil their wants and needs. Profit is necessary for investor owners of company as well as for the
growth of business because that money is being used back into companies. Therefore, economic
responsibility is basic requirement that should be fulfilled (Horak and Yang, 2018).

The next is legal responsibility which means that society has made some rules for
business which they have to follow and operate their business. Some important expectations of
business are, providing goods and services to meet minimal legal requirements, performing all
the activities according to rules made government, complying with various federal, state, and
local regulations. They also fulfil all the legal obligations or responsibilities towards
stakeholders. The next is ethical responsibility which means that society want that organization
should operate their affairs in an ethical way. There must be some norms, standards or
procedures for all employees and they should work accordingly. Some expectations of business
includes, being good corporate citizens by doing things which is ethical, identify new trends in
market and respect new trends or norms that are adopted by society (Islam, 2020). All the
activities must be performed according to expectations of society and ethical norms. The last part
is discretion or philanthropic responsibility which means be a good corporate citizen and it is
desired by society. It is day to day expectations of society and they want that companies must
take necessary steps to provide them good services. These are some important elements of
Carroll theory of CSR which helps in identifying strengths and challenges that organizations has
to face to satisfy people in society. This will help generating more revenue as products are made
according to demand of consumers. Managers of Apple company can apply this theory as in this
a pyramid is described which includes all responsibility of society (Purwanto and et.al., 2019).
This will help company in taking decisions that are beneficial for organization as well as for
development of society.
The Triple Bottom Line Theory
According to this theory there should be three line , profit, people and planet. This triple
bottom line theory helps in identifying corporation level of commitment towards society and its
impact on environment. Triple bottom line is a framework that has three dimensions of
performance such as, social, financial and environmental which includes profitability. According
to this theory if a firm looks at only profit, it ignores people and planet. This theory says that if
company focuses on finances and it does not examine how it communicate socially (Reynolds
and Dang, 2017).
People + Planet = social + environmental responsibility
Profit : This is traditional measure of corporate profit – p & l account.

People : This helps in measuring how an organization is socially responsible and how they are
taking initiatives for growth of company.
Planet : This helps in measuring how a company is environmentally responsible.
Some benefits of triple bottom line are, increase revenue, reduce energy expenses, reduce waste
expenses, increase employee productivity, reduce strategic and operational risk. It also helps in
reducing hiring and attrition expenses. According to this theory all employees have to work
efficiently and policies are being made for betterment of society. As there is scarcity of
resources, so training must be given to workers so that they can use resources efficiently and tis
will reduce wastage. The triple bottom line theory helps in increasing productivity of employee
as training and development programs are arranged which boosts morale of workers and they
give their best in achieving goals and objectives of company.
The Stakeholder Theory
According to this theory business ethics that accounts for various constituencies have
impact by entities such as, suppliers, employees, local communities, creditors, owners, managers,
society, customers, shareholders. In this there are some internal stakeholder and some external.
This theory helps in defining that how managers treat stakeholders like, whether they are taking
decisions with consent of stakeholders or not (Rhodes and Pullen, 2018). This is a normative
theory which holds that business is having responsibility towards its shareholders. It is important
to keep shareholders happy but with that necessary steps should be taken for benefit of society
and development of people living in society. It helps in focusing on social and environmental
responsibilities of an organization.
Apple company should also apply one of the theory of CSR as it helps in determining strengths
and challenges that a company has to face and also help in providing solution of problem.
Managers of company must take essential steps for growth of organization and make proper
policies which is to be followed by everyone.
PART -3
Stakeholder perspectives on business behaviour
In every company stakeholders play a crucial role as they are taking all the decisions and
without their consent managers cannot take any decision. For making policy regarding corporate

social responsibility managers will discuss it with shareholders and final decision will be taken
by them. Stakeholders are the persons who are having interest in an organization and are affected
by working of company. Some stakeholders are, investors, employees, customers, owners,
government, suppliers and many other. The perspective of stakeholder helps in promoting ethical
decision making as they know what is better for society. They focus on long term benefit of the
company by identifying needs of customers, what is better for employee well being. As
stakeholders themselves have interest in companies policy and procedures because if business
will earn more profit then it will be beneficial for them. Shareholders knows better about choices
of customers and about development of society (Sison, Ferrero and Guitián, 2018). If good
policies are made by managers then it will help in improving profitability of organization and
also helps in satisfying employees.
Stakeholders perspective plays an important role in increasing productivity of the company
as they focus on requirement and expectations of society and make plans according to that. As in
given case Apple slow down iPhones which was unethical decision, it creates negative impact on
customers. So, before taking any decision managers should consult shareholders because they are
having better ideas or suggestions and knows more about choices of customers (Trevino and
Nelson, 2021). The main focus of shareholders is on achieving targets and goals of company,
make strategies so that goals can be accomplished. As nowadays, taste and preference of
consumers are changing rapidly so it is difficult to identify that what are needs and requirements
of society. Shareholders are having experience and they can give appropriate idea which will be
beneficial for future growth. In Apple company meeting is being conducted in which all issues
are discussed and shareholders give solution for problem. All the decisions are taken after
approval of shareholders because they play a crucial role in working of company (Sroka and
Szántó, 2018).
Stakeholders are owners of company and they will take decision which is good for all. As
resources are taken form society so it is the duty of business to return them some benefits by
providing them good services or products. Market research is being conducted by marketing
manager to identify needs and requirements of people. Policies and procedures are made with
consent of shareholders which is to be followed by everyone. It is responsibility of shareholders
to take decisions or necessary steps which are good for future growth of company. They are
persons who are having interest in companies policies and they give ideas how working pattern

can be improved for accomplishing goals and targets of company. They also suggest ways by
which customers can be attracted and more revenue can be generated. So, stakeholder
perspective is essential and according to them employees must have good behaviour
(Bernacchio, 2018).
CONCLUSION
From the above report it can be concluded that, corporate social responsibility and business
ethics both play a crucial role in an organization. CSR helps in building good image, enhance
employee engagement, help in satisfying customers, increase productivity of organization. It
helps in guiding managers that what is morally correct or incorrect. Further, some theories of
CSR is described which must be applied by every company for smooth running and it helps in
identifying challenges that a company has to face to achieve goals and objectives. Further,
perspective of stakeholder on business behaviour is discussed and importance of their decision.

REFRENCES
Books and Journals
Adeleye, I.,and et.al., 2020. Business ethics in Africa: the role of institutional context, social
relevance, and development challenges. Journal of business ethics, 161(4), pp.717-729.
Asad, M.,and et.al., 2018. Corporate social responsibility, business ethics, and labor laws: a
qualitative study on SMEs in Sialkot. Journal of Legal, Ethical and Regulatory
Issues. 21(3). pp.1-7.
Bernacchio, C., 2018. Networks of giving and receiving in an organizational context: Dependent
rational animals and MacIntyrean business ethics. Business Ethics Quarterly. 28(4).
pp.377-400.
Crane, A.,and et.al., 2019. Business ethics: Managing corporate citizenship and sustainability in
the age of globalization. Oxford University Press, USA.
Davani, M. R. E., 2020. Business ethics (pp. 182-199). De Gruyter Oldenbourg.
Dierksmeier, C. and Seele, P., 2018. Cryptocurrencies and business ethics. Journal of Business
Ethics. 152(1). pp.1-14.
Evana, E., Metalia, M. and Mirfazli, E., 2019. Business Ethics in Providing Financial
Statements: The Testing of Fraud Pentagon Theory on the Manufacturing Sector in
Indonesia. Business Ethics and Leadership. 3(3). pp.68-77.
Grosser, K., Moon, J. and Nelson, J. A., 2017. Guest editors’ introduction: gender, business
ethics, and corporate social responsibility: assessing and refocusing a
conversation. Business Ethics Quarterly. 27(4). pp.541-567.
Horak, S. and Yang, I., 2018. A complementary perspective on business ethics in South Korea:
Civil religion, common misconceptions, and overlooked social structures. Business
Ethics: A European Review. 27(1). pp.1-14.
Islam, G., 2020. Psychology and business ethics: A multi-level research agenda. Journal of
Business Ethics. 165(1). pp.1-13.
Purwanto, R. M.,and et.al., 2019. Study the importance of business ethics and ethical marketing
in digital era. Journal of Critical Reviews. 6(5). pp.150-154.
Reynolds, S. J. and Dang, C. T., 2017. Are the “customers” of business ethics courses satisfied?
An examination of one source of business ethics education legitimacy. Business &
Society. 56(7). pp.947-974.
Rhodes, C. and Pullen, A., 2018. Critical business ethics: From corporate self‐interest to the
glorification of the sovereign pater. International Journal of Management
Reviews. 20(2). pp.483-499.
Sison, A. J. G., Ferrero, I. and Guitián, G. eds., 2018. Business ethics: A virtue ethics and
common good approach. Routledge.

Sroka, W. and Szántó, R., 2018. Corporate social responsibility and business ethics in
controversial sectors: Analysis of research results. Journal of Entrepreneurship,
Management and Innovation. 14(3). pp.111-126.
Trevino, L. K. and Nelson, K. A., 2021. Managing business ethics: Straight talk about how to do
it right. John Wiley & Sons.