Politics, Ethics and Social Responsibility of Business (For the B.Com. (Hons) Course of the University of Delhi)

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Cover Contents About the Authors Preface Unit I: Thinking Conceptually about Politics Chapter 1: Liberty 1.1 Meaning and Nature of Liberty 1.2 Negative Liberty 1.3 Positive Liberty 1.4 Conclusion Suggested Questions Bibliography Chapter 2: Equality 2.1 Meaning and Significance of Equality 2.2 Foundational Equality 2.2.1 Fundamental Equality of Persons 2.2.2 Equality of Opportunity 2.2.3 Equality of Condition 2.2.4 Equality of Outcome 2.3 Distributional Equality 2.3.1 Equality of Welfare 2.3.2 Equality of Resources 2.4 Equality of Capability 2.5 Conclusion Suggested Questions Bibliography Chapter 3: Justice 3.1 The Concept 3.2 Core Elements of Justice 3.2.1 Non-Arbitrariness 3.2.2 Consistency 3.2.3 Relevance 3.2.4 Proportion 3.2.5 Procedure 3.3 Justice as an Ethical Principle 3.3.1 Distributive Justice 3.3.1.1 Justice as Equality (Egalitarianism) 3.3.1.2 Justice Based on Contribution (Capitalist Justice) 3.3.1.3 Justice Based on Needs and Abilities (Socialism) 3.3.1.4 Justice as Freedom (Libertarianism) 3.3.1.5 Justice as Fairness 3.3.2 Retributive Justice 3.3.3 Compensatory Justice 3.4 Rawls’ Theory of Justice as Fairness 3.4.1 Rawls’ Method 3.4.2 Rawls’ Principles of Justice 3.4.2.1 Principle of Equal Liberty 3.4.2.2 The Difference Principle 3.4.3 The Principle of Fair Equality of Opportunity 3.4.4 Critical Evaluation of Rawls’ Theory 3.5 Distributive Justice and Business 3.6 Conclusion Suggested Questions Bibliography Chapter 4: Rights 4.1 Meaning and Nature of Rights 4.2 Basis Of Rights 4.2.1 Legal Rights 4.2.2 Moral Rights 4.2.3 Negative and Positive Rights 4.2.4 Contractual Rights 4.2.5 Natural Rights and Human Rights 4.3 Human Rights and the Corporate World Suggested Questions Bibliography Chapter 5: Recognition 5.1 Introduction 5.2 Meaning of Recognition 5.3 Politics of Recognition 5.4 Forms of Recognition 5.5 Multiculturalism and Diversity 5.6 Misrecognition or Non-Recognition 5.7 Conclusion Suggested Questions Bibliography Chapter 6: The Idea of a Good Society 6.1 A Good Society 6.2 Three Partners 6.2.1 Community and Society 6.2.2 State and Society 6.2.3 Markets and Society 6.3 Sustainability of a Good Society 6.4 Conclusion Suggested Questions Bibliography Unit II: Domain of Politics and Ethics Chapter 7: Democracy 7.1 Introduction 7.2 Why Good Governance? 7.2.1 Evolution of Democracy 7.2.2 Forms of Governance 7.3 Democracy – Its Varieties and Processes 7.3.1 Varieties 7.4 Democratic Process 7.4.1 Implications for the Corporation 7.5 A Corporation as a Democratic Body 7.6 Democracy – Beyond the State Level 7.7 Conclusion Suggested Questions Bibliography Chapter 8: Welfare State 8.1 Interpretations of Welfare State 8.2 Origins 8.2.1 The Development of Welfare States 8.3 Arguments For and Against the Welfare State 8.3.1 Arguments in Favour 8.3.2 Arguments Against 8.4 Criticism 8.5 The Welfare State and Social Expenditure 8.6 Conclusion Suggested Questions Bibliography Chapter 9: Markets and Globalisation 9.1 Introduction 9.2 Market Economy 9.3 What Is Market Failure? 9.4 Social Controls 9.5 The Decline of the Welfare State and Growth of Multinationals 9.6 Implication of Globalisation 9.6.1 Globalisation 9.6.2 Economic Globalisation 9.6.3 Globalisation, Market and Inequality 9.6.4 Globalisation and Corruption 9.7 Global Corporate Responsibility 9.8 Conclusion Suggested Questions Bibliography Unit III: Business Ethics and Moral Reasoning Chapter 10: Business Ethics 10.1 Nature of The Study of Business Ethics 10.2 Levels of Business Ethics 10.3 Evolution of Business Ethics 10.3.1 Decline in the Role of the State 10.3.2 Impact of Consumer Movements 10.3.3 Evolution of Common Standards 10.3.4 Adverse Impact of Multi-national Corporations 10.3.5 Threat of Legal Action 10.4 Ethical Issues and Approaches 10.5 Business Ethics and Philosophy of Business 10.6 Business and Society 10.6.1 Nature of Business 10.6.2 Role of Business in Relation to Other Entities 10.6.3 Moral Obligation of Business 10.7 Paradigm Shift 10.7.1 Implications of Shifts in Paradigm 10.8 Business Ethics and Corporate Responsibility 10.9 Conclusion Suggested Questions Bibliography Chapter 11: Theories of Moral Reasoning 11.1 Introduction 11.2 Moral Theory 11.2.1 Two Approaches to Moral Reasoning 11.2.2 Definition of Consequentialism or Teleology 11.2.3 Definition of Deontology 11.3 Moral Reasoning and Business Ethics 11.4 Conclusion Suggested Questions Bibliography Chapter 12: Business Ethics Issues and New Developments 12.1 Overview of Business Ethics 12.2 Business Ethics and Society 12.3 Business Ethics in Management 12.3.1 Business Ethics and Accounting 12.3.2 Ethics of Human Resource Management 12.3.3 Ethics of Sales and Marketing 12.3.4 Ethics of Production 12.3.5 Ethics of Intellectual Property, Knowledge and Skills 12.3.6 International Business Ethics 12.3.7 Issues and Subfields Include 12.4 New Developments in Ethical Theories 12.4.1 Feminist Theory 12.4.2 Stakeholder Theory 12.4.3 Criticism 12.4.4 Social Contract Theory 12.5 Conclusion Suggested Questions Bibliography Chapter 13: Ethics in Management 13.1 Introduction 13.2 Institutionalising Ethical Climate 13.2.1 Importance of Ethical Climate 13.3 Ethical Models of Morality 13.3.1 Immoral Managers 13.3.2 Moral Managers 13.3.3 Amoral Managers 13.4 Ethical Decision Making 13.4.1 Importance of Ethical Decision Making 13.4.2 Principles of Ethical Decision Making 13.5 Conclusion Suggested Questions Bibliography Unit IV: Politics and Ethics in Business Chapter 14: Corporate Code of Ethics 14.1 Introduction 14.2 Types of Codes of Ethics 14.2.1 General Codes 14.2.2 Specific Codes 14.3 Nature of Codes of Ethics 14.3.1 Social Norms 14.3.2 Voluntary Codes 14.3.3 Mandatory Codes 14.4 CSR Principles, Processes and Code of Ethics 14.5 Steps for Institutionalising Ethical Norms and Behaviour 14.5.1 Written Codes, Policies or Guidelines 14.5.2 Ethical Committees 14.5.3 Dissemination of Policies to Stakeholders, not Just Management 14.5.4 Reinforcement 14.5.5 Training 14.5.6 Grievance Mechanism 14.5.7 Monitoring 14.6 Social Code for Business by Confederation of Indian Industry and United Nations Development Programme 14.7 Conclusions: Living Ethical Norms Suggested Questions Bibliography Chapter 15: Responsibility and Accountability 15.1 Introduction 15.2 Basic Framework 15.2.1 Responsibility 15.2.2 Accountability 15.2.3 Governance 15.3 Corporate Responsibility 15.3.1 Good Governance 15.3.2 Corporate Social Responsibility (CSR) 15.3.3 Environmental Accountability 15.4 Integrated Approach Suggested Questions Bibliography Chapter 16: Environment 16.1 Introduction 16.2 Business and Environmental Problems 16.3 Environmental Degradation 16.3.1 Pollution 16.3.2 Acid Rain 16.3.3 Global Warming 16.3.4 Rainforest Depletion 16.3.5 Hazardous Waste 16.3.6 Ozone Layer Depletion 16.4 Responsibility of Humans Towards Environmental Harms 16.5 Responsibilities to the Natural World 16.6 Business Ethics in the Age of Sustainable Economics 16.7 Operationalising Environmental Accountability 16.8 Corporate Environmental Accounting 16.9 Rationale for Environmental Accounting 16.10 Different Environmental Accounting Disciplines 16.11 Global Environmental Accounting 16.12 EMA 16.13 Environmental Financial Accounting 16.14 Environmental Audit 16.14.1 Data Collection 16.14.2 Compliance 16.14.3 Documentation 16.14.4 Periodic Audits 16.15 International Environmental Standards – ISO 14000 16.15.1 Benefits of International Certification 16.16 Corporate Sustainability Reporting 16.16.1 Frameworks and Guidance 16.16.2 Trends and Drivers Chapter 17: Leadership 17.1 Meaning 17.2 Qualities and Attributes of Leaders 17.3 Leadership and Morality 17.4 Leadership and Responsibility 17.5 Conclusion – Leadership Challenges Suggested Questions Bibliography Chapter 18: Workforce Diversity 18.1 Workforce Diversity 18.2 Forms of Diversity 18.3 Diversity and Competitive Advantages 18.4 Diversity and Competitive Disadvantages 18.5 Managing Diversity Through Training 18.5.1 Need Assessment for Diversity Training 18.5.2 Adaptation of Diversity 18.5.3 Training in Diversity 18.6 Challenges 18.7 Conclusions Suggested Questions Bibliography Unit V: Corporate Social Responsibility: An Overview Chapter 19: Corporate Philanthropy 19.1 Introduction 19.2 Meaning and Background 19.3 Key Developments 19.3.1 Global Philanthropy 19.3.2 Strategic Philanthropy 19.4 Philanthropy and Others 19.4.1 Philanthropy and CSR 19.4.2 Philanthropy and Sponsorship 19.5 Corporate Philanthropy 19.5.1 Philanthropy as Foundation of CSR in India 19.5.2 Corporate Philanthropy in India 19.6 Conclusion Suggested Questions Bibliography Chapter 20: Corporate Social Responsibility 20.1 Introduction 20.2 Meaning 20.3 Basic Concepts 20.3.1 Marketplace 20.3.2 Environment 20.3.3 Workplace 20.3.4 Community 20.4 CSR—Interdisciplinary Subject 20.4.1 Responsible Company — Triple Bottom Line Concept 20.5 History 20.5.1 Phases in the Development of Social Responsibility Agenda 20.6 CSR Tools 20.6.1 CSR Principles 20.7 Ten Principles of UN Global Compact 20.7.1 Specific Principles 20.7.2 Management Systems and Standards 20.7.3 Measurement, Reporting and Benchmarking 20.8 Conclusion – The Way Ahead Suggested Questions Bibliography Chapter 21: Corporate Social Responsibility —Models 21.1 Introduction 21.2 Ethical Model 21.3 Statist Model 21.4 Liberal Model 21.5 Stakeholder Model 21.5.1 Customers 21.5.2 Employees 21.5.3 Shareholders and Investors 21.5.4 Environment 21.5.5 Suppliers 21.5.6 Government 21.6 Conclusion Suggested Questions Bibliography Chapter 22: Corporate Social Responsibility Agenda—Concerns and Issues 22.1 Introduction 22.2 Global CSR Policies and Practices 22.2.1 Dissemination of Information on CSR and Reporting 22.2.2 Cooperation Among Companies, Government and Competitors on Core CSR Issues 22.3 CSR Concerns and Issues in India 22.3.1 Background 22.3.2 Socially Responsible Companies in India 22.4 CSR and the Role of Confederation of Indian Industry (CII) 22.4.1 Areas of Focus 22.4.2 Solution Delivery Center (SDC) Partners 22.4.3 Adoption and Operationalisation of IPF Social Code 22.4.4 Mainstreaming Social Concerns in Business Education 22.4.5 The Role of FICCI in Promoting CSR 22.5 The Role of Various Industries in Promoting CSR 22.5.1 IT and ITES Companies 22.5.2 ITC 22.5.3 Tata Group 22.5.4 Nano Car 22.5.5 Tata Energy Research Institute (TERI) 22.5.6 AV Birla Group 22.5.7 Infosys 22.6 Few Unresolved Issues 22.6.1 Harmonization of Distinctive National CSR Agenda 22.6.2 Standardisation of CSR Agenda 22.7 Evaluation of CSR 22.8 Recent Developments and the Way Forward 22.9 Conclusion Suggested Questions Bibliography Chapter 23: Corporate Social Responsibility: Case For and Against 23.1 Introduction 23.2 Case For 23.2.1 Being Socially Responsible Makes Good Business Sense 23.2.2 Increased Consumer and Societal Expectations from Business 23.2.3 Part of Society 23.3 Case Against 23.3.1 Increased Costs and Prices 23.3.2 Lack of Skills to Deal With Social Issues 23.3.3 Not the Responsibility of Business 23.4 CSR Expectations in India Suggested Questions Bibliography Chapter 24: Strategic Planning and CSR 24.1 CSR Strategy 24.2 CSR Strategic Framework 24.3 CSR Strategic Framework – Implementation 24.3.1 Jubilant Organosys: Vision and Strategy for Sustainability 24.4 Conclusion Suggested Questions Bibliography Unit VI: Issues of Corruption and Unethical Practices Chapter 25: Corporate Scandals 25.1 Introduction 25.2 Meaning 25.3 Analysis 25.4 Forms of Corruption 25.4.1 Individual and Systemic Corruption 25.5 Impact of Corruption 25.5.1 Direct Impact 25.5.2 Indirect Impact 25.6 Cases of Corruption 25.6.1 Enron 25.6.2 Arthur Andersen 25.6.3 Worldcom 25.6.4 The Stamp Paper Scam 25.6.5 The Bhopal Gas Tragedy 25.7 Combating Corporate Frauds 25.8 Conclusion Suggested Questions Bibliography Chapter 26: Whistle-Blowing 26.1 Introduction 26.2 Definition and Meaning of the Term ‘Whistle-Blowing’ 26.3 Types of Whistle-Blowing 26.3.1 Internal Whistle-Blowing 26.3.2 External Whistle-Blowing 26.4 The Theory of Whistle-Blowing 26.5 Cases of Whistle-Blowing 26.5.1 Daniel Ellsberg and the Pentagon Papers 26.5.2 Frank Serpico 26.5.3 Sherron Watkins 26.5.4 Coleen Rowley 26.5.5 W. Mark Felt 26.5.6 Satyendra Dubey 26.5.7 Shanmugham Manjunath 26.6 Protecting Whistle-Blowers 26.7 Conclusion Suggested Questions Bibliography Chapter 27: Insider Trading 27.1 Introduction 27.2 Insider Trading Defined 27.3 The Insider Trading Debate 27.3.1 Insider Trading and Moral Reasoning 27.3.2 Economic Dimension 27.4 The Present Status of Insider Trading 27.4.1 Test of Insider Trading 27.5 Penalties for Insider Trading 27.6 Conclusion Suggested Questions Bibliography Chapter 28: Employment Discrimination 28.1 Introduction 28.2 Concept of Discrimination 28.3 Forms of Discrimination 28.3.1 Individual or Isolated Discrimination 28.3.2 Institutional Discriminations 28.4 Discriminatory Practices at Workplace 28.4.1 Recruitment Practices 28.4.2 Screening Practices 28.4.3 Condition of Employment 28.4.4 Discharge 28.4.5 Promotion Practices 28.5 Affirmative Actions 28.5.1 Arguments Against Affirmative Action Programmes 28.5.2 Arguments for Affirmative Actions 28.6 Utilitarian Viewpoint 28.6.1 Arguments in Favour of Affirmative Actions 28.6.2 Arguments Against Affirmative Actions 28.7 Conclusion Suggested Questions Bibliography Chapter 29: Ethical Issues in Advertising 29.1 Introduction 29.2 Advertising – Meaning 29.3 Unethical Aspects of Advertising 29.4 Advertising Message or ‘Contents’ 29.4.1 Deceptive Message 29.4.2 Misrepresentation or Omission 29.4.3 Exaggerated Claims 29.4.4 Puffery 29.4.5 Concealment of Information 29.4.6 Psychological Appeals 29.4.7 Advertisements Directed at Children 29.4.8 Creating Stereotypes 29.4.9 Use of Sex Appeals 29.4.10 Bait Advertising 29.5 Quantum of Advertising 29.6 Inappropriate Advertising 29.7 Undesirable Influences 29.7.1 For Consumers 29.7.2 For Media 29.8 Conclusion Suggested Questions Bibliography Chapter 30: Consumer Rights 30.1 Who is a Consumer? 30.2 Rights of Consumers 30.3 Consumer Rights in India 30.3.1 Right to Safety 30.3.2 Right to Information 30.3.3 Right to Choose 30.3.4 Right to be Heard 30.3.5 Right to Consumer Education 30.3.6 Right to Redressal 30.4 Responsibilities of Consumers 30.5 Conclusion Suggested Questions Bibliography Index