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Ques 1 “There are several approaches to business ethics which are new, though these theories are not
commonly referred to in business ethics but they offer exci ng perspec ves in the context of ethical
decision-making from a managerial perspec ve.” In light of the above statement discuss some of the
contemporary approaches to business ethics.

Ans Contemporary approaches to business ethics provide new perspec ves on ethical decision-making
that are not always reflected in tradi onal business ethics. These approaches emphasize the
complexity of real-world ethical dilemmas and offer fresh insights for managers. Three notable
contemporary ethical frameworks are Feminist Ethics, Discourse Ethics, and Postmodern Ethics.

1. Feminist Ethics challenges tradi onal ethical theories, which o en reflect male-dominated
perspec ves. It advocates for an “ethics of care,” focusing on empathy, rela onships, and avoiding
harm. In business, it stresses gender equality, calling for a work environment where male and female
employees are treated equally, free from biases or stereotypes that arise from patriarchal views.
Feminist ethics highlights the importance of care and collabora on in organiza onal func oning.

2. Discourse Ethics promotes ethical decision-making through ra onal reflec on and dialogue among
all stakeholders. Unlike fixed norms in tradi onal theories, discourse ethics encourages stakeholders
to generate norms collabora vely, ensuring that all perspec ves are considered. This approach is
dynamic, adap ng ethical standards to specific situa ons. It emphasizes the importance of social
responsibility and engagement with external stakeholders like consumer groups and regulatory
agencies.

3. Postmodern Ethics rejects grand narra ves and argues that morality is subjec ve and contextual. It
emphasizes individual moral impulses, urging managers to act according to their personal convic ons
while considering the complexi es of local contexts. For example, prac ces like gi -giving, considered
unethical in some cultures, may be acceptable in others, such as in China’s business environment.

These contemporary approaches offer valuable tools for managers to navigate complex ethical
challenges in today’s diverse and dynamic business world.

Ques 2 Elaborate on different approaches of business strategy for Corporate Social Responsibility
(CSR).

Ans Corporate Social Responsibility (CSR) has evolved beyond just being a philanthropic ac vity to a
strategic business approach that aligns with long-term organiza onal goals. Various approaches to CSR
allow businesses to integrate social and environmental concerns with their core objec ves, crea ng
both social and financial value.

1. Cost and Risk Reduc on: This approach focuses on minimizing the risks and costs associated with
CSR ac vi es. The trade-off hypothesis suggests that firms need to balance fiduciary du es with social
responsibility, arguing that CSR can reduce profitability. In contrast, the slack-resources theory posits
that when firms have surplus resources, they can invest in CSR without harming their bo om line.
Enlightened value maximiza on stresses long-term value crea on by aligning stakeholder interests,
helping to mi gate poten al business risks.

2. Gaining Compe ve Advantage: CSR can provide a compe ve edge by leveraging social ini a ves
to improve a company's standing in the market. For instance, inves ng in local educa on or health can
strengthen the workforce and enhance produc vity. Companies like Cisco Systems have used context-
based philanthropy to address social issues while improving their business outcomes, demonstra ng
that addressing social concerns can lead to long-term business gains.
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3. Reputa on and Legi macy: A company's reputa on can be significantly enhanced through CSR,
earning a "license to operate" from stakeholders. A good reputa on fosters trust, mi gates opposi on,
and provides legi macy, which is par cularly important in industries like mining where community
rela ons can impact opera ons.

4. Synergis c Value Crea on: This approach emphasizes crea ng value through collabora on with
various stakeholders, integra ng business, environmental, and societal goals. The concept of Triple
Bo om Line (People, Planet, Profit) demonstrates how organiza ons can generate synergies across
these domains to create sustainable value.

These CSR strategies, while dis nct, collec vely contribute to a firm's long-term success by aligning
ethical business prac ces with financial performance, ensuring that companies not only profit but also
contribute posi vely to society.

Ques 3 Nowadays lots of companies are focusing on Corporate Social Responsibility (CSR) ini a ves.
Discuss some of the ini a ves of few Indian companies.

Ans Several Indian companies have undertaken impac ul Corporate Social Responsibility (CSR)
ini a ves to contribute to social and environmental well-being.

1. Tata Chemicals Ltd.: Through the Tata Chemicals Society for Rural Development (TCSRD), established
in 1980, the company focuses on sustainable community development, with a significant por on of
funds directed towards wildlife conserva on in areas where it operates, such as Gujarat, West Bengal,
and U ar Pradesh.

2. Infosys Ltd.: The Infosys Founda on, created in 1996, spearheads ini a ves like the Aarohan Social
Innova on Awards and water body restora on projects in Karnataka. The Founda on also supports
sports development through the GoSports Founda on and disaster relief efforts in southern India.

3. Bharat Petroleum Corpora on Ltd. (BPCL): BPCL’s CSR ac vi es focus on educa on, technology, and
sanita on. They ac vely par cipate in the Swachh Bharat Abhiyan, focusing on toilet construc on and
waste management to improve community health and hygiene.

4. Mahindra & Mahindra Ltd.: Mahindra supports the Nanhi Kali program for girls’ educa on and
sponsors the Lifeline Express, a hospital on wheels. It also plants trees through the Mahindra Hariyali
ini a ve to enhance green cover.

5. Vedanta Ltd.: Vedanta’s Nandghar project aims to rebuild Anganwadis for children's health and
educa on while empowering women through skills training.

These ini a ves demonstrate how Indian companies are aligning their business strategies with social
responsibility to foster long-term sustainability.

Ques 4 Discuss the policy guidelines regarding Quantum of Corporate Social Responsibility (CSR)
spending and transfer of the unspent amount in a par cular year.

Ans The policy guidelines for Corporate Social Responsibility (CSR) spending in India are set out under
the Companies Act, 2013. Companies falling under CSR provisions are mandated to spend at least 2%
of their average net profits from the preceding three financial years on CSR ac vi es. If the company
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has not completed three years of opera on, the average net profit is calculated based on the years it
has been in opera on. The net profit calcula on excludes certain adjustments, such as capital receipts,
income tax, and losses carried forward, and uses Profit Before Tax (PBT) as specified under Sec on 198
of the Act.

In the event that a company does not spend the required CSR amount, it must disclose the reasons for
the shor all in the Board’s annual report. If the unspent funds are not ed to an "ongoing project,"
the company must transfer the unspent amount to a specified government fund within six months of
the financial year’s closure. Such funds include the Prime Minister’s Na onal Relief Fund and others
related to socio-economic welfare and development.

For "ongoing projects," the company must transfer the unspent CSR amount to a separate "Unspent
CSR Account" within 30 days of the financial year’s end. These funds must be u lized within three
years, a er which any unspent amount should be transferred to a specified fund. The 2021
amendment also allows companies to carry forward excess CSR spending to offset future obliga ons.

Ques 5 Write short notes on the following:

 Social Audit:
A social audit is a systema c process of assessing and repor ng the social impact of a
company's ac vi es. It involves evalua ng corporate social programs, iden fying socially
relevant ac vi es, and quan fying their social costs and benefits. While a social audit
measures what an organiza on is doing in social areas, it does not directly assess the outcomes
or the "social good" generated. The audit typically covers areas such as environmental impact,
consumerism, and social opportuni es for marginalized groups. In India, TISCO pioneered
social audits by se ng up a commi ee to assess its social responsibili es and commitments
to stakeholders.

 Corporate Ci zenship and Business:

Corporate ci zenship refers to the role of a company as a responsible member of society, going
beyond legal compliance to ac vely contribute to community well-being. It involves building
strong, ethical rela onships with stakeholders and addressing social expecta ons through
financial and non-monetary contribu ons. Companies prac cing good corporate ci zenship
focus on improving the living standards of the communi es they operate in. Abbo
Laboratories, for example, demonstrates corporate ci zenship by inves ng in healthcare
research, providing quality medical care, suppor ng disaster relief, and prac cing
environmental sustainability. The company also collaborates with governments to strengthen
healthcare systems, as seen in its partnership with Tanzania to improve the na on's medical
infrastructure.

 Ethical Dilemmas:
Ethical dilemmas arise when individuals or managers must choose between conflic ng moral
principles, where each op on has poten al ethical consequences. Such decisions o en involve
weighing "other-regarding" ac ons, considering the impact on stakeholders, and recognizing
mul ple choices. A key challenge is the percep on of ac ons by others, which requires
sensi vity to both individual and situa onal factors. For example, in workplace romance,
ethical issues of conflict of interest and fairness may clash with personal liber es. Ethical
decision-making models, like Jones' four-stage process, help individuals recognize moral
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issues, make judgments, and act in alignment with ethical principles, though naviga ng these
dilemmas can be complex and subjec ve.

 CSR and sustainable development:

Corporate Social Responsibility (CSR) is a dynamic concept focused on business contribu ons
to sustainable development. CSR integrates ethical, social, and environmental prac ces into
corporate strategies to enhance community well-being, improve workforce condi ons, and
support environmental sustainability. The World Business Council for Sustainable
Development defines CSR as a commitment to ethical behavior that contributes to economic
development while improving quality of life. CSR prac ces address issues such as labor rights,
community development, environmental protec on, and business ethics. Companies that
adopt CSR benefit from improved credibility, stronger stakeholder rela onships, and enhanced
profitability. By incorpora ng sustainability into their core opera ons, businesses align with
global Sustainable Development Goals (SDGs), embedding sustainability through strategic,
opera onal, and organiza onal integra on. The Triple Bo om Line (TBL) approach emphasizes
economic, social, and environmental performance, guiding businesses to balance growth with
responsibility. CSR's evolu on reflects a shi from philanthropy to long-term, integrated
sustainable prac ces that foster accountability and posi ve societal impact.