Business studies

• Business social responsibility


  The continuous commitment by the business to act ethically and contribute to the economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large
• Definitions of business social responsibility


  • World business council for sustainable development
  • Mallen Baker
  • Narayan Moorthy
  • USA
  • The Philippines
• Corporate social responsibility


  • To perform business activities in an unbiased way to all the stakeholders, business taking personal responsibility for their actions and the impact on the society, in a way conducting all the business activities that can create an overall positive impact to the society
• Reasons for fulfilling social responsibilities


  • Business competition
  • Globalization
  • Electronic business
  • Environmental pollution
• Benefits of fulfilling social responsibilities


  • Enhanced brand image
  • Increased employee engagement
  • Improved financial performance
  • Reduced costs
  • Improved relationships with stakeholders
• Parties to whom businesses have social responsibilities


  • Customers
  • Employees
  • Owners/Investors
  • Society & environment
• Social responsibilities towards customers


  • Being fair
  • Avoiding fraud and malpractices
  • Minimizing damages
  • Providing quality goods
  • Selling products at reasonable price
  • Ensuring consumer safety
• Social responsibilities towards employees


  • Developing employee behaviors
  • Practicing recruitment, training & promoting employees
  • Equality
  • Maintain good employee relationship
  • Job security
  • Assuring health & safety
  • Ensuring friendly working environment
  • Protecting employee rights
• Social responsibilities towards owners/investors


  • Providing security for the investment
  • Providing fair earning/ return on investment
  • Following efficient and just management
  • Maintain trust between investors and business
  • Providing good will
  • Maximizing shareholder value
• Social responsibilities towards society & environment


  • Contributing to the employment
  • Following waste management
  • Competing fairly & honestly
  • Paying taxes without failures
  • Following community welfare services
  • Providing green products
  • Caring out business activities in a eco-friendly manner
  • Following peace & harmony is the society
• Disadvantages/consequences of CSR


  • Increased costs
  • Negative public perception
  • Increased regulation
  • Potential conflicts with stakeholders
  • Lack of clear ROI
• Sustainable development


  Development which meets the needs of the present, without compromising the ability of future generations to meet their own needs
• Pillars of sustainable development


  • Economic sustainable development
  • Environment sustainable protection
  • Social sustainable development
• Economic sustainable development


  • Improving human welfare by enhancing the quality of life, and reducing the consumption of resources
  • Empowering people to have a better standard of living while earning wealth in engaging in economic activities and providing the present and future generations with prosperity and protection by confirming a high standard of life style and eradication of poverty of the people world wide
  • Reaching an economic sustainable development by producing eco friendly products that are affordable
• Environmental sustainable protection


  • Satisfying the basic human needs such as air, water, food and shelter through environment sustainable protection by the quality presence, maintenance and protection of the basic human needs
  • Protecting the global environment and for the future generations while considering on how to do effective changes without destroying the natural environment
  • Consuming resources, which cannot be replaced, at a lower speed rather than the speed they take to replace themselves naturally
• Social sustainable development


  • Ensuring a sustainable future by satisfying the needs and wants of people equally/fairly
  • Empowering people to have a better standard of living while earning wealth in engaging in economic activities and providing the present and future generations with prosperity and protection by confirming a high standard of life style and eradication of poverty of the people world wide
• Sustainable environment protection


  Human activities for the protection of global environment and for the future generations are expected while considering on how to do effective changes without destroying the natural environment
• Adverse effects that have risen such as global warming, destruction of forestry, excessive fishing in oceans should be focused on
• Sustainable environment


  Consuming resources, which cannot be replaced, at a lower speed rather than the speed they take to replace themselves naturally
• Social sustainable development


  Ensuring needs and wants of people are satisfied equally/fairly without corruption or violation of others' rights
• Aspects of social sustainable development


  • Equality
  • Social capital
  • Social integrity
  • Commitment of community
  • Development of human rights
  • Social responsibility
  • Social justice
• Social sustainable development aims to satisfy human needs while not violating the needs of future generations
• Contribution of businesses for economic sustainability


  • Economic development and stability
  • Efficiency (Use of resources)
  • Competition
  • Production and consumption
  • Employment
  • International trade
• Steps a business can take to ensure economic sustainability


  1. Job designing

  2. Empowering skills

  3. Efficient use of resources

  4. Efficient usage of capital

  5. Risk management

  6. Empower economic development

  7. Growth in benefits of stakeholders

  8. Reinvestment for national economic growth

  9. Introducing innovation

  10. Developing technology

  11. Contributing to the development of business infrastructure

  12. Employee welfare

  13. Improving exchange and transaction process

  14. Encouraging production process
• Contribution of businesses for environment sustainability


  • Consumption of resources
  • Raw materials and waste management
  • Risk management
  • Protection of natural and cultural heritages
• Activities a business can do to ensure environment sustainability


  1. Buying eco friendly products

  2. Engage in activities by retaining resources such as raw material, energy, water in the production process

  3. Putting into practice concepts such as 3R, 4R, 5R in waste management

  4. Use of eco friendly transport modes

  5. Use of dangerous substances in a safe manner

  6. Minimizing the pollution of water, air and soil

  7. Taking action to protect bio diversity

  8. Acting in accordance with environment rules and regulations

  9. Working together with government and non-government firms for environment protection/eco friendly activities

  10. Usage of eco friendly powers such as solar power
• Contribution of businesses for social and cultural sustainability


  • Enhance the standard of living of people
  • Provide equal opportunities to people
  • Create social integrity
  • Encourage international participation
  • Maintain human capital
  • Protect local traditions and customs
  • Protect cultural environment
  • Take action to minimise poverty (people in need)
  • Employee relationships
• Steps a business can take to ensure social and cultural sustainability


  1. Respect for human diversity

  2. Contribute to the protection of human rights

  3. Act with equity and provide equal opportunities

  4. Contribute to the essential facilities such as education, health and transportation

  5. Contribute to the social assurance activities

  6. Contribute to respect and protect cultural diversity

  7. Contribute to protect law and peace
• 4R concept for sustainable development


  • Recycle
  • Reuse
  • Reduce
  • Replace
• Recycle


  Waste is separated here to form a material to produce another product. The physical state of substance is changed.
• Recycling outcomes


  • Materials with lower value are transformed into products, with higher value (upcycle)
  • Products with higher value is transformed into materials with lower value (low cycle)
• Reuse


  Using products that can be used over and over in production and consumption activities
• Reduce


  Reduction of waste that is released to the environment by reducing the discarding amount used at consumption or production
• Replace


  Replacement of resources that are replaceable among the natural resources that are used in production
• Adverse effects of business activities


  • Import low quality products expecting more profits
  • Mislead customers at high competition
  • Unbiased employee welfare
  • Conducts business activities by wasting natural resources
  • Release waste and pollute environment
  • Create advertisements that don't suit our society and culture
  • Designing cloth which will not suit our society and culture
• Business ethics


  The methodology used to examines the issues regarding ethical principles and problems of malpractices in the business environment
• Ethics


  One's understanding of good and bad, or doing what is good and abstaining from what is bad
• Business ethics


  Running a business in a manner that is beneficial to oneself, to the employees, to other related parties and society in general, with an awareness of what is good and what is bad
• Importance of business ethics


  • Supplying quality goods and services, fairness can be fulfilled, thereby increasing their trust on business
  • Avoid malpractices such as misappropriation of funds, foreign exchange frauds, share market funds in finance and accounting
  • Employer-employee relationships free of disputes in HRM
  • Avoid market related malpractices or improper behaviours that degrade business values in marketing
  • Ensure that the production process and the resultant products are not harmful
• Social responsibility


  An obligation that business have towards society, which goes beyond the profit motive