DIAGNOSTICS

MODEL OF
SOCIAL
RESPONSIVENE
SS AND MODEL
OF
 PRESENTED BY
 Ashwini prasad R
 Anitha T.G
 Aysha siddiqa
 Asha k
 Bhagath yadav
 Bharath
 INTRODUCTION TO ETHICS :-
The word ethics is derived from the Greek word Ethikos and root
word in Ethos which means character or custom or habits or
immoral nature for guiding believes of a person, group or
institution.
It is a branch of social science
It deals with moral principles and social values
It helps us to classify what is good and what is bad?
It tells us to do good things and avoid doing bad things
So ethics separate good and bad, right & wrong, fair & unfair,
moral and immoral and
proper & improper human action. In short. Ethics means code of
conduct.
MEANING AND DEFINITION OF ETHICS :-
Meaning:
Business ethics is a written and unwritten code of principles and
values that govern decisions and actions within a business.
Definition:
“ Business ethics is the study of business situation, activities and
decisions where issues of right and wrong are addressed.”
- Andrew crane
 MODELS OF ETHICS :-
Models of Ethics
There are many ethical models used in business three primary ethical
models in
business that have been identified by ethical researchers are
• Utilitarianism model
• Rights and duties model or justice model
• Virtue ethics model
Utilitarianism Model :
Under the utilitarianism ethical model a company should make decisions
only after considering all possible consequences for the decisions.
Utilitarianism is a type of consequentialism, a philosophy that holds that an
action’s morality is determined by its consequences.
When utilitarianism is applied to a business decision there are no absolute
right or wrong choices rather, the right decision is the decision that leads to
The most benefit and the least determinant.
Rights and duties model:
The rights and duties ethical model rests on the concept that individual people
and
groups have rights and that the company has the duty to respect these rights.
For example:
When developing a parental level policy a company must determined that all
new parents have the right to spend a sufficient amount of times with their
newborn.
The company recognizing its duty to respect and protect this right determine
an appropriate amount of paid leave time to offer new parents.
Virtue ethics model or justice:
Under this ethical model business behavior driven by asking what would a
virtuous company or person do? When asking whether a virtuous company
would
make a certain choice. The individual in charge of the decision is really asking, if
the choice can reasonably be desired with a virtuous adjectives like
• Kind
• Helpful
• Reasonable
• Progressive
• Fare
Use of ethical model in business:
Ethics are not usually set in stone. Generally companies
benefit from taking a dynamic approach in applying there
ethics and applying ethical models in business. This can mean
regularly revisiting their ethical codes to determine, where
updates are needed and how they can stick to their ethics
social, technological and industrial changes.
A manager facing a decision, to potentially terminate an
employee because of his personal social media posts. The
manger might apply the virtue ethics model, by working out
whether terminating the employee is fair, responsible or
compassionate. This can be a difficult decision as firing the
employee likely would not be compassionate to him, but it
could be the fare, responsible choice for the company as a
whole.
The manager in this scenario may rely on another ethical
framework such as utilitarian to help himself to make his final
choice.
Diagnostic model of corporate social responsiveness
Corporate social responsiveness:
▪ Social responsiveness refers to a company's strategy to respond to
stakeholders economic, legal, ethical and discretionary expectations
concerning social responsibility.
▪ The concept of social responsiveness can be broadly described a
person's
obligation to contribute to the welfare of others or it can be applied in
more
specific.
▪ It is the process, identify how organizations and their stakeholders
dynamically
interact and care for environment. Responsiveness can be created
through
public expectation of corporate responsibilities
▪ A diagnostic model that can serve as a general framework for
managers to use
in looking at an enterprise’s long-term social responsiveness.
▪ The model shows the various kinds of factors that can have an
impact on the
enterprises capacity to respond and on the way it responds.
▪ Current capacity to respond is the extent to which an enterprise
can respond
to major challenges in its environment including changing social
issues.
▪ This capacity to respond results from a tension between two sets
of forces
those for change and those for stability.
Two major issues are
❖ An enterprises current capacity to respond
❖ The social responsiveness of its actions over the long term
▪ Proactive response can be termed as voluntary efforts to respond in a positive way
to social changes facing an enterprise.
▪ Reactive responses on the contrary are involuntary and negative responses, that
deal with basic and economic, legal requirements associated with such challenges.
▪ Managerial ethics is a major factor affecting how socially responsive and enterprise
will be in the long-term. Managers ethical standards in the enterprise determine the
type of response it will make as it reacts to the tension between the force for change
and stability.
▪ Positive feedback serves to reinforce and established a tendency towards social
responsiveness firmly with and enterprises mode of functioning, an action chosen
was correct and effective.
▪ Negative feedback tends to cause an enterprise to limit or withdrawal for the effort
at social responsiveness.
Hence Ethics effect and enterprises action through the decisions that its manager
make. Managers have to make a critical choices, with, to choose proactive and
reactive options to cope up with the desirable and expected or simply that which is required by the law or
some regulatory agencies.