Assignment on: Code of Ethics and Social Audit

Course Title: The Business Ethics & Corporate Social Responsibility

Course Code: BBA3109

Submitted To

Dr. S M Mahbubur Rahman

Associate professor

Department of Business Administration

Noakhali Science & Technology University

Submitted By

Md. Sabbir Hossen

ID: ASH1810047M

Session:2017-18 Year-3, Term-1

Department of Business Administration

Noakhali Science & Technology University

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Contents
Question-1: What is the purpose of morality and social audit? Differentiate between social obligation
and Corporate Social Responsibility............................................................................................................3
Definition of audit:...............................................................................................................................3
Purpose of Morality:............................................................................................................................3
Purpose of social audit:.......................................................................................................................4
Question-2: Some management experts assert that ethics codes are of little value in organization
because a manager ethics are mostly a product of his individual values, not a written codes developed
by top management. Do you agree? In your opinion, are there limits to a code’s effectiveness in
organization? Explain..................................................................................................................................6
Code of ethics:.....................................................................................................................................6
Written code ethics:............................................................................................................................6
Question-3: what ethical codes would recommend for your university, your family, your class? How
should these code enforced?....................................................................................................................10
Ethical codes would recommend for my university:..........................................................................10
Ethical codes would recommend for my class:..................................................................................11
Question -4: What is your opinion of the value of industry code of ethics? Do you think that code of
ethics developed by industrial firms would be more or less effective than those promulgated by
association such as Business Ethics Advisory Council? Explain..................................................................12
Reference:.................................................................................................................................................15

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Question-1: What is the purpose of morality and social audit?
Differentiate between social obligation and Corporate Social
Responsibility.

Definition of audit:

Audit is the examination or inspection of various books of accounts by an auditor followed by

physical checking of inventory to make sure that all departments are following documented
system of recording transactions. It is done to ascertain the accuracy of financial statements
provided by the organization.

Purpose of Morality:

Morality is the human attempt to define what is right and wrong about our actions and thoughts,
and what is good and bad about our being that we are. It might take it to refer to the most
important code of conduct put forward by a society and accepted by the members of that society.
But the existence of large and heterogeneous societies raises conceptual problems for such a
descriptive definition, since there may not be any such society-wide code that is regarded as most
important. As a result, a definition might be offered in which “morality” refers to the most
important code of conduct put forward and accepted by any group, or even by an individual.

The morality is constituted five core purposes

● To keep society from falling apart

● To ameliorate human suffering

● To promote human flourishing

● To resolve conflict of interest justly and orderly;

● To assign praise, blame, reward, punishment and guilt.

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Purpose of social audit:

A social audit is a way of measuring, understanding, reporting and ultimately improving an

organization’s social and ethical performance. A social audit helps to narrow gaps between
vision/goal and reality, between efficiency and effectiveness. It is a technique to understand,
measure, verify, report on and to improve the social performance of the organization.

The key difference between development and social audit is that a social audit focuses on the
neglected issue of social impacts, while a development audit has a broader focus including
environment and economic issues, such as the efficiency of a project or programmed.

Objectives of social audit

● Assessing the physical and financial gaps between needs and resources available for local

development.

● Creating attentiveness among beneficiaries and providers of local social and productive

services.

● Growing efficacy and effectiveness of local development programmers’.

● Scrutiny of various policy decisions, keeping in view stakeholder interests and priorities,

particularly of rural poor.

● Estimation of the opportunity cost for stakeholders of not getting timely access to public

services.

Thus this process of Social Audit combines people's participation and monitoring with the
requirements of the audit discipline. It is necessary to promote people's participation in the audit
along with support provided by an independent social audit organization that facilitates the
process.

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Differentiate between social obligation and Corporate Social Responsibility

Social Obligation Corporate Social Responsibility:

Obligation is defined as a duty or commitment: Corporate social responsibility (CSR) is a type of

being legally or morally bound to do something. business self-regulation with the aim of being
Or; a debt of gratitude for a service or favor. socially accountable.

As individuals, we find ourselves obligated to There is no one "right" way companies can
follow society’s traditions and social etiquette. practice CSR; many corporate CSR initiatives
Gift giving, for example, is a social obligation. If strive to positively contribute to the public, the
you receive a gift from a friend on your birthday, economy or the environment.
you are expected to give a gift on that person’s
birthday.

Working towards the welfare of others by Acting & behaving in a way that will no harm
contributing to addressing existing social issues. but benefit others.

Used in general sense Used in business sense

Involves an individual or society entity Involves corporate business companies

Example- a student to turn in his homework on Example- purchasing fair trade product ,
time every day. recycling.

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Question-2: Some management experts assert that ethics codes are of
little value in organization because a manager ethics are mostly a
product of his individual values, not a written codes developed by top
management. Do you agree? In your opinion, are there limits to a code’s
effectiveness in organization? Explain.

Solution:

Before comment on the statement we first know “code of ethics” “manager code of ethics
“written code”.

Code of ethics:

Codes of ethics are adopted by organizations to assist members in understanding the difference
between right and wrong and in applying that understanding to their decisions. An ethical code
generally implies documents at three levels: codes of business ethics, codes of conduct for
employees, and codes of professional practice. Code of ethics may be written or not.

Written code ethics:

Outline the mission and values of the business or organization, how professionals are supposed
to approach problems, the ethical principles based on the organization's core values, and the
standards to which the professional is held.

Code of Ethics and Professional Conduct Sample Template:

1. Be inclusive:

This includes, but is not limited to members of any sexual orientation, gender identity and
expression, race, ethnicity, culture, national origin, social and economic class, educational level,
color, immigration status, sex, age, size, family status, political belief, religion, and mental and
physical ability.

2. Be considerate:

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We all depend on each other to produce the best work we can as a company. Your decisions will
affect clients and colleagues, and you should take those consequences into account when making
decisions.

3. Be respectful:

We won't all agree all the time, but disagreement is no excuse for disrespectful behavior. We will
all experience frustration from time to time, but we cannot allow that frustration become
personal attacks. An environment where people feel uncomfortable or threatened is not a
productive or creative one.

4. Choose your words carefully:

Always conduct yourself professionally. Be kind to others. Do not insult or put down others.
Harassment and exclusionary behavior aren't acceptable. This includes, but is not limited to:

● Threats of violence.
● Insubordination.
● Discriminatory jokes and language.
● Sharing sexually explicit or violent material via electronic devices or other means.
● Personal insults, especially those using racist or sexist terms.
● Unwelcome sexual attention.
● Advocating for, or encouraging, any of the above behavior.

5. Don't harass:

In general, if someone asks you to stop something, then stop. When we disagree, try to
understand why. Differences of opinion and disagreements are mostly unavoidable. What is
important is that we resolve disagreements and differing views constructively.

6. Make differences into strengths.

We can find strength in diversity. Different people have different perspectives on issues, and that
can be valuable for solving problems or generating new ideas. Being unable to understand why

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someone holds a viewpoint doesn’t mean that they’re wrong. Don’t forget that we all make
mistakes and blaming each other doesn’t get us anywhere.

Instead, focus on resolving issues and learning from mistakes.

I disagree with the statement because Ethics must start at the top; even if the firm implements
various formal, ethics-related mechanisms, they cannot truly influence employees' ethics if those
mechanisms do not match the ethical image at the top, in which case top management instead
could be perceived as hypocritical. Thus top management ethicality is one of the most important
determinants of company ethics and making such ethics evident to all organizational members
should strongly affect the ethical behavior of employees.

The most important strategy for enhancing ethics in business organizations entails emphasizing
the exemplary ethical conduct of top management. Ethical obligations usually are understood as
mutual or reciprocal (Schroeder, 2002), so if ethics are to invade the organization, they must start
at the top. It is essay to take legal action on this respect.

There limits to a code’s effectiveness in organization are sometimes the employees dissatisfied
on top management decision and go strike.

There are limits to a codes effectiveness in organization

Limitations of Code of Ethics:

1. Smaller profits:

A professional code of ethics restricts a business man from going after maximum profit in favor
of "what's best for the client". This may mean a businessman sales figures under perform for a
given quarter because he's only selling people what they "Need " versus what he can convince
them they need.

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2. Waste Time:

A professional code of ethics requires you to invest your time in inefficient ways.Taking the
time to establish good rapport with clients and other sales people takes time away from the
business of making money.

3. Performance and unattainable goals:

A professional code of ethics places value on treating all employees with respect as opposed to
respecting performance. Implementing a professional code of ethics may cause employee
production to slip as the focus in taken away from results and work standards and turned toward
creating a happy work environment. From the above limitations are the main limitations of
code's effectiveness ain organizations.

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Question-3: what ethical codes would recommend for your university,
your family, your class? How should these code enforced?
Solution:

Ethical codes would recommend for my university:

Students have a duty to respect the local and the entire public domain. By this is meant not to
degrade the premises, not to steal the property of the public property etc … the acts of
deterioration or deterioration made to the furniture, to the buildings are generally sanctioned by
the training for its author of the refund of restoration costs.

● Adherence to moral and ethical principles; soundness of moral character; honesty.

● Being open-minded that means a willingness to listen to other ideas and opinions and
consider the possibility that you are wrong or may change your own perspective.
● Be discipline in every step.
● Tolerance can be seen as the willingness to accept feelings, habits, or beliefs.
● Benefit on a personal level from teamwork. A team of students must actively listen to
each other, articulate ideas and use genuinely constructive criticism to be effective.
● Sense of responsibility which is able to respond for his actions, is able to take some
duties and to face certain consequences of the actions that may occur.
● Responsibilities towards professors.

●  Student responsibilities towards the members of the University.

Ethical codes would recommend for my family:

● Every family operates on the basis of fundamental principles like love, giving and
receiving; Present reality, future potential, Thoughts, words, and deeds.

● Relationship Between Spouses

1. Faithfulness is the core assumption and foundation of marriage.

2. Joy of having children. A natural outgrowth of the love of a husband and wife is the
joy of having children.

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● Relationship between Parents and Children

1. Parents are responsible to educate themselves to be good parents.

2. Parents should educate children to love more than their family.

● Responsibility of the Children

1. Responsibility to grow in character.

2. Respect and honor to parents.

Ethical codes would recommend for my class:

● Try not to hurt people.

● Make people feel good about them. Be a part of creating a community where people
trust one another.
● Respecting one another and our differences.
● Don’t punish too harshly because you are emotional. Make sure your punishment fits
the crime. Fairness also has to do with how we distribute scarce resources.
● Show people you care about them.

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Question -4: What is your opinion of the value of industry code of ethics?
Do you think that code of ethics developed by industrial firms would be
more or less effective than those promulgated by association such as
Business Ethics Advisory Council? Explain

Solution:

A code of ethics is important because it clearly lays out the rules for behavior and provides the
groundwork for a preemptive warning. Regardless of size, businesses count on their management
staff to set a standard of ethical conduct for other employees to follow.

We base our business code of ethics on common principles of ethics Respect for others. Treat
people as you want to be treated.

My opinion of value of industry codes of ethics is code of ethics help maintaining firm properly.
The relationship between employers and employees is defined on code of ethics so they follow it.
For this, conflict reduces in firm.

Code of ethics developed by industrial firms:

A code of ethics document may outline the mission and values of the business or organization,
how professionals are supposed to approach problems, the ethical principles based on the
organization's core values and the standards to which the professional is held.

Outline Code of ethics developed by industrial firms

Rainmaker Systems, Inc.

Code of Business Conduct and Ethics

Our Responsibilities—Personal Integrity, Corporate Values and Ethical Principles

We are a Company committed to:

 Passion for Excellence—Strive to achieve the best in everything we do.

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 Integrity—Hold us to the highest ethical standards. To interact in an open, honest
positive manner and be guided by what is right.
 Teamwork—Work together with trust, openness, honesty and respect.
 Inspired People—Build a culture where people are motivated, engaged, valued and
growing. Our people make the difference and are the essence of Rainmaker Systems.

Our Responsibilities to Our Stakeholders

 To Ourselves

Integrity is at the heart of who we are as individuals. Integrity is at the heart of Rainmaker
Systems as well.

 To Each Other

We owe each other honesty, respect, and fair treatment. We value the unique contributions of
each employee.

 To Our Business Partners, Clients, and End-User Customers

Our business partners, clients, and end-user customers trust the quality and value of our
service offerings. We depend on strong relationships with our business partners and clients to
provide us with continued opportunities to grow our business.

 To Our Shareholders

Our shareholders trust us to responsibly use all our assets to make our business grow.

 To Our Community

When we give back to the community, we instill pride in our employees and gain the respect
of the citizens in our community.

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The Ethics Committee and Compliance

The Rainmaker Ethics Committee is dedicated to giving employees the support and advice they
need to act according to The Standards and Rainmakers’ ethical principles. Appointed by
Rainmaker’s Executive Team, we act as a resource, providing the information, tools, and
strategies to assist employees in making ethical business decisions

The Ethics Committee has a charter to:

• Help employees use the Company’s ethical principles in their decision-making processes

• Provide guidance for employees who have questions about business ethics and
compliance issues.

• Support employees who may be facing ethical challenges in the workplace

• Interpret policies

• Provide easily accessible information on The Standards, policies, and procedures

• Foster an atmosphere of trust and open communication where employees feel

comfortable coming forward and talking about issues

Promulgated by association such as Business Ethics Advisory Council

The Business Ethics Advisory Council is a group of outstanding businessmen, educators,

clergymen, and journalists. Its goal is to help the American business community develop and
carry out programs for the general improvement of business ethics. Recently, the Council
posed some searching inquiries for all businessmen in a widely publicized Statement on
Business Ethics and Call for Action. Since then, the Council has been undertaking to achieve
its goal through a number of nation-wide activities. The history of the origin and work of the
Council may well prove an important chapter in the chronicles of American business.

I think that code of ethics developed by industrial firms would be less effective than those
promulgated by association such as Business Ethics Advisory Council.

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Reference:

1. Rainmaker Systems, Inc. Code of Business Conduct and Ethics

2. UGC frames code of ethics for higher education student.

Read more at:

http://timesofindia.indiatimes.com/articleshow/6129159.cms?
utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
3. Blowfield & Alan Murray. (2008). Corporate responsibility- A critical introduction. New
York:

Oxford University Press.

4.Bowen, Howard Rothmann. (1953). Social responsibilities of the businessman. New York:
Harper Branco, Castilo Manual and Lima, Lucia Rodrigues. (2007).

5 Positioning stakeholders theory within the debate on corporate social responsibility. Electronic
Journal of Business Ethics and Organizational Studies, Vol-12, No.1

6.Campbell, Tom and Houghton, Keith eds. (2005). Ethics and auditing, Canberra: Australian
University Press.
7.Carrol, Archie B. ed. (1977). Managing corporate social responsibility. Boston: Little Brown
and
Co.Carrol, Archie B. (1979).

8.Akaah, I.P. and E.A. Riordan, "Judgments of marketing professionals about ethical issues in
marketing research: a replication and extension," Journal of Marketing Re-search, vol. 26, no. 1.

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