Chapter 2

Social Responsibility of Business and Business Ethics

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2.5 Social Responsibility of business towards different interest groups

i) Social responsibility towards natural environment

Responsibility of protecting the natural environment includes careful use of natural resources, energy consumption, minimizing pollution and waste management.

ii) Responsibility towards consumers

Responsibility towards consumers includes production of safe items, educating consumers about the right use of goods, being truthful in advertisement and establishing procedures for dealing with consumer complaints.

iii) Towards employees

Responsibility towards employees includes giving fair compensation for their work, safe work environment, eliminating discrimination, providing facilities for personal and professional development and adopting progressive human resource policies.

iv) Towards Government

Responsibility towards government includes obeying the law, payment of taxes and supporting the government authorities in gathering business information. A business should not attempt to influence the government officials by using unlawful means. Corrupting government officials will degrade the public administration.

v) Towards the Community

Responsibility towards general public includes providing employment opportunity, supporting social causes and investing in development of cultural resources of the community.

vi) Media

Media is a close associate of any business. Correct and complete information should be made available to the media so that it can convey the true picture of a business to the public. Media enables a business to build up and maintain good public image.

2.6 Human Rights

Human rights set standards of personal rights in the society. Human rights act as the restrictions  and guidelines for the right of establishment to control the personal lives. The following factors highlight the importance of human rights:

2.6.1 Case for Human Rights

i) Protection against injustice

Human rights guide the administrative authority in making decisions involving the personal rights of individuals. Administrative interference should not cross limits set as standards of personal freedom.

ii) Provides benchmarks for law and policies

Standards of human rights help the formulation of government policies and enacting of law. Human rights provide standards on the basis of which laws of the states or rules of institutions can be measured.

iii) Check the sovereign powers of the state

The administrative authority of the state is restrained by the international standard of human rights. Thus the state or authority does not have unlimited power to interfere in the lives of the citizens.

iv) Respect the unique properties of human beings

Human beings have the unique nature of giving respect and taking respect. The fundamental rights of a human being have to be respected by the social institutions. This ensures peaceful coexistence and development of the society.

v) Overriding significance of human rights over others

Human rights set basic standards for personal freedom. The administrative authority is to respect this basic standard in matters involving freedom of individuals. A matter of administrative requirement should be considered in the light of human rights issues involved in it. If these two are in conflict human rights should get priority.

vi) Human rights are independent of legal rights

There is a difference between human rights and legal rights. Human rights are the basic standards. A legal right need not necessarily be in conformity with human rights. A dictator can pass a law to arrest anyone he dislikes. That law is against the principles of human rights. Thus legal right is the permission of law for doing something. If that permission violates the standard of human rights the law will be regarded inhuman. A civilized society will attempt to change such a law. Thus legal rights can be changed, but human rights cannot.

vii) Provide rights beyond legal jurisdiction

Generally law controls human activities, Law requires a person to act not to act in a certain way in a given situation. Legal rights and legal obligations are effective only in a place where that law is in force. Law of one country is not valid in another country. Standards of human rights are independent of any particular legal system. They are the human standards. These standards require the human beings to do or abstain from doing something irrespective of the law in force.

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