Corporate Social Responsibility (CSR), Business Ethics, and Values in Management Questions

Question 1

Define Corporate Social Responsibility (CSR).

Accepted Answer

Corporate Social Responsibility (CSR) means the responsibility of business towards society and stakeholders to contribute to social welfare and sustainable development while achieving business objectives.

Question 2

Who are stakeholders?

Accepted Answer

Stakeholders are individuals or groups who are affected by the organisation’s activities or can affect its performance, such as employees, customers, suppliers, community, government and shareholders.

Question 3

State any one responsibility in Carroll’s CSR pyramid.

Accepted Answer

Ethical responsibility is one part of Carroll’s CSR pyramid; it means doing what is right and fair beyond legal requirements.

Question 4

What is business ethics?

Accepted Answer

Business ethics refers to moral principles and standards that guide behaviour and decision-making in business.

Question 5

What do you mean by values in management?

Accepted Answer

Values in management are fundamental beliefs and standards (like honesty, fairness and responsibility) that guide managerial decisions and organisational culture.

Question 6

Define greenwashing.

Accepted Answer

Greenwashing means making misleading claims to create an impression that a company or its products are environmentally friendly when they are not.

Question 7

Explain the need/importance of CSR.

Accepted Answer

CSR is needed because business uses society’s resources and must contribute to social welfare and sustainable development. It improves corporate reputation, trust and brand image and strengthens relations with government, community and customers. CSR also reduces risk by encouraging compliance, safety and environmental care and supports long-term sustainability and social acceptance of business.

Question 8

Explain Carroll’s CSR pyramid.

Accepted Answer

Carroll’s CSR pyramid explains four responsibilities of business. **Economic responsibility** is to be profitable and efficient for survival. **Legal responsibility** is to obey laws and regulations. **Ethical responsibility** is to do what is right and fair even beyond legal requirements. **Philanthropic responsibility** is voluntary contribution to society through community development, education, health and other welfare activities.

Question 9

Write a short note on Triple Bottom Line (TBL).

Accepted Answer

Triple Bottom Line is a CSR approach that evaluates business performance on three dimensions: **People** (social responsibility like employee welfare and community development), **Planet** (environmental responsibility like pollution control and sustainability) and **Profit** (economic performance). It emphasises that long-term success requires balancing economic goals with social and environmental responsibilities.

Question 10

Explain the importance of business ethics.

Accepted Answer

Business ethics is important because it builds trust among customers, employees, investors and society and improves corporate image. Ethical practices reduce fraud, corruption and legal penalties and support stable long-term growth. Ethics also improves employee morale and relations and helps the organisation maintain goodwill and competitive advantage.

Question 11

Explain any three ethical issues in business.

Accepted Answer

Common ethical issues include **bribery and corruption**, where illegal payments influence decisions; **false advertising and misleading claims**, which cheat customers and harm trust; and **environmental pollution**, where firms ignore safety and sustainability norms. Other issues include discrimination, harassment, unsafe working conditions and misuse of customer data.

Question 12

Explain measures/steps to promote ethical behaviour in an organisation.

Accepted Answer

Ethical behaviour can be promoted by introducing a **clear code of ethics** and policies, providing **ethics training** and awareness programmes, and ensuring **ethical leadership** where top management sets the example. Organisations should implement **fair rewards and punishments**, establish **whistle-blower mechanisms** with protection, and strengthen internal controls and audits to prevent fraud and unethical practices.

Question 13

Define CSR and explain its importance. Discuss arguments for and against CSR.

Accepted Answer

Corporate Social Responsibility (CSR) means the responsibility of a business towards society and stakeholders to contribute to social welfare and sustainable development while pursuing its business objectives. CSR expects a firm to consider the impact of its decisions on employees, customers, community and environment and to act responsibly.

**Importance of CSR:** CSR is important because business operates using society’s resources and therefore has an obligation to give back. It improves corporate reputation and trust, which strengthens brand image and customer loyalty. CSR builds better relationships with government and community and reduces the risk of conflicts, boycotts and legal issues by encouraging compliance, safety and environmental care. It also improves employee morale and retention as employees feel proud to work for a responsible organisation. Finally, CSR supports long-term sustainability and social licence to operate.

**Arguments in favour of CSR:** (i) Business is a part of society; it should contribute to social welfare. (ii) CSR creates goodwill and long-term profitability by building trust. (iii) Self-regulation through CSR reduces chances of government intervention and strict controls. (iv) CSR provides competitive advantage by improving reputation and promoting sustainable practices.

**Arguments against CSR:** (i) The primary objective of business is profit; CSR may increase costs and reduce competitiveness if poorly planned. (ii) Managers may lack expertise to solve social problems effectively. (iii) CSR may distract management from core business efficiency if treated as an unrelated activity. In practice, CSR is most effective when it is strategic, transparent and linked with organisational goals.

Question 14

Explain business ethics. Discuss ethical issues in business and steps to promote ethical behaviour.

Accepted Answer

Business ethics refers to moral principles and standards that guide behaviour and decision-making in business. It deals with what is right and wrong in business conduct and aims to ensure fairness, honesty, responsibility and respect for stakeholders.

**Ethical issues in business:** Common ethical issues include bribery and corruption, which distort decisions and harm public trust; false advertising and misleading claims, which cheat customers; discrimination and harassment at workplace, which violates human dignity; unsafe working conditions and exploitation of labour; environmental pollution and ignoring safety norms; misuse of customer data and breach of privacy; and manipulation of accounts, insider trading and other dishonest practices.

**Steps to promote ethical behaviour:** Organisations should frame and communicate a clear **code of ethics** and policies. Ethics should be strengthened through **training and awareness programmes**. Top management must demonstrate **ethical leadership** and set an example. A **fair reward and punishment system** should encourage ethical behaviour and discourage misconduct. **Whistle-blower mechanisms** with protection should be provided so employees can report wrongdoing. Strong internal controls, transparency, audits and compliance monitoring should be used to prevent fraud. By combining policies with culture and leadership, ethical behaviour becomes a normal part of organisational life.

Question 15

Explain values in management and value-based management. Differentiate between ethics and values.

Accepted Answer

Values in management are fundamental beliefs and standards such as honesty, fairness, respect, responsibility, quality and customer focus that guide managerial decisions and employee behaviour. Values shape organisational culture and influence how the organisation deals with stakeholders, handles conflicts and takes decisions in difficult situations.

**Value-based management (VBM):** Value-based management is an approach in which the organisation’s strategies, policies and day-to-day decisions are guided by core values and long-term value creation for stakeholders. It encourages transparent governance, responsible conduct and sustainable performance. In VBM, managers try to align individual behaviour with organisational values through communication, leadership example, training, appraisal and rewards.

**Ethics vs Values:** Values are beliefs about what is important and desirable (for example, honesty, respect, discipline). Ethics are principles or rules that help decide what is right and wrong behaviour in specific situations. Values act as the foundation, while ethics convert values into acceptable standards of conduct and decision-making. Thus, strong values support ethical behaviour and help an organisation build long-term trust and credibility.

Corporate Social Responsibility (CSR), Business Ethics, and Values in Management

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