Archive | Business Ethics

The CSR debate : Ans.    CSR, being a voluntary activity, has no rules, regulations or procedures to comply with. It is a means to demonstrate to the society at large that the firm believes in discharging its ethical responsibility. Such activities, as we have seen enhance the firms goodwill and brand image and eventually lead [...]

Concept of Corporate Social Responsibility : Ans.    Corporate Social Responsibility (CSR) is an expression used to describe company’s obligation to be sensitive to the needs of all the stakeholders in its business operations. A corporate must commit to behave ethically towards its internal and external environment and contribute to improving the socio- economic fabric of [...]

Need / Benefits of Ethics : Ans.    In today’s competitive business world, every businessman expects that his organization need to be abide by ethics or rule of law, engage themselves in fair practices of competition; all of which will benefit the consumers, the organization and finally to the society Primarily it is the individual, the [...]

Role of NGO’s and International agencies in CSR : Ans.    Non- Governmental organization (NGO’s) are private voluntary organizations, not for profits that function as “Moral Entrepreneurs” selling ethical ideals and standards. They have played major role in solving social and environmental issues from driving inter government negotiations, to regulation of hazards waste and elimination of [...]

AGENCY THEORY. Ans.    A firm or company can be defined in different ways from the point of view of economics, law and sociology. The legal definition states that a company is a nexus of contracts. A company is actually a group of connected stakeholders, with each having its own interest and views the company differently. [...]

Role of Professional Management for creating goodwill business : Ans.    “Good ethics is good Business” This suggest the importance of ethics in business. It provides protection, justice and fair treatment to ethical business is equally profitable. Business should therefore support the concept of business ethics. Business ethics is important to business community, consumers and the [...]

RIGHTS OF INVESTORS. Ans.    Technically speaking, with respect to joint stock company, the term ‘investor’ include those person who invest finance in a company by means of purchasing its debentures or bonds or participating in its public deposits scheme. Typically invested are interested earning high returns on their investment and not frightened to take risks. [...]

RIGHTS OF SHAREHOLDERS. Ans.    In a common, the term ‘shareholder’ means a person who has bought share/s- equity or preference, of a company. A shareholder is treated as a real owner of the company as he has contributed towards the capital of a company. Being the owner of the company, he enjoys ownership rights. All [...]

MODELS OF CORPORATE GOVERNANCE. Ans.    Corporate governance systems vary around the world. This because in some cases, corporate governance focuses on link between a shareholder and company, some on formal board structures and board practices and yet others on social responsibilities of corporations. However, basically, corporate governance is seen as the process by which organizations [...]

TRANSACTION COST THEORY. Ans.    This theory attempts to define firms in relation to market and give an economic explanation for the existence of the company. Ronald Coase in 1937 propounded this theory which was further expanded by Williamson in 1996. According to R.Coase, a firm is system of relationship which comes into existence when direction [...]