UNIT 3 — Corporate Social Responsibility (Mind-Map • Explained Bullets)
Corporate Ethics
Governance
CSR Law
Stakeholders
Ethical Dilemmas
Codes of Ethics
1. Corporate Ethics (Meaning + Why Needed)
- Corporate ethics means the company’s way of doing business in a fair, honest and responsible manner. It decides how managers treat employees, customers, suppliers and society.
- Strong corporate ethics build trust, loyalty and long-term reputation. When a company behaves ethically, employees work with confidence and customers remain attached to the brand.
- It prevents fraud, corruption, exploitation and misleading practices. A company with weak ethics may grow fast in short term but fails in long term.
Example: Tata Group is respected globally because they refuse to compromise on honesty, product quality and employee safety.
2. Corporate Governance (Simple but Detailed Meaning)
- Corporate governance is the system that controls and guides a company. It ensures that decisions are transparent, fair and responsible.
- The Board of Directors monitors management to protect shareholders and stakeholders. Committees like Audit, Nomination, and CSR Committee help ensure smooth ethical functioning.
- Good governance avoids fraud, mismanagement and protects investor money. It creates discipline and accountability at senior leadership level.
Case: The Satyam scam happened because the board and auditors failed to detect fake accounts. After this, India made governance rules stricter.
3. CSR – Corporate Social Responsibility (Explained Simply)
- CSR means company helping society through education, health, environment care, rural development and social welfare projects.
- In India, Section 135 of Companies Act makes CSR mandatory for companies with high profits → They must spend 2% of average net profit on CSR activities.
- CSR improves company reputation, builds community trust and helps in sustainable development. It also motivates employees who feel proud of working in an ethical company.
Example: ITC’s watershed programs helped villages solve water scarcity and improved crop productivity.
4. CSR Areas (Where companies usually work?)
- Education support → schools, scholarships, digital learning.
- Healthcare → medical camps, cancer treatment, sanitation.
- Environment → tree plantation, clean energy, waste management.
- Women empowerment → training, employment, safety programs.
- Rural development → water, roads, community centers.
5. Stakeholder Theory (Freeman’s View)
- Stakeholders are everyone affected by company’s decisions. This includes employees, customers, suppliers, society, environment, government, investors.
- Company must balance needs of all stakeholders, not only earn profit for shareholders. This creates long-term stability and ethical decision-making.
- Stakeholder thinking reduces conflicts and increases cooperation between company and society.
Case: Coca-Cola Kerala issue harmed the community’s water supply, showing failure to consider local stakeholders.
6. Ethical Dilemma (Meaning + Why It Happens)
- An ethical dilemma arises when a manager faces two choices that both seem right, or when ethics clashes with profit or pressure.
- Dilemmas usually occur due to deadlines, sales targets, competition, or pressure from seniors. Managers must choose the option that protects ethics and long-term trust.
Steps to Solve Ethical Dilemmas (6-Step Model)
- 1. Identify the ethical problem clearly.
- 2. Gather facts — laws, policies, data, impacts.
- 3. Identify stakeholders affected.
- 4. Evaluate options using fairness, rights and long-term good.
- 5. Choose & act the most ethical option.
- 6. Review results and improve policy.
7. Codes of Ethics (Simple Explanation)
- A code of ethics is a written guideline that tells employees what is right and wrong at workplace.
- It covers honesty, no bribery, fair customer treatment, safety rules, data privacy, equal opportunity and responsible behaviour.
- Codes reduce confusion, set a standard and create discipline among employees.
Example: Tata Code of Conduct guides employees on gifts, conflicts of interest, integrity, and transparency.
Quick Revision — UNIT 3
- Corporate ethics = company’s honest behaviour and culture.
- Governance = system that controls company; prevents fraud.
- CSR = 2% profit helping society; improves trust.
- Stakeholder theory = company must care for all connected groups.
- Ethical dilemma = tough choice; use 6-step model.
- Codes of ethics = rules for employees to behave properly.
UNIT 4 — Ethics in Globalisation & Stress Management (Mind-Map • Explained)
Value-Based Management
Global Ethics
Workplace Stress
Causes
Yoga
Meditation
1. Value-Based Management (VBM) – Simple but Deep Meaning
- VBM means running a company based on core values like honesty, fairness, respect, sustainability, and responsibility. Instead of only focusing on profit, the organisation tries to do the right thing in every decision.
- This is important because today customers choose brands they trust, employees prefer ethical companies, and investors look for transparency. A company with strong values earns long-term loyalty.
- VBM helps in global business because different countries have different rules, but values remain universal. It acts as a moral compass when facing tough choices.
Example: Unilever follows sustainability goals across all countries, even if laws are weak locally.
2. Ethical Challenges in Globalisation (Explained Clearly)
- Labour exploitation: Many multinational firms move factories to countries where labour is cheap. This sometimes results in child labour, unsafe working conditions or unfair wages.
- Environmental damage: Companies may pollute water, air or land in developing countries because regulations are weak. Such actions harm communities and ecosystems.
- Data privacy issues: Global companies collect huge amounts of customer data. Misuse or leakage of this data becomes a serious ethical problem.
- Cultural insensitivity: A product or advertisement that is normal in one country may be offensive in another due to cultural differences.
- Corruption & bribery: Some countries have high corruption, creating pressure on companies to offer bribes for approvals.
Case: Nike faced criticism for sweatshop labour. Facebook faced global backlash for misuse of user data (Cambridge Analytica).
3. Stress – Types Explained (Simple + Exam-Friendly)
- Acute Stress: Short-term stress that comes suddenly, such as an exam, deadline or presentation. It goes away once the situation is over.
- Episodic Acute Stress: When a person faces such stressful situations repeatedly. This happens when someone’s life is very disorganised or full of pressure.
- Chronic Stress: Long-term stress lasting for months or years. It comes from family issues, financial problems, job insecurity or continuous pressure.
4. Causes of Stress (Work + Personal)
- Heavy workload: Too many tasks with short deadlines cause mental pressure.
- Lack of work-life balance: Working long hours without rest causes burnout.
- Family responsibilities: Caring for children, elders or dealing with conflicts adds emotional stress.
- Financial worries: Loans, EMIs, job insecurity increase stress levels.
- Social media pressure: Comparing life with others online creates insecurity and anxiety.
5. Signs & Symptoms of Stress
- Physical signs: headache, low energy, poor sleep, stomach issues.
- Emotional signs: irritation, mood swings, sadness, anger.
- Mental signs: poor concentration, forgetfulness, overthinking.
- Behavioural signs: eating too much/little, withdrawal from people, low productivity.
6. Stress Management – Remedies (Easy + Practical)
- Exercise regularly: Walking, gym, or sports reduce chemical stress in the body and improve mood.
- Healthy sleep routine: Sleeping 7–8 hours improves memory, mood and productivity.
- Time management: Creating a simple timetable reduces pressure and confusion.
- Relaxation techniques: Deep breathing, muscle relaxation and mindfulness calm the mind quickly.
- Talk to someone: Sharing problems with a friend, counselor or family member reduces emotional weight.
- Limit screen time: Too much social media increases anxiety. Setting limits helps.
Example: Many companies offer meditation or yoga breaks to reduce employee stress.
7. Importance of Hobbies in Stress Relief
- Hobbies give a mental break from routine work and refresh the mind. They help reduce anxiety and improve creativity.
- Activities like music, art, gardening, cooking, or playing sports release positive hormones that relax the brain.
- Hobbies also improve confidence and make life feel balanced, not just work-focused.
Example: A student who plays cricket on weekends feels more energetic and performs better in studies.
8. Indian Perspective — Gita, Yoga, Meditation, Ayurveda
- Bhagavad Gita: Teaches “Do your duty without fear of results.” This reduces mental stress because a person stops worrying about outcomes.
- Yoga: Combines physical postures, breathing and relaxation. It reduces stress hormones, improves concentration and brings inner peace.
- Meditation: Helps control thoughts, reduce overthinking and calm the nervous system.
- Ayurveda: Suggests balanced diet, proper sleep, herbs and daily routines to keep mind stable.
Corporate example: Infosys and Wipro include yoga and wellness programs for employees.
Quick Revision – UNIT 4
- VBM = running company based on values, not only profit.
- Globalisation creates ethical issues: labour, environment, data privacy.
- Stress types = Acute, Episodic, Chronic.
- Causes = workload, family issues, finances, social media.
- Remedies = exercise, sleep, breathing, hobbies, talk to others.
- Indian methods = Yoga, Gita teachings, meditation, Ayurveda.