Unit 1

Introduction

LH 7
 Unit 1: Introduction

 Concept of business ethics, the importance of ethics in business,

 myths about business ethics, morale reasoning,
 the morality of profit motive, ethics and philosophy, ethics and
morality, benefits of business ethics,
 code of conducts; meaning and importance of social responsibility,
 the evolution of CSR, a morale argument of CSR, increasing
relevancy of CSR,
 social responsibility and ethics, CSR domains.
 Concept of Business Ethics
Ethics
 deal with the principle of right conducts and morals.
 prescribes what the people ought to do and ought not do.
 Expressed in terms of rights, obligations, benefits to the society, fairness and
specific virtues.
 Branch of philosophy that studies about systems, norms, and values that distinguish
between what is good and bad or fair and unfair.

Business Ethics
 Moral principles that guide the way a business behaves.
 The principles and standards that determine acceptable conduct in business
organizations.
 Defined as a subject of behavior that deals with the fair and unfair action of the
business.
Significance of Business Ethics

Promotes Goodwill and Image

Sound Relationship with Stakeholder

Less Government Intervention

Promote Fair Competition

Promote Social Responsibility

Improve Working Environment

 Myths about Business Ethics

 Refer popular belief that has grown up around phenomenon.

 Represents a commonly believed but a false idea.
 Ethicist perceive that myth as a wrong proposition about ethical
nature of the business that must be refuted by convincing
argument.
 Many interesting myths about business ethics abound in the
business as well as non-business circles.
 Myths about business ethics…
Business ethics is an oxymoron

It’s easy to be ethical

Business ethics is more a matter of religion than management.

Our employees are ethical so we don’t need attention to business ethics.

Business ethics is a discipline best led by philosophers, academics and theologians.

Ethics can’t be managed.

Business ethics is superfluous — it only asserts the obvious: “do good!”

Our organization is not in trouble with the law, so we’re ethical.

Business ethics and social responsibility are the same thing

The business of the business is the business.

1. Business ethics is an oxymoron

 Proponents argue that there is no place for business

ethics.
 Acc. To this myths “greed is the foundation of all
business.’
 So, business ethics tries to bring together two
contradictory concepts (profit and integrity).
 Business is a human activity and also a part of social
system. Therefore there is a pivotal role of ethics is
business.
2. It’s easy to be ethical

 Ignores the complexity surrounding ethical decision

making, particularly within the business organization.

 In fact, ethical decision are not easy job.

 Facing ethical issues and dilemmas is complex in reality.

3. Business ethics is more a matter of religion
than management

 Business has no religion; but accepts norms differently in

doing business.
 Business ethics is a part of moral management.
 Altering people's values or souls isn't the aim of an
organizational ethics program.
 But, ethical culture deals with managing the values
between individual and company.
 4. Our employees are ethical so we don’t
need attention to business ethics.

 believes that if company’s employees are ethical , we don’t

need attention to business ethics.
 Narrow belief.
 when the topic of business ethics comes up, people are quick to
speak of the Golden Rule, honesty and courtesy.
 But when presented with complex ethical dilemmas, most
people realize there’s a wide “gray area” when trying to apply
ethical principles.
 5. Business ethics is a discipline best led by
philosophers, academics and theologians.

 Business ethics is an applied discipline, highly associated with

everyday business activities.
 A myth that surrounds business ethics is that it is well managed
and the prerogative of philosophers and theologians.
 there is no such term as business ethics that can decide how
organizations go about their day to day activities.
 6. Ethics can’t be managed.

 the international business environment puts managers in

great difficulty as it generates a large variety of ethical
issues.
 Every business has complex and diverse dilemmas which
are not specifically covered in documented procedures.
 So, many are skeptical that business ethics and values in
organization can be managed.
 In reality, ethics is only the issues that can manage every
issue.
7. Business ethics is superfluous — it only
asserts the obvious: “do good!”

 Many people react that codes of ethics or lists of ethical

values to which the organization aspires are rather
superfluous, because they represent values to which
everyone should naturally aspire.
 The code of ethics is such a notion that changes
according to the organization's needs.
 Fails to realize the inherent complexity of the business
environment.
8. Our organization is not in trouble with the
law, so we’re ethical.

 Business professional argue that our organization is not

trouble with the law, so we are ethical.
 Law influence the behavior to be ethical.
 But, only fulfilling the law is not a complete ethical
course.
 Though law encourage ethical conduct, it cannot
govern all the ethical horizons of business activities.
9. Business ethics and social
responsibility are the same thing
 The social responsibility movement is one aspect of the
overall discipline of business ethics.
 Company have the policy of CSR to benefit the society
at large.
 Whereas, ethics is the moral conduct of running business.
 Two are not completely overlapping.
10. The business of the business is the
business.

 Business and ethics are two separate domains.

 Ethical language is not the language of business.
 This myths fails to recognize the presence of stakeholders
while doing the business.
 No possibility to do whatever is necessary in order to
success the business.
 Moral Reasoning
 Means the process of determining right or wrong in a given
situation.
 Thinking whether doing something is right or wrong by using
logic.
 Cognitive process that people use for making ethical
decision.
 In order to act ethically, an individual is expected to have
well developed moral reasoning ability.
 A reflection of the moral development levels
Cont.….

 Psychologist Lawrence Kohlberg (1927-1987) has made

significant contributions in the field of moral reasoning.
 Created a model of cognitive moral development.
 Longitudinal study about Heinz’s moral dilemma is
popular in the moral reasoning.
 Study revealed that decision a person made is largely
based on their level of moral development.
Kohlberg’s Study
 Kohlberg’s theory

Questions:
1. Should Heinz have stolen the drug?
2. Would it change anything if Heinz did not love his wife?
3. What if the person dying was a stranger, would it make any difference?
4. Should the police arrest the chemist for murder if the woman died?
Based on given study, Kohlberg hoped to discover the ways in
which moral reasoning changes a people grew older.
 Developed six-stage model of cognitive development and
concluded that people make different decisions with their
reasoning in similar ethical situations.
Kohlberg’s Six Stages
 Level 1: Pre-conventional Morality 0-9 years
Stage 1 - Obedience and Punishment
▪ usually associated with young children, but adults are
capable of expressing this type of reasoning.
▪ At this stage, children see rules as fixed and absolute.
Obeys rules in order to avoid punishment.
Determines a sense of right and wrong by what is
punished and what is not punished.
Obeys superior authority and allows that authority to make
the rules, especially if that authority has the power to inflict
pain
 Stage 2 – Self-interest orientation

 At this stage of moral development, defines right or wrong as

that which serves his or her own interest or mood.
 No longer makes moral decisions based on specific rules but
ifs fairness to him or her.
 Individual no longer makes moral decisions solely based on
specific rules but its fairness to him or her.
 Level 2: Conventional Morality 10-15
years
Stage 3 – Interpersonal accord and conformity
▪ This stage focused on living up to social expectations,
relationship and conformity.
▪ Awareness of society’s(others) expectations determines
their actions.
Feels that intensions are as important as deeds and
expects others to accept intentions or promises in place
of deeds.
Begins to put himself/herself in another’s shoes and think
from another perspective
 Stage 4 – Authority and social order
maintaining orientation
 At this stage of moral development, people begin to consider
society as a whole when making judgments.
 Determines what is right by considering his or her duty to
society, not just to certain other people.
 The focus is on maintaining law and order by following the
rules, doing one’s duty, and respecting authority.
 Level 3: Post conventional Morality –
16+
Stage 5 – Social contract orientation
▪ At this stage, people begin to account for the differing
values, opinions, and beliefs of other people.
▪ Feel a sense of obligation or commitment to other groups.
▪ Rules of law are important for maintaining a society, but
members of the society should agree upon these standards.
➢ Believes in consensus (everyone agrees), rather than in
majority rule.
➢ Respects the rights of the minority especially the rights of
the individual
 Stage 6 – Universal ethical Principles

 Moral reasoning is based upon universal ethical principles and

abstract reasoning.
 At this stage, people believe that right is determined by
universal ethical principles and justice, even if they conflict
with laws and rules.
 Think that laws are only valid if they are just, and feels more
obligation to disobey if they are not.
 The Morality of Profit Motive
 The profit motive refers to an individual's drive to undertake activities that will
yield net economic gain.
 Because of the profit motive, people are induced to invent, innovate, and
take risks that they may not otherwise pursue.
 Motivating factor to allocate resources efficiently.
 Profitable business activities benefits the society in numerous ways, such as:
 Create jobs
 New goods and services for customers
 Profit for shareholders
 Economic growth through optimum use of resources
 Taxes to government.
 Cont….
 Critics of profit motive argue that company disregards morals in
the pursuit of profits.
 Inevitably make unethical decisions and emerge numerous
cases of business malpractices.
 In the moral and social ground, serious objections to the profit
motive with the blame of selfishness and greed.
 Make the objections about business practices.
 Every economic activity is dependent on the profit motive,
whether or not that activity beneficial or harmful the society.
 Cont…..

 Many scholars and practitioners, argue in favor of long run profit

and believe that it can’t be achieved by ignoring ethical issues.
 A positive correlationship between ethics and long-run profitability.
 For sustainability, obviously one should address morality in making a
profit.
 But, in contrast firms are oriented towards short-term profit ignoring
moral aspects.
 In conclusion,
Business not only have to answer to shareholders but also to different
stakeholders within their community on which their business hinges on.
 Ethics and Philosophy
Ethics
 A branch of philosophy dealing with what is morally right or wrong.
 moral advice or guidelines for the style of living in an individual.
 Field of ethics is known as moral philosophy.
 Deals with human action that involves systematizing, defending and recommending
concepts of right and wrong conduct.
 moral guidelines that a human can follow in order to lead a life that is up to the
moral standards.
 Accordingly, Merriam Webster defines ethics as “the discipline dealing with what is
good and bad and with moral duty and obligation or a theory or system of
moral values”.
 Cont…

Philosophy
 literally, the term "philosophy" means, "love of wisdom.“
 philosophy is a theory about something.
 an activity that people seek to understand fundamental truths about
themselves, the world in which they live, and their relationships to the world and
to each other.
 the study of the fundamental nature of knowledge, life, power, human nature,
reality, and existence, so considered as an academic discipline.
 describes a certain way of human thinking about the universe, the world and
society; Such as religion, art, culture, ethics, human existence, etc.
 Hence, it is an intellectual assumption on these subject matters.
 Relationship Between Ethics and
Philosophy
 Human behavior is largely associated with the philosophical ground.
 Ethical theories describe such behavior.
 The determinants of behavior such as values, beliefs, perceptions,
expectations, attitudes and assumptions are closely linked with the certain
school of thought or philosophies.
 Therefore, existence of different ethical theories are rooted into the different
ground of philosophies.
 Ethics and Morality

 Ethics and morals both relate to “right” and “wrong” conduct.

 they are sometimes used interchangeably,
 Internet Encyclopedia of Philosophy (IEP) explained “Ethics as
a moral philosophy.”
 Cont…

Ethics
 ethics is the standards of “good and bad”
 a branch of philosophy that deals with the principles of conduct of an individual or
group.
 Rules provided by an external source such as the social, cultural and religious beliefs or
values which tells us what is right or wrong.
 Normative, study of norms or standards by which behaviors are expected and
evaluated.

Morality
 Morals refers to an individual’s own principles or conscience regarding right and
wrong.
 A person or society's idea of what is right or wrong, especially in regard to a person's
behavior.
 Descriptive, describes what people already believe they should do.
Comparison of Ethics and Morality
 Benefits of Business Ethics

Empirical studies have shown the indirect and strong relationship

between business ethics and firm performance.

Employee Commitment and Trust

Investor Loyalty and Trust

Customer Satisfaction and Trust

Contributes to enhance Profit

 1. Employee Commitment and Trust
 Commitment is the individual’s psychological attachment towards the
organization.
 The more company is dedicated to taking care of its employees, the
more they likely to care of organization.
 When employees perceive that their organization adheres to ethical
standards, the more they become to committed.
 Endorsement of ethical standards, reduces ambiguity and offers a clear
sense of what is being expected by them and how they should behave.
 Strongly value their membership and increase their identification with the
organization.
 2. Investor Loyalty and Trust

 The reputation of the firm is closely related with the socially responsible
ethical conduct of business.
 Ethical culture provides a foundation for efficiency, productivity, profits
and sustainable growth.
 Investors are very conscious about transparency on standard of
conduct and how these are enforced in company.
 Makes the comfortable capital market to the company.
 ‘ethical Investment’ is calculated in these days along with financial
calculations which means company following ethical values and
social and environmental considerations.
 3. Customer Satisfaction and Trust

 Trust is essential things for sound long-term relationship

between business and customers.
 Companies must show their ethical stance better.
 Customer satisfaction is not only limited in their consumption
of product and service but also influence by growing
consciousness about ethical components of product and
services.
 Companies are more serious in ethical supply chain
management too.
 4. Contributes to enhance Profit

 Ethical culture of an organization contributes to employee

commitment, investor loyalty and customer satisfaction
which, after all lead to profit.
 Shareholder’s wealth can maximize by maximizing the
value of share which is depend upon the sustainable
growth.
 the ethical culture is only the means of having
sustainable growth that allow the organization for earning
the virtuous profit.
 Empirical research show the positive correlation between
ethics and long-run profitability.
 Code of Conducts
 a set of rules which is commonly written for employees of a
company,
 A formal statement that describes what an organization expects
of its employees or members.
 Outlines specific behaviors that are required or prohibited as a
conditions of ongoing employment.
 Typically issued by board of directors or top level management
that determines social norms, regulations, and responsibilities.
 a defined set of rules, principles, values, employee expectations,
behaviors, and relationships that an organization considers
important and believes necessary for its success.
 Inclusion in Code of conduct:

 Be designed with consideration for your organization's values, the clients you
work with and the service you provide.
 Be driven by the fact that your organization's reputation and work environment
are based on the actions and behaviors of your employees
 Provide guidelines for acceptable behavior
 Emphasize use of good judgment
 Require compliance with all applicable legislation
 Provide examples of prohibited actions or behavior that are regarded as
misconduct (and it may specify the consequences of violations),
 Refer to other related policies (for example, handling of confidential information,
harassment, and conflict of interest)
Code of ethics and code of conducts
 Corporate Social Responsibility (CSR)
 A conception of doing business in a socially responsible manner as a
member of society.
 The obligation of an organization to pursue social norms and rules within
which the organization is operating.
 Involves the activities which are beyond direct economic benefits and
legal compliance.
 Aims to address social expectation and build public image.
 Based on notion that companies can no longer act being isolated from
broader society.
 Corporate social responsibility is a business model by which companies
make a concerted effort to operate in a way that enhance rather than
degrade society and the environment.
Importance of CSR
 It encourages customer loyalty
 It gives businesses a competitive edge
 It makes employees happier and more fulfilled
 It makes a business more sustainable
 Customers are willing to pay more
 It attracts more investors
 It attracts more employees
 It makes the world a better place
 Evolution of CSR
 Religions have been caretaker of moral values in the society from the start of
human civilization.
 Charity and Philanthropy were the first-phase activities in evolution of CSR.
 Charitable activities such as making temple, mosques, churches, funding
orphanage, educational institutes etc. were persuade as individuals but not on
behalf of business entities.
 Johnson and Johnson (1943) introduced the term ‘corporate social responsibility’ at
first.
 Modern era begun in 1950s, marked by Howard R. Bowen,s in the publication of
‘Social responsibilities of the Businessman’.
 Defined CSR as “the obligation of businessmen to pursue those policies and decisions, or to
follow those lines of action which are desirable in terms of objectives and value of society.”
 Carroll argued Bowen Should be Father of CSR.
 Cont…
 In 1960s Keith Davis make the notable contribution in CSR through publishing ‘ Iron
Law of Responsibility’.
 He argued that Corporate power must be check by social responsibility in order for it
to be maintained.
 In contrary of this, Milton Friedman (1962) advocate social responsibility of business as
to maximizing shareholders’ profit.
 Committee for Economic Development (CED) in 1971 and Archie B. Carroll’s (1979)
defined social responsibility as aggregates of four-part economic, legal, ethical and
discretionary responsibilities.
 Remarkable contribution made by R. Edward Freeman in 1980s in his shareholder’s
theory that created a new approach to discuss CSR.
 Sensitization in the world community towards environmental safety and security
rapidly increased during this decade.
 Cont…
 Sustainable development was emphasized, which focus not only to meet present
needs but also to develop ability to meet future generation needs.
 World Business Council for Sustainable development (WBCSD)was established in
1995 with slogan of “Business solution for a sustainable world.”
 Most influential forums for companies on CSR.
 Declarations of 10 principles of United Nations Global Compact (UNGC) lays out a
pathway for following CSR in the beginning of the 21st century.
Evolution of CSR concept.
A Moral Argument of CSR.
Based on
Shareholder’s
Wealth

Based on Based on
corporate symbiotic
power relationship
Moral with society
Argument

Based on Based on
negative concerned of
externalities. future generations
1. Arguments Based on Shareholder’s
Wealth

 Economic aspects of the interaction between business and society

is considered under this arguments.
 According to this argument, the same actions that maximizes stock
prices benefit the society as well.
 The company is a legal instrument of the stockholders for their
wealth creation, and supposed that social activity is accepted if it is
consistent with their wealth creation lawfully.
 Consistent with the views of Friedman (1962, 1970).
2. Arguments Based on Based on symbiotic
relationship with society

 Acc. to this arguments, CSR is rationally based on realism of symbiotic

(mutually beneficial) relationship between business and society.
 Argue that successful companies need a healthy society and a
healthy society needs successful companies.
 Fundamental requirement is mutual moral stance for this arguments.
 Economic unit is one of the constituents of the larger society.
 Corporations have a profound and positive influence on society.
 Similarly business traces its roots in community or society for
profitability.
Cont…

 The business in society represents as entities that operate on the

basis of a social contract with the stakeholders.
 The company must focus always on: ‘ to be a good corporate
citizen.’
3. Arguments Based on concerned of future
generations

 Much farsighted moral argument about CSR.

 Companies make profit by using scarce natural resources.
 The continuous depletion of those resources is threatening the society
though they pay money for those resources.
 The great problem and question are that how the coming generation
will evaluate us.
 It is the right of those, the generation to come, to demand to make a
rational balance of resources for them also.
 Beyond the corporate legal profit, there is social obligation that must
be consider by companies and have a good commitment to future
generations as well.
4. Arguments Based on negative
externalities.

 Negative Externalities means suffering by a third party as a result of

economic activities or transactions.
 Here, the first and second parties are producers and consumers.
 Third parties include any individual, organization, property owner, or
resource that is indirectly involved and being affected.
 For solving this, eco-friendly activities should be enhances such as
reducing toxic dispersion, material recyclability, energy efficiency,
sustainable use of renewable energy, eco-friendly design etc.
should be promoted.
 5. Arguments Based on corporate power
 Based on the relationship between business power and social responsibility.
 Keith Davis, introduces the famous “Iron Law of Responsibility” in 1960s which
highlighted the role of power that business has in society.
 Argued the social impact of such corporate power and social responsibility arises
form social power.
 Large corporations have an significant impact on the lives of billions of people
directly or indirectly, therefore, they must have to be rationally conscious with CSR.
 Published facts strongly justify the moral argument of CSR based on corporate
social power.
 Largest companies have more strong financial status than many countries of the
world.
 Increasing Relevancy of CSR
 Earning profit ethically by serving the society is the most rational maxim of
business.
 Apart form this, there are many evidences of misconducts of businesses
recorded in the past and prevailing at present.
 A variety of forces are heightening interest in CSR such as, increased
affluence, ecological sustainability, globalization, the free flow of
information, and brands.
 Relevancy of CSR can be done with rectifying negative and enhancing
positives factors, such as:
1. The Tragedy of the Commons
2. Complaints faced by the companies
3. Firm-based positivity of CSR.
 1. The Tragedy of the Commons

 The phrases describes how shared environmental resources are

overused, and eventually depleted.
 Occurs when members of the society neglect the well-being of society
in the pursuit of personal gain.
 The idea is that When something is owned by the commons, overall
sustainability is in danger because nobody technically owns it or is
responsible for it.
 The central thought is that CSR is surrounded with minimizing such
jeopardy.
 Jeopardy, such as climate change, pollution, water scarcity, disposal
of hazardous waste, deforestation etc.
 In the context of deteriorating planet, multinational corporate giants
are major part of the problem.
Cont…

 Engage in a wide range of hazardous and pollution intensive

activities which threat sustainability.
 Sustainability is the principle of ensuring that the business should
limit the range of economic activities without harming social and
environmental factors which can be use by future generations.
 Private sector must be acquainted with the concern of CSR.
 They are moving ahead of government regulation as they
understand their own self-interest is realized through the efforts to
reduce environmental damage.
2. Complaints faced by the companies

 There are many formal complaint as well as non-filing but

widespread complaints of businesses.
 Facing more ethics complaints.
 Which, negatively impact in the sustainability of corporate houses.
 Therefore, with the increasing horizons of business relevancy of CSR
is also increasing.
 Can be justified with many instances of publicly available
malpractices of corporate giants.
 Which justify the increasing relevancy of CSR.
 3. Firm-based positivity of CSR
 Another aspect increasing relevancy of CSR is its positivity to business.
 CSR offers a number of business benefits through excellence in
stakeholder management as well as social issue participation.
 Acc. to research reports followings are Firm-based Positivity:
 Influence Consumers’ Attitudes and Behavior
 Enhances product as well as corporate brand image and reputation
 Plays a significant role in successful differentiation strategy.
 Increase creditworthiness of the company
 Attract, retain and maintain a happy workforce
 Reduced regulatory oversight.
 Positive word of Mouth
 Positive Publicity through good media coverage
 Social Responsibility and Ethics

Social responsibility
 The obligation of an organization to pursue social norms and rules within which
the organization is operating.
 Involves the activities which are beyond direct economic benefits and legal
compliance.
 Refers to businesses doing what they can to benefit their communities.
 Social responsibility is an ethical theory in which individuals are accountable for
fulfilling their civic duty, and the actions of an individual must benefit the whole
of society.
 Cont…

Ethics
 Ethics means knowing the difference between right and wrong and
continuing to do the right thing.
 ethics is the standards of “good and bad”
 Ethics can be defined as standards of right and wrong, and they dictate
what human beings should do regarding their rights, obligation, fairness,
and societal benefit.
 Ethical business decisions can be based on one’s conscience or based on
principle.
 Social Responsibility and Ethics
 Business Ethics is more business-related and inclined towards duties regarding
business, whereas social responsibility is related to the duties of an individual
and business towards his community.
 Business ethics are more conscience-based, while social responsibilities are
obligations.
 Business ethics aims to profit its employees and company, while social
responsibility makes sure the norms of a community are being followed.
 Business ethics are for a company and its employees, while social
responsibility is for everyone living in a community.
CSR Domains
Four Domains By Carroll (1979, 1991)
 1. Economic Responsibility

 The foundation of Carroll's CSR Pyramid is economic responsibility.

 It is because the only way for a business to survive and support society
is by being profitable.
 Without profit, companies cannot pay their workers, give shareholders
a return on their investments, or produce quality products and
services.
 Focuses on practices that facilitate the long-term growth of the
business, while also meeting the standards set for legal, ethical, and
philanthropic practices.
2. Legal Responsibility

 Refers to a company’s legal obligation to adhere to all relevant

laws and regulations.
 Includes compliance with employment laws, tax regulations,
employee health and safety obligations, and laws regulating anti-
competitive conduct.
 It’s all about operating in a way that promotes fair business
practices on a national, regional, and local level.
3. Ethical Responsibility

 Doing the right thing, being fair and avoiding harm.

 Is more concerned with morals and ethics and operate business etically.
 Examples of ethical responsibility include being environmentally friendly,
treating employees and suppliers in line with an ethical code of conduct,
and embracing activities and standards that go beyond legal
compliance.
 Ethical responsibility is all about recognizing and respecting evolving moral
standards and performing in a way that meets society’s expectations.
4. Philanthropic Responsibility

 This level is all about giving back to the community, exceeding the
expectations of shareholders and stakeholders.
 Main orientation is ‘be a good corporate citizen.’
 It goes beyond doing what’s right; it’s about standing by your
values and principles as a company and giving back something of
value to society.
 Might be in the form of donations, volunteer work, or community
development, among other philanthropic initiatives.
In summary,
Triple Bottom Line (TBL), Elkington, 1997

 the triple bottom line (TBL) suggest that companies should pay commitment
towards social and environmental concerns as they do pay for earning
profits.
 An Accounting framework with three parts i.e. social, environmental (or
ecological) and financial.

❖ Organizations are adopting the

TBL framework to evaluate their
performance in a broader
perspective to create greater
business value.
Cont…

 TBL consists of three elements: profit, people, and the planet.

 This categorization focus on sustainability requirement.
 company should weighs its action on three independent scales i.e.
economic sustainability, social sustainability and environmental
sustainability.
Three Domain Model, by Schwartz and
Carroll (2003)
 Cont…

 Schwartz and Carroll reexamined carol’s four domains framework and

develop alternative model known as Three-Domain approach.
 Has addresses the responsibilities of three domains ( economic, legal and
ethical).
 The Philanthropic category is subsumed under the ethical and or economic
domains.
 The overlapping domains should be considered while making decisions.
THANK YOU.