Session 12

SESSION-12
FUTURE OF BUSINESS
ETHICS AND CSR
Dr. Mamta Hegde
 Business Ethics: Principles and standards that guide behaviour in the world of business
 CSR: A company's commitment to responsibly manage its operations' social, environmental

and economic effects in line with public expectations.
Historical Context:
 1950s-1970s: Emergence of CSR concepts, primarily in response to public demand for

improved corporate accountability and social contribution.
 1980s-2000s: Growth of ethical consumerism, environmental awareness, and sustainability
initiatives.
 Question to the class
 What are Consumer Expectations from a

business?
CUSTOMER CONGRUENCY
 When what we promise and what the customer receives are thought to be the same
IMPORTANCE IN TODAY'S BUSINESS WORLD
Consumer Expectations:
 Increasing demand for ethical and sustainable products.
 21st-century consumers value corporate transparency and social responsibility.
Investor Interest:
 Growing trend of impact investing and ESG (Environmental, Social, and Governance) criteria.
 Companies with firm CSR profiles often see better financial performance and investor
confidence.
Regulatory Environment:
 Stricter regulations and standards globally.
 Companies with proactive ethical practices face fewer legal and reputational risks.
Talent Attraction and Retention:

 Ethical companies attract top talent; employees increasingly seek purpose-driven workplaces.
 Positive correlation between ethical practices, employee satisfaction, and productivity.
DIGITAL ETHICS - THE AI CHALLENGE
The Ethical Frontier of AI in Business
 Complexities of AI Ethics: Delving into the nuanced moral implications of AI decisions, focusing on
bias and autonomy in AI algorithms.
 Recent Incident: The 2023 Twitter AI bias controversy, where an algorithm displayed preference
towards specific demographics, sparking a debate on ethical AI design.
 Twitter's automatic cropping of images had underlying issues that favoured white individuals over black
people and women over men.
 Impact on Business Ethics: Analyzing how this incident prompted companies to revise AI ethical
guidelines, emphasizing transparency and fairness in AI systems.
 https://www.bbc.com/news/technology-57192898
DATA ETHICS IN THE ERA OF BIG DATA
Data Privacy Dilemma: Understanding the ethical boundaries of data

collection and usage in the digital age.
 2023 Zoom Data Handling Case: A critical look at how Zoom

addressed user privacy concerns during its rapid growth phase, setting
new precedents for data ethics.
 Nxt sld
 A clause added to Zoom’s legalese back in March 2023 grabbed attention after a post
on Hacker News claimed it allowed the company to use customer data to train AI
models “with no opt-out”. (This Stack Diary report was the first to highlight the
implications of Zoom’s T&Cs changes, which got picked up in comments on Hacker
News). Cue outrage on social media.
GREEN ETHICS: RETHINKING ENVIRONMENTAL IMPACT
 Corporate Environmental Responsibility: Examining how businesses are redefining their

relationship with the environment.
 2023 Amazon Rainforest Initiative: Analysis of a collaborative effort by global corporations to

mitigate deforestation, highlighting the role of corporate responsibility in global environmental
issues.
 Amazon nations will bring together police authorities from the eight countries of the Amazon
Cooperation Treaty Organization (ACTO) to guarantee coordinated action by police in the Amazon
countries with "much more efficient results" to combat a series of crimes, such as deforestation and
the smuggling of gold, timber and wild animals.
GLOBAL ETHICS - MULTINATIONAL
ETHICAL DILEMMAS
 Multinational Ethical Complexities: Exploring the ethical challenges companies face operating
across legal and cultural landscapes.
 2023 Huawei 5G Dilemma: Delve into Huawei’s challenges in navigating geopolitical tensions and
ethical concerns around 5G technology deployment.
Example
 Some countries, including Japan, the UK, and Germany, have debated and implemented policies to
exclude Huawei from their 5G networks. For example, in Japan, there was legislative support to
exclude Huawei by 2023
 One of the primary reasons for these decisions is security concerns raised by governments and
experts. They fear that Huawei's involvement may pose national security risks due to potential
influence or interference from the Chinese government
SUSTAINABLE BUSINESS MODELS: EXPLORING THE SHIFT TOWARDS
SUSTAINABILITY IN CORE
Bosch's Green Technology Inside Initiative
 Bosch's Eco-Conscious Manufacturing
 Innovative Approach: Bosch launched its "Green Technology Inside" label in 2023, signifying
products that are particularly energy-efficient and environmentally friendly, setting new
standards in sustainable manufacturing.
 Sustainability Focus: Emphasizing resource-saving production processes and the use of

recycled or biodegradable materials, Bosch aims to reduce its ecological footprint
significantly.
 Market and Ethical Implications: Explore how Bosch's initiative is shaping consumer
expectations and influencing competitors in the technology and manufacturing sectors to
prioritize sustainability in product design and production.
GLOBAL ETHICS - CROSS-CULTURAL CHALLENGES
Ethics Across Borders: Managing Diversity
 Cross-Cultural Ethical Challenges: Understanding the ethical complexities in a diverse global

business environment.
 2023 Netflix Cultural Sensitivity Case: Examining Netflix's approach to handling cultural
diversity in its global content, balancing local sensitivities with global appeal.
 Facing pressure in India, Netflix and Amazon back down on daring films
SOCIAL ENTREPRENEURSHIP
Innovative Solutions for Social Challenges
 Social Entrepreneurship combines business acumen with a passion for resolving social issues,
leading to innovative, sustainable solutions that benefit society.
 'Clean Water Co.- A startup that developed an affordable, portable water filtration system,
addressing the global clean water crisis, especially in underprivileged communities.
Innovative Response to Water Scarcity
 Global Water Crisis Urgency: A quarter of the global population faces extreme
water stress, underscoring the critical need for solutions like Clean Water Co.'s
filtration technology.
 Role of Innovative Startups: Clean Water Co. represents a wave of startups
dedicated to water security, playing a pivotal role in tackling global water
challenges.
 Impact of Portable Filtration: Their portable system is a game-changer for remote
and underserved areas, providing a dependable source of clean water.
 Collaborative Efforts for Wider Reach: Clean Water Co. collaborates with NGOs
and governments, extending their impact to improve water access in needy
communities.
SOCIAL ENTREPRENEURSHIP
Empowering Communities Through Business
 Social enterprises solve problems and empower communities by creating jobs, fostering local
economies, and enhancing social welfare.
 Tech for Good is a social venture providing tech education and resources to marginalized
communities, bridging the digital divide.
 They work towards ensuring that marginalized communities have affordable access to essential
technology and internet services, breaking down financial barriers to digital inclusion
IMPACT INVESTING
Investing with a Conscience
 Core Concept: Impact Investing focuses on generating social and environmental impact alongside a financial return,
shifting the traditional investment paradigm.
 2023 Trend: The rise of 'Green Bonds' specifically aimed at funding projects addressing climate change and
environmental sustainability.
Activity to the class

A. Market Influence: Analyze the growth of the green bond market in 2023, its influence
on corporate financing strategies, and its contribution to sustainable development.
B. Health Impact Fund - A fund created to invest in healthcare startups focusing on
affordable treatments for diseases prevalent in developing countries.
CORPORATE ACTIVISM
Business as a Force for Change
 Defining Corporate Activism: Corporate activism involves companies taking stands on

political, social, or environmental issues, reflecting their values and ethics.
 'EcoFashion Corp’ - A clothing company that launched a campaign advocating for stronger
environmental regulations in the fashion industry.
 https://www.ecofashioncorp.com/
ADVOCACY IN THE
CORPORATE SPHERE
 'CodeEquality' - A tech giant's initiative to promote gender equality in coding and tech,
challenging industry norms and fostering inclusive work environments.
 Evaluation of Impact: Examine 'CodeEquality’s' effectiveness in promoting diversity in tech,

its influence on other companies, and contribution to UN Sustainable Development Goal 5
(Gender Equality).

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SESSION-12

 CSR: A company's commitment to responsibly manage its operations' social, environmental

 1950s-1970s: Emergence of CSR concepts, primarily in response to public demand for

 What are Consumer Expectations from a

Talent Attraction and Retention:

The Ethical Frontier of AI in Business

Data Privacy Dilemma: Understanding the ethical boundaries of data

 2023 Zoom Data Handling Case: A critical look at how Zoom

 Corporate Environmental Responsibility: Examining how businesses are redefining their

 2023 Amazon Rainforest Initiative: Analysis of a collaborative effort by global corporations to

 Sustainability Focus: Emphasizing resource-saving production processes and the use of

Ethics Across Borders: Managing Diversity

 Cross-Cultural Ethical Challenges: Understanding the ethical complexities in a diverse global

shifting the traditional investment paradigm.

Activity to the class

 Defining Corporate Activism: Corporate activism involves companies taking stands on

 Evaluation of Impact: Examine 'CodeEquality’s' effectiveness in promoting diversity in tech,

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