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Qualification - OTHM Level 5 Diploma In Accounting And Business
Unit Name - Business Ethics and Corporate Social Responsibility
Assignment Title - Business Ethics and Corporate Social Responsibility
Unit Level - Level 5
Unit Reference Number - Y/617/3293
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Learning Outcome 1: Understand how business ethics and Corporate Social Responsibility (CSR) relate to financial decision making.
Answer: Business ethics and Corporate Social Responsibility (CSR) play a vital role in shaping financial decision making within organisations. Ethical principles guide managers to make fair, transparent, and responsible financial choices that consider not only profit but also the impact on stakeholders such as employees, customers, and society. CSR encourages businesses to invest in sustainable practices, environmental protection, and community development, which may increase short-term costs but lead to long-term financial stability and reputation. By integrating ethics and CSR into financial planning, organisations reduce risks, avoid legal penalties, and build trust, which ultimately improves profitability and investor confidence.
Learning Outcome 2: Understand the nature and importance of corporate governance and ethical behaviour.
Answer: Corporate governance refers to the system of rules, practices, and processes used to direct and control an organisation. It defines the roles and responsibilities of directors, managers, and shareholders in ensuring accountability and transparency. Strong corporate governance promotes ethical behaviour by establishing clear policies, codes of conduct, and internal controls that prevent fraud, corruption, and misuse of resources. Ethical behaviour within governance structures helps maintain organisational integrity and public trust. When governance is effective, it enhances decision making, protects stakeholder interests, and supports long-term business success.
Learning Outcome 3: Be able to analyse complex issues in CSR and corporate governance.
Answer: Analysing complex issues in CSR and corporate governance requires evaluating economic, social, legal, and ethical factors together. Many business decisions involve conflicts between profit objectives and social responsibilities, such as balancing cost reduction with employee welfare or environmental protection. For example, outsourcing to low-cost suppliers may improve profitability but raise concerns about labour rights and working conditions. Similarly, governance challenges such as executive pay, board independence, and shareholder influence require careful assessment. By critically analysing these issues, organisations can identify risks, develop ethical strategies, and make balanced decisions that support sustainable growth and stakeholder trust.
Learning Outcome 1: Understand how business ethics and Corporate Social Responsibility (CSR) relate to financial decision making.
- Explain key principles of ethical behaviour and CSR.
- Evaluate how business ethics and CSR link to financial decision making.
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Learning Outcome 2: Understand the nature and importance of corporate governance and ethical behaviour.
- Analyse the importance of corporate governance and ethical behaviour.
- Evaluate ethical issues arising in relation to corporate activities.
- Analyse strategies to address corporate governance and ethical issues.
Learning Outcome 3: Be able to analyse complex issues in CSR and corporate governance.
- Review CSR and corporate governance issues in an organisational setting.
- Recommend solutions to CSR and corporate governance issues in an organisational setting
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