A business firm is unavoidably influenced by its host community’s social institutions, social values, and cultural traditions. At the same time, the firm exerts reciprocal influence on the society’s values and traditions. At the intersections where these two forces—Business and Society—meet, one discovers the major social and ethical issues associated with business practice. Corporate Social Responsibility (CSR) means that business has social and ethical, as well as economic, responsibilities to the people, communities, and environments affected by its operations. Business Ethics (BE) refers to the ethical rules, principles, and moral logic applied to business operations, policies, and decisions.
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