CHAPTER TWO
LITERATURE REVIEW AND THEORETICAL FRAMEWORK
2.1 Introduction
This aspect of the study examines related literature on the subject matter - literature on ethics will be reviewed. Also included is the concept of ethics and social responsibility in business organization, involvement of government in ethics and social responsibility, ethical responsibility of NICON Insurance, theoretical framework, theoretical bases, review of empirical studies, study gap and summary of review.
2.2 Concept of Ethics and Social Responsibility in Business Organization
According to Pearl and Hughes (2008), ethics is defined as acting to prevent a substantial harm to others when an individual or group has an opportunity to do so for their own benefit. Mc Antony (2004) postulated that moral standards deal with matters that we think can seriously injure or seriously benefit human beings. On his part, Kim (2007) asserts that moral judgments function to condemn human plans or activities that make life unbearable for others and morality functions to limit selfish actions that cause such harm. By definition, stakeholders represent the groups most subject to potential benefit or harm by business Elango et al., (2010). For this study, stakeholders included employees, customers, other supply-chain companies, stockholders (as a special group), and communities in which the company operates Nicholas, (2002). The mission of ethics is to ameliorate the abusive use of power and reduce the negative impact of chance in the everyday lives of humans Kalshoven et al., (2011).
