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different views on corporate social responsibility
Ethical business practise
relationship between social responsibility and business ethics
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ARGUMENT IN FAVOUR CORPORATE SOCIAL RESPONSIBILITY AND BUSINESS ETHICS INTRODUCTION Corporate social responsibility is a concept which describes how a company should conduct itself within society, particularly in relation to different views on what a business is about and how it should act (Mullins, 2005). On the other hand, an ethical code of doing business is defined as “a written, distinct and formal document which consists of moral standards used to guide employee or corporate behaviour” (Pater and Van Gils, 2003). The key note speaker’s views on corporate social responsibility and business ethics complement the perceptions held by Mullin and Pater & Van Gils as explained above. Businesses have to consider not only of the financial and economic interests in their decision making but also of the sustainable social and environmental issues. As a result, this paper examines the statements made against business ethics and corporate social responsibility at the conference and presents a case in favour of business ethics and corporate social responsibility. AGENCY THEORY AND CORPORATE SOCIAL RESPONSIBILITY It is believed that a business is run by their owners and in situations where owners cannot run the business they hire directors who are accountable to do the job on the owners’ behalf. The directors’ interest in the business must therefore complement the owners (Management Today, 2006). The consequence of this is that directors who are knowledgeable in business environment can manipulate share prices over the short term, to the long-term detriment of shareholders. The issue is not about giving part of the shareholders’ money to the charity but rather it is in connection with directors who try to exploit the ignorance o... ... middle of paper ... ... Boston Friedman, M., (1970). ‘The Social Responsibility of Business is to Increase Its Profits’. New York Times Magazine, 13 September. Pp 32, 122-6 Kay, J., (2003). ‘The Truth About Markets’. Allen Lane Penguin Press. pp 380 Management Today (2006). ‘mt MASTER CLASS’. Management Today, May, p22-22, 1/4p; Marketing (1998). ‘Levi’s Pulls Hamster Ad after Complaints’. Marketing, 27 August, p. 5 Mullins, L., J., (2005). ‘Management and Organisational Behaviour’. Seventh Edition. Edexcel Pater, A., Van Gils, A., (2003). ‘Stimulating Ethical Decision-making in a Business Context: Effects of Ethical and Professional Codes’. European Management Journal, Volume 21, Issue 6, December 2003, Pages 762-772 Poultry World (2007). ‘M&S Extends Free-Range Pledge’. Poultry World, February, Vol. 161 Issue 2, p.14-14, 1/8p Sternberg, E., (1994). ‘Just Business’. Little Brown.
...Foundational Considerations in the Corporate Social Responsibility Debate’, Business Horizons, vol. 34, no. 4, pp. 9-18.
Davis, K. (1960), Can Business Afford To Ignore Social Responsibilities? California Management Review, 1960, pp.70-76
Mackey, J. (2005, October). Rethinking the social responsibility of business. Journal of Reason, 10, 15-17.
Business ethics are the moral principles that describe the way a business behaves. Because businesses are treated as “persons”, it can be said that the same principles that determine an individual’s actions can also apply to business. Making ethical choices involves distinguishing between right and wrong, and then making the right choice; and while it can be easy to identify unethical business practices, such as using child labor or not paying employees properly, good ethical practice can be harder to define simply because what is deemed right is not always universally accepted. In other words, everyone has a unique moral compass, and can see black and white as different shades of gray. In the face of this, every business holds corporate social responsibility to act fairly for their employees’, stakeholders’, and sometimes even the earth’s sake. However, whether or not the business adheres to this ethical paradigm varies.
Friedman, M., (2007). The Social Responsibility of Business Is to Increase Its Profits. In W.
Every business entity has social responsibilities. The four theories of social responsibility are the maximization of profits, moral minimum, stakeholder interest and corporate citizenship. Social responsibility goes hand in hand in regard to a company’s ethical standing. As a company, it’s crucial to have high ethical standards. The Ethisphere Institute ranks businesses annually to be named on their honorable and highly recognized list of the World’s Most Ethical Companies. These organizations are evaluated in terms of their ethics and compliance programs, corporate citizenship and responsibility, culture of ethics, governance and leadership, and innovation and reputation. One of the companies
Therefore we can understand the link between ethical behavior and corporate social responsibility through a thorough analysis of the two concepts discussed above. A business having strong values like integrity and honesty will behave in a way that benefits not just them but the entire society and everyone who is related to the business. Successful businesses have “ethics” at the core of their heart and they consider themselves fully responsible towards their stakeholders.
Milton Friedman. (1970, September 13). The Social Responsibility of Business is to Increase its Profits. The New York Times Magazine. Copyright @ 1970 by The New York Times Company.
Wagner-Tsukamoto, S. 2007. Moral agency, profits and the firm: Economic revisions to the Friedman theorem. Journal of Business Ethics, 70, 209–220.
Business ethics simply can be defined as the application of business values in the business practice of a company (Seawell 2010, p. 2). For a multinational company, business ethics is one of the critical aspects need to be taken into account in business decision-making processes. Failure to give attention on ethics may bring consequences on company’s reputation (Meyer & Jebe 2010, p. 159). The company is expected not only to pursue its own profits but also contributing to the environmental and social welfare of the community where it operates (Svensson & Wood 2008, p. 308).
In conclusion, a business should act ethical and socially responsible in order to make our world a better place, just for the goodness. Acting according to business ethics may result more profits in the long process but it is not ethical to be ethical for the rewards, therefore it shouldn’t be a goal. Businesses need to build good reputation and it is possible by corporate social responsibility and ethical behavior. In this new era of a new media, unethical acts of companies don’t go unnoticed and unpunished; therefore they need to be more careful. Although they can just comply by regulations and put aside corporate social responsibility, business ethics can turn out well for everyone.
Business Ethics are much more than the buzz word stories on late night news. The Corporate Social Responsibility of a company goes well beyond that. “Business Ethics are moral guidelines for the conduct of business based on notions of what is right, wrong and fair.” (Bellow, 2012). Individual backgrounds play a huge role in person by person code of conduct can vary from employee to employer. To help solve some grey areas in what is ethically correct, companies now make a code of conduct that is over everyone in the company. This code of responsibility helps employees have better understanding of what is required of each and every one of them. “Corporate Social Responsibility is a business philosophy which stresses the need for
Many people believe that they have a social responsibility to take care of their community and the people within that community. The community can expand from local and regional to national and international in scope. Social responsibility in not limited to individuals, but many businesses and organization have joined the call for social responsibility. Corporate Social Responsibility, CSR, is when business and corporations make this a priority in their operations. Two questions come to mind, why a company needs to practice CSR and how can they do it?
Corporate Social Responsibility is an organisation’s obligation to serve the company’s own interest and the one’s of the society. Moreover, Corporate Social Responsibility has a definition of a concept where the companies integrate social and the environmental concerns into their own business operation and also on a basis of voluntary with their interactions they have with the stakeholders. Corporate Social Resp...
Business ethics and social responsibility are two concepts many individuals believe go along together for corporations in the business environment. Business ethics are the moral values a company uses to ensure all employees action in a standard manner when completing business functions. Social responsibility is typically a conceptual theory that governments and the general public hold, believing that businesses should not conduct themselves in a manner counter to cultural or societal norms. The connubial of these concepts happens when companies introduce a written code of ethics to demonstrate that the company only acts in its greatest interest so long as it does not damage the company’s social responsibility.