Corporate Responsibility

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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.

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