Corporate Ethics And Three Types Of Corporate Social Responsibility

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The concept of corporate social responsibility has become widespread over the past decades. This term is also known as nonfinancial reporting, corporate accountability, corporate ethics, sustainability and triple E-bottom line. This report combines three types of reports: environmental, social and economic. Corporate social accountability means that company or organizations should be responsible for their actions, because they affect to the environment, people and economy. As we all live in pluralistic society, in which many groups of people have different interests and each of them has impact on another, “bad” businesses that harm the environment should correct their actions in order to have good reputation. Therefore, managers in their decision …show more content…

For instance, in Asia, Japan is number one country with the number of such reports, but lately other nations like China started to feel the importance of nonfinancial report. As I mention in history, originally nonfinancial responsibility reports were issued by the large international corporations However, over the last decades, the corporate social reports became popular in medium and small companies. If you read the literature about the corporate social responsibility, in your mind appears the question is the nonfinancial statement is obligatory, if not, why companies issuing it? In most cases, companies prepare non-financial reporting is a voluntary initiative including there the selective …show more content…

Corporate social responsibility is very important tool to achieve the goals and it is very good opportunity to show their engagement to the environment and society. Moreover it is the best strategy or tool which makes them more competitive than their opponents and it shows the effectiveness of their managements, which makes them more attractive to the investors. Additionally, managers could present the positive information about their company in important fields getting positive feedback from public and confidence of the stakeholders in the company. Reporting improves the companies accountability and helps to get trust from the stakeholders (people who affect or can be affected from the organizations any actions) and to build the interconnected trusted society. All stakeholders including government and business can benefit from the positive influence from the social, environmental and legal issues. According to the book Global Corporate Citizenship the main advantages of doing the nonfinancial statement are “reducing cost and waste, creating and improving the brand equity, lowering the cost of capital, improving employees’ productivity and attracting or retaining talented employees, reducing various forms of risks (legal, regulatory, political

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