It gives rules and regulations, by which the Board of directors ensures that the organization is loyal, accountable, and transparent to towards the relationship, which it shares to its different stakeholders like customers, employees, management, financial consultants, government bodies and other important communities. As the main aim of any business organization is to make high profits. But now these days it’s not enough to make high profits only, it also needs to be a good corporate citizen in the society, to behave in ethical manner and must have some healthy corporate governance enactment. The Quality of any business organization’ corporate governance affects the value and the risk of the organization. Strong corporate governance is required for the effective and efficient of any business organization to stay in the market.
The business has a number of ways in which it helps employees can use ethics and values to show the importance in business sustainability. The importance of ethics and values in the social aspect is that it forms the perceptions of the business to the community. This is important as when people speak about the business they will have a positive view of the business and will want to support the business. This also applies to recruitment of employees, as people will want to work in a business will good ethics and values. The business helps community to show its ethics and values through social responsibility.
The expectation that businesses behave responsibly and positively contribute to society all while pursuing their economic goals is one that holds firm through all generations. Stakeholders, both market and nonmarket, expect businesses to be socially responsible. Many companies have responded to this by including this growing expectation as part of their overall business operations. There are companies in existence today whose sole purpose is to socially benefit society alongside businesses who simply combine social benefits with their economic goals as their company mission. These changes in societal expectations and thus company purpose we’ve seen in the business community over time often blurs the line of what it means to be socially responsible, how far a company should go to achieve this and just how much it should cost.
With that being said, the importance of corporate social responsibility in business has more value than before (Fallon, 2015). Human beings are social animal and we cannot live in isolation. We are expected to behave in a manner that is socially and morally acceptable to others. This also applies to in business; corporates are expected to conduct its operation in a manner that fulfills its obligations to the society (Olivia, 2011). Being socially responsible is not only respecting the legal system, but also going beyond them through environmental management, investing in human capital and having a relationship with all stakeholders (Popa & Salanta, 2014).
“They need to be able to help their team members believe in the value of full engagement and inspire them to pursue it on a personal level” (BlessingWhite, 2008, p. 21). Corporate Responsibility Corporate culture is important to maintaining organizational controls. Through corporate culture, a company can promote values, beliefs, and ethics. Everyone has their own individual values, beliefs, and ethics, but as an organization, it must enforce ethics through its senior leaders, codes of conducts, and compliance programs. Just as companies can have negative impact on individuals, it can also have a positive effect on its workers.
Employee participation in Social Responsibility can drive motivation. I think that organizations are facing new demands from society and shareholders to be more socially responsible. The book defines Corporate Social Responsibility to include businesses living and working together for the common good and valuing human dignity (Phillips & Gully, 2012, p. 19). Employee engagement is a very cost-effective way to tap into building credibility into Corporate Social Responsibility. There are many effortless ways to find leverage to build employee relationships and firmly impact the communities surrounding the company and employees.
Corporate Responsibility Corporate Social Responsibility is looked at as corporate citizenship, or responsible business. It is an organizations example adopted by businesses that want to improve their organizations, communities and more. It is a self regulating system that makes the organization commit to follow the laws of business and maintain a high ethical standard. Many times, corporate social responsibility results in businesses committing themselves to certain social goods, or even an attempts to approve the environment. Corporate Social Responsibility is a organizations promis... ... middle of paper ... ...ut will ultimately have a effect on the world.
1) Triple Bottom Line: Corporate Social Responsibility is to ensure that an organization takes the right measures to be responsible and contribute positively to the environment and communities that they work in. In many organizations, the Public Relations department handles the relationships between the company and its internal and external environments. This boosts the company’s image. (Ghadban,2010) A tripe bottom line is used to measure three things. These three measures include: • Profit – the economic value of the company or the economic benefit to the surrounding community and society • People – the business practices regarding labor and the community in which the business is conducted.
In the current time of growth and progression, individuals should know that how a business not only flourish but sustain itself. Making profit is one of the main targets of every corporates but it must not be the only one. When an individual builds a company in order to do business, they should be well aware of their contribution towards the society as well as their business and employees in it. It is total strategy of all. We should be able to realize every increment contributes of it.
The Role of Business in Society The purpose of this paper is to provide an overview of the role of business in society, concept of ethical leadership and the reasons leaders in businesses must utilize critical thinking, management decision-making, motivation and the requirement of followers in order to lead effectively. A business’ effect on a society is an important thing to consider, because a community can create an encouraging reputation, attract new customers and encourage customer loyalty to businesses. Every business is distinct in its own way whether it serves a specific functional market or relies on an owner's enthusiasm and special skills. However, all businesses have some of the same basic needs and limitations. Businesses are the growth medium of the economy.