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.
Introduction 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.
“Corporate Social Responsibility is a hard-edged business decision. Not because it is a nice thing to do or because people are forcing us to do it because it is good for our business” – Niall Fitzerald, Former CEO, Unilever This quote came from the sustainability page of Unilever website. This company’s website also has statistics about what the firm is doing to plan for sustainable growth in the future and how they are changing to become more environmentally friendly. Additionally, Unilever has published statistics detailing various safety, environmental, and social performance indicators relative to their industry. Clearly, this is a firm that deeply cares about its environmental and social sustainability efforts and performance.
Corporate social responsibility has become a key factor to businesses today, but what is it exactly? Corporate social responsibility also known as CSR is when businesses go outside of their normal responsibilities to give back to the community. It is the way corporations take accountability for its effects on the environment and impact of the society as a whole. Therefore they try to make up for damages, mainly to the environment, that they have made. Businesses dedicate their own money and time to environmental programs and various social welfare initiatives to the community(Mason and John 79).
Formal (rules and regulations) and informal institutions demand for better environmental and corporate social responsbility from firms. As a result, sustainability has become a key focus for multi national enterprises as it enabled companies to achieve better organizational performance. One of the Human Resources Management(HRM) function consists of assisting in creating and implementing sustainability strategy in various ways. Human Resources(HR) ensures that the employees of a global firm implement the strategy consistently across the globe. A sustaniable human resource management uses various methods and tools to create a global worksforce that trusts the organization and its strategies towards the global sustainability.
The stakeholders include the owners, investors, employees, customers, government, suppliers, competitors and the community. What is ethics? ¡°The rules or standards governing the conduct of a person or the members of a profession¡± is the definition of the ethic by the free dictionary (thefreedictionary, 2000) (http://www.thefreedictionary.com/ethic.retrieved:10/09/07) Why to be CSR and behave ethically? CSR is now more corporate looking for it because that found that they can not survive without the society support. Just like a single human can not survive without food and water.
Corporate Social Responsibility Corporate social responsibility is a concept that companies own social and environmental concerns in their business operations and in their interaction with their stakeholders. It is considered that the aim for CSR is to convert from philanthropic rationale to performance-driven task. It is also known as Corporate Responsibility, Corporate Citizenship, Responsible Business, Sustainable Responsible Business (SRB),Corporate Social Performance. It is also defined as Additional responsibilities of businesses to local and wider communities apart from its core responsibility of profit maximization(Simpson and Taylor, 2013). The issues of business ethics have a long history, and are a main topic in civilian and religious
Brands Is Conquering the World - Businessweek. Retrieved January 28, 2014, from http://www.businessweek.com/globalbiz/content/jul2010/gb20100714_088544.htm E Consultancy (2013, March 13). How McDonald's uses Facebook, Twitter, Pinterest and Google+ | Econsultancy. Retrieved January 26, 2014, from http://econsultancy.com/blog/62329-how-mcdonald-s-uses-facebook-twitter-pinterest-and-google P
However, there can be more definitions about what Corporate Social Responsibility can be. For example, Corporate Social Responsibility can be the commitment which is continuing for a business to behave ethically and bring to economy the development to improve the workforces’ of the whole society and local community and their families’ quality of life. Corporate Social Responsibility is also known as the obligation of a company to serve the society’s interest and of course its own. With the help of the Corporate and Social Responsibility, social and environmental concerns companies can integrate into their business and stakeholders operations. Corporate Social Responsibility is an organisation’s obligation to serve the company’s own interest and the one’s of the society.