Ethics And Corporate Social Responsibility

1532 Words4 Pages

Peter Robinson, CEO of Mountain Equipment Co-op, was correct when he said that “Ethics is the new competitive environment.1” Honesty, integrity, and transparency consistently rank at the top of qualities that employees and the public desire from corporate entities1. Matters of integrity and responsibility in multinational corporations are often complicated and, when poorly implemented, can be potentially damaging to a firm. Practically applying ethics and corporate social responsibility to business practices is a multifaceted challenge that requires both awareness and vigilance. Execution of ethical and responsible business practices necessitates consideration of international standards such as the UN Global Compact as well as structuring of company policy in order to best address the most pressing issues and violations. However, the application of the Compact can often be complicated and confusing. Expectations for firms emphasize attention to four major areas: human rights, the environment, labor practices, and corruption. I will be outlining business’ responsibility in these four areas, as well as analyzing the most important human rights, environmental, labor, and corruption issues and the potential challenges to implementing responsible practices in these areas. In order to look at these theories in practice, I will be considering how these issues apply to the diamond industry. Companies in all places, regardless of their size or sector, have the standard obligation to respect human rights. Respecting human rights is the basis for responsible business practices, and human rights issues affect all other actions taken by firms. The first and second principles of the United Nations Global Compact address human rights... ... middle of paper ... ...o benefit businesses and consumers alike by leading to lower costs. Companies must look for possibilities within their own supply chain to develop cleaner processes. This leads to the last environmental call of the Compact: to develop sustainable technologies. These are technologies that make the business process less polluting, protect the environment, use resources sustainably, recycle more, and produce less and or cleaner waste2. Pursuing sustainable technology can be costly, but it is an investment into the future of the company, giving it a reputation as a company that is innovative in looking for opportunities to better the world around them for future generations. These technologies can also be beneficial to people at the beginning of the supply chain, who benefit economically and health-wise from initiatives to use less pesticides or grow organically6.

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