Market economies as ultimately embarked consumer sovereignty as the cornerstone of capitalism; further, bearing moral compasses in a pluralistic society of ethical behaviour. Hence, dictating the normative enactment of corporate social responsibility subsequently undertaken via individual businesses. Consumers under capitalism are, accordingly to ideology, the decision makers on the allocation of society’s resources (N. Smith, 1990). Echoing, mere imperatives for companies to articulate their role, scope & purpose in order to maintain their validity, reputation & self worth depends on their ability to understand their place in society (W. Visser, D. Mallen, M. Pohl, N. Tolhurst, page 101). As such, meriting thorough analysis of FirstGroup plc rather compulsion of fulfilling both ethical and corporate social responsibility in an ever evolving societal landscape will be undertaken. FirstGroup plc operates a transportation business model with a wholesome revenue stream of over £6 billion & employs 130 000 staff throughout the UK & North America with a testimonial annual total passenger calculus of 2.5 billion and a justifiable 23% market share (UK bus and rail division). Griseri et al (2010) points out such core stakeholders of the company which are reluctantly vital for the existence and success of the company. These stakeholders form the principal resource base for the company. As FirstGroup maintain and improve their ability to on the resources held via their core stakeholders. In contrast, the second group (depicted above) relates to the company’s competitive position within the company’s particular industry and market. The main challenge for the company with this group of stakeholders is to establish and sustain relati... ... middle of paper ... ...ivil society: emerging embedded relational governance beyond the (neo) liberal and welfare state models’, Journal of Corporate Governance, 5 (3), 159–74 Robert W. Kolb (2008), Encyclopedia Of Business Ethics And Society, Vol. 5, page 71 John Henry (2004), Between Enterprise and Ethics-Business and Management in a Bimoral Society, page 111 FirstGroup plc., 2010. Section 3 – Employment, . [online] FirstGroup plc Available at: [Accessed 16 December 2010]. Ghoul, S. et al, 2010. Does Corporate Social Responsibility Affect the Cost of Capital?, [online] Available at: [Accessed 2 December 2010]. Heinkel, R., A. Kraus and J. Zechner, 2001, The Effect of Green Investment on Corporate Behavior, Journal of Financial and Quantitative Analysis 36, 431-449.
This business model was laughed at in the early years, but I think Geico is having the last laugh as we speak, top in at a net worth of 4.6 billion. There business model has a main key element of selling insurance directly to the customer. This business model has driven down operation costs, which they return to there policyholders by offering the lowest insurance rates on the market. Direct marketing to customers is what puts Geico ahead of competitors, as it creates a solid customer relation and builds trust between the company and consumer. Overall, the business model implemented is making Geico money, helping them become the top insurance provider in the United States as they just passed up Allstate recently in quarterly profits, at $4.68 billion for Geico and $4.4 billion for Allstate. Tim Calkins explains: “Geico is a perfect example of why positioning matters. Why buy from Geico? To save money. This is the core of the brand. Geico is a reputable company with low rates. Geico doesn’t promise the best service or the most complete coverage. It promises low rates.” This is a clear representation of their business model and how it translates to how consumers look at Geico as a whole. In the end, we are provided with more than enough evidence on Geico and how they have grown the company to an exceptional amount of profit, great for shareholders and investors, as well as providing customers with the best
Corporate Social Responsibility (CSR) is the way a corporation achieves a balance between its economic, social, and environmental responsibilities in its operations so as to address shareholder and other stakeholder expectations. In general, when firms hold this wider encouraging role on the public by being engaged with stakeholders, a variety of profit can be produced for both company and the stakeholders. A key inclination is the combination of Corporate Social Responsibility (CSR) into the organization strategy, culture, mission and communications. By incorporating corporate citizenship into the company it is no longer an additional “nice thing to do” or something made to obey laws or regulations. Instead, corporate responsibility has become something business leaders and workforce want to engage in, frequently because executives who believe in the long-term see business profit. The four types of social responsibilities a...
Flammer, C. (2013). Corporate Social Responsibility and Shareholder Reaction: The Environmental Awareness of Investors. Academy Of Management Journal, 56(3), 758-781. doi:10.5465/amj.2011.0744
In today’s global society, a Code of Ethics policy is used to label established, acceptable behaviors among that industry’s business associates, potential investors, and the corporation’s executive officers and employees, and most important, the consumer (Ethics Resource Center, 2003). In an attempt to promote an increased efficiency and productivity potential level, among employees and prospective clients, a corporation’s standard Code of Ethics should guide its members toward a more in-depth examination of their personal moral activity, and how these actions affect the people or acquaintances they encounter. A company should utilize this strategy as a model for the professional behaviors and responsibilities of its constituents, and proves the occupational advancement of that business. Ethics are important in every level of a corporation, but specifically in the day-to-day actions of its members, and the image the company broadcasts to its associates is fundamental in building a stable business foundation. These pledges are a vital communication tool used to covey the firm’s standards for business operations, and predominantly, its relationships with the surrounding communities (Ethics Resource Center, 2003).
An increasing large number of firms are developing mission statements that also attempt to define the social and ethical boundaries of their strategic domain. Some firms are actively pursuing social programs they believe to be intertwined with their economic objectives, while others simply seek to manage their businesses according to the principles of sustainability – meeting humanity’s needs without harming future generations. For example, Unilever has launched a variety of programs to help developing nations wrestle with poverty, water scarcity, and the effects of climate change. The firm’s motives are at least as much economic as moral. As environmental regulations grow stricter around the world, the firm must invest in green technologies or its leadership
Wagner-Tsukamoto, S. 2007. Moral agency, profits and the firm: Economic revisions to the Friedman theorem. Journal of Business Ethics, 70, 209–220.
Explain the connection between the economic model of corporate social responsibility and “free market” or “neoclassical” economic theory.
There has always been a debate nowadays over the topic of capitalism. Those who favor capitalism argue that it is doing more goods than bads for us. But people who criticize capitalism, on the other hand, hold...
The arguments for and against corporate social responsibility have captured two points of view. Those who believe that organizations should not be concerned about social responsibility base many of their arguments on the costs involved and whether organizations should shoulder those costs on behalf of society. And those who are in favor feel that organizations benefit from society and, therefore, have an obligation to improve it. Although there is no universal agreement, surveys and other reports express that many organizations are, becoming increasingly active in addressing social
Companies with CSR initiatives have better access to finance in capital markets that is essential for firms to produce goods and generate profits. Earlier study by Mcguire, Sundgren and Schneeweis (1988) reports that contributions to the environment and society are an important factor when banks and institutional investors are evaluating investment opportunities. Moreover, enterprises pursuing CSR practices tend to widely publicize their socially responsible behavior and thus become more transparent and understandable. Higher levels of transparency minimize the asymmetric information between the company and investors so investors become less aware of the risks associated with the investment projects (Cheng, Ioannou, & Serafeim, 2014). Consequently, more s...
In today’s fast paced business world many managers face tough decisions when walking the thin line between what’s legal and what’s socially unacceptable. It is becoming more and more important for organisations to consider many more factors, especially ethically, other than maximising profits in order to be more competitive or even survive in today’s business arena. The first part of this essay will discuss managerial ethics[1] and the relevant concepts and theories that affect ethical decision making, such as the Utilitarian, Individualism, Moral rights approach theories, the social responsibility of organisations to stakeholders and their responses to social demands, with specific reference to a case study presenting an ethical dilemma[2], where Mobil halts product sales to a garage, forcing the garage owner to stop selling solvents to young people. The second section of this essay will focus on advice that should be given to any manager in a similar position to the garage owner with relevance to the organisational strategic management, the corporate objective and the evaluation of corporate social performance by measuring economic, legal, ethical and discretionary responsibilities. It will address whom to think of as stakeholders and why the different aspect could cost more than a manager or an organisation could have imagined.
European Commission: 2001, Green Paper Promoting aEuropean Framework for Corporate Social Responsibility C OM(2001) 366 (Commission of the European Communities, Brussels). Retrieved from http://eurlex.europa.eu/LexUriServ/site/en/com/2001/com2001_0366en01.pdf
Ethics in the Workplace "Ethics are personal and, at the same time, a very public display of your attitudes and beliefs. It is because of ethical beliefs that we humans may act differently in different situations" (University of Phoenix, 2007). Poor ethical choices in the workplace can truly hurt people. Poor ethics can damage their career, happiness, and quality of life. Not only can these actions hurt the individual who has made the bad choices, but also most often it hurts the innocent.
It has been said that laws are not enough to help corporations to fulfill their social responsibilities . The main reason this is so is because the legal system makes most policies that are in the category of ‘Thou shalt not’ without necessarily explaining what should actually be done. However, corporate social responsibility demands that an organization make structures that cater for the welfare of the society. For example, in this case study, the Essex Fire Authority has designed its approach in such a way that since from its inception, the customers have always been at the center of the operation . It has been argued that there are two commonly used approaches as far as corporate social responsibility is concerned. The first is an organization that treats all its customers in an equal manner such that all customers feel valued at the same level regardless of their social status . Being a fire and emergency response department, the Essex Fire Authority does not prioritize where to go in case of multiple emergencies but rather gives equa...