10. Essay business ethics Business ethics Business ethics can be interpreted in various ways. Therefore, it comes as no surprise that there are many different definitions of business ethics. The most generally acknowledged definition states that business ethics “is a set of corporate values and codes of principles, which may be written or unwritten, by which a company evaluates its actions and business-related decisions.” It should be mentioned here that business ethics is not only relevant to the conduct of the company as a whole, but also to the conduct of individuals within that company. Besides, it applies to all aspects of business conduct. All decisions made by individuals and companies may be judged as being right or wrong, good …show more content…
Stakeholders want to be associated with socially responsible companies, and as such expect them to adhere to a certain standard of behaviour in order to gain their trust. Companies are under strong pressure to behave ethically. They have to earn a ‘license to operate’. Now that many people start to realise that companies do not operate isolated from the rest of the world, but are a very important and central part of society, they are of the opinion that companies should no longer focus on making profits only, but also consider and take into account the negative impacts of their business-related decisions and activities on the environment. According to a global research conducted by Ipsos MORI in April 2013, 84 percent of the interviewees are of the opinion that companies should do more to contribute to society. This insight has led to Corporate Social Responsibility becoming increasingly important in our society nowadays. It has more or less become part of business ethics. A socially responsible company should be an ethical company. And an ethical company should be a socially responsible company. Companies that manage to apply business ethics to all aspects of their business conduct can be regarded as well-run businesses, that are strongly committed to good corporate …show more content…
“Planet” represents a proactive approach with regard to the natural environment. Companies have to contribute to solving environmental problems on which they have or may have influence. Finally, “Profit” is about creating economic value by producing goods and providing services. It is very important to keep the Triple Bottom Line in balance. When the focus is on one element only, the other two elements will suffer. For example, when making profit gets too much priority, human beings and the environment will suffer, for instance due to poor working conditions or destruction of nature. However, one should also not forget that profit is an essential part of development, which should not be neglected. In addition to pursuing optimal balance between the three P’s, companies have a duty to ensure that the current quality of life can be guaranteed for future generations as well. This is emphasized by the fact that sustainability is at the core of Corporate Social
It will be advantageous for the company if they can project themselves as responsible corporate citizen and an environment friendly company. Social enrichment schemes, recycling schemes and educational funds can be initiated to cater to this cause and long term goal.
Currently, businesses are facing a growing societal pressure to perform responsibly and sustainably. Western cultures have become more aware of the effect their consumption has on the environment. Furthermore companies are being put under pressure to treat labour, and where applicable, animals with greater care. However this is to an extent optional and it is often argued that corporate social responsibility is taken up voluntarily by the business and that following laws regarding ethical trading is just a prerequisite to “fulfilling the responsibility of enterprises” (Enderle, 2014, pp 723 - 735). Some businesses have monopolised on the added value of ethically sourced products, through promoting a positive brand
Within the past few decades, there has a growing focus by firms on examining their social responsibilities. But what the term “social responsibility” means is the subject of wide debate. What are they responsible for, to whom are they being held accountable, and who is calling for them to be responsible? Discussion in various academic studies and literature has centered on the call for companies to carry out actions that might be regarded as socially responsible, all of which have attempted to set some sort of a definition and boundaries to the extent of corporate social responsibility. Because of the nature of business and society, they have become interwoven entities, and with this comes the call for business to make a positive impact on
They should also participate in initiatives that benefit the society (Fallon, 2015). The company should manage their business and conduct their efforts to create a positive impact in the society. This business practice is called corporate social responsibility (CSR) (Popa & Salanta, 2014). "Sustainability isn 't just important for people and the planet, but also is vital for business success," said Maw, consumers are more aware about global social issues today. 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). According to Gond and Moon CSR is associated with business responsibility for society not for the wrong reasons such as compensating for a negative outcome, which is using CSR irresponsible by covering up the “doing good” to “doing bad”. Second, business responsibility to
Corporate social responsibility and being ethically correct has been becoming a major place and focus for many corporations. They highlight their push to engage responsibly and participate in sustainable business practices to not only put value into their product, but to include the customers in it as well. Companies, unfortunately, do not always hold up to the corporate social responsibility. When a company is at fault of this, it is followed by swift attention by the media and damages the public 's trust and view of the company. Once this happens, the negative impact includes the loss of trust, reputation, satisfaction, and customer loyalty. Once lost, these attributes are extremely difficult to regain.
An organization’s Corporate Social Responsibility (CSR) drives them to look out for the different interests of society. Most business corporations undertake responsibility for the impact of their organizational pursuits and various activities on their customers, employees, shareholders, communities and the environment. With the high volume of general competition between different companies and organizations in varied fields, CSR has become a morally imperative commitment, more than one enforced by the law. Most organizations in the modern world willingly try to improve the general well-being of not only their employees, but also their families and the society as a whole.
Obviously, the term business ethics is abstracted from the general word ethics. The term ethics origins from an ancient Greek word—ethikos—that refers to the authority of tradition (Grace, 1998; HARTMANN, 1980). While some defined ethics as a systematic framework to guide ways in which acts are conducted and kinds of favored values (De George, 1999), some viewed it as the tool to examine the moral standards of an individual or the society and determine whether it is reasonable (Velasquez & Velazquez, 2002). Business ethics, apparently, targets at ethics applying to activities in the field of business operation, which is relatively more micro and practical (Gendler, Siegel & Cahn, 2007).
The concept of business ethics refers to a set of guiding principles that encourage individuals in an organization to make decisions based on the company’s stated beliefs and attitudes toward business practices within its industry(Lisa McQuerrey., 2016) . Ethical and Unethical business decisions have long been a predicament encountered by organisations, these practices are concerned with how the companies interact with the global business world, and to their one-on-one dealings with individuals(Garry Crystal,. 2016.) The concept of ethics and social responsibility emerged into the business world in the early 1970s after the end of World War I saw these organisations become more profit driven resulting in negative impacts on society at large.
Since it is a rising issue in worldwide businesses nowadays, the concept of social responsibility (sometimes called corporate social responsibility, abbreviated as CSR, or corporate citizenship, triple-bottom line, social enterprise, and corporate governance, etc.) should be defined precisely. Griffin & Pustay (2013, p. 121) suggested that CSR is “a set of obligations an organization undertakes to protect and enhance the society in which it functions.” In other words, CSR is perceived as a social role that an organization is expected to play or an evaluation standard on how well a company manages their economic, social, and environmental influences. Hence, companies are facing rising demands to exercise their social responsibility toward their stakeholders such as employees, consume...
Corporate social responsibility is globally defined as operating a business in a way that meets or exceeds the ethical, legal, commercial and public expectations that society has of business. The concern of CSR has drastically increased over the last two decades. It has enhanced interactions between governments, businesses, society and internationally. In the past, businesses primarily focus themselves with the economic results of their decisions. Now, businesses must also reflect on the legal, ethical, moral and social consequences of their decisions. Corporate Social Responsibility is no longer defined by how much money a company contributes to charity, but by its overall involvement in activities that improve the quality of people’s lives.
Corporate social responsibility, which is an important part of corporate ethic, is expected to be exercised by companies. This concept focuses on the company’s relationship with its stakeholders. There are debates on whether companies should take the responsibilities beyond the target of maximising shareholders ' interests. Some experts argue that businesses do not have responsibilities for stakeholders other than stockholders; they believe “a corporation’s responsibility is to make as much money for the stockholders as possible” .However, some researchers find that companies which take their responsibilities can earn more profits than other companies. The views of companies in the eyes of stakeholders, especially customers, can be strong motivations for the companies to fulfil their social roles. The theory of corporate social responsibility is a constrain...
Carroll, A. (1991). The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders. Business Horizons, 34(4), 39-48.
In todays increasingly sustainably minded and ethically concerned society, particularly in western industrialised nations, it is crucial for businesses to be sustainable. This development in societies perspective, has resulted in the progression of sustainability now not only encompassing protecting the social and environmental resources relied upon by businesses but also being able to efficiently manage and the economic bottom line. Majority of businesses have taken this committed to adapting to this change through sustainable practices. In fact, 50% of the experienced and knowledgeable business owners surveyed in a study confirmed that their company had a compelling business case for sustainability. (Berns et al. 2009). The emergence of the
While there is no universal definition of corporate social responsibility (CSR) due to differences in values and understanding, it is agreed upon that firms implementing CSR must meet the economic, legal and ethical expectations that any society has of the firm at a given point in time (Saeidi et al., 2015, p. 342). In simple terms, corporate social responsibility refers to the efforts of a firm to conform to business practices that result in a long-term economic, societal, and environmental well-being (Du, Bhattacharya & Sen, 2011, p. 1528). It emphasizes on the notion of ‘doing well by doing good’ by stressing upon the idea that profit is only a byproduct of business and not the end goal and that the purpose of business organizations go beyond
A company has an economic obligation. It must earn a favorable return for its stockholders in the restrictions of the law. But, corporate social responsibility means that organizations have also ethical and societal responsibilities that go past their economic responsibilities. CSR needs organizations to develop their documentations of their responsibilities to include other stakeholders such as workers, customers, suppliers, local societies, state governments, international organizations, etc. Ethics could be seen as a fundamental component of individual and group activities at the heart of organizations’ errands.