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Importance of ethical decision making in a business
Importance of ethical decision making in a business
Ethical business decisions
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3.6 Corporate Social Responsibility and the consumer Due to the intensification of Social demands from consumers to companies, many research studies have being developed in order to clarify the effects that CSR has had on members of the organizations as well as on its external participants. In terms of the workforce, the application of a CSR scheme according to Herbst and Lloyd (2009) improves their morale and a sense of satisfaction of working in a responsible company makes them more loyal to the organization, creating a better atmosphere as well as increasing the effectiveness of the employee. On a consumer level, The GFK group (2008) a German research company conducted 20,000 surveys in Germany in order to determine if the population was aware of the CSR practiced by companies in the country. The results concluded that Germans are not only conscious of these programs but that they also demand such schemes. Another research company, The Nielsen group, developed a worldwide investigation about Corporate Social Responsibility in 2008. It was discovered that 51% of consumers manifested that it was very important for organizations to commit on social and environmental causes. Furthermore, two in three respondents stated that they would be willing to purchase ethical products if the environment and social issues would benefit from it. A research carried out in Canada in 2008 explored the commitment of the top brands in the country to environmental causes and the perceptions developed by its consumers. Contrary to the results obtained in Germany, the investigation discovered that companies with good behaviour do not always secure good consumers perceptions. Furthermore, customers wrongly evaluated the C... ... middle of paper ... ...n and Self-Identity. 3.8.1 Modified Theory of Planned behaviour: Ethical Obligation and self-Identity According to Shaw et al. (2000) the ethical obligation in this framework represents the way consumers internalize their ethical rules to then become a sort of moral obligation that they might feel the need to fulfil in order to meet the expectations of their subjective norms. This aspect is also supported by the internal belief that an individual holds about a specific situation. Another measurement tool included in the theory of planned behaviour was self-identity. This implies that consumers that get involved and concerned about ethical issues tend to adapt their self-identity to meet this new behavioural standard. These issues become relevant and shape part of the consumer’s identity, fact that creates higher interest for ethically produced products.
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.
Maignan, I. (2001). "Consumers' perceptions of corporate social responsibilities: a cross-cultural comparison." Journal of Business Ethics 30(1): 57-72.
Corporate Social Responsibility (CSR) is about how companies manage their business processes to produce a positive impact on society. Companies introduce new products in markets, usually after testing concludes that the product is safe for use or consumption. It is nearly impossible for a company to truly know all of the potential risks a brand new product may have, even after thorough testing. However, once a company receives reports that its product may be causing harm to consumers, it is their responsibility to conduct more research and tests to rule-out any possible truth in the reports. This is what a socially responsible company would do, one who is preoccupied not only with their bottom-line, but one that is also worried about its customers.
a) CSR is about how the companies run the business getting the positive impact on society and evaluating their responsibilities. Participating in initiatives that is benefit for society in involved in corporate social responsibility.Through the CSR organisations maintain a good relationship with customers, suppliers and employees. CSR is a process that aims to hold responsibility for the company’s
A corporations CSR should be shaped in order to fit the goals of the corporation, although every corporation’s CSR should differ, since most have different goals and different communities behind them. The CSR should be molded into fitting the corporation’s goals in order to make it easier on the corporation in giving back to the community while achieving its goals. For example, a corporation located in a desert wishes to be more efficient, by reducing water usage it is not only creating lower costs, which result in higher revenue, but also helps the community by not taking up so much water. Taking this into consideration, it is critical that the corporation goals and values are established and clear throughout the corporation, they should be developed by the board or directors and CEO, and the highest managerial level should stress their importance to the rest of the corporation. By making the goals and values at the top branch of the corporate hierarchy, it will be simpler for the corporates community to develop in order to nurture those goals and values. Therefore, a corporation can reach the “shared-value,” a value for both its shareholders and community in a simpler manner that can result benefiting the corporation in the end as well. Throughout the article many examples are given of actual corporations that have benefited and changed their CSR in order to fit their goals, therefore, providing solid proof that these methods work. Nevertheless, as acknowledged by the author’s themselves, most of the corporations taken into consideration where one’s that Harvard CSR students were employed
In recent years, companies are becoming socially responsible and now stakeholders almost expect a company to have CSR policies. Therefore, in twentieth century, corporate social responsibility (CSR) became an important development in public life (Barnett, ND).Corporate social responsibility is defined as “the ways in which an organisation exceeds the minimum obligations to stakeholders specified through regulation and corporate governance” (Johnson, Schools and Whittington, N.D cited in March, 2012). Stakeholders can be defined as “those individuals or groups who depend on the organisation to fulfil their own goals and on whom, in turn, the organisation depends” (Johnson, Schools and Whittington, N.D cited in March, 2012). There are many purposes for this essay, the first purpose is to descried the key principles of corporate social responsibility and explain their importance for stakeholders. Secondly, is to show how far this company follows those principles in order to be accountable to at least three of its stakeholders. In this essay, three stakeholders, environment, customers and employees will be evaluated respectively and the key principles of the stakeholders will be examined.
Corporate Social Responsibility (CSR) is a very familiar term in today’s world. Most of the successful companies try to be ethical and socially responsible toward their stakeholders. Because becoming ethical and socially responsible gains a lot in terms of profit or capturing more market share (Aras and Crowther,2009). This socially responsible approach is paved by the CSR activities of the companies which has a great contribution to their corporate strategy of winning the customers’ mind. In this assignment, the pros and corn of CSR activities of a particular organization a...
Companies that engage in greenwashing mislead consumers about firm environmental performance or the environmental benefits of a product. Organizations engage in Greenwashing with the objective to give consumers and policy makers the impression that the company is taking steps to manage its ecological footprint. This is increasingly becoming a problem because it negatively affects consumer’s
From research I have learned that consumers attitudes towards environmental protection is increasing. I have discovered that having a green image does matter to consumers. They are aggressively trying to change the way they have impacted our world (Green Marketing, 1 of 7). Some of the reasons that consumers are changing their attitudes are because of their gain in knowledge.
Corporate Social Responsibility (CSR) is immensely crucial for big international companies. Corporations such as Under Armour will benefit from CSR campaigns. According to statistics, 55% of consumers are willing to pay more for products from companies that are socially responsible (Double the Donation Research, 2017). Companies that show their commitment to society’s issues and problems are seen as more altruistic than companies whose corporate social responsibility initiatives do not exist. In pursuance to maintain good public image, a corporation’s social responsibility programs and campaigns and how aware consumers are about these programs is important.
Corporate Social Responsibility (CSR) is a concept by which organizations take the interests of society into consideration by holding themselves responsible for the consequences of their activities to the environment, the community, their customers and employees affected by all the operations of their business. This responsibility normally goes beyond that required by law. The resulting tendency is that of organizations actively and voluntarily helping their employees and the local and wider community to improve their quality of life.
Corporate Social Responsibility (CSR) is one of the most recognized aspects in the world today since companies’ reputation is judged from its CSR policies, quality of its services and products and competitiveness. Many authors relate CSR with ethical conducts in businesses. Many authors therefore give related definitions for both CSR and ethics. Corporate Social Responsibility can be defined as continued commitment to ethical conduct, to provide and contribute to high living standards of the society by facilitating economic developments and improving the standards of living of the employees together with their families, their society and community at large (MallenBaker.net 2011).
While the concept of an individual having responsibility is commonly recognized, modern views have lead to the emerging issue of corporate responsibility. Business Directory.com defines corporate social responsibility as, “A company’s sense of responsibility towards the community and environment (both ecological and social) in which it operates. Companies express this citizenship (1) through their waste and pollution reduction processes, (2) by contributing educational and social programs, and (3) by earning adequate returns on the employed resources.” But such a concept has been much disputed since at least the 1970’s.
Business organizations regularly run into demands from various stakeholders groups when conducting day-to-day business. These demands are generated from employees, customers, suppliers, community groups, governments, and shareholders. Thus, according to Goodpaster, any person or group of people that can shape or can be shaped by attainment of the objectives by an organization is considered a stakeholder. Most business organizations recognize and understand their responsibilities to these groups and endeavor to honor and fulfill them. These responsibilities are often communicated to the public by a statement of principles or beliefs. For many business organizations, corporate social responsibility (CSR) has become an essential and integral part of their business. Thus, this paper discusses the two CSR views: the classical view and the stakeholder view. Furthermore, I believe that the stakeholder view has brought ethical concerns to the forefront of businesses, and an argument shall be made that businesses would improve both socially and economically if CSR, guided by God’s love, was integrated into their strategic planning.
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. One of the major factors that affect a business is how well it participates in Corporate Social Responsibility. According to (Werther & Chandler, 2006) corporate social responsibility (CSR) refers to a business practice that involves participating in initiatives that benefits the society. In authenticity, there is a whole lot to argue about it. There are no major guidelines that decides either a business is participating in Corporate Social Responsibility; what might be considered a Business practicing CSR to some, can still not be accepted for it by others. CSR may be restrained a term which his highly flexible. This paper will discuss about Corporate Social Responsibility and its