3 key principles of corporate social responsibility

For more information on the source of this book, or why it is available for free, please see the project's home page. Make sure you walk the talk and that your company does what it says it does, otherwise your company could risk a customer backlash. Sustainability as a virtue means valuing business plans that may not lead to quick riches but that also avoid calamitous losses. Who are the stakeholders in stakeholder ethics? The European Commission list of benefits for companies that adopt CSR criteria: “Business ethics, the personal commitment of the company’s directors, improve competitive, strengthen the company’s image, prevent negative publicity, lawsuits or campaigns against the company, increase customer loyalty, stand out from the competition, improve human resources management, strengthen the loyalty of management staff, attract new employees, improve adaptation to change, cost reduction, tax breaks, less worker strikes” (Fuentes-Garcia, F., Nunez-Tables, J. Because they’re touched by a company’s actions, they have a right to participate in managing it. Initially, biofuels were touted as a silver bullet substitute for oil, prized for their potential to slow or reverse climate change. © 2020 Springer Nature Switzerland AG. Further, the case of an industrial chemical company pouring toxins into the ground that erupt years later with horrific consequences evidences this: not only are resources finite, but our earth is limited in its ability to naturally regenerate clean air and water from the smokestacks and runoff of our industries. Causing harm undercuts and may overwhelm the utility of any value a business creates. As a specific theory of business ethics, a package of four obligations the corporation holds as an independent ethical actor in society; the responsibilities are economic, legal, ethical, and philanthropic. Use marketing techniques that are fair and honest, and that reflect your company’s integrity. Make the money hurt. They see minimum wage workers who’ll be fired as soon as the next economic downturn arrives. Martin Luther King, Jr. quote- “Our lives begin to end the day we become silent about things that matter” (Iankova, 2008, p.77). This is a very important point. Finally, social sustainability requires that corporations as citizens in a specific community of people maintain a healthy relationship with those people. In world history, however, such revolutions are quite common. As stakeholders, they may have been willing to agree to the dumping too. Borrowing from the medical profession, “Do No Harm” applies to business in that CSR’s most basic form means that companies should not knowingly inflict harm to create profits. Lawrence, A. However, the publisher has asked for the customary Creative Commons attribution to the original publisher, authors, title, and book URI to be removed. One of the movie’s messages is that many corporations are like greedy lawyers—they have little sense of right and wrong, and their behavior can only be modified by money. In many cases transparency is an important value for those promoting stakeholder ethics. Pfau, M., Haigh, M., Sims, J. CSR is both cool and vexing in that it has emerged organically, representing ideas formed jointly by corporations … Iyer, A. Company owners, whether a private individual or shareholders, Customers and potential customers of the company, Suppliers and potential suppliers to the company, Everyone living in the town who may be affected by contamination from workplace operations, Creditors whose money or loaned goods are mixed into the company’s actions, Government entities involved in regulation and taxation, Local businesses that cater to company employees (restaurants where workers have lunch, grocery stores where employee families shop, and similar), Other companies in the same line of work competing for market share, Other companies that may find themselves subjected to new and potentially burdensome regulations because of contamination at that one Massachusetts plant. Consider passing it on: Creative Commons supports free culture from music to education. These towns including housing, stores, schools, and playground for children of their employees. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. CSR can be thought of as the challenge organizations face to balance their social responsibilities with that of increased earnings and concerns according to shareholder and stakeholder expectations. CSR is being seen as the new business models for companies that want to be seen as more responsible organizations. Never give away to much information but be helpful when other organizations what to have some tips. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. It’s a difficult topic because of the absence of unified leadership; no single thought leader, academic work, law or other authoritative sources of definition tell us what CSR is. Internal Aspects: Americans, accustomed to economic progress, tend to be more comfortable with, and optimistic about, change. Internal Aspects: This strategy needs to be defined as clear as possible with a future goal in mind. After checking things out, he races his Porsche back to Boston at the same speed. An array of ethical arguments may be arranged to support fair trade, but on the front of sustainability, the lead argument is that peace and order in the world depend on the world’s resources being divided up in ways that limit envy, resentment, and anger. Promoting a European framework for corporate social responsibility: green paper. Looking for a flexible role? Banerjee, S. B. Are corporations doing as much as they can to minimize harm and maximize value? There is no international forum in which they could be prosecuted. Professional ethical standards, corporate social responsibility, and the perceived role of ethics and social responsibility. To “break even”, or get to zero net harm, companies must not only remedy past wrongs but stop doing the things that put them in “societal debt” in the first place. You can go around and look at the management systems of other companies but this management system really needs to be so customized to your organizational context that you nearly need to build it from scratch. Once you have this support in place it will be easier for you to define the CSR Strategy for your business. Biofuels are a prime example of this harm-cancels-value idea. Part of Springer Nature. Many public and society-minded entrepreneurs are choosing to get B Corp certified. Can business afford to ignore social responsibilities. Transparency has been the major improvement within his company. Stakeholder theory, which has been described by Edward Freeman and others, is the mirror image of corporate social responsibility. Maintain fair trade We shall make comprehensive and fair decision on choosing our business partners, and maintain fair and free competitive transactions. Corporations may have obligations that go beyond generating profits and include the larger society. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. Multinational corporations using operate outside the control of international laws. External Aspects: The CSR management system is your vehicle to get more external recognition of your activities. External Aspects: Sales increase CSR for corporations; cause-related marketing initiatives generates money through increased product sales and at the same time benefit charities. Broadly, there are three theoretical approaches to these new responsibilities: The title corporate social responsibilityIn general, the conviction that corporations are not only legal entities with responsibilities but also moral entities, and they hold ethical obligations comparable to those of citizens in a society. Therefore, they’re stakeholders in the company and their voices must contribute to corporate decisions. The collective bottom lineWithin stakeholder ethics, the summed effect of a company’s actions on all stakeholders. & Weber, J. You can view samples of our professional work here. (2003). 2042 words (8 pages) Essay. principles for corporate responsibility. Companies “do no harm” when their business practices do not inherently, directly harm people. In a competitive labour market, employees are drawn to companies that have a good track record for responsible behaviour, such as environmental protection. This can help solidify and guarantee customer loyalty. Remember this qualitative and quantitative data has not been gathered before so make sure everyone understands what he or she are supposed to report. Silicon Valley, California, for example, is full of small, start-up companies. By contrast, a stakeholder theorist begins with those living in the surrounding community who may find their environment poisoned, and begins to talk about business ethics by insisting that they have a right to clean air and water. What if companies became, in a certain moral sense, like people, members of society bound by the same kinds of duties and responsibilities that you and I wrestle with every day?

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