...1. Some in the business communities believe that stakeholders benefit the society as a whole. The main reason for their views originates from the belief that shareholders are usually concerned about the financial status of the company. a) To what extent do you agree with the above statement? Justify why you disagree or agree The above statement is deviant. As a whole, a corporate should be virtuously guided to benefit the society with less selfishness like a person. Neither stakeholders nor shareholders would benefit the society with self-benefit-driven mindsets. A comprehensive supervision mechanism is supposed to be set up for fair and transparent operation while balancing interests of all parties including stakeholders, shareholders, employees and customers. Any over individually concerning system would have potential risk of corruption. b) Can the interests of shareholders and stakeholders be balanced in a company which is profit driven? Discuss I think that the interests of shareholders and stakeholders can be balanced to some extent in condition of no man-made manipulation. However, purely profit-driven practice would not necessarily be able to balance the above interests. There is still possibility of being manipulated by some particular group of people for short-term unreasonable benefits considering unpredictable fund injection or mal-operation. c) Explain why the preference of one over the other might be unsustainable for corporation. Discuss The preference...
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...|BUSINESS ETHICAL BEHAVIOR & CORPORATE SOCIAL RESPONSIBILITY | | | |Student’s Name:Renee Giordani | | | |Course Title:Sales Management | | | |Professor:Gene Dichiara | | | |SUNY EMPIRE STATE COLLEGE | | | |Date: December 09, 2014 | Business Ethical Behavior & Corporate Social Responsibility: Why Organizations Must Have IT Corporate Social Responsibility has gradually developed into one of the greatest ethical aspects that have to be adhered...
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...utilize a formal code of conduct as a corporate social responsibility (CSR) tool to communicate or establish organizational practices (Erwin, 2011). These formal codes of conduct are also known as codes of business standards or codes of ethics, both are intended to clearly detail a commitment to CSR (Erwin, 2011). Importance of Adopting Policies of CSR Codes of business standards are basic to the organization of CSR policies which are necessary to sustain and create an ethical culture within an organization (Erwin, 2011). The actions and conduct of employees of an organization are governed by the codes of conduct that ultimately affect the organizational culture (Erwin, 2011, p.536). This code of business standards promote ethical business practices and help avoid legal consequences. This commitment to social responsibility leads to reputational benefits as it shows a symbol of responsiveness and engagement of CSR by the organization (Erwin, 2011, p. 536). Other benefits of adopting codes of business standards are improved customer relations, product differentiation, reduced insurance premiums and risk management (Erwin, 2011, p. 536). Addressing CSR issues, organizations are becoming tempting organizations of all business showing commitment to ethical standards and enhancement, as well as, financial performance (Erwin, 2011). Consumers are not only looking at price and quality, but like to do business with organizations that are known to be responsible, for instance, treating...
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...What is CSR? Within the world of business, the main “responsibility” for corporations has historically been to make money and increase shareholder value. In other words, corporate financial responsibility has been the sole bottom line driving force. However, in the last decade, a movement defining broader corporate responsibilities– for the environment, for local communities, for working conditions, and for ethical practices–has gathered momentum and taken hold. This new driving force is known as corporate social responsibility (CSR). CSR is oftentimes also described as the corporate “triple bottom line”–the totality of the corporation’s financial, social, and environmental performance in conducting its business. As the commercial sector increases its investments in corporate social responsibility in its three usual venues (the workplace, the marketplace, and the community), USAID is presented with the unique opportunity to create corporate partnerships that can help expand, enhance, and sustain its health efforts in developing countries. The following eight questions and answers provide basic facts for learning about corporate social responsibility, and how it can contribute to furthering USAID’s health objectives. While there is no universal definition of corporate social responsibility, it generally refers to transparent business practices that are based on ethical values, compliance with legal requirements, and respect for people, communities...
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...Corporate Social Responsibility. Most of the multinational companies issue every year a report on their practices. They try to get involved into communities, fight the poverty in the third world countries and donate millions of ponds every year to charities to as they say “build the better future”. But are their corporate social responsibility statements effective ways of ensuring that multinational entities act ethically? From my point of viewview, CSR statements do not ensure that practices of companies obey the rules of business ethics and I am going to present a few arguments for. Corporate Social Responsibility is fairly recent termterm and maybe that is why there is no consistent definition for it. Most multinational companies use different terms in their reports, for example Shell defines it as ‘sustainable development’, Ford uses the phrase ‘connecting with society’, Diageo prefers the termterm ‘corporate citizenship’. All these expressions, although they have different meanings, are related to Corporate Social Responsibility but because of the proliferation of approaches, every company can put emphasis on something different, creating therefore complexity and confusion. What is more, the socially responsible company not only complies with minimum requirements of the law, but goes a step further and accepts social obligations beyond that. The first argument for, that the CSR statements are not effective ways of ensuring that MNC act ethically is that belongingness to Global...
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...rest are national states. Although businesses represent the lifeblood of a nation's economy, they place excessive demand on the natural environment in pursuit of growth and stress the earth's ecosystems. As a result, earth-protection groups are calling on transnational groups to take up environmental, moral and social responsibilities. "Sustainable Development" is widely considered the challenge facing corporations in the 21st century. One of the prerequisites to achieving sustainable development is by sincerely carrying out corporate social responsibility (CSR). In the past, a company’s responsibility was about maximizing profits for shareholders and fulfilling CSR through the tax paying mechanism; that was all about social responsibility. Nowadays the definition of CSR has shifted from acting egoistic to altruistic. For example, the World Business Council for Sustainable Development (WBCSD) defines CSR as "a business' commitment to contributing to sustainable economic development, working...
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...ABSTRACT Nowadays, Corporate Social Responsibility (CSR) activities caught the company or organization’s attention in order to come closer to the society. From the level of top management until to its employees, it seems that CSR somehow give the impact on business performance. The organization or company’s involvement with society, closely give the sign toward achieving their business’ goal. In this study, survey by questionnaire was used to collect the secondary data from the candidates. The information will be the indicator to analyze and interpret on how the impacts of CSR on business performance. It showed that positive sales revenue correlated with the CSR activities which will enhance the company’s business growth on their image and reputation. Nevertheless, on the side of financial performance might be give sort of negative impacts. On top of that, the mode contribution of company’s business towards the society or how well the relationship with top management, employees and customers can be the factors for business manager to cater it. CHAPTER ONE 1.0 INTRODUCTION In this chapter one, we will discuss on the statement of problems and also objectives in relation with CSR on business performance. 2.1 STATEMENT OF PROBLEMS A business’s capability and intention, through the economics obligation has bring the social responsibility to the companies do the right things, produce more output and least input that bring good deeds to society. It also linkage...
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...CHAPTER ONE INTRODUCTION 1.0 INTRODUCTION The corporate world today embraced corporate social responsibility (CSR) into their daily business operation and become important matters to ensure the sustainability of the business. Therefore, CSR initiatives become a self-motivated for companies to benefits themselves while also benefiting others like protecting the environment, care for wellbeing of society and take a full responsibility for the entire world affected by their business operation. The reasons why companies actively engaged in CSR is because this action may assists to establish flawless and clear boundaries among the different interest of the stakeholders in the companies (Ángeles Gil Estallo, Giner de-la Fuente, & Gríful-Miquela, 2007). Besides that, todays companies make a good consideration into their decision to embedded social and environment matters was made investors realised that this approach can result in great opportunities in both financial and sustainable value creation (Louche, 2009). Furthermore, the researcher stated that by integrating CSR matters are significance for investor to make their investment analysis for potential companies in valuing the firm. Largely, international business increasingly aware about CSR initiative and take serious decisions about sustainability key issues due to shifting social expectation when companies facing corporate scandals and controversies that will eliminate public trust (Malaysia, 2013). Moreover,...
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...The Gap Inc.: The CSR Evaluation of Gap Inc. Outline of the notable ethical decisions made by Gap Inc. and their impacts on the company In 2003, Gap Inc. was sued for its usage of child labor and sweatshop factories in its subsidiary in Saipan. The decision to use child labor and sweatshop in Saipan was made by the management of Gap Inc. that could either be seen as egoism or utilitarianism (Smith, 2004). On one hand, on the egoism perspective, Gap Inc. could have decided to use child and sweatshop labor to cut its costs and maximize its profits. On the other hand, on the utilitarianism perspective, Gap’s decision to use child and sweatshop labor, cruel and ethical as it might seem, provided the people in Saipan a source of employment and income. As a poor, third world country, Saipan could not create enough jobs to sustain the livelihood of all its citizens, so it the citizens could choose between starving to death and making a difficult living in Gap’s sweatshops, the sweatshop is apparently a better option. Hence from the utilitarianism approach, Gap’s unethical behavior was actually better than its doing nothing at all. However, this decision gave Gap an international lawsuit over ethical treatment of labor, which does not cost Gap considerable fortune and energy, but also severely harmed its international reputation as an ethical player in the apparel industry (Smith, 2004). It turned out that the public citizens and the media prefer to use the Kantianism when...
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...WHAT IS CSR? WHAT CORPORATE SOCIAL RESPONSIBILITY? IS 8 QUESTIONS & ANSWERS JULY 2002 21ST CENTURY CORPORATE SOCIAL RESPONSIBILITY: ADVANCING FAMILY PLANNING AND REPRODUCTIVE HEALTH W HAT IS CORPORATE SOCIAL RESPONSIBILITY? 8 QUESTIONS & ANSWERS JULY 2002 CATALYST Consortium is a USAID-funded family planning and reproductive health activity focused on working in Asia and the Near East, Europe and Eurasia, and Latin America and the Caribbean. Composed of five equal partners — Academy for Education and Development, The Centre for Development and Population Activities, Meridian Group International, Inc., Pathfinder International and PROFAMILIA/Colombia, CATALYST is dedicated to working in partnership with the public, private and NGO sectors in developing, expanding and sustaining quality family planning and reproductive health services and healthy practices through both clinical and non-clinical programs. Special Acknowledgments CATALYST extends its appreciation to the Health Team of the Asia and Near East Bureau, USAID/Washington for its encouragement, support, and contributions in the development and production of this material. Credits Principal Author/Project Manager Zynia L. Rionda, MPA Contributors Victoria Baird, MBA Christina Kramer, MBA David Wofford, MS Photography Zynia L. Rionda, MPA Graphic Design De Val Grafik Source, LLC 202.362.7600 © July 2002, CATALYST Consortium This material was made possible through support provided by...
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...that, they commit to social development in a way that they organise educational events, programs or even workshops for people outside corporate society. 2.Key areas: Community Relations — Actions by HR team should include implementing reward programs, charitable contributions and encouraging community involvement and practices. Examples of these programs include sending emails and company newsletters to staff members that highlight employees and managers involved in community relations or creating monthly reward programs to recognise efforts by individuals within the company. Training and Development — programs that explain the connection between the company’s core products or services and the society at large, their value to the local community and ways in which employees can get involved in appropriate CSR projects would sustain and direct these initiatives. Legal — corporations must ensure that their business practices are legal. Obeying regulations helps protect consumers, who rely on a business to be truthful about the products it sells, and investors, who stand to lose profits if a company is penalized or shut down because of illegal practices. Economic —A company's economic responsibilities include being profitable in order to provide a return on investment to owners and shareholders, to create jobs in their communities and to contribute useful products and services to society. Ethical —Ethical...
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...environment in which we do business has dramatically changed with a more ethical and social responsivity due to the ability to access information whenever and where ever you are from any company you like. This access has changed the “rules of the game” to a point that it is a legal requirement in some countries to have a Corporate Social Responsibility (CSR) and in the future, I think that more countries will follow Indonesia’s lead to combat environmental damage. Environmental concerns is not the only area there CSR encompasses. Words like ‘continuous disclosure’, materiality assessment and CSR is becoming somewhat of a growing ideology, which is being injected into the corporate psyche with a standard demand from stakeholders. In this report, I will show through a number of company views that the rules of the game has changed not just through regulation but expectable social views. 2. Body: Corporate Social Responsibility Within Australia there are federal based reporting system for accounting and it is an evolving regulations the bring standard and the ability to compare companies for investors and other interested parties. The Australian Securities and Investments Commission (ASIC) is the agency that ensures that the information available to investors and consumers is fair and transparent within Australia’s financial markets. Investors and stakeholders that want information have only to find the company on internet and follow the links to the CSR or accounting documents...
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...embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere who may also be considered as stakeholders. It is defined as a form of corporate self-regulation which is integrated into a business model. Company responsibilities functions as a built-in, self-regulating mechanism whereby a business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms. The term "corporate social responsibility" came into common use in the late 1960s and when many multinational corporations formed the term stakeholder, and organization's activities had a major impact on the stakeholders. There has been different views towards company responsiblities wherein Proponents argue that corporations make more long term profits by operating with a perspective, while critics argue that CSR distracts from the economic role of businesses. Others argue that it is an attempt to pre-empt the role of governments as a watchdog over powerful multinational corporations. CSR is titled to aid an organization's mission as well as a guide to what the company stands for and will uphold to its consumers. There are different approaches towards social responsiblities, they are broadly clasified into two, the primary approach is Philanthropy which includes monitary donations and aids given to other organisations...
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...The true meaning of Corporate Social Responsibility According to European Commission Corporate Social Responsibility(CSR) is a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis. World Business Council on Sustainable Development defines CSR as the commitment of business to contribute to sustainable economic development, working with employees, their families, the local community and society at large to improve their quality of life. In practice the term can refer to a wide range of actions that companies may take, from donating to charity to reducing carbon emissions. CSR has emerged as a global phenomenon in recent years, as companies are confronted by consumers and the staff who will no longer tolerate businesses behaving without regard to the impact of their actions. It has become a necessity and not a choice. The international Business Report(IBR) found out that the main factor driving CSR is the need for Private Held Business (PHB) to retain high quality staff to meet current and future demands.the study was done 34 European countries. The following table represents the full finds of different sets identified by respondents as the drivers of CSR and Percentage of privately held businesses citing factor as important on a global picture. Source: Grant Thornton IBR 2008 According to a study done by Ufadhili Trust in 2008 in East Africa, the...
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...day business rhetoric. Although the concept itself is relatively new, it has become widely present and today there are no major companies that do not have some kind of CSR agenda. The role of CSR in the oil and gas industry has been at the forefront of promoting the idea of CSR. The oil companies today devote attention to sensible issues related to the society and environment in which they operate. The main reason why the companies today try to behave, or at least try be seen as behaving more responsible, is that such behavior is favorable to their financial success. Hence, although they behave more responsible to some extent, it would be wrong to claim that they are more ethical and moral. This is evident from often present manipulation of CSR actions and the fact that a lot of CSR rhetoric is geared towards advertisement purposes. As some companies devote more resources to the external communication of CSR practices, this creates an image that they are more responsible. In order to get the insight into the real role of CSR in the industry, a critical analysis of the CSR strategy of Exxon is presented below. Exxon is a major global oil multinationals that have significant influence on the oil industry and is a trend and standard setter. The concept of CSR itself is divided into two main spheres – macro and micro. Former deals with more global topics, mainly the company’s stance over the issue of climate change. Later is focused more on social aspects of the CSR, such...
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