...Part A: CSR Corporate Social Responsibility (CSR) is a concept where organizations, mainly companies, have a responsibility to make an effort to improve the quality of their workforce and to make a positive impact to the surrounding society and the environment. Companies should not only base their decisions solely on financial factors, but on social and environmental values. Some benefits of having CSR include improving corporate image to the consumers. According to UK Small Business Consortium, as referenced on the Simply CSR website (2008), “88% of consumers said they were more likely to buy from a company that supports and engages in activities to improve society.” With the rapid usage of unethical business practices, such as spreading negativity about another company via social media, it is easy for a company to get a bad reputation in the consumer’s eyes. However, by promoting CSR, companies will be seen as the “good guys” and potentially gain the trust of the consumers. That trust can carry a company in the long run. Other benefits include maintaining an excellent workforce, differentiating the company from its competitors, and providing access to investment and funding opportunities. Part B: Ethics According to Investopedia, a stakeholder is, “a party that has an interest in an enterprise or project” (Investopedia, n.d.). The stakeholder in the case study on ethical behavior is Ray Pon. Ray is considered to be a stakeholder because he has self-interests in regards...
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...1) What are the factors to be kept in mind while taking ethical decisions? Ethicist Rushworth Kidder suggests that nine steps or checkpoints can help bring order to otherwise confusing ethical issues. 1. Recognize that there is a problem. This step is critically important because it forces us to acknowledge that there is an issue that deserves our attention and helps us separate moral questions from disagreements about manners and social conventions. For example, being late for a party may be bad manners and violate cultural expectations. However, this act does not translate into a moral problem involving right or wrong. On the other hand, deciding whether to accept a kickback from a supplier is an ethical dilemma. 2. Determine the actor. Once we’ve determined that there is an ethical issue, we then need to decide who is responsible for addressing the problem. I may be concerned that the owner of a local business treats his employees poorly. Nonetheless, unless I work for the company or buy its products, there is little I can do to address this situation. 3. Gather the relevant facts. Adequate, accurate, and current information is important for making effective decisions of all kinds, including ethical ones. Details do make a difference. In deciding whether it is just to suspend a student for fighting, for instance, a school principal will want to hear from teachers, classmates, and the offender to determine the seriousness of the offense, the student’s reason for fighting...
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...Ethics, CSR, and Milton Friedman Marketing in the Era of Managerial Distrust During the first few years of the twenty first century, and in the wake of the terrorist attacks of 9/11, the business world was rocked with news of financial and accounting scandals at major Fortune 500 companies. Enron, a Texas based energy company, lied about profits and was accused of concealing debts so they did not show up in the company’s accounts (BBC News, 8/22/2002). Arthur Andersen, an accounting giant, member of the “Big Six”, and Enron’s corporate auditor, collapsed completely after being found guilty of deliberately destroying evidence of its relationship with Enron (BBC News, 8/22/2002). Tyco executives L. Dennis Kowlowski and Mark H. Swartz were indicted and charged with misappropriating more than 170 million dollars from the company as well as outright stealing 430 million additional dollars through sale of fraudulent shares of Tyco stock (Daniels Funds Ethics Initiative). MCI Worldcom was found guilty of accounting fraud in relation to an overstatement of earnings in 2001 and 2002 (CSR Report for Congress, 8/29/2002), during which time its own auditor was also Arthur Andersen. Executives at each firm (Kenneth Lay, Bernard Ebbers, Dennis Kozlowski, and Mark H. Swartz amongst others) served jail time for their role in these scandals, which severely eroded the public’s trust in the corporate sector. Tyco’s stock plunged from $60.00 to $18.00 in the wake of the scandal...
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...BUSINESS ETHICS AND CSR IN THE CONTEXT OF SAMSUNG ELECTRONICS 1.0 Introduction In the 21st century of business, there are number of factors apart from the financial figures that play a vital role for the success story of the business corporations. These factors include the culture adopted by the business, philosophy of the management of the company, code of ethics and standards followed by business. The presence of all of these factors in the business’s ethical guidelines has a significant impact on the ability of the business organisations to perform well on the long term basis. In this report the Samsung Electronics’ ethical issues are studied along with the importance of the business ethics and Corporate Social Responsibility (CSR) practices adopted by the business organisations. The upcoming sections of this report present information about the meaning and importance of business ethics which is followed by the description of the violations of the ethical issues by the Samsung Company and the also the role of Samsung management in promoting CSR and overcoming ethical issues. 2.0 Meaning of Business Ethics The primary objective of each and every business organisation is to run business for the purpose of profit as well as the maximisation of owners’ wealth. Profit can be maximized by selling goods and services at reasonable prices and as far as wealth is concerned this can only be maximized if business follows the required ethics. The term business ethics means...
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...Module Title: Business Ethics and Social Responsibility Question 1: Set out the main criticisms that have been levelled at the above three MNC's In the case of Nestle, it became evident that no formal research into the emerging market was carried out. No approached to local authorities or government agencies was made; who may have had great knowledge/insight into feeding practice within the region or problems/issues that Nestle may be faced with. They simply tried to implement existing 'western' aspirational marketing practice into a region that they knew nothing about. Their communications with the target market were poor & unclear which led to the misconception that formula was a good way to replace breast milk and other forms of nutrition vital to child development. The company did not play its role in educating the public as to the proper methods of using the product and indeed the danger of it's misuse, and also did not consider the different living conditions as a factor in which could lead to such misuse. Their aggressive marketing approach ignored or de-emphasized breast feeding & much of their promotional efforts were misleading in encouraging poor & illiterate mothers to bottle-feed rather than breast feed their infants. Advertising portrayed breast-feeding as primitive and inconvenient. Free gifts & samples were supplied by sales reps dressed as quasi-medical staff known as 'milk nurses'; which were viewed as 'endorsements by association'. Quality control...
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...CRITICALLY ASSESS THE VIEW THAT BUSINESSES HAVE A MORAL DUTY TO PUT THEIR CONSUMERS FIRST 1.0 Introduction Nowadays, Malaysia has become one of the develop countries in the world. Many new things have been developed and improved in terms of business administration, economy, facility, technology, culture, education system, and so on. All of these things have a significant relationship with the law. People or organization has the right to be protected and the law have been created to make people’s lives more comfortable and peacefully. Laws have been used to protect consumers for centuries. These laws have been designed in a variety of legal forms, including criminal law, tort, contract, intellectual property, etc. In addition to those laws that specify consumer protection and product liability as their primary concern, numerous other provisions have the effect of protecting the consumer, for example by streamlining the prosecution of fraud, protecting property or facilitating litigation. This study will examine the critically assess the view that businesses have a moral duty to put their consumers first. Legislation of consumer protection in Malaysia now is entering to the new era with the recent introduction of the Consumer Protection Act 1999. 2.0 Business moral duty and consumer protection 2.1 Business moral duty A duty is an obligation to act in a certain way. When the obligation is based on moral and ethical consideration, it is a business moral duty. Often...
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...Submitted to: MADIHA AWAIS Submitted by: Razia Liaqat BBA02121028 Adil Qamar Noor bba0212102 ASSIGNMENT: Corporate social responsibility and Business ethics LAHORE BUSINESS SCHOOL ATLAS HONDA Atlas Honda limited being Japanese, always believes in quality leadership customer and satisfaction of share holders. The executives and managers at AHL are keen about the staff cooperation and dedication. That’s why promoting teamwork culture is the core activity of the company. The vision of AHL as follows: Vision: “To remain Market leader in the motorcycle industry, emerging as a global competitive centre of production and exports.” Mission: Mission statement is that statement which further reveals the practicalities of any organization, comparable to its vision statement. The mission statement at AHL is below: We see the world through the eyes of dreamer .because we are a company founded by a dreamer .and we are a company built on a dream. PRODUCT: Honda CG 125 Specifications: * 125 cc 4-stroke engines generates * 11-Horse Power with low fuel consumption. It is ideal for high speed, long runs and rough pathways. * Honda CG125 has a CDI Ignition System and a 12-volt battery (instead of 6-volt). The headlight and indicators...
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...IIMA FDP Alumni Conference - Ethics & CSR 20-21 December 2013 It was a tremendous experience as well as a proud feeling to be a part of IIM-A FDP Alumni Conference, like “A sea meeting to a river” The fog was being cleared by many highly learned and extremely experience personalities during these two days with their innovative approach which I felt glad to be present with them. Especially the words spoken by Padmashree K. Ramkrishna Rao sir were very touching. The way he tried to explain the complex topics, briefly with a common way that was really phenomenal. I learned about human values and their basic responsibility towards society with the help of gandian studies or believe we can say. I think that human values plays a significant role in ethics. The informative words shared by prof. G.Subramanyam sir on how the ethics and social responsibility simultaneously determine the organization image as well as affects the industry .which was really a learning experience especially what things are happen around us we must be aware of that like how “SATYAM” has almost destroyed its image because of unethical practices done by them which even badly affected the software industry. Challenges in managing non-profit and social enterprises: Chair: primal sir and The panel was shared by ravi sir and rani man. Really it’s a challenging job to run a non-profit or a social enterprise. What I felt out of discussion is that running a social enterprise is even difficulty job compared to NGOs...
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...Effective Communication Table of Contents Abstract……………………………………………………………………………………..4 Introduction…………………………………………………………………………………5 Chapter One: History of Ethical Theory Development Introduction……………………………………………………………………………….…6 Definition of Ethics Business Ethics and Individual Ethics: Is There a Difference?…………………….…..7 Virtue Ethics…………………………………………………………………………............9 Practical Wisdom……………………………………………………………….14 Eudaimonia……………………………………………………………………...15 Kantian Ethics……………………………………………………………………16 Ethical Egoism…………………………………………………………………………….....18 Consequentialist Ethics.……………………………………………………………………..21 Chapter Two: Corporate Social Responsibility Introduction 27 Corporate Social Responsibility 27 Summary 34 Chapter Three: The National Football League’s Blackout Policy is Unethical Introduction……………………………………………………………………………….…35 The History of the NFL Blackout Policy: The Legal Test…………………………………..37 The Economic Test: Do Blackouts Have a Positive Economic Benefit?...............................39 The Philanthropic Test……………………………………………………………………….43 The Ethics Test………………………………………………………………………………47 Summary……………………………………………………………………………………..51 Chapter Four: Effective Communication Introduction……………………………………………………………………………….....50 Effective Communication Defined………………………………………………………..…50 This Student’s Display of Effective Communication…………………………………….....51 Written Communication………………………………………………………………...
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...RUNNING HEAD: Nestlé: The Infant Formula Controversy Nestlé: The Infant Formula Controversy CASE 4 April VanRivers Adv. International Marketing March 24, 2013 1. What are the responsibilities of companies in this or similar situations? Domestic companies and multinational companies have responsibilities that portray their corporate and social stance as an organization. Many of these responsibilities are indicated in the vision or mission statement. Ethical and socially responsible conduct should be the cornerstone of any organization’s core values and strategic management process (Godiwalla & Damanpour, 2006). For an MNC, ethical and social responsibility charge becomes an imperative because it is globally conspicuous, and, its activities have global impact and ramifications (Godiwalla & Damanpour, 2006). An MNC’s activities whether they are the pursuit of rapid growth, increased market share and profits, and competitive performance, should emanate its core ethical values and socially responsible vision. A MNC’s responsibility should stem beyond financial targets and in addition focus on the well being of people, communities and the environment. A company that has a strong social responsibility statement is Diageo. Diageo is one of the top ten MNCs and is the world's largest producer of spirits and a major producer of beer and wine (SiliconIndia, 2012). Diageo's brands include Smirnoff, Johnnie Walker, Baileys and Guinness (SiliconIndia, 2012). It is...
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...CHAPTER 3 ♦ ETHICAL BEHAVIOR AND SOCIAL RESPONSIBILITY ♦ Ethical Behavior- is that which is accepted as “good” and “right” as opposed to “bad” or “wrong” in the context of the governing moral code. Laws and Values as Determinate of Ethical Behavior * Personal Values- the underlying beliefs and attitudes that help determine individual behavior. * Terminal Values- are preference about desired ends, such as the goal’s one strives to achieve in life. Ex. Self-respect, family security, freedom and happiness. * Instrumental Values- preferences regarding the means for accomplishing these ends. Ex. Honesty, ambition, imagination, and self-discipline. Alternative Views of Ethics Four views of Ethical Behavior: ♦ Utilitarian View- considers ethical behavior to be that which delivers the greatest good to the greatest number of people. ♦ Individualism View- is based on the belief that one’s primary commitment is to the long-term advancement of self-interests. ♦ Moral Rights View- it is which respects and protects the fundamental rights of people. ♦ Justice View- it is based on the belief that ethical decisions treat people impartially and fairly, according to legal rules and standards. • Procedural Justice • Distributive Justice • Commutative Justice • Interactional Justice Cultural Issues in Ethical Behavior Cultural Relativism- belief that is no one rights way to behave and that ethical behavior is always determined by the cultural context. Universalism- suggests ethical...
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...the law, ethical standards and international norms. It is a model in which economic, social, and environmental responsibilities are satisfied simultaneously. Companies these days are issuing corporate social responsibility reports that detail their environment, labor, and corporate giving practices. Also some firms have employed a position of director of corporate social responsibility. Although many firms are endorsing a culture of ethics and social responsibility, some believe that it is being done was a public relations campaign. One of the most common ways to approach CSR is corporate philanthropy. This includes monetary donations and aid given to nonprofit organizations and communities. Donations are made in areas such as the arts, education, housing, health, social welfare and the environment, among others. Owner of Headbands of Hope, Jessica Ekstrom sells made-in-the-U.S. headbands and donates a dollar of each sale to childhood cancer research through the St. Baldrick's Foundation. Another approach to CSR is to incorporate the CSR strategy directly into operations. For example Starbucks now engages in Fair Trade procurement of its Teas and Coffees from around the world. Corporate Social Responsibility may be implemented in many departments of an organization such as human resources, business development or public relations or even be a separate unit. In some...
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...the society takes advantage. Difficult is that ethical matters are based on individual principles and ideals. Resultantly, ethical matters are not easy to put into effect and easy to overlook. Corporate social responsibility (CSR) is rapidly becoming one of the principles on which modern business is built (Hancock, 2004). Areas can be identified were improvements should be made, and use it for strategies in future business plans. CSR refers to the economic, legal, ethical and discretionary responsibilities (Carroll & Buchholtz, 2000; Swanson, 1995). The organisations are furthermore faced up to social demands for which they are likely to show responsibility for. Following the organisation can respond in different ways. The different types of responding to the social demand are obstructive, defensive, accommodative or proactive (Carroll & Gatewood, 1981). Within this essay it will be examined how these CSR principles were / are utilized in the service business McDonald’s. For evaluating the social performance of McDonald’s there will be a closer look at the ethical & discretionary responsibilities and the responses proactive & accommodative. Finally it will be examined how to improve the social responsibility of McDonald’s by using the tools code of ethics and ethical structures. McDonald’s opened its first Bar-B-Que restaurant in 1940 by the two brothers Richard and Maurice McDonald in San Bernadino, California. It has grown quickly and opened the 100th restaurant in 1959. Later...
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...One of the most frequently asked questions at this site - and probably for all those individuals and organisations dealing with CSR issues is the obvious - just what does 'Corporate Social Responsibility' mean anyway? Is it a stalking horse for an anti-corporate agenda? Something which, like original sin, you can never escape? Or what? Different organisations have framed different definitions - although there is considerable common ground between them. My own definition is that CSR is about how companies manage the business processes to produce an overall positive impact on society. Companies need to answer to two aspects of their operations. 1. The quality of their management - both in terms of people and processes (the inner circle). 2. The nature of, and quantity of their impact on society in the various areas. Outside stakeholders are taking an increasing interest in the activity of the company. Most look to the outer circle - what the company has actually done, good or bad, in terms of its products and services, in terms of its impact on the environment and on local communities, or in how it treats and develops its workforce. Out of the various stakeholders, it is financial analysts who are predominantly focused - as well as past financial performance - on quality of management as an indicator of likely future performance. Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the...
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...Chapter 1: What is CSR Organizations can be classified in 3 categories: 1) For profits: Seek gain for their owners 2) Government: Exists to define rules and structures of society within which all organizations must operate 3) Non-profits: Emerge to do social good when the political will of the profit motive is insufficient to address societies needs Stakeholders: Includes all those who are related in some way to a firm “A stakeholder in an organization is any group or individual who can affect or is affected by the achievement of the organizations objectives” could range from clearly defined customers, employees, suppliers, creditors, and regulating authorities, to other more amorphous constituents such as local communities CSR is both critical and controversial; It is critical because the for-profit sector is the largest and most innovative part of any free societies economy. However CSR remains controversial; In spite of the rising importance of CSR today for corporate leaders, academics, and bureaucrats alike, many still draw on the views of the Nobel Prize- winning economist Milton Friedman, who argues against CSR because it distracted leaders from economic goals. Friedman believed that the only “social responsibility of a business is to increase its profits”- that society benefits most when businesses focus on maximizing their financial success. David Packard, a co-founder of Hewlett-Packard however, believes “a group of people get together and exist as...
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