...SOCIAL RESPONSIBILITY: WHY IT’S THE RIGHT THING TO DO “Being socially responsible means that people and organizations must behave ethically and with sensitivity toward social, cultural, economic and environmental issues. Striving for social responsibility helps individuals, organizations and governments have a positive impact on development, business and society with a positive contribution to bottom-line results,” (http://www.imasocialentrepreneur.com/social-responsibility/). In layman’s terms, corporations have a responsibility to serve the community while providing goods and services and making a profit. Business Law author Henry Cheeseman identifies the four theories of social responsibility as: a) maximizing profits, b) moral minimum, c) stakeholder interest, and d) corporate citizenship. In order to comply with social responsibility standards, all requirements must be met. Unfortunately, not all business owners feel obligated to be fully socially responsible. T.J. Rodgers, founder and CEO of Cypress Semiconductor, is one who does not. His primary interests are in maximizing profits and stakeholder interests. Whole Foods CEO John Mackey, on the other hand, fully grasps the idea of and practices all aspects of social responsibility. There are legitimate arguments for and against businesses performing social responsibility activities. The strongest argument in support of social responsibility is that because businesses have such a profound impact on their communities...
Words: 1568 - Pages: 7
...Nana Offei MGT498 Strategic Management The role of ethics and social responsibility August 30, 2012 Abstracts Ethics and social responsibility occupy an important place in human value system. Customer confidence in how business operates has been severely shaking by recent corporate scandals and collapses, such as Enron and bank failures. Hence it is important for companies to consider incorporating ethics and social responsibility into their strategic planning. The (term) ethnics are derivative from the Greek word ethikos, which meaning tradition or character. In philosophy ethical behavior is that which is respectable in the area of moral, philosophy involves in developing, defensive and also recommending concept of right and wrong behavior. These ideas do not change as one desire” and inspiration This applies whether a company is involve with customers one-on-one, such as apple or Dell, Inc.; there are various ways to define ethics the simplest may be to say that ethics deals with right and wrong. However, it is difficult to judge what may be the right or wrong in a particular situation without some frames of reference. However” this paper will illuminate the role of ethics and social responsibility in developing a strategic plan while considering stakeholder need and agendas. In addition apple Inc. will be the example of organization drive that will overstepping the ethics boundaries for stakeholder agendas and the types of preventative measure that...
Words: 1188 - Pages: 5
...INTRODUCTION This paper is about the role of ethics and social responsibility in developing a strategic plan while considering stakeholder needs and agendas. Included in this paper will be one example of a corporation overstepping the ethical boundaries for stakeholder programs, and what types of preventative measures could be taken to avoid this type of situation. ETHICS AND SOCIAL RESPONSIBILITY There are couple important issues of ethics and general responsibility in the strategic outlining process. According to webster dictionary, the definition of ethics is an area of study that deals with ideas about good and bad behavior and dealing with what is morally right and wrong ("Merriam-Webster", nd). The stakeholders of any corporation are not just investors, they have the power to influence the financial impact of a corporation. Ethical responsibilities are responsibilities that are governed by a moral code of conduct and are composed of beliefs that are generally held by the owners and the stakeholders of the corporation. The stakeholders also have a social responsibility to act in the best of the entire corporation and not just for their own self-interests. STAKEHOLDERS AND STRATEGIC PLANNING When establishing a strategic plan a corporation must consider all of the risk signals as well as their performances and their strategies in order to develop the corporations strategic plan. The corporate strategic adjustment should be reviewed and changed...
Words: 613 - Pages: 3
...Abstracts Ethics and social responsibility occupy an important place in human value system. Customer confidence in how business operates has been severely shaking by recent corporate scandals and collapses, such as Enron and bank failures. Hence it is important for companies to consider incorporating ethics and social responsibility into their strategic planning. The (term) ethnics are derivative from the Greek word ethikos, which meaning tradition or character. In philosophy ethical behavior is that which is respectable in the area of moral, philosophy involves in developing, defensive and also recommending concept of right and wrong behavior. These ideas do not change as one desire” and inspiration This applies whether a company is involve with customers one-on-one, such as apple or Dell, Inc.; there are various ways to define ethics the simplest may be to say that ethics deals with right and wrong. However, it is difficult to judge what may be the right or wrong in a particular situation without some frames of reference. However” this paper will illuminate the role of ethics and social responsibility in developing a strategic plan while considering stakeholder need and agendas. In addition apple Inc. will be the example of organization drive that will be overstepping the ethics boundaries for stakeholder agendas and the types of preventative measure that could be taking to avoid the situation The role of ethics and social responsibility Companies must consider...
Words: 1171 - Pages: 5
...CSR and globalization[1] Corporate social responsibility is at least in its name and formal recognition a relatively recent phenomenon. Yet, owners and managers of firms have engaged in activities that we would now consider CSR almost from the beginning of the industrial revolution (Davis, Whitman and Zald, 2006). But, until the 1990s, CSR was generally limited to corporate philanthropy. It is from the early 1990s that enlarged concepts and practices of CSR have come to the fore. What drove these radical changes in the conception and implementation of CSR? Scherer and Palazzo (2007) claim that, in a globalized world, it is necessary a shift toward a new politically enlarged concept of CSR. In fact, globalization is weakening the power of (national) political authorities to regulate the activities of corporations that globally expand their operations: for instance, globalization forces national governments into a race to the bottom in order to win the competition with other countries for attracting corporate investments. Thus, they reason that corporations should be understood as both economic and political actors. Davis, Whitman and Zald (2006) claim that, in addition to weak national boundaries that separate domestic from foreign companies, another crucial difference of the global competitive environment of the 21st century is the weak distinction between activities and transactions occurring inside as opposed to outside a corporate entity: while companies are moving part...
Words: 1199 - Pages: 5
...Ethics and Social Responsibility Paper Ralph L. Kendrick MGT/ 498 September o4, 2013 Glenn O'Steen Ethics and Social Responsibility Paper Ethics and social responsibility has to be a part of any organization’s strategic management plan. Without the presence of these key elements the company could face some tough times. In this paper, the author will explain the ethical and social responsibilities of organizations as they relate to strategic management. In addition, the many ways an organization can meet stakeholders needs while maintaining ethical principles. The research of one company who crossed the line ethically will be discussed. Ethics and social responsibility Ethics and social responsibility are a necessity to any strategic management plan. An organizations lack of core values and ethics will determine the outcome of the organizations future. While making a profit is important, it should not be the only responsibility of an organization. The organization is equally responsible for the health and well being of the community. Often times an organization’s decisions affect more than the organization itself. The decisions of an organization impact the environment, community, economy, and the world. Organizations have many responsibilities that need to be in perfect balance in order for an organization to become successful. The responsibilities of an organization include: economical, legal, and social responsibilities (Wheelen & Hunger, 2010). Economic responsibilities...
Words: 1073 - Pages: 5
...your research term paper | |include (but are not limited to) the following: | |Ethics and Corporate Citizenship Themes | |Understandings of corporate citizenship | |Links between ethics and corporate citizenship | |Performance measurement | |Accountability and governance | |Stakeholder engagement, consultation, reporting and governance | |Corporations, territory and governance | |Globalization Themes | |Corporate power | |New technologies...
Words: 663 - Pages: 3
...Amy Huddleston Kimberly Gleason BA_3300 Business Cornerstone – Spring 2016 14 April 2016 Corporate Social Responsibility (CSR) Introduction Companies by the virtue that they are considered to have influence in the economy of the region they are situated and beyond, also have the moral responsibility to give back to the same community that is hosting them after having fulfilled their needs. This is because they have more financial influence than the individuals combined in the place they are situated. This voluntary development that a company undertakes to the favor of the community hosting them and beyond to improve the social status, after having met their own, is known as the corporate social responsibility. This paper tries to look into the PepsiCo corporate social responsibility. PepsiCo as a company majorly dealing with refreshments has been of great assistance to the communities that are situated in the regions where it is situated and the branches worldwide (Dorfman et al. 45). Before the company gets situated in a place and starts offering corporate social responsibilities to the external community, it has to fulfill its internal needs first that make it stable. The following are the stages of corporate social responsibilities that the company fulfills in the whole cycle of the CSR. Economic Responsibilities Firstly, the company has to make sure that it has the right amount of finance in internally operating its activities without dependence on other external sources....
Words: 680 - Pages: 3
...The role of Strategic Conversations with Stakeholders in the Formation of Corporate Social Responsibility Strategy. Summary The main discussion of this journal is to explore the role and the use of strategic conversations in corporate social responsibility (CSR) strategy formation from a conceptual perspective to actual practices. Based on this research, the authors have given the strongly recommendation that by intensifying the stakeholder engagement in the CSR strategy-making process, through the mechanism of strategic conversations, will not only minimize the future stakeholder’s concerns and enhance CSR strategy making effectiveness but also maximize organizational sustainability. The learning outcomes are concluded in the following key points: * Corporate Social Responsibility - The evolution of the Corporate social responsibility (CSR) was from a basic concept and belief to become a popular debating subject in recent decades which is centered in ‘whether CSR should take priority over a company’s obligation to make money for its stockholders or vice versa’. - There was a general consensus to align strategies to take full advantage of CSR business opportunities while also including stakeholders in the strategy-making process. * Strategic conversations - Understanding the variety of strategic conversation definitions and how it works properly in an organization through direct communication mechanisms between three pillars: top management, BSE and relevant...
Words: 1280 - Pages: 6
...Ismail Adem Completed: May 20th 2011 Essay By: Hana Ismail Adem Completed: May 20th 2011 1. How important is Corporate Social Responsibility? What role will public relations play in an organization's CSR efforts and how, if at all, will it differ from the role it plays today? In the past, there was always a concern for corporate social responsibility, but it is only recently that this concept strongly emerged. The idea that companies can serve a much greater social purpose besides that of making profits is now widespread across the corporate world. Herein, there arises the so-called concept of corporate social responsibility (CSR). This is when companies focus so much on achieving social welfare and in this way, steer the spotlight away from their usual “bottom line” mindset. Corporate social responsibility therefore seeks to balance out the effects of private interest and public welfare in an organization. Moreover, its importance can be highlighted by understanding how it is constantly used nowadays to help establish clear boundaries between the interests of the different stakeholders existing in a particular firm. In the current competitive business environment, CSR enables employees to treat every one of corporate counterparts responsibly in order to grow and make profits. In the frame of this logic, having a corporate social policy and maintaining a responsible attitude towards stakeholders generates great results. This can be achieved when firms...
Words: 818 - Pages: 4
...Business Ethics and Social Responsibility The World Health Organization found children in developing countries who fed on Nestlé’s infant formula had mortality rates five to ten times greater than that of breast-fed children (Scheid, 2014). The numbers of these mortality rates were astounding to the world when it was discovered that Nestle was the culprit. When Nestle was in its strategic planning process ethics and social responsibility to the community was not a priority. Ethics and social responsibility have a very important role when a company is developing a strategic plan. During the strategic planning process ethics and social responsibility must also be taken into careful consideration for stakeholders within organizations. There are preventive measures that companies can take to prevent unethical behavior and prevent stakeholders from overstepping boundaries. Roles of Ethics and Social Responsibility in Strategic Planning Business Ethics Ethics is defined as the consensually accepted standards of behavior for an occupation, a trade, or a profession (Wheelen & Hunger, 2010). Many will debate whether business ethics actually exists. The argument has been that there is no absolute right ethics. Other debaters believe that ethics establishes a foundation for a business. Every company has a set way of doing and handling business, and this organizational culture will vary depending on the company and industry. In the strategic planning process it is imperative...
Words: 1314 - Pages: 6
...reshaping global and local political, economic and cultural processes (Held et al., 1999). These trends and processes have had a significant global problem for companies and industry activities, the natural environment and technologies (Parker, 2005) and have led to a blurring of the boundaries between business, government and society. They have also caused the rise of new actors such as non-governmental organizations and the emergence of what has become known as “civil society”, a phenomenon that can be seen as both a response to and a shaper of heightened societal awareness and expectations on social and environmental...
Words: 718 - Pages: 3
...Management Of Ethics And Corporate Social Responsibility Issues In Public Relations INTRODUCTION At multiple points in their careers, public relations (PR) practitioners are likely to face decisions that are ethical in nature. Such decisions reflect a range of ethical dilemmas between, for example, truth vs. loyalty, justice vs. mercy, short-term vs. long-term consequences, and the individual vs. the collective (Kidder 1995, p. 18; Stacks & Wright 1989, pp. 53-67). Public relations practitioners, by nature of their position and job responsibilities, are often in a crossroad of a range of competing interests. Often, the tension may be between the practitioner’s own values and the culture of the organization. In other cases, it may be a conflict between the practitioner’s professional code of ethics and organizational norms and expectations. In yet other circumstances, they may be faced with competing interests between the organization and its various publics. At the very least, practitioners will frequently confront contradictions between business demands for economic performance and public expectations for ethical conduct. Concerns over these competing responsibilities and the ethical dilemmas they produce for public relations are the subject of this essay. In it, a range of challenges faced by public relations practitioners related to issues of ethics and corporate social responsibility (CSR) are explored. It is argued that CSR has, in many respects, altered the expectations...
Words: 311 - Pages: 2
...business increasingly has been viewed as a major cause of social, environmental, and economic problems. Companies are widely perceived to be prospering at the expense of the broader community. Even worse, the more business has begun to embrace corporate responsibility, the more it has been blamed for society’s failures. The legitimacy of business has fallen to levels not seen in recent history. This diminished trust in business leads political leaders to set policies that undermine competitiveness and sap economic growth. Business is caught in a vicious circle. A big part of the problem lies with companies themselves, which remain trapped in an outdated approach to value creation that has emerged over the past few decades. They continue to view value creation narrowly, optimizing short-term financial performance in a bubble while missing the most important customer needs and ignoring the broader influences that determine their longer-term success. How else could companies overlook the well-being of their customers, the depletion of natural resources vital to their businesses, the viability of key suppliers, or the economic distress of the communities in which they produce and sell? How else could companies think that simply shifting activities to locations with ever lower wages was a sustainable “solution” to competitive challenges? Government and civil society have often exacerbated the problem by attempting to address social weaknesses at the expense of business. The presumed trade-offs...
Words: 1443 - Pages: 6
...bio fuels, hydrogen, solar and wind power. Stakeholder objectives -The potential benefits of CSR relative to the costs for businesses and stakeholders: Stakeholder objectives -The potential benefits of CSR relative to the costs for businesses and stakeholders This is an extract from a speech made by BP Senior Advisor Charles Nicholson in 2002 at the CSR Europe General assembly meeting: “ The boundaries to corporate social responsibility are conceptual. A company’s primary responsibility is to its shareholders, to its owners. The boundaries are ideological. A company is not a government. It is not elected. It has no popular mandate. It mustn't confuse its role with the role of others. The boundaries are practical. A company has limited resources, limited expertise and limited reach. A company is not a panacea, a cure-all. The boundaries are influenced by self-interest. Business thrives if the society in which it operates thrives. To neglect this is to put at risk the interests of our shareholders. And however you look at it the boundaries are constantly changing. What was a boundary a few...
Words: 300 - Pages: 2
