17 - Corporate Social Responsibility and Ethics
1. Discuss the four arguments to justify corporate social responsibility
initiatives.
(1) Moral obligation- the duty for a company to be a good citizen and to do ‘the
right thing’. Moral obligation extend not only to individuals, but also and most
especially to organizations. This is because they have a responsibility to their
stakeholders and they are in the position to do good.
(2) Sustainability – emphasis on the environmental and community impact of the
business. It’s necessary for organizations to have processes that don’t harm the
environment or negatively impact the community. Organizations should strive to
implement business practices that are good for the environment and at the same time
for the company, as well. It is said that consumers tend to buy products from
socially responsible companies therefore being socially responsible while running a
sustainable business is possible.
(3) Licence to operate – the tacit or explicit permission a company needs from
governments, communities and other stakeholders, to do business. There are several
permits or license to obtain before being able to conduct business including but
not limited to government agencies, but also from communities and even NGOs. If the
community is opposed to a certain local business that damage the environments, for
example, they can use their voice to make sure the company stops operation.
(4) Reputation – CSR initiatives to enhance a company’s image, strengthen its
brand, improve morale, or even raise share prices. Ethical is a selling point for
organizations these days. Being seen as socially responsible and taking action to
better the society can have positive effects on the brand’s image.. It results in,
credibility, customer loyalty, and respect from the industry as well as other
companies.
2. What do you feel is the relationship between personal ethics and business
ethics? Are they or should they be the same?
Business ethics and personal ethics are mutually exclusive. For instance when an
activity is deemed ethical is business but doesn't necessarily fall into personal
ethics. For example, when Amazon stops using robots from Bossa Nova for inventory
management, it resulted in Bossa Nova layoff half it's workforce. The business
decision is need because using robots are redundant and inefficient. Now, this may
be unethical personally because it hurts people's livelihood, but can be justified
business-wise.
In contrast, business ethics may also sometimes stem from personal ethics. Like
when a person sets up a social enterprise because he believes in making a
difference in the society.
The way I see it, it's unrealistic to put them side by side. So my answer is NO.
They shouldn't be the same. Organizations should create appropriate business
policies even if the managers/owners don't believe in it.
3. How could a strategist’s attitude toward social responsibility affect a
firm’s strategy?
A strategist's attitude toward social responsibility certainly affect the firm's
1. Discuss the four arguments to justify corporate social responsibility
initiatives.
(1) Moral obligation- the duty for a company to be a good citizen and to do ‘the
right thing’. Moral obligation extend not only to individuals, but also and most
especially to organizations. This is because they have a responsibility to their
stakeholders and they are in the position to do good.
(2) Sustainability – emphasis on the environmental and community impact of the
business. It’s necessary for organizations to have processes that don’t harm the
environment or negatively impact the community. Organizations should strive to
implement business practices that are good for the environment and at the same time
for the company, as well. It is said that consumers tend to buy products from
socially responsible companies therefore being socially responsible while running a
sustainable business is possible.
(3) Licence to operate – the tacit or explicit permission a company needs from
governments, communities and other stakeholders, to do business. There are several
permits or license to obtain before being able to conduct business including but
not limited to government agencies, but also from communities and even NGOs. If the
community is opposed to a certain local business that damage the environments, for
example, they can use their voice to make sure the company stops operation.
(4) Reputation – CSR initiatives to enhance a company’s image, strengthen its
brand, improve morale, or even raise share prices. Ethical is a selling point for
organizations these days. Being seen as socially responsible and taking action to
better the society can have positive effects on the brand’s image.. It results in,
credibility, customer loyalty, and respect from the industry as well as other
companies.
2. What do you feel is the relationship between personal ethics and business
ethics? Are they or should they be the same?
Business ethics and personal ethics are mutually exclusive. For instance when an
activity is deemed ethical is business but doesn't necessarily fall into personal
ethics. For example, when Amazon stops using robots from Bossa Nova for inventory
management, it resulted in Bossa Nova layoff half it's workforce. The business
decision is need because using robots are redundant and inefficient. Now, this may
be unethical personally because it hurts people's livelihood, but can be justified
business-wise.
In contrast, business ethics may also sometimes stem from personal ethics. Like
when a person sets up a social enterprise because he believes in making a
difference in the society.
The way I see it, it's unrealistic to put them side by side. So my answer is NO.
They shouldn't be the same. Organizations should create appropriate business
policies even if the managers/owners don't believe in it.
3. How could a strategist’s attitude toward social responsibility affect a
firm’s strategy?
A strategist's attitude toward social responsibility certainly affect the firm's
