Corporate Ethical and Social Responsibility Essay

Corporate social responsibility incorporates environmental, social, and economic dimensions that provide leadership and differentiation opportunities for perceptive organizations - Corporate Ethical and Social Responsibility Essay introduction. However, enterprises need to adequately plan, govern, and anticipate in order capitalizing on these opportunities without exposing themselves to risk and liability. For the past 30 to 40 years, there have been massive changes in organizations ethical and social responsibilities and it continues to evolve. During this time there has been a debate regarding organizations ethical and social responsibilities.

This debate revolves around the journal published in 1970, called, “The Social Responsibility of Business is to Increase its Profits” by Milton Freidman, has a Nobel Prize in Economics. Using a statement made on Ethics in Business website regarding Milton Friedman’s journal, it states: Friedman believes, in a free society, “there is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engage in open and free competition without deception or fraud. (Ethicsinbusiness. net, 2009) This statement has its positive and negative on how business should look at their ethical and social responsibilities. Organizations of today, as members of society, have a moral obligation to help society deal with its problems and to contribute to its welfare. It is the ethical thing to do by the business organizations. There is need for away to measure whether the organization is performing such activities as producing goods and services that people need, creating jobs for society, paying fair wages, and ensuring worker safety.

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Introduction People and organizations need each other. Social and ethical responsibilities to employees extend beyond terms and conditions of employment and give recognition to the workers as a human being. People today have wider expectations of the quality of working life. This includes justice in treatment, opportunities for consultation and participation, training in new skill and technologies, effective personal and industrial relations policies, and provision of social and leisure facilities.

Organization should be given due consideration to the design of work organization and job satisfaction, make very reasonable effort to give security of employment, and provide employment opportunities for minority groups. John Mackey says it better when he states in his journal Rethinking the Social Responsibility of Business: Putting Customers Ahead of Investors: The enlightened corporation should try to create value for all of its constituencies…we measure our success by how much value we can create for all six of our most important stakeholders: customers, team member (employees), investors, vendors, communities, and the environment”. Mackey, 2005) Today more than ever, the public is watching how big businesses treat society. As we see today, there is very little focus on businesses ethical and social responsibilities. My review to the CEO of this company is to provide the results of how ethical and social responsibility will benefit this organization. Research Findings 1. Organization Environmental responsibilities: Organizations have a responsibility to society, to respect environmental considerations and take care of amenities. Big cities have pollution, noise, places to disposal of waste have an impact on the environment.

Organization often looks the other way when making a decision regarding the process of their product. A lot of money would be used for solving the social problems. Most of the time, there is limited money for that. Technical also been used to solving problems. So, in order to avoid the limited of resources, most of the organizations will possess the resources (such as money and expertise) needed to tackle social problems. Analysis: My analysis is that is in order to solve these social problems, the environment will need to be cleaner. Our organization would benefit by contributing to assist in correcting these issues.

The company can use ethical decision making to secure the organization environmental responsibility. Decisions that would allow for government agencies to get involved with the organization. For instance if a company is proactive and follows the United States Environmental Protection Agency? guidelines for emissions on dangerous pollutants and even goes an extra step to get involved in the community and address those concerns that the public might have; they would be less likely to have the EPA investigate them for environmental concerns. (Corporate social responsibility, 2009).

This would produce a good image of the company to their stakeholders or other companies, the confidence of consumer’s increases, and favor to buy the goods from the company. The profit of the company will increase eventually. Therefore, acts of assisting in the environmental responsibility are very important that the organization helps correcting the social problems that the organizations create. 2. Organizational image: Many people think ethical and social responsibilities to stakeholders are just a part of good business. There is a broader ethical and social responsibilities then just providing good value for the money.

Stakeholders are concern with the following: ·The safety and durability of products or services; ·Standard of after-sales service; ·Prompt and courteous attention to queries and complaints; ·Long-term satisfaction, for example serviceability, adequate supply of products or services, and spare and replacement parts; ·Fair standards of advertising and trading; ·Full and unambiguous information to potential customers. Increasing concern for ethical and social responsibilities to consumers are evident by the activities of such bodies as the Consumers Association, and the number of television and radio programmed devoted to this subject.

Where there is no structured customer service, there is bound to be issues regarding all stakeholders. Consumers would be losing confidence on the organization’s products, and not buying their products or service. (Salmones & Crespo & Bosque, 2005). Analysis: From my analysis of the company’s image must start with the review and reconstruction of the organizations code of ethics. · How the company addresses ethical and social responsibilities all throughout the company, ·How the company address ethical and social initiatives promote goodwill, ·How the company gains public favor, and corporate trust.

These may contribute to the long-run success of the organizations and profit. Therefore, ethical and socially responsible would enhance the organization’s image and business in general. 3. Organization Increase profits: The first responsibility to society is to operate at a profit, and only slightly less important is the necessity for growth. The business is the wealth-creating and wealth-producing organ of society. Management must maintain its wealth-producing resource intact by making adequate profits to offset the risk of economic activity.

Moreover, it must beside increase the wealth-producing capacity of these resources and with them the wealth of society. (Hernandez-Murillo & Martinek, 2009). Analysis: By implementing social responsibility of an organization would, lead to their suppliers and business associates having more confidence toward the organization. The examples of social responsibility might include: fair standards of trading, honoring terms and conditions of purchase or sale, and settlement dates, for example payment of accounts, assistance to smaller organization; engagement only in fair competition; respect for copyright and patents. Hernandez-Murillo & Martinek, 2009). Recommendations My recommendation is that the CEO, Officers, and board members meet to review and revamp their code of ethics. The code of ethics provides a guideline on how a business should present itself to its shareholders and stakeholders. During this review, the company should consider having the communities and employees provide input on issues covered in the company code of ethics. The following issues should be address and practice in order to add value to this company: Recommendation One:

My highly recommend that the Company should be committed to participating actively in and improving the communities in which they do business. In building relationships with our employee, the community and the public, the company will respect the welfare of animals, protect the environment and conduct political activity responsibly. The best strategy for the company is to sacrifice and change the process that is affecting the company’s social responsibility. Recommendation Two: My second recommendation is that the CEO, Officers, and board members meet to review and revamp their code of ethics.

The code of ethics provides a guideline on how a business should present itself to its shareholders and stakeholders. During this review, the company should consider having the communities and employees provide input on issues covered in the company code of ethics. The following issues should be address and practice in order to add value to this company: ·Good customer service to all stakeholders – This is a way the company’s value will increase, while enhancing the business profit and image. As a good image of the company develops, it will lead to even more consumers having confidence in the ompany. This company would be profitable in the end. Therefore, being social responsibilities is very important to an organization in order to create a good image to the company. ·The employee of this company, are the company’s line of communication and interaction to the community and other stakeholders. The employee interaction is vital to any business. There is a saying around businesses that a happy employee is a loyal, hard working employee. The employee takes pride in what they do for the business and are proud to work for the company.

Loyalty is essential in all business that is hand and hand with ethical and social responsibilities. ·The Company should be more committed to treating all employees with honesty, fairness, safety and respect. In order to create this environment, the company should provide equal treatment for employees, promote a positive work environment and protect the health and safety of all employees. Recommendation Three: By implementing social responsibility of an organization would, lead to their suppliers and business associates having more confidence toward the organization.

The examples of social responsibility might include: fair standards of trading, honoring terms and conditions of purchase or sale, and settlement dates, for example payment of accounts, assistance to smaller organization; engagement only in fair competition; respect for copyright and patents. By doing that, the other organizations would view the company as less risky. This is in the stockholders best interest. It will improve the price of stock in the end because the stock market will views the company as less risky and open to public attack.

Therefore, it would reduce the cost of the production of the company. Therefore, award it a high price-earnings ratio. (Hernandez-Murillo & Martinek, 2009). Conclusion Our company should take into account the benefit the business provides for the customers and the community. The social strategies that businesses use to assist in making decisions are of great value to this business. Their willingness to make changes in their social responsibilities to their employees and the community will bring positive effects to the business.

Overall, modern theoretical and empirical analyses indicate that firms can strategically engage in socially responsible activities to increase private profits. Given that the firm’s stakeholders may value the firm’s social efforts, the firm can obtain additional benefits from these activities, including: enhancing the firm’s reputation and the ability to generate profits by differentiating its product, the ability to attract more highly qualified personnel or the ability to extract a premium for its products. (Hernandez-Murillo & Martinek, 2009).

References

Corporate social responsibility. (2009, August 6). In Wikipedia, the free encyclopedia. Retrieved August 7, 2009, from http://en. wikipedia. org/wiki/Corporate_Social_Responsibility. Ethicsinbusiness. net, (2009). An executive summary – the social responsibility of business it to increase its profits. Ethics in Business, Retrieved July 31, 2009, from http://www. ethicsinbusiness. net/case-studies/the-social-responsibility-of-business-is-to-increase-its-profits/an-executive-summary/. Friedman, M. (1970, September 13). The Social Responsibility of Business is to Increase its Profits.

The New York Times Magazine, Retrieved July 31, 2009, from http://www. colorado. edu/studentgroups/libertarians/issues/friedman-soc-resp-business. html. Ferrell, O. C. , Fraedrich, J. & Ferrell, L. (2008). Business ethics: Ethical decision-making and cases (7th ed. ). Boston, MA: Houghton Mifflin. ISBN-13: 9780618749348. Gillespie, N. (2005, October). Rethinking the social responsibility of business. Reasononline – free minds and free market, Retrieved July 31, 2009, from http://www. reason. com/news/show/32239. html. Halme, M. , & Laurila, J. (2009).

Philanthropy, Integration or Innovation? Exploring the Financial and Societal Outcomes of Different Types of Corporate Responsibility. Journal of Business Ethics, vol. 84, no. 3, pp. 325-339, Retrieved July 31, 2009, from http://springerlink. com/content/nw20400340n71622. Hernandez-Murillo, R. , & Martinek, C. J. (2009). Corporate social responsibility can be profitable. The Regional Economist, Retrieved July 31, 2009, from http://www. stlouisfed. org/publications/re/2009/b/pages/socialresponsibility. cfm. Husted, B. W. , & Salazar, J. D. (2006). Taking Friedman seriously:

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