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Corporate social responsibility and ethics - Coggle Diagram
Corporate social responsibility and ethics
When seeking to fulfil objectives and action the various components of the strategy, employees need to be guided in what is acceptable practice
The way that an organisation wins business and gains sales, conducts business and reports financial results and performance can all be sources of moral dilemma and unethical behaviour
Other ethical issues arise from exploitation of labour and the way the organisation manages waste and produces goods and services
Companies primary objectives were to fulfil the needs of shareholders and this often meant the pursuit of profit, more recently organisations must consider broader influences that are changing the way consumers, investors and regulators
These influences include extensive requirements to demonstrate ethical behaviour and to describe an organisation's purpose, alongside a growing consumer base more concerned with the connection between the products and services they buy and their impact on people and the environment
Many organisations to varying degree are conscious of their social and moral responsibilities will pursue a triple bottom line approach and have objectives not only for profit but also for people and the planet
The triple bottom line is a reporting framework that aims to measure the financial, social and environmental performance of an organisation over time
Advocates of the triple bottom line approach state that this measurement represents the true cost of an organisations operations
In relation to the social element, organisations consider fair labour practices and their impact in the community where the business operates
When considering the planet they will set goals that promote sustainability
Sustainability focuses on meeting the needs of the present without with comprising the ability of future generations to meet their needs
Corporate Social Responsibility:
A concept whereby organisations consider the interests of society by taking responsibility for the impact of their activities on all stakeholders including the environment
CSR is essentially about conducting business responsibly with a conscience and showing good citienship
CSR is awareness that organisations have a wider responsibility to act ethically and responsibly, a perspective that expects organisations to act ethically and contribute to and benefit economic development, the environment, quality of working life, local communities and society at large
In the early days CSR emphasised the firms behaviour but this later expanded to include many aspects of the supply chain in which companies are invovled
Many companies now consider the behaviour of their suppliers and intermediaries
Corporate responsbility need to be integrated into the various strategies of the organisation - this may mean implementing new departments, standards, policies and behaviours
Ethics is a brand of philosophy dealing with what is considered to be right and wrong - business ethics are the accepted principles of right or wrong governing the conduct of business people
Ethical behaviour is that which is consistent with the standard's of honesty, fairness and social responsibility adopted by the organisation
General principles of ethical behaviour include fidelity, justice and reparation - these relate to the needs to keep promises, be fair, put right any wrong causes and not harm others
It is generally deemed important for contemporary organisations to be reliable and transparent and to respect others, the law and the environement
Managing the organisation ethically not only means following laws but also ensuring equal opportunity and behaving in a socially responsible manner
Many organisations create an ethics or CSR programs, they may also create relevant committees, codes, systems, processes, procedures and training programmes to influence employee behaviour throughout the organisation
CRS will therefore permeate strategic context, content, planning and realisation
The contemporary organisation must behave responsibly in today’s world as its actions can quickly be reported publicly. Brands, reputation and image, can be tarnished rapidly leading to a reduction in sales revenue, loss of market share and difficulties in the recruitment of talented employees. Various stakeholders such as customers, employees, suppliers and partners may choose not to engage with unethical companies or organisations that fail to act responsibly. Companies need to be increasingly aware of the social impact of their activities and must consider the legal and reputational impact of their activities throughout the world.