PHIL 2001 week 1 Assignment Essay
Morality and Social Responsibility
Social responsibility is an idea that has been of concern to mankind for many years. Over the last two decades, however, it has become of increasing concern to the business world. This has resulted in growing interaction between governments, businesses and society as a whole. In the past, businesses primarily concerned themselves with the economic results of their decisions. “Today, however, businesses must also reflect on the legal, ethical, moral and social consequences of their decisions” (Anderson 15). This paper will discuss the concept of corporate social responsibility. It will give the definition of the phrase, and identify some of the global factors that necessitate corporate social responsibility. It will discuss the importance of corporations setting up corporate social responsibility projects, and the impact these have on society. Social corporate responsibility and the maintenance of high ethical standards is not an option but an obligation for all businesses.PHIL 2001 week 1 Assignment Essay
Corporate social responsibility is no longer defined by how much money a company contributes to charity, but by its overall involvement in activities that improve the quality of people’s lives. Corporate Responsibility has come up as a significant subject matter in the international business community and is progressively becoming a mainstream activity. There is mounting recognition of the momentous effect the activities of the private sector have on the workforce, clientele, the society, the environment, competitors, business associates, investors, shareholders, governments and others groups. It is also becoming progressively clear that organizations can contribute to their individual wealth and to overall community wealth by taking into account the effect they have on the entire globe when making decisions (Anderson 5).
Ethics of multi-corporations involves actions that are morally upright. It is common knowledge that most of the activities corporations are engaged in may not meet the required ethical standards. This is because many businesses tend to focus on profit making rather than any other thing. Business ethics is an upcoming issue mainly due to the sheer number of persons involved. The actions of a few persons may seem safe on a small scale but on a large scale such actions could be devastating. An example of such situations that may be considered unethical is the firing or employees to keep the profit margin of a company high. In the wake of the financial breakdown, many people lost their jobs. Most of the persons who lost their jobs included civil servants who are middle class persons. In order to ensure that the corporations save some money, most of these workers were laid off. Such an action is considered unethical. This is because even though the companies are somehow at a loss, the firing of all those employees means that so many people are going to suffer. The multi-corporations could definitely live with the loss incurred but would rather avoid that by firing a number of their workers.
Businesses are an essential part of the society within which they operate. Excellent executives are aware that their long-term prosperity is founded on sustained good associations with a broad range of persons, groups, and organizations. Intelligent organizations know that businesses can never be prosperous if they operate within societies that are unsuccessful. This is regardless of whether the society is failing due to social, governance or environmental challenges. Furthermore, the common public has lofty expectations of the private sector with regard to responsible and ethical behavior. Consumers expect goods and services to mirror socially and environmentally accountable business conduct at reasonable prices. Shareholders also are seeking improved financial performance that interlinks social and environmental elements, as regards the opportunities they present (Banerjee 13).
There are several factors which explain the growing interest in corporate social responsibility. The first factor is the new concerns and expectations of citizens, consumers, public authorities globalization and industrial change. The second factor is the increasing influence of social criteria on the investment decisions of individuals and institutions, as investors or consumers. The third factor is the growing concern about environmental degradation. This is a particularly important concern given the fact that environmental conservation has become an increasingly significant for everyone in society today. With multi-corporations raking in millions, it is only justified that they give back to the community. The wanton disregard of the environment by a few companies when it comes to handling of industrial waste, the use of recyclable paper or sheer indifference when it comes to environmental protection is shocking. As aforementioned, corporate social responsibility involves activities that give back to the community, or ensure fairness in the running of activities (Crowther and Layman-Bacchu 69).PHIL 2001 week 1 Assignment Essay
The protection of the environment has become the center stage of many humanitarian organizations. Most of these humanitarian organizations argue that the protection of the environment should be the key concern of any corporation. This is because; the environment is the only natural resource that is invaluable to the human race. The issue of handling industrial waste by many corporations has always been at the forefront of many environmental organizations. This is because corporations are guilty on more than one accord of irresponsibly handling their waste. Evidence such as the great pacific garbage patch exists to show how many corporations are not handling the dumping of waste seriously. The great pacific garbage patch is a myriad of human waste that has found its way into the ocean after being improperly dumped. The great pacific garbage patch leads to problems such as loss of aquatic life and the contamination of the water not mentioning the introduction of many pollutants into the water (Werther and Chandler 55).
Corporate social responsibility makes it clear that it is certainly unethical for these corporations to be making profits at the expense of the environment and other aspects of the human life. Corporate social responsibility makes it clear that corporations should therefore find better ways to handle their waste disposal. Even though it is currently not clear on what is the best way to handle some waste such as hot water, responsibility means that before waste is disposed, it should pass some tests. The tests could ensure that the waste is safe for disposal and would not in any way harm human beings and other life. Corporate social responsibility is therefore viewed as a control mechanism to ensure that multi-corporations are responsible for their actions (Werther and Chandler 70).
The global financial meltdown uncovered many social norms previously unimagined. The number of people who lost their jobs due to the financial situation is appalling. Interestingly, this does not mean that multi-national corporations are necessarily suffering. Most of the established companies with branches all over the world took the excuse of the financial breakdown to benefit. All of a sudden, it was okay to lay off people on the pretext of financial gloom. This means that a few people were benefiting from the woes of a thousand more. The issue of corporate social responsibility presents itself in this situation in that, the multi-corporations are run by a board of governors.PHIL 2001 week 1 Assignment Essay
The board of governors is usually composed of a few individuals that call all the shots. It is common knowledge that these corporations employ a huge number of persons in many sectors of the economy. When the profits of these gigantic companies fail to reach a certain goal, the running costs of the business have to be checked. This is why, the few persons at the top, not wanting to lose, resort to firing some people. This is done so as to maintain the profits at a certain level. The problem is that when all of the multinational companies resort to firing a few employees, the net effect is that, a large number of persons end up losing their jobs.
Corporate social responsibility ensures that corporations the world over are engaged in other activities that give back to the community (Crowther and Rayman-Bacchu 172). Many activities that are considered helpful include: organizing activities that seek to involve the community in such events as fund raising for the needy, events that seek to help out the disadvantage in society and other similar activities. In the financial and corporate world, corporate social responsibility is given with a positive impact on performance. There are, however, several factors that show the need for corporate social responsibility. The first factor is population. The expanding population in developing regions will create larger markets dominated by younger individuals with questionable access to the developed world’s standard of living. Statistics show that more than eighty five percent of the world’s population will live in developing countries by 2025 (Crowther and Rayman-Bacchu 165). This presents a challenge to companies seeking to involve themselves in corporate social responsibility, since it is clear that a lot of financial support will be required for these populations.
The second factor is wealth. Despite the fact that global wealth is rising, the income gap has grown wider, threatening civil society. Seventy eight percent of the world can be classified as poor, with eleven percent in the middle class, and only eleven percent can be classified as rich. Each and every company should strive to be involved in attempting to balance this distribution of wealth. The trend of the rich growing richer while the poor grow poorer should be eliminated, since it is unethical for some people to have so much and for others to have nothing at all. The third factor is nutrition. There are millions of people who are malnourished, amidst an abundance of food. Thousands die of hunger every year, while rich corporations blow millions on fancy holidays for their executives. It is crucial for each company to take time and reflect on the finances it spends on benefits for its executives, as compared to that spent on helping the needy in society. While these benefits are vital for employee motivation, they should not be taken overboard at the expense of the suffering masses.
Education is another critical factor that should be considered in the design of corporate social responsibility programs. Basic education is widespread, but opportunities for learning continue to elude many. Over one hundred million children are not in school, with ninety-seven percent of these being in developing countries. One in every five adults globally is illiterate, which are staggering figures given the widespread opportunities to learn available today. Corporates are faced with the challenge of promoting education by setting up schools, and funding educational development programs. Education can also be encouraged by taking in interns and trainees and giving them an opportunity to learn the tricks of the job, which will enable them compete fairly in the corporate world (Crowther and Rayman-Bacchu 169).PHIL 2001 week 1 Assignment Essay
In conclusion, this paper has shown that corporate social responsibility is a vital element for nay business corporations. It has been shown that there are many different areas in which a company may choose to focus its corporate social responsibility. The first area of focus in corporate social responsibility is with regard to the environment. Other areas that should be considered in the development of corporate social responsibility programs are education, health, nutrition and employment. “Social responsibility investment combines investors’ financial goals with their obligation and dedication to factors that ensure the well-being of society such as environmental friendly practices, economic growth and justice in society” (Anderson 9). These elements are not only aspects of corporate social responsibility, but also a show of the ethical standards of a company. It is unethical for some individuals to own so much and earn so much, at the expense of other suffering members of society. It is also unethical for companies to engage in environmentally degrading practices that result in illnesses and loss of life. It can be concluded that Social corporate responsibility and the maintenance of high ethical standards is not an option but an obligation for all business.
Ethical issues are constantly around us be it in school or at work. These issues represent one of the most fundamental aspects in the working environment in relationships or interactions between different stakeholders. The relationships between employers and employees or clients are a vital factor which drives the company’s objectives and goals. An organization’s social responsibility to the surrounding community is also, a vital factor through creating a favorable climate, for the smooth running of the company within the society.
Social responsibility recognizes the values and traditions encompassed by the community. Moreover, ethical issues may surround an institution in its daily operations, and consequently require professional consultation, regarding options which are appropriate in tackling a specific issue, on the basis of ethics and professional standards. Introduction Business ethics and social responsibility are found in many of the organizations that are adopted, by the management which enable the company or firm, to conduct its business operations upholding the welfare and well being of its employees and the clients it serves.
By embracing ethics, codes of conduct and social responsibility in the businesses processes, an organization becomes transparent to its stakeholders and shareholders, thereby creating an image of competence and accountability in the actions it undertakes. Moreover, there has been an increase in the competitive nature of business in the modern society, where various and diverse businesses have flooded the market.
This competitive environment requires businesses, to redefine their objectives and goals in respect to ethics and corporate responsibility, in order to have a competitive advantage over rivals. Many organizations have failed in business ventures because of not embracing appropriate ethical behaviors, towards employees, clients and the society. Ethics are primarily dictated by individual or corporate beliefs encompassing social concepts in the day to day running of an organization. In addition, ethical issues vary among businesses, individuals, cultures or in particular circumstances.
The aim of this study is analyze the importance of ethics and social responsibility, in business operations with companies such as the Wal-Mart Store, and how ethical issues are handled so as to remain competitive in their market segment. Ethics and Social Responsibility Business ethics are vital to the operation processes in a company in relation to both internal and external factors, which influence the success of the business. A cohesive interaction between customers and a business is vital, for the optimal performance of the company.PHIL 2001 week 1 Assignment Essay
This would comprise of customer satisfaction, employee motivation and positive business attitudes that would enable a company to successfully deliver its services or products. Formulation of code of conducts and ethics enable an organization to run its business operations, without overlooking the needs of stakeholders (Lisa, 2005 p. 24). Employees in any given business or industry, play a major role in working towards the accomplishment of goals and objectives set by the organization’s management.
The relationship between management at all levels with the employees, influences the overall output of the organization, and consequently affecting its relations with customers and performance in the competitive market environment. Ethics and codes of conduct can be defined as principles or standards set by the organization’s management, which illustrate the expected behavior of employees and the management while conducting business, on behalf of the company. They also encompass the beliefs of the organization influenced by their goals and objectives.
These conducts may entail principles such as treating customers as a priority, by serving them with a positive attitude while upholding integrity, respecting other employees, striving for excellence, and optimum service to customers. Customer satisfaction is put as the key in the overall corporate responsibility for the optimal performance of the business (Velasqez, 2005 p. 35). A company can also create a code of ethics, where both the management and the employees should follow the set guidelines, while deviation would call for actions against the individual.
They help employees to recognize situations where certain actions are deemed as a violation to the company’s ethics. In addition, business ethics influences the organizational culture of a company, where employees undertake behaviors that foster the success and growth of the company. However, even with set code of conducts, ethical behaviors and social responsibility of an organization, the bottom line dictates that trusting in an individual’s good judgment of what is wrong or right, will affect the image and performance of the organization.PHIL 2001 week 1 Assignment Essay
Therefore, management and employees’ behaviors, culture and attitudes are crucial as they depict the ethics of the company which would ultimately, influence the perception and attitude of clients towards the organization. Effective organizational ethics entail that, firms lead with integrity at the workplace, marketplace and in the community. Social responsibility encompasses business ethics and company practices that govern how, the company runs and its role to the community.
Corporate social responsibility has become a key initiative a crucial tool for growth in a company or industry. Multinational corporations and successful businesses have adopted this powerful tool in various countries across the globe. With rapid globalization and advancement in technology, organizational ethics and social responsibility must be flexible to encompass new aspects, to the changing customer needs while still maintaining integrity and accountability, in the competitive market environment (Hartley, 2004 p.
55). Social responsibility definition varies across businesses and groups, depending on the perception towards their situations or circumstances, but generally social responsibility illustrates the role of companies to conduct their business operations, in a way that promotes human welfare and respects individuals’ rights, whether at the work environment or within the society. Additionally, the two concepts of social responsibility and ethics work hand in hand in order to provide, benefits for all stakeholders.
Moreover, difficulties or challenges that impede successful implementation of social responsibility or business ethics, by an organization should be mitigated before effective changes can be realized. The Wal-Mart Company Wal-Mart has grown to be one of the largest retailers in the world, when it started out as a single discount store more than five decades ago. It has dominated the retailing business with its numerous stores and clubs that are associated with the organization. Moreover, even through the transformations over the years, Wal-Mart has been able to uphold its integrity and culture of ethics constantly (Entine, 2008 p.
22). Ethics and social responsibility as put by the Wal-Mart’s management, has been able to define the company from its inception, and consequently influences how the organization associates with its employees, customers, suppliers and the general community. Wal-Mart has been using statement of ethics in their entire business processes, which define the types of conduct and attitudes that it upholds for its stakeholders. The business conducts create an atmosphere of fairness, honesty and the aspect of legality in the work environment.
Codes of conducts influence the overall organizational culture to adopt behaviors and working processes that enhance the performance output of an organization. Wal-Mart being in the service industry, customer relations has been its priority without overlooking the interests of employees, shareholders and the surrounding community needs. The retailing business has been striving to make considerable changes, through reviewing its business process in order to attain sustainability and commitment towards an ethical and social responsible culture (Nicholas, 2009).
This been attributed to the rapid changing external environment in ethics and business operations, constantly requiring organizations to redefine their ethical standards and principles, that put to test their sense of responsibility, integrity, fairness and honesty. Consequently, ethics at the workplace become a vital factor that influences the overall performance of the company, coupled by responsibility and accountability. The level of ethical issues has grown in significance over the years, where unethical behaviors such as those observed in the Enron Company, resulting to loss of jobs and consumer confidence.
This is detrimental to any organization as it losses its market credibility, leading to its downfall. Moreover, stakeholders in an organization who include customers, shareholders and employees are always being observant of internal decisions made, and how they impact on them. In addition, governmental agencies are constantly becoming involved and monitoring ethical issues in various organizations, with pressure directed for enactment of laws from citizens and shareholders that protect them, which may follow unethical practices in an organization.PHIL 2001 week 1 Assignment Essay
Social responsibility at Wal-Mart has enabled it to realize significant savings, amid criticisms of not being accountable towards its employees. The company adopted a program, scorecard, to enable it review how products are manufactured, merchandised and the availability of recyclability in its goal towards green sustainability. In such cases, the company has been able to cut costs in operation and conserving energy, but it is yet to reach total sustainability and social responsibility in its operations.
Observers have appreciated the organization’s intentions, but the company has many challenges to overcome, to become a business entity that is fully environmental sustainable, coupled with the influence it has had upon suppliers, consumers and employees. The success of the giant retailing store has not been smooth sailing, as it has rubbed many of its employees and clients in the wrong way. Wal-Mart has been at the center of criticism, regarding its unethical business behaviors at one time or another. Some of the policies adopted by the retailing business have, had a negative impact and image in the corporate scene (Zimmerman, 2005).
Example, their strategy of outsourcing for manufacturers have led to loss of jobs in United States. In addition, the organization’s policy towards suppliers based on Wal-Mart’s prices, puts pressure the suppliers that results to closures of plants in the US and job layoffs. These aspects have consequently raised the question, whether the organization is an ethical company in the society. Wal-Mart’s problems can be attributed to the focus of management, towards the company’s growth and therefore neglecting important issues as brand image, social responsibility, and ethics in business operations.
Additionally, communities in the US have been debating whether to allow the Wal-Mart retailing business, to operate in their towns or cities. This comes amidst the perception of the organization and how its influences the community, customers and employees through its business operations. Protests from these communities culminate from the fact that, Wal-Mart buys its goods from Third World countries that it deems cheaper, instead from American suppliers causing those businesses to close down. Issues stem from sustainability and ethics adopted by the retailing giant, which are perceived by the communities to be wrong.PHIL 2001 week 1 Assignment Essay
More so, the company has had its fair share of bad business practices observed in discriminatory promotion and hiring, and forced overtime among other issues. A recent incident where an announcement that was made in a New Jersey Wal-Mart store, that all black people should leave the shopping store over the public-address system, rubbed the shoppers with a negative perspective infuriating most who were shopping at the time. Some of the workers threatened to quit until the matter was resolved, which caught them by total surprise.
The management to its defense, stating they were doing everything to determine the person responsible, but the damage had already been done. Moral evaluations from the communities and critics have put the organization into the limelight, for its unethical business practices. However, Wal-Mart has positive attributes towards the community, by being a retailer that focuses on price as their business model (Cris, 2006). Consumers are sensitive to price and Wal-Mart ensures that it caters to all levels of consumers. The organization has also been good at delivering products, which are decent at varying prices.PHIL 2001 week 1 Assignment Essay