Corporate Social Responsibility (CSR)
CSR refers to the deliberate activities companies undertake to function in a social, economic, and environmentally sustainable approach (McWilliams & Siegel, 2001). Most companies have undertaken CSR by positively contributing to the society and delivery of business values within the society they depend on. CSR policy operates as self-controlling mechanism for businesses to control and ensure their active compliance to the law, ethical standards, and national customs. At times corporations have advanced in their social responsibilities with the aim to increase future profits by having positive public relations and minimize business and legal risks. CSR is therefore significant as it encourages organizations to positively impact the environment and stakeholders (McWilliams, Wright & Siegel, 2006).
CSR is critical about the reputation and development of a company presently more than it was in the past. Hence, it ensures good image of the organization. This is depicted in approaches business executives have in ensuring they meet the set targets in CSR. Strategies assumed presently include training for the staff to develop good quality employees to boost corporate social performance (Bhattacharya, Sen & Korschun, 2008). In participating in CSR, corporations alleviate risks, improve their reputation, and contribute to business achievements as positive effects of CSR. The role corporations play to individuals include equitable wages, control of the salaries and remuneration packages and setting of appropriate working conditions. In return, employees are to carry on the obligations, duties, and responsibilities of the organizations. These duties oblige organizations to compete in the acceptable means with respect to common rights and duties of the business partners and companies.
CSR is also perceived as sets of written and unwritten rules and postulations in a corporate manner, which guides businesses in the social environment (McWilliams & Siegel, 2006). Corporations through these rules control behavior patterns within an organization since societal impact of the organizations’ decisions and actions are significant aspects. Corporate social responsibility majors in the social contract, which advocates for responsibility between the organization and individuals, factions and other organizations, administration and the general humanity. Issues which gave rise to CSR included government values, business education, work force, religion and society. Before then, government was more powerful and tended to be oppressive and blameless yet their actions gave rise to several social ills, which needed to be rectified, and enhanced. Business had to rise to act within the society due to the assumed roles such as setting of clear rules, maintenance of the economy achieving their goal setting rules and remaining proactive. The major characteristic of the government duties is the presence of common beneficial exchange evidence in form of tax payments and implementation of health and safety standards.
As an upcoming venture in the postmodern age, CSR is faced with diverse criticism in relation to the purpose and motives of corporations. While contributing businesses in CSR are less likely to exploit employees and the society, CSR impresses external values to the neighboring society with impulsive results (Korschun, Bhattacharya & Swain, 2014). Critical analysis of CSR is essential, as it is currently a major issue in the business world. Additionally, controversies have arisen on its impact to a corporation as critics charge that it is a distraction to the economic role of a business. Its expectations have been referred to as unrealistic while others perceive it as a component of capitalist legitimacy. However, CSR assists corporations achieve their mission in relation to the customers’ demands, apply business ethics and adhere to principles set within the public sector. Previous studies on the issue concluded that even though negative effects are felt in terms of profit margin, CSR bares a neutral effect on the financial results of a company. Corporate social responsibility has been chosen as a strategy to control and manage main indicators to minimize costs and save money. CSR is essential as organizations must protect and recover the welfare of the public as part of addressing the needs of the society.
Business ethics refers to specialized ethics, which evaluates ethical ideology within a business environment (Mindeli & Pipiya, 2007). These are standards, which govern the actions and behavior of people in business organizations and deals with issues related to corporate governance, bribery, discrimination. The ethical standards are applied to preserve the required level of trust between participants and businesses. This is achieved by differentiating between right and wrong choices for easy identification of business practices. Ethics in trade stresses that business adhere to the set rules for competitive return for shareholders and fair treatment of employees (Gray, 2009). Since companies have numerous roles, business ethics are significant to ensure that minimal harm is done to the environment and that surrounding communities are not distracted in their operation.
To initiate any business, it is essential to adhere to the set rules and business principles in addition to the voluntary codes of practice set by businesses. These codes incorporate human rights for the security of the employees and guidance of private and public forces (Allison, 2005). Business ethics is also essential in ensuring that stakeholder’ perspectives and priorities are considered in the decision-making processes. Managers are able to evaluate the impact of company activities in the development processes. Therefore, ethics are essential in the regulation of details related to company behavior, which is above government control.
Business ethics is worthy of analysis as it defines the rules that control business activities and business associations (Gray, 2009). Through the set business ethics, issues and problems can clearly be defined and managed, in situations where rights and duties of different personalities are conflicting. Through these codes, different departments are able to function and co-relate to meet the targets of the business. In instances of problems, arbitrators are able to solve issues fairly. In marketing ethics is applied to manage distortion of marketing perceptions and interactions since marketing influences the perceptions of people. Ethics is therefore applied in the pricing and promotion activities such as in viral marketing and pyramid schemes. Ethics is also necessary to evaluate in an organization as it acts as guidance to production processes of the company. This is because some consumers demand for products, which lack the zero risk such as tobacco. To meet the demands of the consumers and retain market competitiveness, precautionary principle is applied warning the consumers of the risk related to devouring the products (Allison, 2005).
Process of searching for articles
To search for an article from the Walden Library database, I searched for the home page, which offered me options for searching articles by topics. This site led me to a page where I could select a subject. I selected business and management where I had to choose a database. I preferred the business sand management databases, which offered diverse links. I chose the ABI/ INFORM Complete database which offered peer-reviewed journals among other international articles and sources. To choose specific journals, I had to sign in as a student by entering personal details and then I was able to choose from the list of peer-reviewed journals. I thereafter chose business related journals, which reviewed recent issues in business. Peer-reviewed sources are those that have passed through quality control from a panel of reviewers. These critics are experts in the fields and apply their expertise in their review. The peer-reviewers cite for properly applied research methods, contributions of the paper to present information and inclusion of previous researchers to the topics under discussion. The chosen articles were desirable as they contained related topics to the assigned readings. From the experience, I have come to learn that the portal offers peer-reviewed sources, which are credible and offers approved information. I have learnt that searching for information through the library database limited my search to peer-reviewed and useful sources for research only. To ascertain that the sources were peer-reviewed, they contained the authors’ names, credentials and addresses. These papers were written by experts in their fields and contained research findings.
Allison, R. (2005). The Birth of Spiritual Economics: Spirituality and Ethics in management
New York: Springer. 19 (73): 61–74.
Bhattacharya, C.B. & Sen, S. & Korschun, D. (2008). “Using Corporate Social Responsibility to
Win the War for Talent” MIT Sloan Management Review. 49 (2): 37–44.
Gray, Kevin (2009). “Property in Thin Air”. The Cambridge Law Journal 50 (2): 252.
Korschun, D., Bhattacharya, C. B. & Swain, S. D. (2014). “Corporate Social Responsibility,
Customer Orientation, and the Job Performance of Frontline Employees”. Journal of Marketing 78 (3): 20–37.
McWilliams, A. & Siegel, D. (2001). “Corporate social responsibility: A theory of the firm
perspective”. Academy of Management Review. 26: 117–127.
McWilliams, A. & Siegel, D. (2006). “Corporate Social Responsibility and Financial
Performance: Correlation or Misspecification?” Strategic Management Journal. 21 (5): 603–609.
McWilliams, A. Wright, M. & Siegel, D. (2006). “Corporate Social Responsibility: International
Perspectives.” Working Papers. Troy, New York: Department of Economics, Rensselaer Polytechnic Institute.
Mindeli, L. E. & Pipiya, L. K. (2007). “Conceptual aspects of formation of a knowledge-based.”
Studies on Russian Economic Development 18 (3): 314.