Ethics and Social Responsibility Strategic Guidelines

Question: Discuss about the Ethics and Social Responsibility for Strategic Guidelines. Answer: Introduction: The idea of corporate social responsibility largely involves the ethical issues of marketing and business operation. As discussed by Hartman et al. (2014) Corporate social responsibilityis mainly a form of business self-regulation incorporated into a corporate model. In the recent decades the idea has got a significant ground. However, in a number of empirical instances is has been observed that the CSR activities have helped the companies to increase their profit amount. This particular aspect of the CSR activities has often directed the companies to introduce the ethical regulations with an aim of profit maximization. Hence, it creates the debate that the idea of corporate social responsibility has its root in the motive of maximization rather than ethical responsibilities. Discussion: The core of corporate social responsibility is to perform some strategic guidelines, which are ethically concerned regarding the business operation of a company. For discussing this controversial issue, it is needed to focus on the various aspects of corporate social responsibilities. The ethical aspect: It was the main source of the idea of corporate social responsibility. The ethical aspect of the CSR activities states that society grants the existence to firms. The shareholders simply supply risk capital. Therefore, it is the responsibility and obligation of the firms to return some gains to the betterment of the society. As mentioned by Jones and Ryan (1998) the companies need to find the factors of the society and the environment and operate their business operation in way so that these factors do not get affected. Moreover, the ethical aspect of corporate social responsibility talks about improving the status of those factors. As opined by Will and Hielscher (2014) the driving force of these actions or the strategic decisions in favor of the society should not be driven by the motive of profit maximization, rather it will be driven by the sense of responsibility towards the society in which they are operating. As mentioned by Afiuc and Bonsu(2016) the ethical aspect focuses on the obligation to create a good society. The economic aspect: On the other hand, the economic aspect advocates the economic perspective of the business operation. The economic aspect says that the mangers responsibility is t maximize the profit level of the shareholders. As mentioned by Donaldson et al. (1983) if the nature of the core responsibilities of the corporate citizenship can closely be reviewed, it can be identified that it is mostly directed to uplift the advantage of the companies and creating value among the shareholders. As mentioned by Buciuniene and Kazlauskaite (2012) the four dimensions of the corporate social responsibility involves the economic responsibility, legal responsibility, ethical responsibility, and discretionary responsibility. The first three dimensions of CSR typically involve the issues are directly related to the business operations with a better precision. These are: attaining profit within the legal binderies, the licenses to operate and many more. As opined by Nelson and Trevio (2004) the corporate responsibility standards involve issues like environment, labor, corporate governance, ethical financial handling, human rights and corporate reporting. As mentioned by Crane and Matten (2007) all these regulations help a company to avoid internal as well as external threats and weaknesses. Thus, it can be said that with the CSR activities the companies are basically achieving the corporate goals rather than attaining the ethical responsibilities. How CSR helps in profit making: Profit is the key to a business. It cannot be ignored that without collecting a certain profit level profit companies will not be able to sustain. Hence, it is a prerequisite for them to identify and implement the strategies, which will be helpful in this regard. CSR activities often help them to improve the brand name and collect increased profit level. As opined by Barnett (2016) the companies are being compelled to focus on the CSR activates in order to minimize the threat of global competition, growing awareness among the society regarding the rights, spread of the corporate scandals and to acquire power. These activities are mainly focused on creating value within the shareholders and the stakeholders. A number of companies from the economically developed countries have focused their CSR activities in uplifting the standard of lives of the people of the underdeveloped countries. As argued by Shakeel (2015) it is a strategy of creating a market in those economies for the brand. Companies are mainly focusing on the long-term business aspirations. As mentioned by Martnez and del Bosque (2013) patronizing in the philanthropic activities is the best way to improve the brand name and gain a competitive advantage. As mentioned by Will and Hielscher (2014) the idea that propelled Microsoft to establish the Bill and Melinda Foundation to clear the mud off the brand name and collect better customer base in the US market of personal computers. The allegation of monopolistic business system has affected the customer base of the company and it was losing the suppliers. In such a context, Bill Gates identified the need of uplifting the brand name and established the foundation in 2000, with an aim of serving philanthropic causes. As discussed by Crane and Matten (2007) by maintaining the Kyoto protocol the modern day companies are observing the environmental regulations over the business operations. With the increased concerns over the environmental issues the entrepreneurial giants has perfectly identified the potential threat to their future business operations. Hence, to provide themselves a better sustainability the companies are now directed their CSR towards this issue. As mentioned by Buciuniene and Kazlauskaite (2012) the companies strategically identify the issues, which have a potential threat to their operation and start approaching those areas in the guise of CSR activities to eliminate the threats. The General Electric Corporation has introduced the Ecomagination initiative (Amoako 2016). The company has now introduced environmentally sustainable products in the product line, which is being globally appreciated as an effective step towards the CSR obligations. However, as opined by Barnett (2016) this very activity can also be identified as an initiative to the product diversification of the company. Moreover, the company has rightly identified the future demand of the eco-friendly solar panels, water purifier due to the continuous reduction in the fuel forces. Here, the case of IKEA can also be discussed. It is a furniture manufacturing company. It is now patronizing the causes like sustainable forestry, organic farming, fair trade and others, with the aim of assuring the supply of the raw materials in future, which is now in severe threat (Williams 2014). On the other hand, the companies, which are maintaining the legal rights of the employees by providing non-discriminatory policies, fair wages, health and safety measures and equal opportunities, are mainly securing better employee management and uplifted production. As mentioned by Morris (2016) the Taiwan-based electronics manufacturer Foxconn implicated in using underage workers and poor conditions at its factories have been linked to a series of employee suicides. It has decreased the production volume of the company by 20% in that particular financial year (Morris 2016). On the other hand, the printing giant Xerox can be identified as a reaper of the profits of employee satisfaction. As mentioned by Morris (2016) the Community Involvement Program encourages involved employees directly and the return for Xerox comes in the form of employee commitment. In 2013, the company experienced 23% growth in the production and the employee turnover rate dropped down to .3% (Mirvis 2012). In addition, with the CSR activities the companies can also perform the risk management activities. One of the major fundamentals of the CSR is maintaining corporate governance and an ethical financial management. By maintaining the financial transactions in a fair way the companies keeps the governmental audit away. In 2001, Enron faced $63 billion financial corruption and the Govt. took the necessary action towards them (Morris 2016). Thus, it can also be said that the companies maintain the ethical financial system to reduce the threat of financial collapse and increase sustainability of the profit count. On the other hand, by operating the business within the boundary of the legal regulations, the companies get rid of the risk of criminality and subsequent monitory compensation. The CSR activities of the companies also help them in earning the shareholders trust. While the companies tie their collaboration with the Government for the CSR initiatives, it increases the value and the reputation of the company. It provides the investors a sense of security and trust over the brand and they try to invest in the shares of these companies. In many cases, the companies follow this strategy to ensure better collection of the shareholders. By increasing the shareholder value, the CSR activities help the companies to ensure better dividend. A number of studies have mentioned that the CSR activities are helping the companies to maintain the ethical aspects of corporate social responsibilities. However, the inherent character of the CSR causes is being helpful for them to collect a better brand name, satisfied human resource and increased profit level. In most of the case, the philanthropic activities help them to obtain the best possible profit level. By the philanthropic activities, the companies can have the promotional facilities without actually trying for it. For the big players, the CSR activities with its philanthropic aspect open the door for a huge market in the economically underdeveloped countries. As opined by Williams (2014) NuSkin, a personal care product company is executing the Nourish the Children project. It is helping them to collect the eminence as a Good Company and increasing the sales volume. Moreover, as opined by Afiuc and Bonsu (2016) with their operation in the less developed world the companie s try to enter in the new market with a good brand name. However, a great many companies are performing well in the field of CSR activities. Here, the name of Coca-Cola, ALCOA can be mentioned. It cannot be ignored that the companies, which are supporting the CSR causes have identified their responsibilities towards the society and the environment. As mentioned by Shakeel (2015) the Tom's Shoes is a company with CSR at its core, donates one pair of shoes to a child in need for every pair a customer purchases. It is supporting the ethical aspects of CSR and thus gaining the brand name in return. On the other hand, Disney can also be identified as one of the notable companies, which is supporting the CSR causes by aiding the communities. It was one of the major support providers in aid to sufferers of the 2010 Haiti earthquake (Amoako 2016). These big corporate figures are capable to support the society; therefore, it is needed for them to take some initiatives and go beyond the idea of profit making. Hence, it cannot be ignored that CSR act ivities are uplifting the ethical dealings of the companies, whereas the motives are mainly the profit generation. Conclusion: Thus, it cannot be ignored that there is a great connection between the CSR activities and the increase of the profit level. With the upliftment of the labor force by fulfilling the CSR requirements and opting for operating the business according to the governmental rules, provide the companies the opportunities to become a sustainable enterprise and ensure long-term profit. Moreover, as discussed in the above essay, it can be noted that a number of companies are helping the downtrodden people to uplift their standard of living by their philanthropic CSR activities, which is also increasing the brand eminence, and ensure pro-profit dealing of the CSR activities. Thus, the companies are fulfilling their ethical responsibilities, which are being helpful for their profit maximization and the obligations to the legal regulations. Hence it can be said that the economic aspect of the CSR activities is motivating the companies to focus on such initiatives, which are being supportive for the betterment of the society. Hence, it can be said that the core of the CSR initiatives was the fulfillment of the ethical responsibilities, but the economic motivation is largely instigating the companies to perform those activities, which are being helpful for the society and environment. References: Afiuc, O. and Bonsu, S., 2016, July. 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