Business Morals and Social Responsibilities - Essay Example

Business Morals and Social Responsibilities Businesses use the developed ethical codes as a benchmark for defining the conducts of employees in an organization. However, these ethical codes have varied effects on an organization, some being positive while some unconstructive. The communal expectation of social accountability may change to a desirable one. This is due the admirable trend of corporate in being socially responsible as they strive in amplifying their competitive edge. Social responsibility can also be used as a tool for evaluating the performance of an organization. This can be possible by the strict observation of the company philosophy. Moreover, a firm’s main activity can also be switched to suit into the bracket of social responsibility. Business Morals and Social Responsibilities Every organization, regardless of its reason for formation, must be responsible in a social perspective (ASQ). Due to this reason, several developed codes of ethics assist each firm is expected to follow. However, due to the dynamism of the society, it is likely for the societal perspective of social responsibility to change over a certain period. Company philosophies also assist the company in maintaining their moral standards and being responsible for various situations in the community. This essay, therefore, will concentrate in understanding the various situations regarding morals and social responsibilities. The code of ethics has both positive and negative impact on business organizations. Business organizations through the code of ethics benefit in enhancing their reputation and wining the trust of its clients. For instance, Nike’s code of ethics has assisted the organization regain its reputation that was ruined by activities carried out by its contractors in Asia. However, like in the case of Nike, the code of ethics may influence the profits of business organizations. For instance, Nike developed its code of ethics following criticism over the unethical activities carried out by their contractors in Asia. The contractors unethically used labor from the poor communities in Asia to, cheaply, produce products for Nike. Nike’s high profits came from utilizing these activities that were orchestrated by their contractors in Asian countries (The Blake project 2008). Since the creation of the code of ethics, Nike’s profit reduced since they have to observe and adhere to the contents of that code of ethics. Society’s expectation for corporate social responsibility may only change for the better. Corporate social responsibility affects the business’ profitability in a great manner. For instance, Nike’s major corporate social responsibility is to produce quality footwear for its customers. Compromising the quality of its products will lead to great losses and tarnishing the image of the company (Kidd 2008). It also has a social responsibility to produce its products without harming the eco-system. It is evident how business organizations work towards achieving their corporate social responsibilities. For instance, Nike has developed Nike environmental design tool to produce products with higher sustainability standards (Nikebiz). It therefore implies that the society’s expectation for corporate social responsibility will not change unless it is for the better. Calvert Social Index, Dow Jones Sustainability Indexes, KLD Indexes and FTSE4Good Index Series rank overall performance of organizations based on achievement of social responsibilities. The overall performance of organizations should be based highly on their social responsibilities and how much effort they employ in achieving them. The ability of an organization to continue operating and its overall performance highly depends on its relation with the society and environmental impact (ISO 2011). For instance, rating organizations mentioned above rank Nike based on publicly available information (Nikebiz). Ranking performance of organizations based on social responsibilities adds value to the companies and gives the customers insight to those companies. An organization should adhere to different philosophies when confronted with different issues. These issues may develop to huge losses to the organization if it sticks to only one philosophy. In the 1990’s, Nike faced criticism for child labor and forced labor from the press and human rights activists. Had it not developed the code of ethics, Nike may wound up its operation. Nike’s code of ethics developed in 1992 and amended in 1997 and 1998 helped Nike regain its reputation and consumer trust (Nike code of conduct, 2010). Nike has since realized tremendous growth in its profit margin and maintained its social responsibility. Nike has continuously monitored operations in its contractor factories in Asia (Nikebiz). This is a philosophy it never had before and its impact on Nikes production is felt in its profits. Business self-interest can also serve social interest by maintaining quality of its products and observing the laws of production. For instance, Nike developed a new footwear product dubbed “considered” (Kidd 2008). This footwear has combined social responsibility, commitment to sustainability and maintaining quality. This product is produced under conditions that do not cause environmental harm in any way (Mallenbaker.net 2011). It is therefore possible for organizations to have their self-interest while serving social interest. It is essential for organizations to be responsible thus conduct their activities and objectives in a responsible manner. In order to ensure various institutions observe the aspect of responsibility, several codes are in place, which refines several activities about the company. The dynamism of business has made the society to think that institutions shall alter their current state of social responsibility in the coming future. On another aspect, there have been arguments whether social responsibility should be used as a benchmark for measuring the overall performance of the company. However, this is subject to various issues that, although, if addressed, then the process may be a success. In certain circumstances, business objectives can also be based on social responsibility thus promoting the wellness of the community. References Kidd, D 2008, Nike and responsibility: a look into the future, University of Delaware. Viewed 8 November 2011, . Nikebiz n.d, nikebiz: Nike responsibility, Viewed 8 November 2011, . ISO 2011, ISO social responsibility, Viewed 8 November 2011, . Nikebiz n.d, governance accountability and reporting, Viewed 8 November 2011, . ASQ n.d, social responsibility, viewed 8 November 2011 . Mallenbaker.net 2011, corporate social responsibility: companies in the news, viewed 8 November 2011, . The Blake project 2008. Social responsibility: the Nike story. Viewed 8 November 2011, . Read More