Ethical, Social and Environmental Standards and Practices of World Bank - Essay Example

? Introduction World Bank is the responsible for offering loans, advice, and any other essential resources to any country that is in need, owing to an economic crisis, and capital programs. Established in 1944, the world bank has grown into one of the global largest sources of development funds, with the objective of fighting poverty by helping people in need. The World Bank uses financial resources and its extension assistance to the developing countries to reduce poverty enhances economic growth and improves quality life. Meanwhile, it is managed by its member countries, whose representatives keep offices at the headquarters in Washington (Marshall, 2008). The World Bank cordinates with a multiplicity of actors that include government agencies, civil society organization and private sector; thus, high degree of Ethical, Social and Environmental Standards and Practices should be maintained by the World Bank. Social and Environmental Standards and Practices The World Bank has received serious criticism from international and internal level because of the inequality of distributing funds to the need countries. Thus, it has changed its policies as it has persistently been developing new and diverse methods to support socially and environmentally sustainable development by involvement in World Bank projects. There are formulated safeguard policies that are compulsory strategies for every decision, or measure undertaken by the World Bank representatives (Marshall, 2008). The aim of these safeguards is to keep certain social and environmental standards in projects that are managed by the World Bank. Thus, social and environmental soundness is currently a crucial requirement in the project’s valuation of progress, especially for the loan agreement. Although, there is always interference of political and economic activities, the World Bank article of agreement demand that a measure be economically efficient and avoid political considerations. Meanwhile, there is a stronger connection between social and environmental considerations; the World Bank gives the social and environmental rights more weight than the economic development. Manske and Frey (2004) indicate that the environmental standards have to be compiled in every internal or external of World Bank decision and development measures with emphasis on the ecological aspect that act as conditions in a loan agreement. The environmental standards comprise the considerations of labor, health, safety gender and community issues of the developing countries. They contribute to promotion of democracy and human rights because the political awareness and participation in activities of ecological concern is maintained. Thus, the World Bank has active responsibilities in setting social and environmental standards and promoting exceptional corporate governance. Its key principles are a standard for the financial industry in managing social and environmental issues in projects financing. The organization supports the management of social, environmental of its members, and signed corporate governance approach to promote reasonable governance practices. The approach supports the right and equitable treatment of its members on matters of social and environmental issues. Meanwhile, it supports the disclosure and transparency of the information to its members with a suggestion of the duties of representatives. According to Manske and Frey (2004), the transparency and disclosure of the information provides extra reputation to transparency for the natural resource development among the members. The disclosure of information of dangerous population to its members has helped these members to implement various measures to stop the carbon emulsion into the environment. The organization has managed to introduce flexibility that is vital to customers because it comprises varying capacities and diverse financing products to its members. It enhances effectiveness and strengthens the significance of safeguards in changing its member’s requirements in the global market. Meanwhile, the organization has helped in stimulating programs in emerging economies that have enhanced the spending that prioritize maintenance and benefit poor households. By providing short-term employment and income generation vial labor intensive, World Bank organizations have reduced the unemployment rate of the developing countries. Manske and Frey (2004) indicate that the organization has modernized its lending and knowledge of its products and services to promote the service offered to its customers, and enhance their efforts to reduce poverty. Meanwhile, it is enhancing the way the institution should share and access information and expertise from inside and outside the organization. The organization that offers high priority to sustainable social, human development and promotes economic management focuses on the proper governance that promotes equitability. Ethical considerations The World Bank organization aims to enhance and maintain a favorable work environment that supports the ethical behavior externally and internally (Vallabhaneni, 2008). The ethics helps to maintain the diversity in the organization because it deals with a wide range of cultural differences, and should have personal experience to bear on difficulties issues of development. It provides it members with a positive, productive and motivating products and services that will promote the economic development in their countries. It is primary concerned of the World Bank organizations to manage the impacts of activities on the environment by evaluating environmental impacts and responding to emergencies. For instance, if the member country is participating in manufacturing, the World Bank organizations should specify what the business requires to avoid environmental contaminations. Whatever the organizations specifies should be achievable by similar manufacturing activities anywhere in the world to achieve the same standards of environmental protection. This is done by reduction of harmful products on the environment that is caused by its activities and enabling business to continually enhance their environmental performance. The environmental and social standards offer the organizations with a foundation for quality suitability of delivering products and services for the customer. The standards are developed in response to market demand of it members and are based on agreement among the members because it will ensure their widespread applicability. The World Bank organizations have established and implemented policies, programs and practices for conducting their operations in the social and environmentally sound manner. However, the organization has encountered problems in integrating these policies and practices that as resulted into inefficient way of managing all of its functions. Meanwhile, there exist illegal binding agreements that jeopardize the ethical standards of the World Bank organizations due to inadequate of self regulatory programs. The proper ethics standards should be maintained in order to push competition towards reasonable availability of quality of products and services in the global market (Vallabhaneni, 2008). The customer will demand safety of environmental measures that will assure them of the future protection and capture new opportunities in the market. This will promote greater social responsibilities in businesses by perfecting corporate regulations to avoid conflicts of interest. The financial assistance from the World Bank organizations should be socially responsible and compatible with sustainability of economic development through ethical standards. The concept that World Bank organizations activities can deliver financial, social and environmental benefits can provide the sustainable products and services in the market. The sustainability of product and services is linked to the long-term opportunities and profitability that enhances customer reliability and confidence in the World Bank products and services. Meanwhile, the social and environmental performance contributes to the identification of new business opportunities and causes a reduction of risk and operating costs (Fernando, 2010). There exists a link between the ethical and legal responsibilities because the law in a society is based on the ethical standards. The ethical and moral standards in society are the driving forces behind a formation of new laws and regulation by the organizations (Fernando, 2010). Thus, the World Bank organizations should act according to the ethical and moral standards of the society within business operations, and adopt impending developments in the ethical practices. The ethical of the organizations will promote sustainable and equitable distribution of products and services for environmental and social considerations. Conclusion The World Bank organizations have facilitated the development of product and services that reflect the ethical, social and environmentally responsibility via implementation measures that promote equitability and protection. Meanwhile, lack of proper training of the new programs and policies that are integrated in the business have led to unethical behavior. Meanwhile, the organizations has provided safeguards information about their environmental performance and enhanced the sustainability of the products and services in the global market. The organization provides high priority to sustainable social, human development and promotes economic management that is based on the proper governance that promotes equitability. Finally, the organization has assisted its members to promote the quality of its product and services via the financial opportunities. References Fernando, A. (2010). Business Ethics and Corporate Governance. United Kingdom: Pearson Education Press. Manske, J. & Frey, K. (2004). Corporate Responsibility: Integration of Ethical Aspects in Value Based Management. New York: GRIN Verlag. Marshall, K. (2008). The World Bank: From Reconstruction to Development to Equity. New York: Taylor & Francis Press. Vallabhaneni, S. (2008). Corporate Management, Governance, and Ethics Best Practices. New York: John Wiley and Sons Inc. Read More