Corporate Social Responsibility - Essay Example

? CSR AND ETHICS ON NORTHERN BANK and Introduction Corporate social responsibility is a corporate reaction to public mistrust and calls for the regulation. CSR has the most financial executives who are interviewed strongly and resisted in binding the regulation of the companies. Northern Rock is a British savings bank that ran into trouble in 2007. Savers queued to take out their money, with the loss of interest, so as to protect their capital invested in the bank. CSR on Northern Bank is supposed to be win- win on the same, the company benefits hence loses really goes to the society while the company benefits by gaining the profits. CSR thought that leaders are not a homogenous group nor they do not even predict one of the evolutionary tracts for over the next decade. It is so interesting to speculate the way on how to prosper in future according to cultural view in the social welfare and social economic in relation to political changes within the company. Regulation of Executive and Shareholders of Northern Rock The regulations of the executives pay desirable because it has exposed the regulatory failings whereby the global official has responded with the regulatory fixes, including some that could have made a difference. It sounds so ethical that taking in to account the interests and contributions of the people who interact becomes the basis for ethical behavior and the governance. The shareholders are completely being divested by the ruling European company. They are in reality opting for fairness and justice in order for them to feel faithful in running the system of the business (Sims 2010). The regulation, including the rule of the corporations can be structured to reduce the impact on society and in their working place. The shareholders should have a democratic society which can be controlled the acceptable corporate behavior. There are factors that have made the vulnerable business collapse. For example, the northern rock rapid growth which has been fuelled by the aggressive of lending to dubious borrowers. Again, the tough new liquidity standards aimed at forcing the banks to hold some of the shares because of compensation from the banks. The rationale for the shareholders has not been beneficial from the sale of the bank, this is because of investors from the banks who have not favored the nationalism and then the judgment on the damage based on the economy. According to Joel Bakan puts that, “no one should seriously suggest that the individual should regulate themselves that the laws are against murder, assault and theft are unnecessary because of people are socially responsible (Nelson 2012). This shows that, corporate people who lack the whole world should be left free to rule them selves. The business case for the CSR in some parties is affected by the ability to create wealth for themselves and the community. It sounds so ethical that taking in to account the interests and contributions of the people who interact becomes the basis for ethical behavior and the governance. In business cases for CSR, it is essentially a strategic plan fort he firms which anticipates and address the issues associated with the interactions with others and also through out the business in their future endeavors. Deontology Theories of Corporate Social Responsibility According to the philosophers, Deontology simply means the theory of duties carried by people in an organization. Deontology theory entails the commitment, obligation and duties based on ethics. Kant argues that, people should act in the right way and must act to their duties. The motive, as in Kant’s view of ethics states that, it is right regardless of what the solution or the result is. One of the roots of the crisis in Northern Rock lay in the difficulties of the American sub prime market. Loans were provided to people because of their low income, or lack of assets, or the type of property being purchased, could not obtain a loan or mortgage. The fact to deontological theory is that, they try to access the corporate governance, ethics and CSR, with the desire of the public to invest in their business and grow; they are interfered by the government (Kendrick 2010). For instance, when the companies grow in size, and influence the power of the directors which also grow, hence they affect the shareholders. It is only the owners and managers who have the mandate to realize what is happening to the company. Shareholders From the point of view, According to Kant the philosopher of the age of enlightenment in 17th and 18th centuries, values are necessity relative because it depends on a particular observer’s judgment of thing that happens to somebody. Morality and dignity are capable of what is right and what is wrong according to Kant which is brought in from the relative obscurity in to the focal point of the philosophers. In businesses, the theory of ethics in human dignity is related to human agency as the ability of humans to choose their own action the shares can be held for more than one reason. They are held for investment cases but also they have a broad general objective principle on the individual category with a lot of different motivations (Rochilin 2005). The institutional investors contribute the bulk of investments funds available to companies and they invest a large amount of money in their shares in the company. With the shares in the Northern Rock bank, there is nearly one third and this is the reason why the British government has moved to reassures the investors with the bank and the account of the shareholders (Taylor 2002). CSR as a public and private partnership has many activities which encompasses a variety of the arrangement in pulling the resources from the government. In relation to corporate social responsibility, the community development projects have some of the boundaries between the role of the companies and government. Law, Ethics and Responsibilities Northern Rock Bank management teams and boards have legal and moral responsibilities that govern them in their financial business. The management team includes the executives and board of governors in financial businesses. All the executives have to respect the law and rules and regulations of the business sector (Sims 2010). The moral behaviors on executives have moral obligations to their shareholders from of keeping the promises and meeting their duties in all the activities in their financial businesses. Responsibility is the accountability, in argument to this saying, responsibility does not mean that some one has caused the problem, and thus is the cause of the problem. Some ethics and legal theorists have introduced the notion of regulative responsibilities.” A sort of responsibility that results not from ones direct or s proximate contact with the case at the hand may bring harm. Ethics of Justice in CSR The ethics of justice deals with the moral choices through a measure of the rights of people who are involved to solutions that seem to be at least number of people in an organization. The corporate executive in businesses some times violates the duties done by their shareholders by attempting to withdraw the information (Taylor 2002). Ethical standards are so powerful in business, in financial markets; it deals with money on the markets that plays an essential role in risk of the players in relation to profits and losses. In every business based on financial markets, there must be an ethical standard to guide the brokers in determining the worthiness of undertaking the risk. It is termed to be unethical when someone harms others in some countries like US. Considering the various stakeholders in Northern Rock, I agree with the savers with Northern Rock should that they should have their savings guaranteed by the government. The CSR overall performance of the company is under the spotlight, a parallel good governance movement structure on the composition and the behavior of the corporate boards. In relation to shareholders, they are demanding that the corporate bodies are more active than the other independent management. According to shareholders approach, to the corporate governance, they imply are traditional rules of the defenders in their interest. The governance body has the highest interest of sharing the responsibilities for setting all the values and the standards within their companies (Rochilin 2005). The shareholders theory in relation to companies should have to design their corporate social strategies on consideration of the interests of their groups on who can bring effect on their organization. Their interest is to bring an attention to groups and individuals on the demands of their intrinsic value which is termed as a normative approach. Shareholders Theory & Various Stakeholders in Northern Rock The theory of the shareholders in this case is related to the literature of the corporate sustainability and CSR, since it provides convincing theoretical framework for analyzing the relationship between the company and society. The aim is to create value for the stakeholders and fulfill the responsibilities towards them. The corporate social responsibility has become an increasing prominent issue for all the companies and the corporate boards are also getting involved in shaping the company polices and practices on a wide range of social responsibilities and the environment (Makower 2010). The government process applies to the shareholders theory which has led to alternative approaches in maximizing their shares and firms. In comparison to their goals in raising the shareholders returns, the stakeholder has other multiple objectives on their risk of investments on capital and other parties. The government controls the process by controlling the managers and other organizational participants by ensuring that they act in their owner’s interest. On the same, they argue on achieving their strategies based on investment and their legitimate power to claim firms. For the shareholders firm to be viable all the time it must demonstrate the ability in achieving their goals and objectives of the different parties in the company and the values created in ways that maintain their commitment in their operations. The ethics of justice deals with the moral choices through a measure of the rights of people who are involved to solutions that seem to at least number of people in an organization (Ragin 2010). The guarantee savings scheme shows that the government apply some aspects of corporate social responsibility because according to their performance metrics, the shareholders value is sufficient to maintain investor based on the commitment. Utilitarianism Theory Relevance of Ethical and CSR Concepts Utilitarianism theory has been considered as the natural ethic of democracy in operating a simple majority without the protection of the individual rights. The fair distribution of the value is created to maintain the commitment of the multiple shareholders in coordination, corporation and resolution of the conflict. The process of social responsibility in a business capacity is based on the respond to the social pressures among the people. This suggests the ability of Northern Rock Bank to survive through the adaptation to its business environment. The process must be possible about all the changes of the environment in analyzing the data and how to react with the changes and results. CSR is a strategy for holding the government to ransom on the issues of regulation by basing their arguments on the positive doings. In this case, the companies have a weakness of acting responsibly because they have issues with the government regulation to tackle bad corporate practice (Gardiner 2005). Conscience is the voice of the race. The ability of the business success is to interpret, and react to the business environmental requirements and the complex mechanisms in the operations. In the level of the CSR models, the shareholders management is defined as the group or individual who can affect or who is affected by the achievement of the companies’ firms’ objectives. This includes, the owners, suppliers, employees, customers, competitors, the domestic foreign government and non profit organizations. The aim the organization forum teams are to seek balance and meet the legitimate concern as a prerequisite of all the measurement involved in operation within the company. The issues of the management teams are analyzed in motivating the principles of the firm and having determined their relationships, and power of the shareholders on the concern of the stakeholders (Kendrick 2010). In comparison to the outcomes, the main focus is on the management process of the corporate social responsibility on the difference of all the shareholders in relevant to the issues which are included in the performance of the business strategies Ethical Egoism on Aspects of Corporate Social Responsibility From the philosopher’s point of view, it is a belief hence nothing is stated about the motives of what others act. In Northern Rock Bank operation on business, the ethical egoism of often seen to be selfish rather than someone acting under the enlightened self of interest. Life is not seen as a contest between people thus it is seen as a challenge (Makower 2010). The start of the northern rock bank business was to make money and satisfy the employees and the competitive product thereby helping others. The style of government regulation became more remote, less detailed. The activities of supervising and regulating the financial institutions were divided between the FSA and the Bank of England, with both answerable to the Treasury, the government department ultimately accountable to Parliament (Kendrick 2010). The form of high ethical standards observed by the employees and the mangers will in turn help in the satisfaction of the exercises of the corporate social responsibilities based on the corporate bodies. CSR bodies may not be interested on profit optimization unless the standard of ethics are truly high thus business operations and objectives may follow the procedure Northern bank business practice abused the corporate social responsibility thus being a code of conduct formed under the legislation of the government. It was unclear to the lenders, the banks, about who might take regulatory action. Politically, there were those who wished the bank to fail. Huge salaries paid to business executives led to the view that they should sort things out. However, the television pictures of angry depositors of Northern Rock caused political problems for the government (Nelson 2012). Deontology Concept in Northern Rock & CSR Ethics In relation to the theory of the deontology the concept is that the deontologist may argue on the wrong side of issues regardless of the potential impact of the good. Member of Parliament Vince Cable, a respected commentator on financial management, said ‘The run on Northern Rock was not only a failure of the bank, but also a failure of regulation. In relation to the ethical egoism theory, when there is a conflict of interests between egoism provides a way of understanding of the legal concept rules and the process are extremely essential to the business and CSR (Jalote 2004). The important to the legal concept on understanding is to ensure the products and operations of the business are in good strategy in achieving their goals and objectives. Most of the governments require mandatory disclosure of the corporate social responsibilities on the performance base on the environment approaches and ethical standards of business. Relevance of Ethical and CSR Concepts in Organizational Contexts Conventionalism in Northern Rock and the CSR ethics focuses on the concept that there are ethical truths and that they are made true by or will or said by the people. The relationship between the business and the shareholders management focuses on the company’s external environment on the stability trends. The promotion of the business is based on the curriculum program and the operations of the business promotion in creativity and innovation. Egoism leads to a rule based theory on everyone to observe. The fact to this theory is that every body is a better position to obey the law in the business and give up some of the good measures to achieve the maximum of the possible good (Stuart 2010). The CSR concept provides the theoretical support for the transformation in the business management in the expansion of the qualitative improvement. The measures of carrying the evaluation practices are by means of the frame work which consists of environmental issues’. The shareholders relationship is seen out when the business management is assessed from the point of view of the corporate social responsibility (Trussel 2011). For example considering a case of the shareholders, the most famous shareholders corporation is the good results and returns on their investments on high profits and growth on the sharing the prices. Generally, the action of the shareholders constitutes a major restrictive factor on the corporation activities based on the contest of the CSR. Utilitarianism & Virtues Ethics on Shareholders Utilitarianism according to the philosophers is the view that goods actions are those tend to produce the greatest amount of the happiness conceived of as pleasure and the absence of pain. The concept of the corporate social responsibility entails the vagueness and it fails to explain why it happens so? In general terms, the popular belief to this CSR is concerned with the profit maximization of the business and this should not be concerned with anything to with the “unethical” for example lack of transparency about the corporate management or a discriminatory employment policy (Frans 2011). The code of conduct developed by the corporate bodies may help the satisfaction statutory requirements while raising the ethical standards observed by the employees. Virtues theory according to the business, it has threes approaches to normative and often to deontology which emphasis on duty and roles which derives the righteous or wrongness from the out come of the ones self. In relation to the theory of the deontology the concept is that the deontologist may argue on the wrong side of issues regardless of the potential impact of the good. The decision of the individual in business may lie on the characters behavior according (Clements 2010). Conventionalism on Shareholders Conventionalism outlines out the philosophical attitude on the fundamental principles which explicit the agreements in the society rather the reality based on the business and companies. According to the philosophers, conventionalism is applied on the act of the legal philosophy which provides a justification for the states coercion. The shareholders are involved in the following responsibilities, implement the management systems, accounting controls, do not share inside information in appropriately and lastly to support the financial and no- financial objectives with the employees training. The analysis of the shareholders is extremely interesting on the part of the buyers in satisfying the work in the business. The Concern about the environment is particularly based on the climate (Beattie 2012). The business focuses on the different approaches in operations of the business strategies. Moral Responsibility for Banking Failure The moral obligation in Northern Rock Bank is based on the responsibility of the individual in the company to feel honored in the performance because of the personal belief and values. The concept is explored in the fields like the philosophy ethics and the psychology. This is where people in the company feel interested in their origins of the human behaviors and the roots of the decision making process based on the strategies. Those people with above average wealth have often owned more than one property. Property companies have grown by buying and letting property. Now the scale of the activity and the type of people involved in buyout let schemes have both altered (Blair 2005). More people have more disposable income, but the main stimulus in buy to let activity has been increased borrowing opportunities. The issues of utilitarian theory on moral obligation are the act of the charity where people are not legally required to give to the charities, but they may feel a personal obligation to do so just because they believe it is the right thing to do so. That has meant rising property prices which has it self attracted more people into the market. Such borrowers have seen an apparent no risk opportunities (Berle 2009). It could be argued that attitudes to debt have changed over the years, even with the risk of losses in property values. The common future has been criticized for its lack of the conceptual clarity and the developmental strategy. In relation to moral obligation, there people have to feel a sense of the moral duty that arises from the ideas about what is right and what is wrong based on social issues and family relations. In the northern rock bank, when emotion enters into calculations than price rises and falls may be more severe than expected from a strictly economic perspective. Predictions on the Future use of CSR and Ethical Perspectives The concept of social corporate on the side of the sustainability development may establish the global perspective on evaluating the analysis on the future proceedings. The policies on this area of sustainable development have options on the environmentalist and the industries according to the government resources. The objective of the northern rock bank on the CSR is to establish an understanding of the concepts of sustainable development and corporate social responsibility and assess the opportunities and challenges in marketing the company (Baysinger 2010). Relativism theory shows the justification of the values judgment on the reasons of ethics and language. CSR is necessary because it addresses the obligations on the missions and vision of the organizations; hence it is the standard of the corporate performance. Based on the fundamental issues, it is had the strongest roles of the public relations which helps in the participation in the social construction procedures and evaluates the standards of the company in reflection to benefits of the organization (Health 2010). The corporate social responsibility has required a broad support in various international forums on the implications of social responsible behaviors. In relation to government and the northern rock ban, the issues of the concept of CSR helps in the process of outlining guidelines and polices in representing the global differences in running the business. The interest of the organization in CSR comprises of the human rights, employees rights, environmental protection, community development and the stakeholders rights. There are core values which defines the responsibilities of corporations to the society on CSR. The benefit on what comer after the implementation of the core values in society may bring harm on fact to this argument is that, CSR is not only expected in ethical behaviors of the companies but also the self interest of the company which as done by investing the core elements of CSR. It is termed as a win –win strategy (Albert 2007). Conclusion CSR thought that leaders are not a homogenous group nor they do not even predict one of the evolutionary tracts for over the next decade. It is so interesting to speculate the way on how to prosper in future according to cultural view in the social economic in relation to political changes with the organization. One of the most significant trends in the increasing influence will be based on the stakeholders through the engagement of the campaigns. In this case, the stakeholders will become more strategic and more corporate in coordinating and increasing their working trends commonly to their concerns. Consumers and employees will become more demanding in the perceiving their connection within the business and between cooperate behavior and their quality of life. The supply of the product will increase thus being pulled to the organization and the CSR practice as a company through the coercion in the chain supply. The stakeholders will become part and parcel of the product in the designing process as companies’ endeavors to reduce their negative and enhance their positive impact towards their success of the business. CSR issues are supposed to remain the same in business through the performance may differ and increase. The environmental issues like poverty and social exclusion, the government ethics, the transparency and accountability are expected to be the dominant in future corporate social responsibility issues. The standard of the operation in business today requires a standardized “starter kits” to the new companies in the adaptation of the core values and standards in the society. The focus in the future will require a continuous improvement strategy on the impact of the CSR in operations on social environmental conditions. On the same, the company will require the policies to govern the business in the optimization of the profits in making responsible plan on the development business principles. Bibliography Albert, L. 2007. Corporate Social Responsibility. US: Elsevier Ltd. Baysinger, B. 2010. Corporate Governances and Board of the Directors on Performance Effects. 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