The Relationship between Ethics and Governance - Assignment Example

Word count 500 Ethics and Governance Q The World Commission on Economy and Development (WECD) that convened some two decades ago stressed on the links on the economy-environment-society chain. The links are: Environmental stresses are linked with one another Environmental stresses and patterns of economic development are linked with one another Environmental and economic problems are linked with social and political factors, and These influences operate not only within but also between nations. My opening paragraph above states that there is a chain on the economy, environment and society, which are closely related. These links bind nations and are indispensable to have a safe and clean environment, good economy and sound society. If we try to lose or break this bond, there might be incoherence or perhaps a catastrophe. Who and what control nations today They are not only the politicians. They are not only the people in government. They are not the small entrepreneurs or the common people who are the majority of the populations of the world. They are not the people who are concerned of our government and of attaining sustainable development. Rather, the people who control nations today are the big businesses or organisations that have a say over vast economies or industries around the world. If these industries and economies over all the world do not have a single bit of concern for our environment, or that which we call corporate social responsibility, what will happen to our beloved earth which we live in There is already a threat of global warming. Massive hunger due to poverty is all over the third world and many areas of the developed countries. Then there are businesses which do not have concern for mother earth and leave behind CO2 emissions for the rest of the populations of the world to inhale. The workplace, the employees, even the managers and small entrepreneurs need to be looked at by these businesses. Corporate Social Responsibility goes beyond concerns for profit. CSR is looking after the welfare of people inside the business or organisation and all of its stakeholders. Corporate Social Responsibility is not charity. It is a responsibility of one that has taken advantage of nature and the natural resources around us. It is taking care of Mother Earth because she has given us enough - more than enough - for our business to prosper, for our lives to be lived to the fullest. The negative contentions of the presenters are selfish and unfounded. They are allegations of people who are not well versed or experienced in business, because experienced and successful business people know that being too concerned with profits will never do any good to business. One of the most successful, if not the most successful, businessmen in the world is billionaire Bill Gates, the Chief Executive Officer and founder of Microsoft. This man spends millions of dollars for his company's corporate social responsibility. Why Simply because he knows he has to give back what he has taken. And he spends those millions of dollars not for profit but out of conscience. Bill Gates is not only one of those businessmen with conscience. Maybe we remember the Tylenol poisoning where some people in the suburbs of the USA died by taking Tylenol. The company J&J, out of corporate of social responsibility, took pains and spent millions of dollars by withdrawing Tylenol from pharmacies and stores and replacing them with new capsules of different packs or forms which were more secured and free of further imitations. J&J was commended and praised by the public for instituting such reforms. But the company did it out of their responsibility to the public. If they did not do it, or just cared for profits, more lives could have been lost. Is there theft in giving to charity That's a lot of baloney. There is no theft in having those businesses give to charity. First, many businesses evolved out of exploiting the resources of Mother Earth. The people who work for them should be given benefits, more than benefits, because these are the people who devote all of their efforts and resources for their businesses to prosper. The employees' efforts must be reciprocated with care like benefits, scholarships, and concern for the workplace and the environment. Giving to institutions out of corporate social responsibility is reciprocating the benefits that these businesses have reaped from the natural resources and from the employees efforts to sustain business. Wikipedia website has this to say on CSR and charitable donations: It is important to distinguish CSR from charitable donations and "good works" (i.e., philanthropy, e.g., Habitat for Humanity or Ronald McDonald House). Corporations have often, in the past, spent money on community projects, the endowment of scholarships, and the establishment of foundations. They have also often encouraged their employees to volunteer to take part in community work and thereby create goodwill in the community, which will directly enhance the reputation of the company and strengthen its brand. CSR goes beyond charity and requires that a responsible company take into full account its impact on all stakeholders and on the environment when making decisions. This requires the company to balance the needs of all stakeholders with its need to make a profit and reward shareholders adequately. That explains it clearly. Charity is different from CSR. Corporations have the obligations to their employees and the local community. Striving for a sustainable development Looking after the people who help produce wealth for big businesses; helping attain sustainable development so that not only the generations of today but also the many future generations will savour fresh air and clean environment - these are not foolishness but concerns for life and everything around us. Man is a social being; likewise business is a collaboration of people - capitalists and labourers - hence they have to care for one another, and not just be content with profits and wages, but giving more than enough, and that is the call of corporate social responsibility. Social responsibility is focusing on core business. It has been proven many times that CSR enhances competitiveness and therefore business. Do corporations care about corporate social responsibility It is not true that corporations don't care about corporate social responsibility. A lot of these corporations care about the environment and welfare of its citizens, their employees. Successful businesses have made their way to the top because of programs and activities for the welfare of their people and the workplace. Good working environment, an effective workforce, and a cooperative local community where business is located are some of the best corporate social responsibilities that businesses and organisations have applied which have catapulted them into their collective success. It is a collective success because everyone is benefited - the business, the employees and the environment for the corporation having attained sustainable development. Boone, L. E. & Kurtz, D. L.( explains the relation of Business Ethics to Social Responsibility. The concept of ethics comes from a sense of responsibility - to a community, to employees, to shareholders, to society - and what is ethical, or what is right can vary depending on which group management chooses to be responsible to. (p.28) Business for Social Responsibility defines corporate social responsibility as achieving commercial success in ways that honor ethical values and respect people, communities, and the natural environment. It is addressing the legal, ethical, commercial and other expectations society has for business, and making decisions that fairly balance the claims of all key stakeholders. BSR says that it is what you do, how you do it, and when and what you say. CSR is a comprehensive set of policies, practices and programs that are integrated into business operations, supply chains, and decision-making processes throughout the company -- wherever the company does business -- and includes responsibility for current and past actions as well as future impacts. The issues that represent a company's CSR focus vary by business, by size, by sector and even by geographic region. In its broadest categories, CSR typically includes issues related to: business ethics, community investment, environment, governance, human rights, marketplace and workplace. CSR covers policies and principles that are really good for business. Therefore what business that wouldn't apply CSR values in their operations. They have to. They must. Corporate social responsibility, when addressed comprehensively, can deliver the greatest benefits to a company and its stakeholders when integrated with business strategy and operations. This is so because CSR covers a wide field for the good of the company and its many stakeholders. CSR involves Ethics, community investment, environment, governance and accountability, human rights, marketplace, mission, vision and values, and the workplace. If these are not for the company's welfare, then whose welfare must these be So, what do we get from instituting corporate social responsibility in businesses This is not a futile exercise. It is required in corporate governance because it helps in the promotion of company objectives and goals. CSR has enabled businesses and organisations to go beyond profits but help the world attain sustainable development. References Baker, S. Sustainable Development, online version, p. 18, can be found at: http://books.google.com.ph/booksid=UFZSCqtS3h8C&dq=Sustainable+development&pg=PP1&ots=NbdvkL4kmj&sig=IbOMI6NOAIbG_ZXre9XxuOfG1HM&prev=http://www.google.com.ph/search%3Fhl%3Dtl%26q%3DSustainable%2Bdevelopment%26meta%3D%26btnG%3DHanapin%2Bsa%2BGoogle&sa=X&oi=print&ct=result&cd=2#PPA248,M1 Boone, L. E. & Kurtz, D. L., Contemporary Business. 6th ed. 1990,The Dryden Press: Orlando Florida Business for Social Responsibility website, on line at: http://www.bsr.org/AdvisoryServices/CSR.cfm Corporate Social Responsibility, on line at: http://en.wikipedia.org/wiki/Corporate_social_responsibility Read More