Business Ethics - Research Paper Example

Business Ethics Sonya Y Jackson Columbia Southern Business Ethics The thesis ment that I have come up with for the topic of Business Ethics is "organizations that have well-defined corporate social responsibility programs stand a better chance to improve the reputation of their brand names; attract more candidates for job opportunities due to formidable employee engagement and maintain customer loyalty and retention". Indeed, CSR explains the understanding of the business function as part of the society, and the success of either component affect the others in a relatively proportional manner (Hunnicutt, 2009). In an outstanding analysis of existing findings, this thesis will be effective in highlighting the focus of the essay topic, which will be to change the approach by which businesses address the issue of business ethics in line with corporate social responsibility. The approach that I will take to research this subject will include a myriad of companies that have employed corporate social responsibility within their frameworks. A good idea would be to focus on the state of affairs in controversy-stricken global businesses and highlight the importance of a dominant brand name in pulling the company out of the controversy. In todays society, it is evidently true that many global companies struggle to survive given the lack of ethics in light of their modus operandi (Hunnicutt, 2009). The literature review of the research, therefore, will aim at outlining CSR not as a constraint, cost or philanthropy but as a source of innovation, opportunity and the acquisition of market leadership through competitive advantages presented by corporate social responsibility. An organization will experience an increment in customer loyalty and the volume of its sales when it supports CSR activities. Indeed, it happens when consumers feel that the company plays a big role in improving the welfare of the community and they think the best way of rewarding the company is by buying its products and services, thus resulting in an increase in the company’s volume of sales. Research conducted in the UK intimated that organization that support CSR programs have experienced an increase in sales of their products and services. The organizations were also required to satisfy the needs of the customers such as the quality, taste, price and safety (Archie, & Kareem, 2010). In addition, majority of the consumers are willing to purchase products that have a small impact on the environment and they do not buy products from companies that utilize child labor (Militaru, 2006). Also, a strong record of CSR helps to improve clients’ attitudes towards the organization’s products; clients will make more purchases and remain loyal to them. For instance, an estimate of 88 percent people who were interviewed in the Great Britain said they make more purchases from a company that engages in activities that improve the welfare of the society in which it conducts its production process. Companies that support CSR activities often find it easier to attract and recruit highly qualified and skilled employees, particularly in tight labor markets. The company will experience higher levels of retention, which lead to a decline in turnover and the costs incurred during the recruitment exercise along with training costs. In addition, employees will feel proud working for an organization that supports CSR; employees become motivated and work toward achieving organizational goals (David, 2008). Most companies that engage in activities that support CSR are subjected to fewer inspections by the national and local government institutions. When the companies apply for the renewal of their operation permits, they are subject to minimal corroborative paperwork and inspection as compared to companies that do not support CSR activities. In addition, companies that address CSR programs are more likely to follow all regulatory requirements, and will not face risks of being fined, their licenses being revoked and will create good relations will local authorities (Michael, & Mark, 2012). Management should invest more funds for CSR because it helps an organization increase its chances of accessing capital. The company can use the funds to purchase modern equipment that espouse efficient production processes and the delivery of out and out services at a cheaper cost. This may result in an increase in the companys sales, a fete attributed to its competitive pricing compared to its business rivals. Also, the company can use the funds to finance its expansion projects that will result in the creation of job opportunities. A report released in the US in 1999 highlighted that over 2 billion dollars was accessed by entities that address CSR programs. The report shows that companies address CSR has higher chances of access to capital that might not otherwise have been available (Craig, 2003). Companies should continue engaging in CSR programs since they provide an opportunity to share positive stories online through mass media. Thus, CSR will enable companies to limit the wastage of resources on expensive advertising firms. Instead, the company will generate free publicity and will benefit from word of mouth marketing. This a cost-effective avenue for generating publicity and results in an increase in the sales of the company’s products, and the financial performance of the company will improve. CSR programs do not cost companies a lot of funds, however if they are effectively implemented, a company is potentially able to minimize costs by implementing energy-saving programs (Michael, & Mark, 2012). Firms that have engaged in CSR programs have managed to come up with new ideas that have enabled them produce new products that have competitive advantages over their business rivals. Innovation allows a company to increase its production capacity, reduces costs of production and inspires new products. For example, MacDonald adopted the lens of sustainability and Unilever managed to make new products such as the air conditioner that uses less water. Sustainability espouses company research and the innovation that sires new products. Innovation will also allow the company to access new emerging markets; the expansion in operational scope ultimately improves the company’s financial performance (Michael, & Mark, 2008). A major trend for CSR entails introducing environmental friendly models of operation whereby a firm facilitates its production and services. This strategy helps conserve the environment because less harmful substances are released and the organization benefits by reducing production costs and facilitating an increase in sales (Roger, 2012). For example, Coca cola‘s innovative environmental practices have played a big role in its phenomenal sales (Paul, & Jason, 2007). Addressing CSR can enable a company to create a good relation with stakeholders and community hence allowing the company to form strategic alliances. Strategic alliances are instrumental for expanding the company’s market share, the sales it makes and an improvement in its revenue. Conclusively, it essential that organizations continue supporting corporate social responsibility programs because they help improve the welfare of people in the society. The companies also benefit a lot when they address CSR in many ways; employees tend to have faith in the company and work towards achieving organizational goals. Companies that support CSR initiatives have managed to come with new ideas that have led to a decline in the cost of production, the development of new products, entry into new markets and an increase in production. Finally, firms that support CSR activities have managed to create a good image in the eyes of their clients, resulting in customer loyalty and an increase in sales. Companies that address social responsibility programs can manage to attract investors who provide funds for the company; these funds can be invested into expanding the operations of the company, which will allow an increase in its production capacity and its sales. The funds can also be invested into research and development that will enable the production of new products. Reference Archie B. C., & Kareem, M. S. (2010). The Business Case for Corporate Social Responsibility: A Review of Concepts, Research, and Practice. International Journal of Management Reviews Alessia, D., Sybil, H., & Sue, F. (2009). Corporate Social Responsibility and Sustainable Business. Carolina: Centre for Creative Leadership. Craig, S. (June 1, 2003). “Corporate Social Responsibility: Whether or How?” California Management Review, 45: 53-514 David, C. (2008). Corporate Social Responsibility. Ventus Publishing APS. Roger L. M. (March, 2012). “The Virtue Matrix: Calculating the Return on Corporate Responsibility” Harvard Business Review. Hunnicutt, S. (2009). Corporate social responsibility. Detroit, MI: Greenhaven Press Michael E. P., & Mark, R., K. (2008). “Strategy and Society: The Link between Competitive Advantage and Corporate Social Responsibility” Harvard Business Review, 81 Michael E. P., & Mark R. K. (December 2012). “The Competitive Advantage of Corporate Philanthropy,” Harvard Business Review. Militaru, S. I., (2006). The Competitive Advantage of Corporate Social Responsibility. U.P.B. Sci. Bull., Series D, Vol. 68, No. 2 Paul, H., & Jason, P. (2007). Corporate Social Responsibility An Implementation Guide For Business. International Institute for Sustainable Development. Read More