Corporations can never be moral entities - Assignment Example

Corporations can never be moral entities Introduction Definition and Meaning of CSR Corporate social responsibility is described as one of the most vital concept to enhance the business goals so as to improve the reputation of the organization in an ethical way. Along with this, it is also recognised as a sort of corporate self-regulation implemented within an organization. It is a mechanism that needs to be followed by the businesses so as to present an ethical or positive impact over the citizens of the society thereby controlling all its operations in an efficient way. Other than this, the interest of the shareholders and stakeholders also need to be followed so as to improve the reputation and brand image of the organization in a market among others (Parker & Pearson, 2005). Not only this, if the business operations are maintained and controlled in an ethical way, only then its rate of sustainability might increase in the market. Side by side, its range of customers might increase thereby improving its profit margin and revenue as well. Thus, it might be stated that CSR is the procedure of continuous commitment over the issues of the organization, so as to improve the quality of life of the employees as well as the economic condition of the association. Only then, the level of conflict among the management and employees might get reduced resulting in improvement of the level of performance of the employees (Howell, 2010). The prime theme of this essay is to describe a brief understanding over the concept of corporate responsibility. It also focuses on the fact that for what reasons an organization might never become a moral entity with the help of varied ethical theories in a vivid way. Discussion Meaning of Business Ethics Ethics is described as the set of rules and regulations, values and principles followed by an individual. These rules and regulations also help a human being to determine, whether the action is right or wrong. Other than this, ethics is also defined as the activities that might be accepted by the law as well as the other citizens of a country. Not only this, ethics is also recognised as the morals and beliefs that might be used to detect or interpret any specific situation (Wilkinson & Gollan, 2001). And when such types of legal behaviour or principles are utilized within organizational activities, then it is also known as business ethics. Business ethics play a vital role in maintaining the operations of an organization in an effective or positive way. Only then, the profit margin as well as the loyalty of the stakeholders or customers might get enhanced to a considerable extent in the entire market among others. However, in maximum cases, the corporations or organization fail to operate or maintain its functions in an ethical way. It is mainly due to faulty principles, rules and regulations and operations that reduce its chances to become a moral entity (Crane & Matten, 2007). Theories of Ethics There are many theories of ethics present but some of them might be described as below: Theory of Deontology According to this theory, the most vital aspect of human being is moral rules and regulations, which are unbreakable in nature. This theory states that, some of the individual do not think of the nature of the consequence, at the time of performing the activity. Although, the consequence of the activity may not be accurate, the individual would strict to his or her morals and values (Carroll, 2004). As a result, he or she would perform the accurate action, without thinking of the consequence. Such type of morals is extremely essential within the managers or leaders of the organizations operating in recent age. Only then the competitiveness of the organization might get enhanced resulting in amplification of its profit margin and revenue. But due to lack of such type of principles and morals, the leaders or managers fail to maintain the portfolio of the organization in the market among others. Side by side, there always remains a conflicting situation within the employee and employer as a result the level of motivation and dedication of the employees towards work reduces day by day. Due to which, the efficiency of the organization also gets reduced significantly as a result of wrong business ethics or CSR of the organization. Apart from this, the brand image and brand value of the organization might also be enhanced resulting in amplification of its total sales as well. Moreover, the trust and loyalty of the customers might also be enhanced thereby improving its total range of customers as well. It is extremely essential for any organization to increase its range of customers in this age of aggressiveness among other rivals (Banerjee, 2008). However, such type of attitude and morals may not be seen within the managers or leaders of the corporations of recent era as most of them try to fulfil their own desires. As a result, the corporations fail to retain their morality and reputation in this aggressive age. This is mainly due to fail of corporate or business ethics or corporate social responsibility followed for the customers and shareholders (Brown & Schmidt, 2010). Virtue ethical theory As per this theory, the individual with actual morals and attitudes would handle the situation in an accurate way without thinking of the impact. Moreover, in order to perform such type of dealings, it is extremely essential to include, characteristic features like courage, faith, trust and communicative nature. However, such types of skills are surely present within the leaders or managers of the corporations of recent age but they use those for the improvement of their own needs and demands. Due to which, the common objective of the organization do not gets fulfilled resulting in enahancement of its image and position in the market. And so, it is described that the employees of the corporations perform their duties in such a way that the corporation fail to maintain its trust as a moral entity among other shareholders and customers (Branco & Rodrigues, 2007). Utilitarianism theory According to this theory, it is the duty of the management of the corporation to perform the actions in such a way so that it proves effective for all. This means, maximum benefit for maximum extent of the employees or customers. Moreover, such types of activities are performed so as to reduce the level of conflicts among the management and employees thereby maintaining a cordial relationship among all. Only through unified support, an objective or goal might be achieved otherwise it may result in failure of the organization in the market among other rival players. Then only, the ROI of the organization might increase thereby amplifying the rate of salary of the employees as well. Hence, both of them might get benefited. However, such type of attitude or thinking is not viewed in the business environments. Maximum extents of the employees or managers try to accomplish their own benefits such as higher ranking or high salary, without helping the poor employees. Such type of ethics may not prove effective for any corporation and lead to failure in future era (Bakker, 2007). Therefore, it may be stated that the ethical values and rules mainly arises from the ethical rules, regulations and guidelines. And the principles and rules of ethics are entirely imitative from the ethical theories. Moreover, the ethical principles and regulations are obtained from the behaviour and attitudes of other individual or attained from generations or parents. For example, at the time of introducing a new share, it is the duty of the organizational management to present the detail information regarding the actual amount of revenue that might be obtained at the end. Otherwise, it might be against the business ethics as well as CSR policies of the organization (Alzola, 2008). Hence, due to these unlawful deeds, an organization or corporation might never become a moral entity. Conclusion Conclusively, it might be depicted that ethics acts as the prime pillar for any corporation. It comprises of the rules and principles with the help of which, an organization might be operated so as to attain success in the future era. Apart from this, ethics is the main essence, on the basis of which, the CSR of the organization might be conducted. So, if the managers or leaders do not follow proper ethics, then it might result in downfall of the organizational effectiveness in long run. Therefore, proper business ethics leads to appropriate CSR, which improves its value and brand equity in the market among others. Moreover, it also improves the loyalty and trust of the customers over the brand among others. Due to which, the level of switch over also gets reduced significantly, which is extremely essential to retain its sustainability. References Alzola, M. 2008. When urgency matters on non -discretionary corporate social responsibility. Human Systems Management, 27(2), 273-282. Bakker, K. 2007. The "Commons" Versus the "Commodity": Alter-globalization, Anti-privatization and the Human Right to Water in the Global South. Antipode, 39(3), 430-455. Banerjee, S. B. 2008. Corporate Social Responsibility: The Good, the Bad and the Ugly. Critical Sociology, 34(1), 51-79. Bronco, M. C. & Rodriguez, L. L. 2007. Positioning stakeholder theory within the debate on corporate social responsibility. Electronic Journal of Business Ethics and Organizational Studies, 12(1), 5. Brown, P. G. & Schmidt, J. J. (Eds.), 2010. Water Ethics: Foundational Readings for Students and Professionals. Ethics. Washington, Covelo, London: Island Press. Carroll, A. B. 2004. Managing ethically with global stakeholders: A present and future challenge. Academy of Management Executive, 19(2), 114-120. Crane, A. & Matten, D. 2007. Evaluating Business Ethics: Normative Ethical Theories. Business Ethics. New York: Oxford University Press. Howell, R. 2010. Choosing Ethical Theories and Principles and Applying Them to the Question: "Should The Seas be Owned?”International Journal of Trans-disciplinary Research, 5(1), 1-28. Parker, M & Pearson, G. 2005. Capitalism and its Regulation: A Dialogue on Business and Ethics. Journal of Business Ethics, 60(1), 90-101. Wilkinson, A., Hill, M & Gollan, P. 2001.The sustainability debate. International Journal of Operations & Production Management, 21(12), 1492-1502. Read More