The Link Between Competitive Advantage and Corporate Social Responsibility - Article Example

The Link Between Competitive Advantage and Corporate Social Responsibility 1) Using the concepts from Porter and Kramer’s article, “Strategy and society: the link between competitive advantage and corporate social responsibility”, choose a company’s product or service and identify the societal needs, benefits, and harms that are or could be embodied in this product or service. CSR is about how firms or organizations are in a position to manage the operation of the business to produce a positive impact on the wider society (Porter and Kramer 80). McDonalds is the largest company in the world that deals in hamburger food restaurants. In reference to McDonald’s corporate social responsibility, the company is taking action, maintaining openness in communication with its customers and shareholders. For instance, the company has adopted socially responsible programs in order to engage the community its operation and be responsible for its activities. For example, as part of it being socially responsible, McDonalds has formulated a way of engaging communities in operations through community-based projects that benefit the society. More so, the company works with its suppliers to promote socially responsible behaviors or practices in its supply chain as an integral part of the company’s supply chain strategy. McDonald has a strong social responsibility program that aims to incorporate societies in the management and operation of the company. The company has included several things in its social responsible program that aim to make it more socially responsible. For instance, they have implemented service program that aim to develop sustainable agriculture, employment policies and practices, health and nutrition. The company has environmental principles that aim to attain a sustainable society in more than 117 profitable growth restaurants globally. Additionally, in order to ensure that it achieves employee experience and employ a diverse long-term target, it has acknowledged that it has a strong community workforce. The McDonald House program ensures that children in vulnerable communities can receive medication and dental treatment in order to improve their health. The harm that could be embodied in these services is that it may stop funding some programs because some groups especially in Asian countries are opposing it. Charitable work may contribute to the sustainability of society. However, McDonalds provides little basis for balancing long-term objectives against short-term costs they incur (Porter and Kramer 82). Therefore, managers at McDonalds need to approach CSR program strategically in order to be competitive and remain in the market. 2) Choose any ethical dilemma and using the concepts in Paine’s article “Ethics: a basic framework”, describe your recommended course of action using the following questions: Is the action consistent with the actor's basic duties? Does it respect the rights and other legitimate claims of the affected parties? Does it reflect best practice? Is it compatible with the actor's own deeply held commitments? Markets are sometimes unethical but market participants usually make ethical decisions about people and practices they meet in the marketplace. A basic moral duty is to act or not act in a certain way. Duties are owed to other parties such as the company, customers, public, and the company. Wal-Mart Company has been faced with an ethical dilemma regarding the decisions of its store manager to embezzle employee’s bonuses. Wal-Mart managers are usually faced with conflict of interest in that they find it difficult to make decisions because they do not know whether their decisions are right or wrong. Self-interest at Wal-Mart made the company loose over $50 million in that the store manager took the company’s money inform of many incentives provided by the company to the workers. These incentives are part of bonuses that the company provides to its store managers. This manager did not respect the dignity of the people that are employed by Wal-Mart. This act is not consistent with the actors’ best duties because it infringed on the company and other workers thus denying them their legitimate right to enjoy the bonus offered by the company. Further, the action did not reflect the best practice because ethical decisions should be based on ideals and values (Paine 3). This conduct was undesirable since it cost the company a lot of money. If the manager could have received praise and admirations, then his actions would have been classified as desirable or ethical (Paine 4). The action is compatible with the managers own desires and deeply held commitments because he knew if he take the money it would benefit him. Further, he did not care about his legacy as a store manager. 3) Choose an election issue (from the debates, news, or a personal concern) and using the concepts from Reich’s article “Government in your business” and others sources, identify ways business, government, and society can collaborate to develop solutions for the challenges related to this issue. The election issue is about business taxes Governments are concerned about how businesses operated in order to ensure that they comply with rules and regulations governing business. Therefore, it is important for managers in private sectors to develop a new working relationship with the government. This will enable them develop a new mindset and skill that will enable them to collaborate with the government rather than fend off. For instance, private sectors are concerned about the issue of business taxes (Reich 95-96) Business need to take taxes from their workers’ salaries and pay directly to the government. Further, partnership in business entails that the business has one or more owners and thus it is not restricted to Liability Corporation. Partners have equal stake in the company; therefore, each partner must pay federal taxes to ensure that the business is adhering to the government demands. Payment of taxes to the government will ensure that there are greater ties between the interests of the business and society. Businesses stand at the center of many societal challenges such as carbon emissions, which calls for the need of health care reform to ensure that every business is held accountable to its activities (Reich 96). Collaboration with the government is very essential since it ensures that the government provides more choices for how to attain desired outcomes. Rather than force the business to provide specific employee benefits in a certain manner such as pensions, this allows the business over a certain size to pay a minimum amount per employee into a common fund accessible to people who do not receive such benefits, the business will be contributing to social security fund. Works Cited Paine, Lynn. Ethics: A Basic Framework. Harvard Business Review, 2012. Print. Porter, Michael & Kramer, Mark. Strategy and Society: The link Between Competitive Advantage and Corporate Social Responsibility Harvard Business Review, 2009. Print. Reich, Robert. Government in Your Business. Harvard Business Review, 2009. Print. Read More