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It is useful in the creating and establishing a positive environment, where the organization, its competitors, markets and various stakeholders work collaboratively (Trevino & Nelson, 1995). The term also incorporates social investment, which is needed in order to get popularity, acknowledgment and trust by the public. In recent times, organizational responsibility has developed itself as a wider term. Research suggests that the development of a strong and robust social corporate strategy can assists in improving organizational productivity and increasing profitability (Trevino & Nelson, 1995).
The process of reaching ethical decisions revolves around three essential steps, which are as follows: moral and ethical consciousness, judgment based on morality and moral and ethical behavior (Trevino & Nelson, 1995). Moral and ethical consciousness revolves around the recognition and identification of problems and issues that exists in the ethical domain. Judgment based on morality revolves around the decision to differentiate right and wrong. Moral and ethical behavior revolves involves around the selection of decision.
Corporate reputation is considered to be the self image and status of the company or firm, which is dependent on the external as well as the internal stakeholders. Stakeholders play an important role in influencing the reputation of the corporation as their perception on the company is based on its previous behaviors, productivity, developments and behavior (Trevino & Nelson, 1995). Research suggests that majority of the organizations do not give importance to the corporate reputation and concentrate on other factors (Trevino & Nelson, 1995). This strategy does not assist them in maintaining their position in the business markets, where they operate. From research, it has been proven that a good corporate reputation helps an organization to increase its productivity, performance and profitability. At the same
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