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suring that the environment and the community in which a business corporation operates benefits, in some way, from the profits that the corporation makes. For this reason, therefore, business corporate social responsibility is studied as a part of business Ethics.
Business ethics deals mostly with the analysis of actions or behaviour of a business entity or business corporation in light of the ethical theories. The main four ethical theories are the Friedman’s Individualism, Utilitarian theory of ethics, Kantian ethical theory, and the Aristotelian ethical theory. Each of the four ethical theories provides framework for judging the morality of an action in business world.
Corporate Social Responsibility refers to the actions of a business organization targeted towards the achievement of a social benefit beyond maximizing profits for its shareholders and meeting all its legal obligations (Ethics and Corporate Social Responsibility, Chapter 4). Alternatively, Business Ethics can be defined as the responsibility that a Corporation has, beyond economic and legal obligations, to act ethically and to contribute in a positive way to the good of the society (Trevino, 20, 11).
The question of whether or not business corporations have any moral obligation to make a positive contribution to the community in which they operate has given rise to different approaches in the management of business organizations. The following are the main approaches in the management of business organizations.
The Instrumental Approach: According to this approach, business corporations do not have any moral obligation to contribute positively to the lives of the people of the community in which the business organizations operate. The instrumental approach views the only obligation that corporations have as maximizing profits for the shareholders of the business corporations, through provision of goods and services that meet the interests of the customers.
The Social Contract Approach:
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The same case had taken place ten years before, during the time of the failure of the corporate governance of Enron. The failure pushed congress towards the institution of the Sarbanes-Oxley Act, which required constant review of the board’s control capacity, which was to be rechecked by a quasi-government control board.
This approach states that situational and individual factors collectively effect the decisions taken within the contexts of the organization. According to the individual perspective it has been noted that the philosophies of ethical decision making of individuals manipulate the management procedure of ethical problems and the way the behavioral decisions are taken.
From concern for the environment to caring about the safety of its customers, businesses invest considerably a lot of resources in these activities. The activities do not necessarily have to bear any substantial benefits in terms of revenue, or increasing sales, or either growing its customer base, but rather, it is a way in which the business gives back to the community.
The term in the simplest form had become important commercially in the 1960s; however, the history would vary according to the manner in which the term is conceived by different individuals. It also depends on the researcher who is studying the history of business ethics, his predefined perceptions and the relative significance attached by the historian to the facts unfolded; on how the history is portrayed to the rest of the world (George, 2012).
The stakeholders in this scenario include PharmaCARE board of directors, the PharmaCARE Chief Executive Officer, its subsidiary in Africa; CompCARE and its employees. Others include the government agencies i.e. Occupational Safety and Health Administration (OSHA) that is responsible for the environmental conservation and regulating the pharmaceutical and manufacturing industry.
The researcher describes ethics issue, that deals with the norms and values of an organisation and judge what is right and wrong for it, whereas Corporate Social Responsibility is about expressing those values by applying different policies. Ethical codes are considered by organisations to help members in understanding the right and wrong decisions.
A careful industry review is imperative for strategic managers. Assessing the Strength-weakness-opportunity-threats (SWOT) is all that concerns the management.
One of the environmental factors that affect the success of the business is the
The people who cause the financial crises do not even feel the slightest grip of the same. The essay aptly examines issues pertaining moral philosophy evident in the film, “Inside Job.”
Therefore, the ambiguity presents itself in the
lent business practices, rigging product prices, evading taxes, causing environmental devastation in many parts of the world, and in general fooling the public and its stakeholders despite glorious and articulate CSR policies and claims, advertised on their websites, company