Corporate Social Responsibility: Questions And Answers

Business ethics nowadays become most important part to all kind of businesses. Most companies issues basic policies on their employee integrity. In addition, corporate social responsibility refers to the companies who are taking responsibility to their impact on society. CSR is highly important to the competitiveness between businesses. Companies have to protect their social responsibilities by protecting their consumer rights, the ethical practices towards the consumers are important in order to improve and develop their businesses.

Question 1:

Business ethics is the study of business activities, decisions and situations. These actions of right and wrong are addressed, from a value based perspective. This is containing conflicting between

The responsibilities of Business

1. The obligation of business is to maximizing wealth of shareholders.

The first perspective of business is to try their best to maximize shareholders wealth. Therefore, business managers are responsible to maximize the profit in order to maximize the wealth of owners, nothing else will be count.

2. The obligation of building long-term shareholder value.

This perspective should be more highlighted, longer-term than perspective of maximizing the wealth of shareholders. For example, it believes that if their employees treated fairly their business will be more successful, and this will cause employees to be more committed to the business and they will work for more efficient and effective way. Equally, businesses should create durable, mutually supportive relationship with suppliers this will lead to the interest of long-term. However, businesses should be modify or adopt ethical policies that are reach the level of customers or other shareholders expectations, because without supporting of these consumers or shareholders the business will lose it is long-term

The definition of consumer include all of us, consumers are the largest group that can affecting and affected by the business decisions in any business sector, private or public companies.

Companies when trying to achieve their financial return as a profit, they should put in their mind that they have the first obligation towards their consumers, as of today the balance of power equal weight due to their skills and difficulty of choice in the process of buying of goods or obtaining services.

In that case they have to assume some of responsibilities as it mentioned below:

 The products and services should be high quality that not affects the customer health and safety.

 GORC must have credibility in the period of validity of the products before supplying it in the market.

 GORC should have compliance with hygienic-sanitary conditions while they are producing, or during transporting and storage of these