Good business morals in the administration of the corporate undertakings would essentially include proper money related dealings in their managing which would in this manner help the organization to succeed. The Company secretary is endowed with the ability to watch the undertakings of the organization which would help in the smooth working of the
They are committed to good corporate citizenship. They treat social development activities which benefit the communities in which they operate as an integral part of our business plan. 3. They seek to contribute to the economic development of the communities of the countries and regions they operate in, while respecting their culture, norms and heritage. They pursue to avoid any project or activity that is detrimental to the wider interests of the communities in which they operate.
This can be explained by if a company has carried out social responsibility programs it helps the company to build up its image, reputation and even can increase its competitiveness. By implement social responsibility programs, a company can win employees, customers and society’s trust and respect. According to “Carroll’s CSR Pyramid”, the first level is economic responsibilities, the second level is legal responsibilities, the third level ethical responsibilities and the top level is philanthropic responsibilities. It means that the main goal of the company is earning profits, the second level is obeying the law, the third level is being ethical and the top level is being a good corporate citizen (Dudovskiy, 2012). One of the ways to show social responsibility of a company is through philanthropy.
According to Fleming (2012), the company is increasing its long term business prospects which may aid its customers to gain social and economic goal. It is identified that the company has looked up its competitive benefit and examine its philanthropy efforts by the most effective way. According to Geppert et.al (2014), this means company is socially responsible and associated to environmental practice which can also lead to a strong customer and sales loyalty. This may enhance the productivity and quality of the company’s product which retain and attract its workers in order to reduce the regulatory
On the other hand functionalist theory, states that the main objective of the firm is profit making. The firm’s prime objective is return on investment by the shareholders and financially beneficial to all its stakeholders. From the business perspective CSR is a strategy to encounter any outside pressure, so as to keep a balance between profit making and social
CORPORATE GOVERNANCE Corporate Governance is referred as the process through which power of a corporation is exercised to manage the corporation’s total portfolio of assets and resources for maintaining and increasing shareholder value and satisfy stakeholders of the company. Corporate governance expresses the relationship, structure of rules, and process by which authority controls inner corporations. It encloses the mechanism, in which companies and the people be held to account. The good corporate governance enhances the shareholder morale which is very crucial. It gives the guidelines of how to control the business so that it can achieve its goals as well as also profitable to its shareholder for a long time.
Employees: Employees can be acted towards ethically by organizations, by creating an occupational structure that fairly and equitably rewards them for their valuable contributions, health and safety at work, security, fair play. Shareholders: When operating ethically shareholders would like to maximise their return on investment. They would likewise need to guarantee that supervisors are behaving ethically and not risking investors’ capital by engaging in actions that could hurt the company’s reputation. Shareholder’s may not be happier as the return on investments would be lower when a business attends to operate ethically but it is possible to persuade them by clarifying the long haul results of the business. Customers: They are the most critical stakeholder for a business.
In the coming section we are going to give a quick review about the two theories, adding to their pros and cons, in order to be able to suggest a reasonable definition for the CSR scope which we believe could better fit the business environment in the UAE. 1. Stakeholder Interest theory The theory argued that it's not only the shareholders that companies should focus on, but there are also the stakeholders, as companies have relationships with various groups beside shareholders, those include employees, suppliers, customers, creditors, and local community. The company's actions have direct or sometimes indirect effect on those groups, thus according to the stakeholder theory, those groups interest should be considered during the decision making process (Sepahvand,
Ethical duties overcome the limitations of legal duties. Philanthropic responsibility- “giving back” time and money to society in the form of voluntary service, helps the organizations to improve society. Corporate Social Responsibility (CSR) is arguably the most central and established notion in modern business and social research (de Bakker, Groenenwegan, den Hond, 2005)3. In addition, Corporate Social Responsibility (CSR) is a highly popular managerial tool with many companies having some form of Corporate Social Responsibility policy in place or making explicit Corporate Social Responsibility communication to public so that they will be aware about the company’s corporate social responsibility (Maignan and Ralston, 2002 )4. A conceptual critique of CSR said that yet in spite of its detailed past and popularity in business and management practice, the problem is that the concept of Corporate Social Responsibility(CSR) is not clear, i.e.
A good and healthy governance structure will create the necessary conditions for strategic decision making that will act as a lever for increasing competitiveness and generating value, thus enhancing the company's attractiveness in the markets. Similarly, it will have the figure of an officer compliance to keep a control over the level of compliance of the organization in line with the main recommendations of international markets and the latest trends in the field. Lastly, best practices in corporate governance point out that in addition to meeting the interests of shareholders, maintaining a permanent and effective dialogue and encouraging their active participation in the decisions of the company, good corporate governance has to respond to the expectations of the rest Of interest groups, such as customers, suppliers and employees, among others. ====== Principles of Corporate Governance of the