Whereas Promoting good governance will help Wal-Mart continually scales them against other companies and also across industries consults with corporate governance experts and involves with key investors to support the practices. The culture of ethics and integrity is the attitudes and conduct that will help the company to create an honest, fair and yielding workplace that defines who they are as a company and how they treat one another, and about suppliers and the customers. The company’s mission is to protect people money so that they can live better, and customers around the world trust to deliver on the promise that are being made. They created the mission by making more economic chance for our customers
Business world on the other hand, should do their job by complying with the regulations and operating profitably at the same time. However in my opinion, I do think that companies have a responsibility to pursue social good. Business corporations are the one and only biggest organization and also the most powerful entity to be able to influence and offer social good towards the society.
Furthermore, there are some benefits that can help the company to increase the market value. First of all, with the triple bottom line reporting, the business can improve the risk management through enhancing the management systems and the company can have better business planning as the risks are understood. Triple bottom line reporting helps to ensure the company is embedding the corporate governance and acts ethically not only on the Board level, but also on the whole company. Although it cost time to train the staff and need more time for the preparation work about the triple bottom line reporting, the staff and the shareholder may have more confidence on the business that the organization are focused on the social contract and ensure they survive in the coming future ethically (Department of the Environment and Heritage 2003). Corporate social responsibility is embedded in the social contract and most of the company.
Involved in CSR activities are proven to create good image and reputation for a company. In the long run, it helps a company to increase shareholders’ value and achieve sustainable business
According to Moir (2001) who quotes Wood (1991), the fundamental idea of corporate social responsibility is that business and society are not distinct entities but instead interwoven. Additionally, Bremner (1994) opines that the pressure for those who prosper financially to be socially “responsible” has deep historical roots in most cultures and religions. As such, business enterprises have been anchored not only in the desire to solely make profit but also in a broader aim to build “the good society” by attending to the welfare of employees and actively partaking in public life (Hall, 1997; Parkes, Scully & Anson, 2010). Conversely, Aaron (2011) attributes this to the recent ‘corporate enthusiasm’ for CSR which seems to give the impression that companies are genuinely interested in improving the lives of people in communities in which they operate. Arguing that while in some cases it may be true that CSR has proved beneficial to target communities, it also appears that CSR is driven not so much by philanthropic considerations as the profit-maximising calculations of business, implying that corporations are involved in altruistic gestures only if it makes sense business wise (Aaron, 2011).
It helps to create a good image of a company in front of people. It not only benefits a company but also help others to solve societal problem. Philanthropic activities may ranges from financial contributions to employee volunteering on any particular event. Some examples could be donating money to a charity, volunteering at a local shelter, or raising money to donate to cancer
(Daft, 157). One interesting study reveals that companies that have more CSR commitments score higher in the stock market than those with little to none CSR projects (157). Also, research shows that customers and employees care about ethics (Velasquez, 4).” Velasquez believes that “ethical behavior is the best long-term business strategy for a company” (Ethics, 4) mainly because “it creates the kind of goodwill and reputation that expand a company’s opportunities for profit (6).” Higher ethical commitments from businesses will likely lead to enhance image and reputation, which can lead to greater satisfaction from stakeholders, and eventually will translate to financial benefits.
The same as individuals in society, business entities are subject to legalities intended to offer every member in the industry a fair chance to succeed. But, when objectives take precedence over ethical decision making, it implies the importance of ethics in business
INTRODUCTION Marketing can be described in one way as increasing the brand value among the customers. Cause marketing is one of the best ways to do so. It'll be better if i start explaining about it with a well-known example. While buying a Classmate notebook (brand of ITC), we might have seen the description mentioning "For every four Classmate notebook you buy, Re.1 will be used for education of children". This is one among many cause marketing campaigns that we come across in our day-to-day life.
In the same framework, Husted and Allen (2001) stated that if corporate social responsibility used properly, it can create competitive advantages, as there is a positive relation between corporate social responsibility strategies and competitive