Business ethics contributes to more benefits. Business ethics could become a standard to achieve advantages, cultivate team work of employee, productivity, moral and development, establish values for quality management, strategic planning and diversity management. Business ethics help the company to be survival of fierce competition. Business ethics have competitive advantages which involves effective building of relationships with the company’s stakeholders, which based on its integrity. Business ethics promote ethical behavior to protect business from abuse by unethical competitors.
This is a way to strengthen the corporate strategy by integrating the social conditions. The best way to be the good corporate citizenship is to specify clear and measurable goals, and to track their results over time. However, the company’s strategy should go beyond than just being the good corporate citizenship – this is regarded as strategic CSR implementation. Strategic CSR implementation provides the firm a unique position and a tandem compound that are involved in both “inside-out” and “outside-in” dimensions (Porter & Kramer, 2006). It is also highly important to integrate inside-out and outside-in practices.
DEFINITIONS OF CORPORATE SOCIAL RESPONSIBILITY: The world Business Council for Sustainable Development (WBCSD) defined Corporate Social Responsibility as “the continuing commitment of business to behave ethically for the well-being of society by contributing towards economic development while improving the quality of life of their workforce and their families as well as of the local community, and society at large” Corporate social Responsibility can also be defined as “bringing corporate behavior up to a level where it is congruent with the prevailing social norms, values, and expectations of performance” (Sethi 1975). Carroll (1979) proposed a popular definition of Corporate Social Responsibility consists of four-part, and he suggested
In the case of Kerry group it is clear that corporate social responsibility has contributed to the success of their business. Corporate social responsibility has helped Kerry Group improve their business in many ways such as; ➢ It differentiates themselves from their competitors ➢ It wins new business ➢ Increases customer retention ➢ It also helps Kerry Group develop and enhance relationships with customers, employees,
The corporate social responsibility is one of a building block for success in today’s competitive environment to improve financial performance of firm. The relationship between CSR and financial performance is becoming the topic of great interest in these days. The relationship between CSR and financial performance of firm is obvious because if business does something better for society along with quality offerings then it will lead to the superior financial performance for the firm. With the increase in number of stakeholders and the activist groups exert more pressure to become socially responsible. In today’s world, society’s interest and demand is growing for Corporate Social Responsibility (CSR).
Literature review The World Business Council for Sustainable Development in its publication Making Good Business Sense by Lord Holme and Richard Watts, used the following definition. “Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large” A firm’s assignment of CSR begins with economic responsibility and narrows up with legal, ethical and other responsibilities, such as sound judgment. What was found as ethical pursuance and sound judgment in Carroll’s model, it is now indispensible because of the fact that ethical responsibilities are required
It is the economic value that generates a good return for the owners and shareholders thought their investments. Besides that, it also creates jobs to the society as well as giving a fair pay to them, and making development in the business. In fact, it has the same idea with the basic responsibilities of the organization that is to produce goods and services with quality to fulfil society’s demand, and maximizes profits for the organization as well as increases the wealth for the owners and stockholders which was also stated in our textbook. It also means that this is profitable. Legal is another dimension of the CSR that is to obey and follow the rules and to govern the business according to government legislation.
Introduction Corporate Social Responsibility is fast becoming an integral part of the corporate world. Broadly defined, Corporate Social Responsibility attempts to achieve commercial success in ways that honour ethical values and respect people, communities, and the natural environment (Bhattacharya & Sen, 2004). With an increasing number of business engaging in CSR activities, corporate social responsibility is considered as a commitment by these organizations. To implement CSR, a business has to consider its impacts on employees, the consumers, the community and the environment. There is a commitment that companies are socially responsible in making profits and contributing to some aspects of social development.
In this situation it is critical to draw a difference between CSR, which can be a key business management idea, and philanthropy, sponsorships or charity. Despite the fact that later it can also make an important commitment to poverty reduction, will straightly improve the reputation of an organization and build up its image, the concept of Corporate Social Responsibility clearly goes after that. A properly executed CSR idea can bring along a change of competitive advantages, for example, upgraded access to capital and markets, expanded deals and benefits, operational cost saving, enhanced profitability and quality, effective human resource base, enhanced brand image and status, improved client or customer loyalty, better decision making and risk management process. The concept behind Corporate Social Responsibility is that organizations have various responsibilities to keep up. These obligations can be organized in a pyramid, with essential responsibility closer to the base.
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.