Each company should select issues, which meet its specific business goals. When CSR policies are implemented, the firm must consider to the reason for the CSR implementation, as well as, the opportunity to convey the shared value. Generic social issues might be an important aspect to society which are not affected by either the company’s operations or its long-term competitiveness. However, value chain social impacts are influenced by the company’s activities in the standard procedures of the business. While social dimensions of competitive context are regarded as components in the external environment that influence on the company’s concealed competitiveness; for example, the company’s breakthrough innovative product devoted for the friendly environment can help it attain the competitive edge, which is difficult for others to imitate (Porter & Kramer,
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
Additionally, the study argues that regulations alone cannot effectively promote ethical business practices. Ethics in business is important due to a variety of reasons. Firstly, ethical principles correspond to the primary human needs. As such, ethics represents a human characteristic that requires individuals to engage in ethical practices in their private lives and business affairs. People are also attracted to organizations that promote moral values and possess a reputation for honest activities that benefit the society (Kumar et al., 2014).
According to Schein, “vibrant processes of culture conception and management are the fundamentals of leadership.” According to Kotter (2012), organization culture is a good vehicle for the implementation of the organizational changes. George (2009), says that organization culture of any business should include the language, tangible products, symbols of the business and the physical environment. Consequently, according to Kotter (2012), organization culture in small and medium enterprises can enhance the performance of an organization, and improve the satisfaction of the workers. Kotter continues to say that a good organization culture can help the businesses in solving some of their problems. However, Esnst (2001) warns that failure to build a good organization culture that can connect to some dynamics of a business, both externally and
Narmin Hajili Writing and Information Literacy I Argumentative essay 14.10.2015 The Importance of Corporate Social Responsibility “Creating a good business and building a better world are not conflicting goals – they are both essential ingredients for long-term success” – mentioned William Clay Ford, the executive chairman of Ford Motor Company. This quote apparently emphasizes the importance of being socially responsible to the society for being successful. This issue became the theme of discussion starting from the 18th century with the idea of Adam Smith, well-known Scottish philosopher of political economics, and expanded in the 1870s. According to him, the interaction between public and corporations would meet the needs and wants of society. Later this idea turned into a big deal and directly resulted with growth of economics which showed enough power of that model.
The corporate social responsibility require the enterprises must beyond the traditional concept “ make the profit as the only goal” emphasized the contribution to the environment, consumers and the society and the value of the human in production process. (Corporate social responsibility) Actually, the CSR theory is good for the businesses. But someone point out a question “must the enterprise bear the social responsibility?” There are also two
Basically that is quality product. This means that the company is providing product of good quality using best business practices. “Quality in a product or service is not what the supplier puts in. It is what the customer gets out and is willing to pay for” said Peter Drucker, consultant, educator and author, whose writings contributed to the philosophical and practical foundations of the modern business corporations. Quality, or the absence of quality product in the company, has a strategic impact on an organization.
With the increasing dynamism of the external environment, such an analysis becomes for the company a vital factor that determines its survival. Not all elements of the external environment for the enterprise have the same value, so an important part of the analysis is the identification of those among them who play an important and significant role. PEST-analysis (sometimes referred to as STEP) is a marketing tool intended to detect political, economic, social and technological aspects of the external environment that affect the company's
KEY FINDINGS 1) Ethical Values and Business Ethics help to improve productivity, profitability, quality, public image and built up a brand value of an company in this globalized world. 2) Ethical Values and Business Ethics are very effective to achieve sustainable development of an organization. 3) When we talk about a country like India , we come to know that very less attention is given to ethical values and business ethics. Actually Business environment in India is not favorable for business ethics and ethical values. There is an extreme need to educate the employees as well as managers and even some of the owners also about business ethics and ethical values.
The nature of today’s business environment is a result of great transition over the course of time, shaping organisations and their management. According to Duin & Baer (2010), “Today’s leaders must change the structure, culture, and the strategy, to meet the dynamic environments they are in”. Because of unpredictabilities and perpetual changes brought upon by factors such as competitive pressure and an exponential advancement of technology over the past few decades, businesses have been required to embrace a more contemporary approach towards the management of an organisation. A contemporary organisation differs from a traditional organisation as it contains no proper hierarchy whereas a traditional organisation contains a hierarchical structure.