Corporate Social Responsibility Tesla Motors Inc., Patagonia Inc., & General Mills Inc. Brendan J. Bowers Konstantina Karatzoudi Rhoda Williams – Moore MET AD 655: International Business, Economics and Cultures Professor Jung Wan Lee December 12, 2016 1. Introduction Corporate social responsibility (CSR) is rapidly becoming a factor that companies must consider in order to remain relevant and favoured in the eyes of their consumers. This is more so important on international scene where MNCs are expected to embrace this model. Corporate social responsibility can be defined as the business approach that contributes to sustainable development by delivering economic, social and environmental benefits for all stakeholders.
A reward for ethical behavior The ethical behavior must be recognized and appreciated and at the time it must be awarded. So it can promote ethics in other employees. Conclusion Ethics in business and in corporate culture has become a critical issue for many companies. There is need to pay more attention to an analysis of unethical behavior in leadership and its relation to corporate culture. Ethical leadership is a growing concept and many large companies are promoting business ethics as their corporate social responsibility.
Firstly, the adoption of corporate codes of conduct, to indicate organisational congruence with societal expectations. Secondly, the use of firm linkages to field-level regulatory bodies, such as accreditation bodies, to indicate social fitness between business and environment (Vergne, 2011). As businesses, comply with regulations, preventing environmental degradations and serving society with needed products and services and at the same time benefitting economically from the activities. Businesses will gain legitimacy ‘as their actions will be perceived to be consistent with stakeholder’s expectations’ (Colleoni,
What is corporate compliance? Compliance - The word compliance is defined as the act of adhering to or conforming to a law, rule, demand, or request. In a business environment, conforming to the laws, regulations, rules and policies is a very important part of business operations often referred to as "corporate compliance." Corporate compliance involves keeping a watchful eye on a fast-changing legal and regulatory climate, and making the changes necessary for the business to continue operating in good standing within its industry, community, and customer base. In a broader sense, corporate compliance extends beyond mere legal and regulatory conformity into the realm of promoting organizational ethics and corporate integrity.
Basically, ethics are at their essence which is it is the moral judgments about what is right and what is wrong. Business ethics is focusing on examine the policies and conduct within the context of commercial enterprise in an organizational as well as in an individual level. In business, the ethics in business is an applied ethics where professionals and researchers use principles and theories to solve any ethical problems that exist in business. At the quarter of the 20th century, as technologies like internet have made world business or international business all more viable, the business ethics domestically have grown in importance along with the power and significance of major businesses. So that, international business ethics take center stage as a major concern of the modern era.
It includes an organization's unique expectation, experiences and philosophy. Corporate culture is based on written and unwritten rules that have been developed over time. The culture is rooted in an organization's goals, strategies, structure and approaches to labor, customers, investors and the greater community. It affects the ways a company is conducting its business, how they treat their employees and customers. A good corporate culture can increase the organizations productivity and performance.
There are many ways I intend to apply sustainability, ethics, and corporate responsibility principles in my workplace. First, I have to incorporate the concept of corporate social responsibility into my operating plans and strategy. So, in the workplace, I will ensure that I comply with the laws governing whatever the organization does and everyone will be fully in compliance with the laws as well. And regarding sustainability, it is necessary that I behave ethically while improving the quality of lives of all stakeholders. Furthermore, I have to ensure that the community where I transact business is empowered through environmental and social development.
The corporate culture is usually implied as well in the corporation's dress codes, business hours, office setup, employee turnover rate, etc. Corporate culture is heavily dependent on the values and vision of the entrepreneur. It is very much related to the vision and mission statements of a company in how the company wants to be perceived by its stakeholders and how the company wants to achieve its visions. The entrepreneur is the one responsible in how the company conducts itself and therefore is the one responsible in setting the culture of the business. The behavior, actions, and interactions of the members of an organization emerge from the meaning that the reality of that organization has for them.
A primary function of the corporate Board is to be aware of and support the overall strategic vision of an organisation, protecting both its long term future and the interests of the organisation’s various stakeholders by monitoring the performance of the management team. As noted in the readings, Fortis was a leading exponent of principles of Corporate Social responsibility, with an impressive resume of evidence to support this view. However as the crisis and its aftermath highlights, realising a successful marriage between words and deeds, as regards organisational ethics, remains a challenge. It is interesting in this context to note the reference in the paper to the Fortis principles and the explicit reference to the importance of shareholder communication in assisting in making informed decisions. I shall discuss this point further within this paper in the context of one of the major ethical failings of the Fortis board.
Most major organizational change efforts are initiated to enable the organization to effectively implement its overarching business strategy in response to marketplace dynamics. When people can see how the organizational change contributes to business success— how it responds to the marketplace, the company vision, and the execution of strategy to achieve the vision—they perceive the change as relevant. This big picture view gives the change purpose, and raises the awareness of the workforce. Leaders are responsible for ensuring stakeholders have this larger understanding.