With good reputation, it helps firms to create competitive advantage in the business environment. Thus, instead of focus on short-term profit maximizing or costs saving, firms should be stakeholder-oriented. A firm which is stakeholder-oriented focuses on the need of their stakeholder such as employees, customers, society and others who have a direct economic link to the firm (Habil, n.d.). Businesses that are socially responsible will avoid actions that may cause detrimental to stakeholders. They have greater concern on stakeholder well –being.
Costco’s cost-leadership tragedy is more ethical because everyone benefits from it, consumers, workers, and shareholders. When dealing with moral obligations of managers, I believe Walmart Sam’s Club managers care a lot more about their shareholders. They want to maximize their profits, and they do this by paying their employees low wages. Costco’s managers on the other hand really care about their stakeholders. They do care about their shareholders as well, but they believe by taking care of their stakeholders, their shareholders will benefit from it.
The onus/obligations that business has towards society is termed as Corporate Social Responsibility (CSR) which are categorized as Economical, ethical, legal and philanthropic. CSR is a concept which states that companies not only consider their profitability but also the interest of the society and the environment in which it operates. One of the most contemporary definitions is from the world Bank Group, stating “Corporate Social Responsibility” is the commitment of business to contribute to sustainable economic development by working with employees, their families, local community and social at large to improve their lives in such ways that are good for business and for the development. Every business house has an obligation to society, the philosophy is to give back to the society what it has taken from it, in the course of its quest for profit maximization and wealth
A good community’s stand-in social firmness and more inclusive economic growth will help in turn support a better customer base, assistant talent pool and supplier base for the business. 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
Corporate social responsibility is the constant commitment by organization to act ethically and add to economic growth and also enhance the quality of life of the employees as well as their families and also of the community and the public at large. Commonwealth Secretariat (2006), Company’s social responsibility is to maximize its positive force and to minimize its negative force. The ethical responsibilities adopted by GORC have been proven beneficial which is reflected by high productivity ratio and low employee turnover. Employees should operate under the practice which promotes Customer Relationship and Customer Social Responsibility. Viable these mentioned factors, employees should create/produce such products which will capture and retain the perception of GORC in customers mind.
Companies have to protect their social responsibilities by protecting their consumer rights, the ethical practices towards the consumers are important in order to improve and develop their businesses. Question 1: Business ethics is the study of business activities, decisions and situations. These actions of right and wrong are addressed, from a value based perspective. This is containing conflicting between
Code of Conduct of General and Administrative Division The code of conduct of General and Administrative division is to perform honest and ethical conduct that compliance by the law and the standard of company database and record in order to provide detail financial statements. General and Admininstrative division in Mad Cafe shall never manipulate, fraud the firm independent transaction record. Financial division is expected to perform honesty and integrity. Financial division should be fair, transparent, and accurate in transaction report and documents of the company. Transaction record of company shall be protected.
The only responsibility of a business is to maximise profits based on principles of demand and supply. If this is the only responsibility of the business there will be obvious negative implications and businesses should incorporate mechanisms to regulate the impact of their actions on society which means that if the business wants to make money they must consider the needs and wants of the communities in which they operate in order for it to be given a good name which will attract a lot of customers which will make the business a lot of
This assignment will first describe the Corporate social responsibilities, The ethical and environmental awareness that a business has to have and analyse the likely positive and negative effects of the decisions that a business will take, on the employees, customers and the community at a whole. Corporate Social Responsibility (CSR) is defined as the voluntary activities or practices undertaken by a company to operate in an economic, social and environmentally sustainable manner. When companies lead and bend their business transparently and in an environmentally and socially responsible manner, it will help them to succeed through social licence. It is helpful for a company to extend its business overseas. Also, csr benefits a company in
How to influence the Marketing The impact of charity program to the value of the enterprise can be analyzed from two parts, profits and costs. For the profits, firstly, doing charity program can provide a moral capital to companies, to protect the assets of companies. If one day, the company face to a big crisis, the charity program can reduce the negative things, avoiding lose the value of companies. Then, it can enhance the image and reputation of enterprises, and lastly, it also can improve the value of companies, and create a beneficial circumstance for the companies. For the costs, on the one hand, charity program is a explicit costs for companies, and it is a kind of resource wasting, no return, it cause cost of enterprises increasing, and reduce the value of companies.