The paper "External Reasons Why Managers Should Ensure Their Organizations Operate Ethically" is a perfect example of management coursework. The challenge faced by corporate institutions today is the ability to conduct business in an appropriate manner. Mistakes done by businesses can result in negative perceptions by the public and many legal battles. Decisions made by businesses and corporate institutions can be judged as legal, illegal, ethical or unethical, depending on their impacts on the society. Consequently, businesses are required to make decisions that improve the well- being of the societies in which they operate. At the core of the organizational performance is efficient management.
Management refers to the act of getting things done through people. Management is important in organizations and has for main components namely; planning, controlling, leading and organizing. Through these management functions, managers can ensure that they grow businesses and maintain them once they have achieved success at any level. Poor management can lead to loss of revenue and business failure in the long run. Ethics in business refers to the morals and values that determine acceptable behavior in business organizations.
Ethics in businesses is determined by individuals, competitors, consumers, regulators, interest groups and the public. Many companies operate within codes of ethics either self – developed or universal. Businesses and organizations need to work within the required ethical codes of conduct to ensure that they minimize legal battles while ensuring the profitability of the organization. Organizations are considered the causes of the problems in the society today hence the need for solving them. This is the essence of corporate social responsibility. Corporate social responsibility is defined as the business duty to maximize its positive impact and minimize its negative impacts on society.
With the increased levels of awareness among consumers, there is a need for organizations not only to make profits but also consider the social consequences of their activities. Important ethical and social responsibility concerns are part of the laws and regulations that enable the organizations to conform to the standards, values and the attitudes of the society. There is a need for managers to obey these laws. Business ethics and corporate social responsibility are compliance systems that make managers and organizations act responsibly in society.
This paper assesses the need for managers to ensure that their organizations act ethically despite their approach to corporate social responsibility. Body Different organizations employ different approaches to corporate social responsibility. One of the approaches is philanthropy where an organization chooses to engage in the projects of the society. For instance, an organization may offer financial support to the community by offering grants to support community projects such as the education of vulnerable children. Additionally, organizations may offer money to create employment opportunities for youths within a given community. Another approach to corporate social responsibility that can be used by organizations is the shared value.
Creating shared value is important in ensuring the interdependence of long-term business success and balanced social systems. This can be achieved through investments in education, social welfare and healthcare. One advantage of using the shared value approach is that it creates an opportunity for the organization to build social value and long-term organizational growth.
ReferencesBurrow, J. L., & Kleindl, B. (2013). Business Management. Mason, US: Cengage Learning.