The paper "Corporate Social Responsibility and Business Ethics" is a great example of business coursework. The complexity of the contemporary business environment has made most organizations to shift their focus on organizational culture and other like items within the organization as a source of competitive advantage. Business ethics and corporate social responsibilities have spurred most scholarly articles owing to the plethora of benefits that they hold (Trang and Yekini, 2014). Globalization has further changed the expectations of the society on companies further making it essential for business ethics and CSR to be the key focus of companies.
The terms corporate philanthropy, business ethics and corporate social responsibility have been interchangeably used in examining the link between the business and the society. However, despite the link that exists between the three, they are all different concepts altogether. This paper presents an evaluation of the role of CSR, business ethics and establishes the relationship between CSR and ethics through an analysis of three different articles. Business Ethics Business ethics refers to the principles as well as standards that guide the behaviours of a given organization (Belá s, 2012).
Simply put, business ethics are just moral principles and standards that govern the operations of a business. Business ethics enable organizations to act aptly when faced with ethical dilemmas such as bribery, fraud, and defective products (Belá s, 2012). Organizations that fail to institute business ethics face legal implication of such contraventions. Ethical business has continuously recorded the best profits in the markets taking this as their competitive advantage (Belá s, 2012). Corporate Social Responsibility Despite CSR being used interchangeably with business ethics, CSR is a wider concept that draws from the stakeholder theory.
In a nutshell, the theory implies that companies must put ahead of the interests of the stakeholders relative to the shareholders (Trang and Yekini, 2014). Stakeholders include the communities, customers, and employees among others. In this sense, the profit orientation of a company are ditched and instead more emphasis laid on the broader objectives and obligation of the business organization (Belá s, 2012). CSR refers to a stakeholder orientation approach by the company where the focus is primarily on the organizational commitment to internal and external issues (Belá s, 2012).
The concept of CSR enables organizations to act as corporate citizens and go to the extent of taking care of the environment when undertaking their business operations (Belá s, 2012). Case Studies Corporate Social responsibility and Organizational Performance There are a number of studies that have explored the connection between CSR and organizational performance. Malik, Ali and Ishfaq (2015) conducted empirical research in the banking sector in light of the connection that exists between corporate social responsibility and organizational performance. The study conducted employees from banks was coupled with analysis of primary and secondary data from the websites of state Bank of Pakistan (Malik, Ali & Ishfaq, 2015).
A strong link exists between CSR and employee satisfaction thus leading to better organizational performance. CSR involves taking care of the employees and engaging them in a variety of ways that ensure that a strong bond exists between them and the organization (Malik, Ali & Ishfaq, 2015). Done effectively CSR becomes a source of competitive advantage and builds a strong organizational culture. The research indicates that when employees are engaged in the decision making process in matters of the community, the environment and their welfare they end up being committed and serve the organization effectively thus increased organizational performance (Malik, Ali & Ishfaq, 2015).
The impact of CSR on organizational performance can further be measured with financial performance. CSR is in a way related to business ethics in that when CSR is engaged the companies are able to make moral decisions that are ethically and legally binding in nature.
Belás, J. (2012). Social responsibility and ethics in the banking business: Myth or reality? A case study from the Slovak Republic. EKON ANAL, 57(195), pp.115-137.
Malik, M., Ali, H. and Ishfaq, A. (2015). Corporate Social Responsibility and Organizational Performance: Empirical Evidence from Banking Sector. Pakistan Journal of Commerce and Social Sciences, 9(1), pp.241-247.
Trang, H. and Yekini, L. (2014). 85 Investigating the link between CSR and Financial performance – Evidence from Vietnamese listed companies. British Journal of Arts and Social Sciences, 17(1), pp.85-100.