ETHICS IN CORPORATE SOCIAL RESPOSIBILITY
The areas of ethics and CSR that govern the activities of a firm and the value systems that underlie their business activities. The CSR practices implemented by the public division and private division for the growth and development of the society generates various benefits for the such as competitive advantages and provide long term gains. The CSR norm suggests that instead of focusing on maximizing shareholders’ wealth, corporations should recognize their responsibilities to a larger set of actors and therefore invest a portion of these rents for their welfare. CSR proponents believe it to be fair to expect that corporations will consider themselves as social actors, embedded in social interactions and responding to societal expectations and concerns.
Ethics The phrase “ETHICS” is found from the Greek word “ETHOS” which refers to character, standard, ideas or morally accepted behavior. The philosophy which deals in questions as follows what is right and wrong, what is moral and immoral, fair and unfair as well as good and bad with respect to human behaviour. Ethics is a branch of philosophy that guides the behavior of an individual in terms what acceptable and not acceptable in conduct. Ethics is branch of study dealing with what is the proper course of action for human. Ethics deals with the basic concepts and fundamental rights or principles of decent human conduct. It concerns for health and safety and for the natural environment.
Business Ethics covers the areas of moral principles and decision making, governance issues and codes of conduct for a business. Beverungen and Case (2011) argue that “We might find that ethics in business involves a basic dislocation relating to phenomenal experiences arising when things are out of place” When identifying practices that reflect business ethics, we find ourselves in the territory of morality, and a definition of what constitutes morality. Business actions will then be judged by not that which is efficient or effective but by that which is “morally defensible”. We understand that business ethics as a concept is mutating, changing in the context of new technologies, new ways of resource mobilisation and utilisation, evolving societal practices and growing towards a perpetually connected global business network. Growing universal awareness of the finiteness of natural resources, the growing wealth divide, and the pervasive presence of businesses in the individual citizen’s life through technologies such as big data and cloud computing, bring forth business ethics to the forefront of the conversation on societal norms. We aim to explore Corporate Social Responsibility (CSR) in the context of business ethics.
CONCEPT OF CORPORATE SOCIAL RESPONSIBILITY
Corporate social responsibility is concept that requires self-commitment from the private and public sector and the organization whether big or small. The CSR policy is a tool through which organizations can review their commitment in terms of their compliance and make sure that the companies are following the concept of CSR and are in accordance with laws and ethical standards that are set by the companies act 2013 which requires every organization to contribute for the expansion and improvement of the society. With the help of models of CSR organization can go beyond the normal course of business and work apart from the liking of the organization and implement things that are requisite by the act for social compliance. By social compliance, the organization can established the good image in the eyes of the society and can achieve the long term gains and thereby increase the profits of the organization and create confidence among the shareholders. The concept of CSR will promote social commitment of the organization and encourage the organization to work for the various stakeholders of the society and environment and impact them in a positive manner.
NEED FOR CORPORATE SOCIAL RESPONSIBILITY
There are various needs for social responsibilities in a business enterprise and they are as follows.
1. Iron law of responsibility: This law helps the or dominates the society over the business enterprises, and they also have the power to revolt against the business firm who fails to fulfil their needs or which does not add to the social improvement of the people according to the way they are expected to carry out their responsibilities
2. Long run self-interest: A better society environment is beneficial to the business firms which in turn help them to make good profits. For this the business firms can help or we can say find out various way to develop the society by implementing various programs reducing crimes and absenteeism, improving public health n education, etc.
3. Better public image: A better image of the business firm or we can say a good corporate image of a company helps them to grow and expand themselves and can gain higher profits. This is only possible when the company fulfils all its social responsibilities with a responsible and careful manner.
4. Avoiding government regulation and control: It is utmost important to a business firms or company to carry out its social responsibilities without any government intervention as it is costly and time & energy consuming. As there is a chance of government intervention in this process but the company should be efficient to avoid it and also should not give any chance for government to take the control on their work.
5. Effective use of resource and power: A business firm should use its resources and power effectively and see to it that it does not go in vain or should avoid its wastage. A company should see to it that they have sufficient resources and power to take over a society’s responsibilities and fulfil them.
6. Minimizing environmental damage: Every business firms or company should see to it that no harm is done to the environment while carrying out their social responsibilities. This is also an important segment in their social responsibilities as they have to preserve and help environmental development accordingly.
REASONS FOR INCREASING FOCUS ON SOCIAL RESPONSIBILITIES. Focus on social responsibilities have been increased for the past few years which has helped in crucial development in the society and the reasons for that are as follows.
1. Increased stakeholders activism: As the business firm expands and starts making profits according to the expectations, at this point of time the expectation of the society towards the company also increases. Corporations or the business firms who does not complete or carry out their social responsibilities then the people of the society goes against them which results in public demonstration, public exposes, boycott of business products, etc.
2. Proliferation of codes and guidelines: CSR has improvised its standard and performance by the involvement of the new tools by the company which are further presented in the annual reports of the firm. There is a growing awareness of the CSR in the market by implementing the importance of the CSR for the growth of the society as well as the corporate firms.
3. Concept of value change: The companies prepare CSR agenda which specifies the steps for the expansion of boundaries of CSR in new areas of the societies. Stakeholders with their increasing hold of the company, who help them to know and assist the work of their partners and also look after supplier environment, labour and human right practices.
4. Transparency and reporting: The decisions relating to CSR should be transparent or we can say that it should be known by the stakeholders as it is an important part to involve them in every decision making and also should report them time to time of the outcome of the CSR.
5. Growing pressure from investors and markets.: As nowadays CSR is a routine part of the company’s daily work and by the result of which the investors and the market take interest in knowing the CSR programs of the company which include policies of the company, human right practices, involvement with societies, etc.
6. Information Technology: Constantly growing information technology has focused on the link between business and CSR, thereby increasing the flow about the CSR to the stakeholders. The development in information technology has helped to increase the speed and progress of CSR activities globally. It helped the corporate firms to improvise the methods of carrying out their social responsibilities with less efforts and time management.
7. Pressure to quantify corporate social responsibility “ROI”. Stakeholders need to know their return on CSR investment for business and society. Company has to notify their CSR initiatives that they have achieved so far, so that it can continue to focus on optimum utilization of resources on effective areas.
ETHICS TRAINING. The concept of CSR can be effective by developing an ethical approach among the employees of organization. The organization should undertake various training programs for the employees so that moral values and disciple are inculcated into them and they are in a position to decide between ethical and unethical. The ethical training will make employees loyal towards the organization and will improve the reputation of the organization.
FEATURES AND PRINCIPLES OF ETHICS.
1. Honest: Ethical executives are worthy of trust and honesty.
2. Loyalty: Ethical executives are loyal to their organization. They also work in the best interest of an organization.
3. Fairness: It strives to be fair and just in all dealings.
4. Law abiding: It acknowledges and accepts personal accountability for all the activities Respect for others. It treats to respect everyone. Which says that you should be respect in same we will get respect for other.
IIMPORTANCE OF BUSINESS ETHICS. Stop business malpractice some businessmen undertake unethical activities like black marketing, hoarding of goods, etc. Improves customers confidence Business ethics helps to improve confidence with respect to the quality, quantity, purity of the product. Survival of business if the businessmen do not follow the norms or principle of ethic he will fail in the market. Help the protect interest of stakeholder Ethics helps to protect the interest of stakeholder like customers, suppliers, competitors, etc. It leads to exploitation. Helps to establish social relationships If the businessmen follows ethical principles and caters to the social needs. Smooth functioning If the business follows all the business ethics, the employee, shareholders, dealers, etc. The business will grow, expand and diversify quickly. Customer satisfaction In today business customer are king of the market. If the customer want should be fulfilled and if the does not satisfied there will be no sales and it lead loss.
ETHICAL ISSUES IN EMPLOYMENT
1. Discrimination. Today’s major issue discrimination in workplace. It can face discrimination at workplace includes age, gender, race, religions, nationality, disability, etc.
2. Sexual and racial harassment. It is an unwelcome action towards an employee. Such as Sexual harassment b. Racial harassment It can in terms of joke or comments, age , gender, etc.
3. Child labour is the practice of having children engaged in economic activity. This practices leads children miss their childhood, lack of good schools and growth of informal economy.
4. Overtime is another issue faced by the employees. They are forced to work even after their normal working hours at achieve the desired targets.
5. Unfair wages is another ethical issue at workplace. Despite of thus, they do not speak out because of the losing job.
6. Unfair promotions and increments. Many arguments arise in the workplace regarding unfair promotions and increments. Thus unfair promotions and increments is another serious ethical issue at workplace.
To conclude with, CSR should be inbuilt into the functioning of various activities of public sector and private sector. It should be a way of life for them. So, purity must be in the beginning, during the process and at the end with all CSR activities. There are various activities such as design, planning, production, commercial, HRD, quality assurance to be performed by a company in public sector and private sector. Performing all these activities in a right manner at the right time by the right people will result into right product meeting the requirements of customers. The key stakeholders are management of corporate entity/body, employees of corporate body, government regulatory authority, members of community and Non-Governmental organizations. A professional consultancy organization, too, may be involved in the exercise. Spiritual leader/organization, too, may be involved in the process to ensure that ethical considerations are given due weight age.
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