Corporate Governance and Ethics Assignment 2022

CORPORATE
GOVERNANCE AND
ETHICS
CRITICAL REFLECTION

Corporate social responsibility refers to the business model that aids the organisations to be
socially accountable to varied stakeholders groups and the public in general. I believe the
practice of the corporate social responsibility aids the companies to be aware of the kind of
impact they are rendering on the various aspects of society that is the economic, social, and
environmental. It is a broad concept and can take various forms and efforts depending on the
type of the industry and the company. The following work is aimed on reviewing on the fact
that why the entities engage in the CSR practices. The said review would be on the basis of
various literary readings over the years in this regard, as stated follows.
One of the significant works in relation to the corporate social responsibility is that of the
authors Dimaggio and Powell (1983). The authors describe the practice of bureaucracy as
“Iron Cage” which is stated to be harmful to the organisations as well as the states as a whole.
The authors shed light on the concept of the homogeneity among the organisations and that
the practices adopted by one successful organisation influence the others as well. I believe the
successful organisations and the managers set the benchmarks for not only the efficient
business practices but also the corporate social responsibility principles. Thus, one of the
reasons that can be identified for the varied corporate social responsibility practices is that the
other best organisation in the said industry or sector is indulging into the same. The work
additionally highlights the integration of the social system with the organisational functions.
The work concludes on the fact that the need for the rationalised business practices and
avoidance of bureaucratization encourages the entities to undertake the efficient societal
practices.
The yet another significant works in this line is that of Freeman (2008). According to the
author, the management of the stakeholders is one of the most vital functions of the
organisations. According to me, the work highlights the evolution of diversity in the
ownership and the need to satisfy the customers, suppliers and other groups to stay in the
business for long run. In addition, the role of the legal statutes has also evolved to be
considerate of the interests of the shareholders as equal to that of the other stakeholders. In
addition, the work highlights an important point that over the years there has been a greater
integration between the ethics and the business decisions. I believe with the widening of the
law and evolution of the business practices, the roles, rights, need of sound character and
responsibilities of the leaders have also enhanced. The combined effects of the above changes
has led to the corporates being more serious about the corporate social responsibility
practices.