Ethics and Corporate Social Responsibility : Assignment

Running head: ETHICS AND CORPORATE SOCIAL RESPONSIBILITY
Ethics and Corporate Social Responsibility
University Name
Student Name
Authors’ Note

2
ETHICS AND CORPORATE SOCIAL RESPONSIBILITY
Executive Summary
The current study illustrates in detail regarding CSR actions and governance framework of
the business concern Wesfarmers Limited. This study applies specific analytical framework
namely, Carroll’s Pyramid and Wartick and Cochrane’s Typology, for analysis and synthesis
of CSR and governance framework of Wesfarmers. This study also aids in synthesis of
notions and analyse behaviour of the management Wesfarmers of along with its insinuations.
Introduction
The current report elucidates in detail about CSR activities as well as governance structures
of the firm Wesfarmers Limited. The study intends to apply different analytical framework
that is to say, Carroll’s Pyramid and Wartick and Cochrane’s Typology, present synthesis of
notions and analyse behaviour of the management along with its implications. In this
segment, the report also presents critical analysis of responses of the company Wesfarmers
Limited to expectations of key stakeholders and highlights any gap that subsists between
advocated as well as realised performance. Wesfarmers Limited is a leading Australian
transnational firm, headquartered in Western Australia, with operational interests mostly in
retail segment, market for chemicals and fertilisers, mining of coal, diverse industrial along
with safety products of particularly Australian as well as New Zealand.
Objectives
Objectives of the current study is
- To analytically evaluate CSR activities as well as governance structures of the firm
Wesfarmers Limited
-To comprehend responses of the company to different stakeholders’ expectations

3
ETHICS AND CORPORATE SOCIAL RESPONSIBILITY
- To identify the gap that exists between adopted as well as realised CSR performance of the
firm
Methodologies
The study at hand intends to utilize secondary data and utilize qualitative mechanisms for
analysing the data acquired from secondary sources such as official websites, reports, books,
magazines as well as articles and journals (Micheli and Mari 2014).
Information Analysis
Carroll’s Pyramid
The four-phase definition of Corporate Social Responsibility (CSR) was initially announced
during the year 1979. During the year 1991, Carroll deduced four-staged definition and
presented it in the structure of pyramid of CSR. In essence, the primary purpose of this
pyramid was necessarily to single out specific definitional facets of CSR and to elucidate the
building block feature of necessarily four part structure. Junior et al. (2014) asserts that the
pyramid was chosen as a geometric design as it is uncomplicated, intuitive, and developed to
survive the test of time.

4
ETHICS AND CORPORATE SOCIAL RESPONSIBILITY
Ethics pervades the pyramid
Although the ethical accountability is presented in the pyramid as a detached kind of CSR, it
can be observed as a facet which intersects and saturates the whole pyramid. Junior et al.
(2014) suggests that ethical considerations are subsistent in each and every of the other
accountability classifications as well. Essentially, in the category of economic responsibility,
for instances, the pyramid supposes a capitalistic community in which the pursuit for profits
is observed as a justifiable and just anticipation. Hahn and Kühnen (2013) mentions that
capitalism, on the other hand, is essentially an economic system that believes of it as being
morally appropriate that holders or else shareholders value a return on specific investments.
However, under the category of Legal Responsibility, it hereby needs to be acknowledged
that majority of the rules as well as regulations were generated founded on certain ethical
way of thinking that they were fitting (Junior et al. 2014). The majority of the regulations
were developed out of numerous ethical concerns, for example, apprehension for safety of
consumers, safety of employees, the natural environment and many others. Therefore, once

5
ETHICS AND CORPORATE SOCIAL RESPONSIBILITY
they get formalized they reflecting “codified ethics” especially for that particular community
(Hahn and Kühnen 2013). And, certainly, the Ethical Responsibility reflects its own in this
four staged model as a class that necessarily embraces several policies as well as exercises
that many observe as standing at a superior level of anticipation than the minimums
compulsory by law. Plainly speaking, regulations might be observed as passive conformity.
Ethics, on the other hand, recommends a certain level of behaviour that might expect future
regulations and in any incident make every effort to do that that is regarded above majority of
laws and the one that is driven by morality. In the end, Philanthropic Responsibilities can be
regarded to be every now and then ethically stimulated by corporations determined to do the
correct thing. Despite the fact that some corporations practise philanthropic actions as a
utilitarian choice (that is to say, strategic philanthropy) that can be observed as good
corporate people,” also there are some who follow philanthropy as they believe it to be the
righteous thing to carry out. Essentially, in the second analysis, philanthropy is considered to
be ethically stimulated else wise altruistic in character (Buhr et al. 2014). Thus, in a
summarised manner, it can be said that ethical inspiration and concerns evade and permeate
the four phases of the CSR classes and consequently presume a crucial role in the entirety of
CSR.
The particular business case on corporate social responsibility (abbreviated as CSR) refers to
fundamental debates upholding else wise documenting the cause behind businesses to accept
and progress the CSR practices. Basically, there are quite a lot of business case debates that
have been undertaken in particularly literature, nonetheless, there are four effectual debates
that mentioned in the literature. In itself, the basis for business case relating to Pyramid of
mainly CSR is essentially to ameliorate diverse believed conflicts as well as tensions between
and among particularly four different categories of accountabilities (Bonilla-Priego et al.
2014). In particular, there are diverse apprehensions as well as trade-offs shall keep on to be

6
ETHICS AND CORPORATE SOCIAL RESPONSIBILITY
considerable decision points. In essence, they are not complete opposition to one another is
often perceived.
Wartick and Cochrane’s Typology
The model of Wartick and Cochrane on corporate social performance focuses on principles,
procedures and policies. The principles of corporate social responsibilities include economic,
legal, ethical as well as discretionary. Corporate social responsiveness indicates towards
reactive, defensive, accommodative along with proactive. Again, social issues management
includes issues identification, issues analysis and responsive development. Bebbington et al.
(2014) suggests that corporate social responsibilities are directed at social contract of
businesses and business as particularly a moral agent. In addition to this, corporate social
responsiveness are directed at the capacity to respond to altering societal conditions as well as
managerial approaches to developing responses, Furthermore, social issues management
include identification of issues, analysis of identified issues and development of responses.
Particularly, these are directed at minimizing different contingencies and ascertaining
effectual corporate social strategies.
Application of the frameworks for analysing CSR of Wesfarmers

7
ETHICS AND CORPORATE SOCIAL RESPONSIBILITY
Based on the sustainability pronouncement of the firm Wesfarmers Limited, it can be
hereby observed that the company keeps on generating values for diverse future actions
(Barkemeyer et al. 2015). However, based on the report published by the firm it can be
observed that this business concern makes commitment towards proactively dealing with the
society along with environmental influence (Alonso‐Almeida et al. 2014). Different activities
related to CSR of Wesfarmers can be classified as under:
People- In this case it can be seen that Wesfarmers Limited is committed towards
maintenance of relentless concentration on delivering safe place of work. Furthermore,
diversity at particularly Wesfarmers Limited concentrate on generating inclusive environment
for working by remaining attentive towards diversity of gender and inclusion of people of
different backgrounds namely people of Aboriginal and Torres Strait Islander classes
(Alonso‐Almeida et al. 2014).Based on Wartick and Cochrane’s Typology notions it can be
said that the company pursues the CSR principles and is responsive (in a way
accommodative) to identified management of social concerns. As per the premises of Wartick
and Cochrane’s Typology, it can be hereby mentioned that the management of Wesfarmers
has formulated a principle that is economic, legal, ethical and has been accommodative in
embracing gender and ethnic diversity and in a way has strived to address the identified
social issue. This CSR action of the firm as per the Carrol’s Pyramid can be said to satisfy all
the four stages (Rinaldi et al. 2014). By concentrating towards people, the firm is satisfying
economic accountabilities that are required by the community, obeying the rules and
regulations (thereby satisfying legal responsibilities towards people), carrying out what is just
as well as fair (indicating ethical responsibilities), thereby establishing as a good corporate
citizen (referring to philanthropic responsibilities).

8
ETHICS AND CORPORATE SOCIAL RESPONSIBILITY
Sourcing- The processes of sourcing of Wesfarmers also includes different suppliers and
ethical conducts of sourcing that necessarily is taken into account by the management of
Wesfarmers Limited. In essence, suppliers also commits strongly towards developing strong
along with respectful associations with varied suppliers. Furthermore, system of ethical
sourcing system also strives towards sourcing in an accountable manner by functioning
properly with various suppliers and enhancing social along with environmental exercises
(Micheli and Mari 2014). Thus as per the notions of pyramid of Carrol, it can be said to be a
practice that is just as well as hair averting farms and in a way is said to satisfy ethical
accountabilities expected by the community.
Community- In essence, Wesfarmers Limited also contributes affirmatively towards society
by striving towards maintenance of product safety in an effectual manner. Maintenance of
product safety can be said to satisfy economic, philanthropist, ethical as well as legal
accountabilities.
Environment- The Company Wesfarmers Limited thrives towards reduction of harmful
emissions of corporations and augmentation of overall resilience to various climatic
alterations (Junior et al. 2014). Furthermore, the company also undertakes CSR activity of
Waste management and water usage for lessening overall waste for filling of land and usage
of water to the extent possible. This can help in augmentation of conditions of the
environment in which the company operates.
Governance- The business concern Wesfarmers Limited intends to maintain vigorous
corporate governance strategies in different respects of business actions (Hahn and Lülfs
2014).
In essence, the firm Wesfarmers Limited makes commitment towards generation of
value for different stakeholders of the firm, societies and workforces operating in an

9
ETHICS AND CORPORATE SOCIAL RESPONSIBILITY
corporation. This corporation supposes long-term value generation and serve to different
communities in superlative ways. In essence, sustainability refers to comprehending and
handling the manners that make certain appropriate actions for creation of specific values in
the upcoming future (Hahn and Kühnen 2013). This company commits towards minimizing
specific carbon footprint and offer probable solutions by aiding consumers along with
community on the whole.
Findings
Application of the above mentioned two different framework of CSR analysis helps in
analysing the CSR as well as corporate governance structure of the current business case on
Wesfarmers Limited. Evaluation of the sustainability declaration of the business concern
Wesfarmers also plainly suggests about constructive contribution of the entity towards the
society in which the firm functions and the manner in which the entire business concern
dutifully offers safe products to all their consumers in conformity with the Australian
Consumer Law (Child 2015). Reports reveal that the business concern has augmented overall
safety of their products with usage of coin with button cell batteries that can help in reduction
of product-linked injuries. In addition to this, the brand named “Target” of the firm
Wesfarmers has supposed values of best practice to adhere by both global along with
Australian directives and regulations. Thorough analysis of reports on corporate social
responsibility expresses the fact that announcements made by the firm suitably covers
different sustainability issues related to business environment. Also, the current report aptly
elucidates the manner in which the business concern Wesfarmers is striving to reduce the
intensity and extent of harmful emissions and augmenting the suppleness of the firm to
different climatic transformations (Buhr et al. 2014). Furthermore, the report elaborately

10
ETHICS AND CORPORATE SOCIAL RESPONSIBILITY
asserts about the handling of emissions by means of textual, tabular along with graphical
representations.
Wesfarmers Limited has enhanced transparency of diverse operations in particularly the
supply chain in over and above 3200 warehouses in specific audit. The business concern
concentrates primarily on ethical sourcing such as transparency of supply chain in the
upcoming period. In essence, this can aid in reinforcing associations with prospective
suppliers by making certain positivity in diverse operational actions for the business concern.
Particularly, at the business concern Wesfarmers Limited, there are intentions to reduce
emissions of greenhouse gas by approximately 2% for future (Bonilla-Priego et al. 2014).
The report declared by the business concerns reveals that approximately 37% emissions are
lessened in the past 5 years (Bebbington et al. 2014).

11
ETHICS AND CORPORATE SOCIAL RESPONSIBILITY
Figure 1: Emissions management in Wesfarmers
(Source: Sustainability.wesfarmers.com.au 2018)
By itself, the sustainability statement also clearly asserts about different ways in
which the business concern is determines to reduce waste of the business concern to landfill
along with water usage. Moreover, sustainability reports of Wesfarmers also explicate
comprehensively regarding preservation of corporate governance stratagems in different the
operations of the business (Barkemeyer et al. 2015). Nevertheless, comprehensive analysis of
the sustainability reports discloses the fact that sustainability pronouncements do not deliver
aptly the targets of different emissions that Wesfarmers intended to attain and overall
percentage that it has necessarily attained. Therefore, it can be hereby mentioned that the

12
ETHICS AND CORPORATE SOCIAL RESPONSIBILITY
pronouncements also do not mention about gaps between particularly target as well as actual
numerals that subsequently can aid in recognizing diverse things that get in the way (Amran
et al. 2014).
Corporate governance framework: The firm follow the suggestions presented in the ASX
Principles declared on particularly March 27, 2014. In essence, this Corporate Governance
assertion is present as on the date of the firm’s 2016 yearly declaration, and has been
sanctioned by the entire Board. The company has an anti-bribery framework, risk
management framework, remuneration policies, board succession planning and role of board
as well as (Alonso‐Almeida et al. 2014).
Recommendation
The management of the firm Wesfarmers can work towards establishment of targets that in
future can be used as goal to be accomplished. The company follows ten different principles
as an approach towards sustainable development of the business. In this case, it can be said
that the principles and approaches can be reviewed from time to time in association to
expectations of the community. The expectations of the community and the social issues
might alter with time and accordingly the approaches of CSR activities need to be modified.

13
ETHICS AND CORPORATE SOCIAL RESPONSIBILITY
References
Alonso‐Almeida, M., Llach, J. and Marimon, F., 2014. A closer look at the ‘Global Reporting
Initiative’sustainability reporting as a tool to implement environmental and social policies: A
worldwide sector analysis. Corporate Social Responsibility and Environmental
Management, 21(6), pp.318-335.
Amran, A., Lee, S.P. and Devi, S.S., 2014. The influence of governance structure and
strategic corporate social responsibility toward sustainability reporting quality. Business
Strategy and the Environment, 23(4), pp.217-235.
Barkemeyer, R., Preuss, L. and Lee, L., 2015. On the effectiveness of private transnational
governance regimes—Evaluating corporate sustainability reporting according to the Global
Reporting Initiative. Journal of World Business, 50(2), pp.312-325.
Bebbington, J., Unerman, J. and O'Dwyer, B. eds., 2014. Sustainability accounting and
accountability. Routledge.
Bonilla-Priego, M.J., Font, X. and del Rosario Pacheco-Olivares, M., 2014. Corporate
sustainability reporting index and baseline data for the cruise industry. Tourism
Management, 44, pp.149-160.
Buhr, N., Gray, R. and Milne, M.J., 2014. Histories, rationales, voluntary standards and
future prospects for sustainability reporting. J. Bebbington, J. Unerman and B. O’Dwyer, eds,
pp.51-71.
Child, J., 2015. Organization: contemporary principles and practice. John Wiley & Sons.

14
ETHICS AND CORPORATE SOCIAL RESPONSIBILITY
Hahn, R. and Kühnen, M., 2013. Determinants of sustainability reporting: a review of results,
trends, theory, and opportunities in an expanding field of research. Journal of Cleaner
Production, 59, pp.5-21.
Hahn, R. and Lülfs, R., 2014. Legitimizing negative aspects in GRI-oriented sustainability
reporting: A qualitative analysis of corporate disclosure strategies. Journal of Business
Ethics, 123(3), pp.401-420.
Junior, R.M., Best, P.J. and Cotter, J., 2014. Sustainability reporting and assurance: A
historical analysis on a world-wide phenomenon. Journal of Business Ethics, 120(1), pp.1-11.
Micheli, P. and Mari, L., 2014. The theory and practice of performance
measurement. Management accounting research, 25(2), pp.147-156.
Rinaldi, L., Unerman, J. and Tilt, C., 2014. The role of stakeholder engagement and dialogue
within the sustainability accounting and reporting process. Sustainability accounting and
accountability, pp.86-107.