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Ethics and Corporate Social Responsibility - Essay

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Added on  2019-10-31

Ethics and Corporate Social Responsibility - Essay

   Added on 2019-10-31

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Running head: ETHICS AND CORPORATE SOCIAL RESPONSIBILITYEthics and Corporate Social ResponsibilityName of the Student: Name of the University:Author’s Note:
Ethics and Corporate Social Responsibility - Essay_1
1ETHICS AND CORPORATE SOCIAL RESPONSIBILITYIntroductionCorporate Social Responsibility (CSR) defines the business approaches, which contributein the sustainable business development through delivering economic, social and environmentalbenefits to all types of stakeholders (Korschun, Bhattacharya and Swain 2014). CSR programsactually enhance the corporate image of organization to the stakeholders. However, CSRprograms can enhance the overall cost of production of the organizations. Moreover, CSRprograms have both advantage and disadvantage, which can have huge impact on theorganizations. This essay will present arguments for and against Corporate Social Responsibility,usingresearchfrom the academic literature and highlighting real company examples. DiscussionCorporate Social Responsibility (CSR) is defined as the form of corporate self-regulationintegrated into the business model. Moreover, in the concept of CSR, organizations integratesocial, economical and environmental concern in their business operation and positively interactwith the stakeholders. CSR practices encourage the organizations to be much more aware of theimpact of their business on the society, stakeholders and community. As per Saeidi et al. (2015),CSR goes beyond charity and requires the organizations to act beyond legal obligations andintegrated social, economic and environmental concern. Moreover, CSR activities oforganizations care for the benefits of customers, employees, community and environment. According to Walker and Dyck (2014), CSR enhances the responsible businessreputation and corporate image of an organization to their stakeholders. In CSR policies,organizations are more likely to maintain warm relationship with the customers and other
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2ETHICS AND CORPORATE SOCIAL RESPONSIBILITYstakeholders by fulfilling their interests. Therefore, they can gain trust of the stakeholders andmake them well established in the market. While looking at the evidence of Coca Cola Amatil, ithas been found that the organization constantly maintains the standards in all their productcategories. Furthermore, the organization highly values their customers and other stakeholdersthrough meeting all their standards. In this way, Coca Cola Amatil has well established itscorporate image in the market (Ccamatil.com 2017). On the other hand, Chernev and Blair (2015) opined that CRS activities can face theissues of customer or community conviction. In such issue, customers and community like tosee the organizations that they trust are highly engaged in social welfare programs. They highlybelieve that CSR programs are for good causes and like to see instant results from thoseprograms. It is very difficult for the organizations towards convincing the customers andcommunity about the good intension of CSR, if it does not show any instant result. While takingthe example of Tom Shoes, it has been found that the organization gives one pair of shoes to apoor child for every one pair of shoes it sells to its customers. However, the customer andcommunity claimed that Tom Shoes should try to develop the life of poor children rather thanmerely giving one pair of shoes. Moreover, the customers and community are less likely tobelieve on the charity Tom Shoes, which is making customer and community conviction issues(Anderson 2017). Servaes and Tamayo (2013) pointed out that CSR activities facilitate in maximizing theoverall organizational profit of an organization. Organizations having CSR activities alwaysprovide adequate return on investment to the shareholders and investors. In this way, suchorganizations can gain high level of trust of the shareholders and attract more capital inflow fromvarious sources including shareholders and investors. Therefore, increased investment can
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