Small Business Ethics & CSR Perceptions

This assignment focuses on the perceptions of small-business owner-managers regarding business ethics and corporate social responsibility (CSR)-related concepts. It covers studies from various journals, including the Journal of Business Ethics, that discuss the role of CEOs, organizational core values, and the impact of CSR on firm performance.

Ethics Organisations
and Society

Table of Contents
INTRODUCTION...........................................................................................................................1
Responsible management and CSR........................................................................................1
Values underpinned by Ethics................................................................................................5
Exploring environmental sustainability..................................................................................7
Advise to company.................................................................................................................8
REFERENCES..............................................................................................................................10

FROM: CSR Consultant
TO,
MANAGER
Berkeley Group Holdings Plc
SUB: Corporate social responsibility
INTRODUCTION
Corporate Social Responsibility is a management concept that integrate social concerns
of an enterprise with its business activities. Further, this refers to the initiatives that provide
benefit to society and community. It consider environmental and social impacts of all activities
and decisions of business (Garavan and McGuire, 2010). Further, it consist work only for
development of society. Berkeley Group Holdings Plc is a developer of property based in Surrey
is taken in present report for study. Concept of corporate social responsibility and diversity is
detailed in this report. Firm focus to creating successful and beautiful places in London. Various
benefits related with the concept of corporate social responsibility with all its costs is all detailed
in this report. Further, major ethical theories which give shape to actions and decision of
management is also given in this. In addition to this, decision and actions which can be take by
firm in some specific situations is all mentioned in this.
Responsible management and CSR
Ethics are moral principles which govern behaviour and attitudes of person or conducting
an activity in an effective manner. It is a basic principles and concepts of basic human conduct.
Under this involves study of the universal values like for an instance necessary equity of people,
obedience of law, human rights, concern for health as well as safety and many others. It is
necessary that person or an organisation should work by following ethics in a proper manner.
There are some importance of ethics given below as above:
 Ethics is helpful in developing credibility.
 Through this basic requirements of human will be satisfy.
 Firm can gain long term benefits.
 Helpful in taking better or effective decisions.
 It helps in uniting leadership and also people.
Berkeley Group Holdings Plc determine the importance of ethics which facilitate them in
developing credibility of a company which enable them in gain better and supportive outcome.
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Although, they become able to satisfy each and every individual with appropriate and suitable
performance of working. Although, Berkeley Group Holdings Plc could gain competitive
advantage and benefit from this aspect which further enable them in remain competitive in
nature. Thus, management become able to gain and reflect positive image towards society and
their working so that profitability could be enhance in better and supportive frame of manner.
Although, ethics could be estimated through better corporate social responsibility which facilitate
them in define and determine better and effective outcome.
CSR is one of the management concept in which enterprises integrate both environmental
and social concerns in their business activities and with their stakeholders. Mainly this is known
as a way which support firms in achieve economic balance and at the same time help in meet up
with the expectations of its stakeholders. This business approach contribute in sustainable
development by offer social, economic and environmental benefits to all stakeholders. Basically
it is a broad concept, that contain and address various factors such as corporate governance,
human rights, environmental effects, health and safety, contribution to economic development
and working conditions. Various companies are there which which use CSR in order to achieve
change towards sustainability.
If in case firm is not use ethics or work according to the ethics then from this many issue
scan be faced by an organisation like decrease productivity level, difficulties will arise in taking
decisions, performance of employees will decrease and many others. So, in addition to this it is
necessary to Berkeley Group Holdings Plc to work by following all the ethics as well as rules
and motivate the employees to do ethical work. With the help of this all issues can be solved in a
proper and systematic manner.
Mainly, CSR is a self regulatory mechanism which incorporated by business enterprises
with their business model. This term is used to highlights the activities execute by firms around
the globe to give back to the society. Now a days this concept is acknowledged by firms all over
the world and today this is consider as one of the most significant and influential part of business
enterprises. Various advancements and changes have taken place in business world which
increase the requirement of of integrate CSR with business model especially for large business
enterprises who operate on international level (Carroll and Buchholtz, 2014). One of the main
benefit of CSR is that it help to develop and shape the business value. By identify the areas
where enterprises can become socially responsible, firms can attain competitiveness for a long
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time. CSR provide number of benefits to an enterprise and the major benefits which Berkeley
Group Holdings Plc can get by implement CSR is given under the following points:
 Positive impact in community and society: One of the major benefit of CSR is that it
encourage execution and completion of business activities in an ethical way and at the
same time consider environmental and social impact of their business activities (Mingers
and Walsham, 2010). In this way, company can avoid or minimise damaging impact of
its business activities on society. Further, in some situation, firms find the ways to
introduce variations in their value chain or services that help in deliver benefits to the
community.
 Supports public value outcomes: Offer public value is not the one that an enterprise
contribute to community. A sound and effective CSR framework genuinely support firms
in offer public value by focus how their offerings can make a change in the community.
This happen indirectly or directly, directly with the help of enterprise's own activities
such as voluntary and indirectly when a firm's services provide an opportunity to others
contribute to the community.
 Diversity management support in growth and success of entity. Thus, management of
Berkeley Group Holdings Plc are one of a major property develop company of UK. Thus,
they have to facilitate effective and better management of diversity in office. This
diversity enable and support them to attain growth and success of an organisation. Hence,
management of company enable them in define effective and suitable outcome in frame.
 Support being an employer of choice: Being an employer of choice highlights the ability
of enterprise to attract number of talented employees and retain them for a long time
period. Many ways are there to being an employer of choice including, positive working
conditions, offering a work life balance, and flexibility. Research reveal that concept of
Corporate Social Responsibility support an enterprise to become more and more
attractive to influence skilled workers who are looking for workplaces with more social
responsible practices, sound ethics and with community mindedness.
 Encourage personal and professional development: When enterprise provide an
opportunity to its staff members to take part in social responsible activities then it provide
the benefit of teach new abilities to employees, which later can be apply at workplace.
When a firm undertake activities outside the routine task of employees then it provide
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them an opportunity to contribute more to work and workers might feel passionate or
learn so many things which increase their knowledge (Kourula and Laasonen, 2010).
Overall by support these kind of activities, company encourage growth and development
of staff members.
 Create and maintain good relations with clients: Concept of corporate social
responsibility is very significant in build and maintain trust between clients and firm.
This strengthen tie ups, support in build alliances, foster strong working relationships
with new and existing workers (Godos-Díez, Fernández-Gago and Martínez-Campillo,
2011). One of the main way of achieving this is that firm ca partner with not for profits
firms to support outcomes and public values, where funds and resources may be limited.
In this way, it help firm in deliver public value outcomes.
 Help in create and and maintain a skilled workforce: Management of diversity support
enterprise in maintain a large and skilled workforce.
 Satisfy employees: When a firm implement concept of CSR in an effective way then all
this help firm in create and maintain a positive image in society. Due to positive impact
of CSR, workers feels motivated and perform well at workplace.
All these are the major benefits of CSR. In addition to this, it promote the positive stories
of firms in market which attract more number of customers towards company's offering.
Term diversity define that every individual is is different and unique from each other.
This can be with various dimensions such as age, physical abilities, beliefs, gender and on any
other basis. It encompasses respect and acceptance for individuals. This consists explanation of
these differences in a healthy and safe working environment. This is related with understand
each other and celebrate various dimensions with other individual. Effective management of
diversity support management in develop skilled workforce which support in execute business
activities in an effective manner.
It is very essential for The Berkeley Group Holdings Plc to follow the rules and
regulations developed by the society. One of the main benefit of this is that it help in develop
positive image of firm in market and attract more number of customers towards company's
products and services. This directly increase the profits of firm and and ensure long term survival
of company.
Cost to Corporate Social Responsibility
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With number of benefits, there are some cost related with the concept of CSR which are
as follows:
 Opportunity cost: This type of cost indicate the activity that firm fail to undertake due to
the labour and capital is bound in CSR activity, which sometimes results in lost of
revenues.
 Sunk costs: This type of cost highlights the cost of firm invested in new equipment,
infrastructure, building and resources such as waste water system, environmental health
and safety system and up gradation of machines.
 Recurrent cost: This type of costs consists cost such as labour costs for increased wages
due to overtime, an increase in time of management such as in meeting related with CSR.
In addition to this, all forms of training, social insurance, monitoring, benefits for
workers, reporting, maintenance and update of resources.
All these are the major cost related with the concept of CSR which should be consider by
the firms before go with it (Mishra and Suar, 2010). In addition to this , various benefits are there
which CSR offer to an enterprise. So it is very important for The Berkeley Group Holdings Plc to
adopt CSR in order to get all the benefits related with it.
Values underpinned by Ethics
Mainly field of Ethics consists, systematize, defend and recommend the concepts related
with right and wrong behaviour. Ethics seeks to resolve questions related with human morality
by define the concept of virtue and vice, right and wrong, good and evil, justice and crime.
Various theories related with Ethics are there which should be implement at The Berkeley
Group Holdings Plc as this guide manager in take ethical decisions at workplace.
 Virtue Ethics: This theory of ethics is the one that focus on the virtues or moral character.
Mainly, this a broad term, that emphasize more on character rather than doing one's duty
to bring good consequences (Pies, Beckmann and Hielscher, 2010). Virtue is known as a
trait of an individual. One of the main benefit of using a ethical theory is that it support
and guide manager on continuous basis to take right decision at workplace. This indicate
manager to provide equal opportunities for growth to every individual and there should
be no discrimination at workplace on basis of gender. Women should also get equal
opportunities for growth and promotion at workplace. All this help in create and maintain
a positive environment at workplace and enhance the productivity of firm which directly
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increase its profits. Ethical theory help management in take right and fair decision at
workplace. One of the main benefit of ethical theory is that it highlights the values at
workplace which impact on decision of managers. Ethical theories not only affect the
decisions of managers but at the same time impact all business activities and ensure their
completion in ethical way. An effective ethical theory help firm in better satisfy the needs
of its stakeholders and fulfil the requirements of its customers. All this help organisation
in retain customers for a long time period. Further, it help in create and maintain a
positive image of firm in market which attract skilled workers towards firm. This ethical
theory indicate that discrimination should not take place at workplace on basis of gender
and both men and women should given an equal opportunity of growth in enterprise. One
of the main benefit of theory of ethics is that it help management in become a responsible
one which provide number of benefits to firm. This encourage employees to perform well
which increase the profits of firm (Boddy, Ladyshewsky and Galvin, 2010). Ethical
theory adopted by an enterprise indicate the ethical values of firm and give shape to its
business activities and operations.
 Deontology: Deontological ethical theories indicate that individuals should follow all
duties and obligations when participate in decision making process. This means that a
person will follow his/her own obligations to society upholding one's duty is what is
considered ethically right. An individual who follow deontological take very consistent
decisions based on set duties (Kaptein, 2010). This ethical theory contain various positive
features but has some flaws also. One of the main flaw is that there is no logical base for
set duties of an individual. Sometimes duties of a person are in conflict. When a manager
adopt this ethical theory at workplace then he take decisions as per his own obligations
and at the same time encourage employees to act accordingly.
One of the main advantage of ethical theories is that it encourage ethical thinking and
decisions of both employees and managers. However this also contribute in management of
diversity. When a firm adopt effective ethical theory then it help firm in create and maintain a
positive image of enterprise which provide various benefits to firms. Further, ethical theory help
enterprise in create and maintain good relations with customers and retain them for a long time
period. One of the major benefit of ethical theories is that it encourage employees to think and
act ethically which ensure completion of business activities in ethical manner. Further this reduce
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the cost of business operations which help firm in offer quality products to its customers at
affordable prices. Ethical behaviour of employees and managers add value to business activities
and increase profits of firm. Managers of employees of The Berkeley Group Holdings Plc
should perform in ethical way. In this way company can achieve its set goals and objectives in
effective way and at the same time can serve more number of customers.
Ethical theories include systematizing , recommending and also defending concept of
wrong and right behaviour. There are two main theories of ethics which are given below as
above:
Utilitarian theory- It is normative theory of ethics and it places locus of wring as well as right
solely on outcomes of selecting one policy over the others. The main aim of this theory is to
promote biggest happiness for greatest number. Although, they work as a property develop in the
UK whom need to perform better and supportive articulation of projects. Thus, they could
maintain ethical consideration in frame through securing each and every individual properly.
Descriptive theory- It is a main form of an empirical research in to attitudes as well as
behaviour of people. This kind of theory contrasts with the prescriptive ethics and prescribes
how to act with meta ethics. It is related to experience and assembles the prescriptive theories.
Exploring environmental sustainability
Environmental sustainability refers to the process of identify and maintain the elements
that contribute in management of environment's quality on a long term basis. Further,
environmental sustainability is known as the rate of renewable resource depletion which can be
continued indefinitely. If resources fail to continued indefinitely then it means that they are not
sustainable. One of the main aim of environmental sustainability is to conserve natural resources
and at the same time develop alternate sources of power and decrease harm to the environment
and reduce pollution. In today's business environment, environmental sustainability refer as one
of the most significant issues for many enterprises. Various functions and activities are perform
by organisations for satisfy the needs of end consumers and to generate a large number of profit.
Various activities create pollution and harm the environment. Further firm use various non
renewable resources for carry out their production process. Concept of environmental
sustainability encourage effective utilisation of natural resources for provide long term benefits
to both firms and environment. It is very essential for Berkeley Group Holdings Plc to give
relevant emphasis on this issue as with this firm can ensure its long term survival in market and
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at the same time can minimise the harm to environment. Customers, suppliers, employees,
government, shareholders, local community, banks, creditors and management all play a
significant role in concept of environment sustainability of firm. For example, management
remain liable to make sure that environment is preserved while carry out various business
operations. Workers remain responsible to comply with the policy use by firm for being more
sustainable. Shareholders largely affected by the policies and methods execute by organisation
for undertake business operations. In relation to major environmental areas, Berkeley group
holdings plc is committed to following:
 Make efficient and proper use of land and for this firm focus more to complete the
projects that ensure utilisation of under utilised land and resources.
 Select materials for carry out production process for environmental impacts.
 Minimise the amount of waste and carry out production process in an effective manner.
 Provide support to firms that encourage enhancement and protection of environment.
Advise to company
For make ethical decisions at workplace and to contribute more in social development of
society following are the main things which can be done by The Berkeley Group Holdings Plc:
 It is highlighted that firm want to remove the discrimination from workplace in order to
better satisfy the needs the employees and to retain them for a long time period. Various
ethical theories are there which can be adopt by firm for this (Verhezen, 2010).
 Concept of CSR offer various benefits to enterprise but at the same time give rise to
various business cost so all this must be consider by firm while plan CSR.
 It is very important for firm to identify the requirement of its stakeholder and than
formulate plans as this help firm in get the support of all stakeholders which provide
various benefits to enterprise.
 Various laws such as fair remuneration and equal treatment to all workers should be
consider by firm, with this, firm can remove discrimination from workplace and at the
same time can motivate workers to perform well. All relevant factors should be consider
by firm during formulation of policies and strategies.
 Firm can donate funds for social development of society and its members.
 Effective policies should be formulated and adopted by firm to manage diversity.
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 Company require to encourage its employees to understand the to identify the differences
of each other and respect the same.
 Further, firm can use various theories of ethics in order to ensure ethical behaviour of
employees at workplace.
 Corporate Social Responsibility is one of the essential concept for an enterprise as this
provide an opportunity to take decisions for development of society.
In order to implement the CSR in an effective way and to get maximum benefits of it, this
is very essential for The Berkeley Group Holdings Plc to adopt a effective ethical theory. Further
proper management of diversity should be there at workplace. With this completion of business
activities in ethical way can be achieve by firm and development of society can be ensure
(Mason and Simmons, 2014). Activities carry out by firm should be evaluate on continuous basis
as this help enterprise in introduce improvements, if necessary. Further, concept of corporate
social responsibility help firm in attract large number of audiences towards its offering which
ensure survival of firm in long run.
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REFERENCES
Books and Journals
Bayou, M. E., Reinstein, A. and Williams, P. F., 2011. To tell the truth: A discussion of issues
concerning truth and ethics in accounting. Accounting, Organizations and Society.
36(2). pp.109-124.
Boddy, C. R., Ladyshewsky, R. and Galvin, P., 2010. Leaders without ethics in global business:
Corporate psychopaths. Journal of Public Affairs. 10(3). pp.121-138.
Carroll, A. and Buchholtz, A., 2014. Business and society: Ethics, sustainability, and
stakeholder management. Nelson Education.
Dawson, P. and Daniel, L., 2010. Understanding social innovation: a provisional
framework. International Journal of Technology Management. 51(1). pp.9-21.
Fassin, Y., Van Rossem, A. and Buelens, M., 2011. Small-business owner-managers’
perceptions of business ethics and CSR-related concepts. Journal of Business ethics.
98(3). pp.425-453.
Garavan, T. N. and McGuire, D., 2010. Human resource development and society: Human
resource development’s role in embedding corporate social responsibility, sustainability,
and ethics in organizations. Advances in Developing Human Resources. 12(5). pp.487-
507.
Godos-Díez, J. L., Fernández-Gago, R. and Martínez-Campillo, A., 2011. How important are
CEOs to CSR practices? An analysis of the mediating effect of the perceived role of
ethics and social responsibility. Journal of Business Ethics. 98(4). pp.531-548.
Jin, K. G. and Drozdenko, R. G., 2010. Relationships among perceived organizational core
values, corporate social responsibility, ethics, and organizational performance
outcomes: An empirical study of information technology professionals. Journal of
Business Ethics. 92(3). pp.341-359.
Kaptein, M., 2010. The ethics of organizations: A longitudinal study of the US working
population. Journal of Business Ethics. 92(4). pp.601-618.
Kourula, A. and Laasonen, S., 2010. Nongovernmental organizations in business and society,
management, and international business research: Review and implications from 1998
to 2007. Business & Society.49(1). pp.35-67.
Mason, C. and Simmons, J., 2014. Embedding corporate social responsibility in corporate
governance: A stakeholder systems approach. Journal of Business Ethics. 119(1). pp.77-
86.
Mingers, J. and Walsham, G., 2010. Toward ethical information systems: the contribution of
discourse ethics. Mis Quarterly. 34(4). pp.833-854.
Mishra, S. and Suar, D., 2010. Does corporate social responsibility influence firm performance
of Indian companies?. Journal of business ethics. 95(4). pp.571-601.
Pies, I., Beckmann, M. and Hielscher, S., 2010. Value creation, management competencies, and
global corporate citizenship: An ordonomic approach to business ethics in the age of
globalization. Journal of Business Ethics. 94(2). pp.265-278.
Verhezen, P., 2010. Giving voice in a culture of silence. From a culture of compliance to a
culture of integrity. Journal of Business Ethics. 96(2). pp.187-206.
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