Ethics and Corporate Social Responsibility

Running head: LEARNING MANAGEMENT SYSTEM
LEARNING MANAGEMENT SYSTEM
Name of the Student
Name of the University
Author Note

1LEARNING MANAGEMENT SYSTEM
Q1.
Ethics is considered to be a moral philosophy. An individual’s ethical framework is
assembled upon an individual’s philosophical framework.
A company like Volkswagen had faced immense backlash for unethical decision that
had been taken by the company. It was reported that Volkswagen had received a notice of
violation of the Clean Air Act from the United States Environment Protection Agency. The
cars that were manufactured by the company were programmed in a way that during road and
lab tests the nitrogen oxide emission was of considerable amount but the on road emissions
were forty times higher than the amount shown during the tests. It was later found out that the
manager of the company knew about this yet tried covering it up for the company. This
shows how the managers just to see the sales and the profits of the company and reflect on
their ethics.
The banking industry has been very active in Offshoring these days. Several banks
have been setting up their business in other countries to expand their business and generate
more revenues. Offshoring has been beneficial for the developing countries as it has provided
job opportunities however it has had negative impacts on the employees as well as the
country they are operating in. The banks had generated good amount of revenue but gave low
wages to the employees. This shows that the managers and their ethical philosophy do not
align with the social and moral goals of the society. The managers of the banks were
interested in their profits rather than the benefit of the country they expanded in and nor for
the employees residing in different countries.
In India the company PepsiCo was accused of having pesticides in their drinks. The
CEO of PepsiCo India, Indra Nooyi blamed herself for the controversy and not being able to

2LEARNING MANAGEMENT SYSTEM
control the safety measures (Gentleman, 2019). However she later assured that the drinks will
be safe and the reports will be shared with the government so that people can consume it.
Here we see the transparency of the leader and the ethics where the leader had taken
credit for the fault and issues in the company rather than hiding it. The company has been
taking strict measures since then making it one of the most successful companies over the
world.
Q2
Good corporate social responsibility (CSR) show the ethics of the company and also
the concern that the company or organization has for the society. There have been many
companies who have been successful by combining the commercial objectives and social
goals that have helped companies to build a competitive advantage in the market. A company
like TOMS has been successful partly because of the CSR and the social message they put
out (Schiebel and Pöchtrager 2003). The owner of the company TOMS had come up with the
idea,where with each purchase a person will help to donate the poor and the needy shoes and
glasses that they require as they are a necessity and this has affected the lives of many poor
people negatively. It has been seen that the sales of TOMS had shot up and increased day by
day because of the noble cause. People always want to associate themselves with the good
that made them buy TOMS products thinking they are contributing to a good deed.
However, many times commercial objectives and social goals cannot be aligned or
combined together. In the case of Volkswagen it had been seen that the managers and the
companies tried covering up the emission of gases from the cars that were violating the U.S
laws as they could not meet the standards of the U.S protocol of the emission of gases. A
social goal is to preserve the environment and its people. In this case even if this would have