What is the Relationship Between Business Ethics and Corporate Social Responsibility CSR )?

Running head: BUSINESS ETHICS
Business ethics
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BUSINESS ETHICS
Introduction:
The paper outlines the concept of CSR (corporate social responsibility) and assesses
the subscription of the companies to the codes of CSR. The CSR concept has become
dominant in the business reporting and in broader terms, the concept can be defined as the
relationship between the government of countries, global corporations and individual citizens.
It is the responsibilities that the companies imposes for regulating its activities and its impact
on the environment and ultimately helps in the promotion of welfare of economy,
environment, competition ethics and wellbeing of employees.
CSR is an evolving practice that is incorporated into the business model of the
company and sustainable development. Any companies would be able to demonstrate good
reputation and good relationship with the citizens using a robust program of CSR. CSR is
based on three principles of accounting, sustainability and transparency. CSR has
continuously succeeded because of its commitment to maintain and reputation for integrity.
The board of CSR results in full endorsement of the code of business conduct and ethics and
how the business is conducted under CSR is set out. As the responsibility, the concept of
CSR is the decision maker obligations for talking measures and actions to improve and
protect the society welfare along with serving their own interest (Trevino and Nelson 2016).
Discussion:
Critically assessing the concept of corporate social responsibility in terms of its adoption
by the company:
In this section, the concept of CSR is assessed for evaluating the adherence or
compliance of companies with the codes of CSR. CSR is viewed as the practice of
management that helps in safeguarding by curtailing the negative impacts of the activities on

BUSINESS ETHICS
the environment and at the same time making the most of the positive impacts in the best
interest of the company and its stakeholders. It is a voluntary contribution undertaken by the
organizations that driven them toward a better pristine environment and a better society.
Involvement of companies in the societal issues is one of the measures determining the
success of company. The social consequences and social necessities of any business is
reflected by the concept of CSR. Activities of being corporate socially responsible comprised
of communicated and expressed policies and business practices reflecting that enacts social
good by reflecting business accountability (Frynas and Yamahaki 2016).
On an increasing basis, the concept of CSR is viewed as a strategic tool for the
corporations and it morally drives them in an accountable and transparent manner. Business
are likely to obtain more customers and have a set of satisfied customers when they are
perceived to be socially responsible. When it comes to CSR, many business are hypocrites
and it is claimed of something worthwhile done by them and in real terms, some façade is
merely uphold by them. However, the claim of business engaging in any kind of CSR
activities is not believed by the consumers and most of the business endeavours of CSR is
viewed as the plethora of profit based motivation. As a consequence, many business adopts of
the activities of CSR because of the pressure particularly by the public. For undertaking the
activities of CSR, the key stakeholder are employees as the pressure of adopting socially
responsible behaviour are done by way of social transformation of employees. Embracing of
CSR is required to be done at the level of senior management and should form a fundamental
strategic business plan component (Savina 2016).
One of the change components concerning accountability and social responsibility is
recognizing the ethical importance in the organizational behaviour and activity. The value
system and the activities of a company is governed by the CSR activities and ethical
responsibilities. In this regard, the concept of CSR should be explored with an ethical

BUSINESS ETHICS
perspectives. Business are considered to be the integral part of the economic, social and
environmental system and therefore it is the responsibility of the process, structure and
activities of business to determine the impact of their activities on the stakeholder and society
as a whole. Limiting the concept of CSR to the efforts of business for addressing the
environmental issues as company beneficiaries, is not sufficient (Barnett 2019).
It is considered important to incorporate the concept of ethics in CSR and the fall out
effects of a company on the wider community. For long, CSR has been an important part of
responsible and ethical business practice due to the globalized economic development nature
that has gained attention. The need of the business being corporate socially responsible and
incorporating ethics has become so pervasive. Successful implementation of CSR requires
policies that is ethically sound and hence ethics forms an important part and core component
of the concept of CSR. The conceptual relationship between CSR and business ethics is
defined in a better manner by aligning the CSR activities and business ethics. It is believed
that when the decision making process of business incorporates ethics, a more productive and
effective economic resources utilization can be ensured (Kaymak and Bektas 2017).
Corporate social responsibility is the growing dimension of ethics and in classical
view, profit maximization of business is the social responsibility of the business management.
However, social responsibility in terms of socio economic concept, is about enhancing and
protecting the welfare of society as a whole and it goes beyond managing profit. Concept of
CSR and whether its adoption should be mandated can be explained using ethical theories.
One ethical theory that can be used to explain the concept and adoption of corporate social
practice by organization can be explained using utilitarian theory. The utilitarian principle of
wellbeing maximization or the utilitarian theory which concerns about the morality by
preventing as much bad as possible and doing good (Osuji et al. 2019). It is outlined by the
theory that the total sum of wellbeing should be maximized by the moral agent such as