Business Ethics and Corporate Social Responsibility

This assignment delves into the fundamental principles of business ethics and corporate social responsibility (CSR). It examines various definitions and models of business ethics, highlighting their relevance in contemporary business practices. The discussion encompasses Carroll's CSR pyramid, illustrating the different dimensions of corporate social responsibility. Moreover, the assignment explores the concept of the triple bottom line, emphasizing the integration of economic, environmental, and social considerations in business decision-making.

CRITICAL SURVEY OF
CORPORATE SOCIAL
RESPONSIBILITY

Table of Contents
INTRODUCTION...........................................................................................................................1
Business ethics............................................................................................................................2
Corporate social responsibility....................................................................................................3
Scope and responsibilities associated..........................................................................................3
Theories and models...................................................................................................................4
CONCLUSION................................................................................................................................8

INTRODUCTION
Globalization provides business units effective measures to succeed within the economy.
International market has posed effective and wide range of competition for individual units and
large business firms. Companies are adopting unique competitive measures to develop a
competitive edge within the market. Organizational growth focuses on creating an effective
brand image within the economy (De George, 2011). Ethical business practices is an effective
and well developed measures for the same.
Business ethics focuses on making right decisions for the company in order to develop an
effective and well developed brand image within the market. According to Weiss, (2014)
corporate social responsibility is defined as a commitment of business units to carry out ethical
business practices and effectively contribute towards economic development while improving
the quality of life of the community. The present report will analyse the theoretical aspects of
different CSR activities undertaken by the business units and will analyse its impact on the
growth and development of the business. It will critically evaluate the theories and measures
associated with the subject in order to draw a clear and effective picture of the subject.
Business ethics
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According to Shaw, 2016 business ethics focuses on developing effective and right
measures of adopting business practices to attain the business objectives in well defined measure.
It helps the business units in managing and maintaining the competitiveness and legal parity
within the economy to effectively attain trust and loyalty of the stakeholders. Fassin, Van
Rossem and Buelens, 2011 stated in the research that effective and well defined business
practices will help the companies in creating a sustainable growth measures within the economy.
Business ethics has been defined as a study of business practices and policies regarding potential
issues and factors affecting business practices and growth within the market. It ensures
transparency of data, well defined policies and measures for employment practices, handling
issues related to corporate governance, insider trading, employment rights and stakeholders'
growth and development within the market (DesJardins and McCall, 2014.).
Blombäck and Scandelius, (2013) mentioned that business ethics are implemented in
order to ensure that a certain required level of trust exists between consumers and various forms
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Illustration 1: Features of business ethics
(Source: Hoffman, Frederick and Schwartz, 2014)

of market participants with businesses. Hence, it can be analysed that ethics helps in
differentiating between good and bad, right and wrong, fair and unfair and moral or immoral
business practices. It basically focuses on ensuring the righteousness of business practices and
code of conduct within the market. It is adopted by the companies in order to enhance market
competition and growth measures within the economy to create an effective and well defined
brand image within the market.
Corporate social responsibility
Modern business practices has effectively adopted CSR practices within the market in
order to create an effective and well defined brand identity of the organizations. According to
Ellerup Nielsen and Thomsen, (2009) CSR is a modern practice which reflects the
responsiveness and commitment of organizations to enhance the quality of life of all the
associate people with the business activities. It has become the integral part of the business units
which has helped in creating a positive impact on the society. Businesses has analysed its
responsibilities and roles towards the well being of stakeholder and environmental effectiveness
in the modern economy. It helps the business units in spreading trust and loyalty for the
effectiveness of products, services and business practices adopted by the companies in order to
enhance growth and development.
Different authors have interpreted varied views regarding the concepts and meaning of
CSR. McWilliams, Siegel and Wright, (2006) analysed CSR as social responsibilities of the
business which oblige businessmen to make decisions and policies according to societal norms
and policies to follow the line of actions and attain desirable objectives for economic growth.
Ligeti and Oravecz, (2009) viewed CSR on the four well defined spectrum of economic, social,
legal and discretionary parameters. Hill and et.al., (2007) analysed CSR practices as an effective
measure to develop social impact of commercial practices while Cadbury (2006) defined it as
obligation of business towards employees, consumers and society for developing a positive
brand image within the market.
Scope and responsibilities associated
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Increasing competition within the economy and rising level of commercialization has
forced the companies to adopt an effective well defined measures for enhancing growth and
development of the business units. According to Carroll and Shabana (2010) the scope of CSR is
to determine and define the measures organizational contribution towards growth and well being
of the society. Businesses are increasing adopting unique measures of social responsibilities for
developing a positive and influential impact on the employees and consumers of the company.
As per Jennings, 2014 the scope of CSR is vast and dynamic within the society. The definition of
right and wrong is difficult to determine however it helps companies in creating an effective well
defined market position within the economy.
Ethical business practice is first and most significant and platform of business growth and
development within the economy. It helps the company in creating a well structured and
competitive internal policies for the development of business units. Ethical practices are defined
through the effective code of conduct, well defined growth measures for society and fair internal
practices for employee growth and development. This helps the companies in developing
effective trust and loyalty within the economy. Bageac, Furrer and Reynaud (2011) stated that
CSR in the economy has helped companies in enhancing the fairness and transparency of
business unit. This has helped people in creating an effective and well defined impact on
organizational growth and brand loyalty. Audi (2012) examined that in this highly competitive
market companies adopting CSR measures has attained high measures of success as it has helped
in convincing consumers for products and services of company products. For example well
defined CSR activities of Primark has helped the company in developing a valuable brand image
within the market. The company has adopted effective measures of empowering women of
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underdeveloped nation such as Bangladesh and enhancing employment opportunities in the
nation (De Cremer and et.al., 2011). This measures have helped the company in developing the
brand image through enhancing market sales and growth within the economy.
Theories and models
Different theories and models has been defined and developed by different authors. This
has helped in effectively defining the theoretical aspect of CSR for society at large.
Tripple bottom line approach
Illustration 2: Triple bottom line
(Source: Follesdal and Koslowski, 2013)
This is the most effective and widely used model to defined and analyse the CSR
activities of the business units within the highly competitive market. This is commonly referred
as the three dimension model for CSR. According to Ciulla (2013). companies adopt these
measures in order to develop a competitive position within the economy by enhancing growth
and development aspects for the business. This model has resulted in successfully meeting
social and environmental standards without compromising their competitiveness.
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The social dimension according to Becker (2012) focuses on undertaking the social
impact for the business into effective consideration. In the present era of conceptualization and
high market competition the need and demand for social growth of businesses is significant.
Companies create an indefinite brand image by focusing on the social needs within the economy.
They consider the diversity factors effectively thus develop a well developed brand image in the
market. The social dimensions are categorised into the needs of consumers, employees and
public at large. Companies adhere these needs by developing equal employment opportunities
and complying to human right issues. Moreover, producing as per the needs and demands of the
consumers helps in developing a well defined brand image for public.
Economic dimension of CSR focuses on internal growth and development of the
business. This dimension according to Grassl and Habisch (2011) is significant part of
organizational success as high profitability of business helps in enhancing the economic growth
of the country and ensures the economic stability and development of employees as well. This
measures of social responsibility helps in enhancing profitability of the business to enhance the
development of the country. In addition to this transparency of data and effective growth policies
of employees associated with the company helps in developing influential internal and external
relations for the business. This business dimension according to Ellerman (2015) develops a
foundation for social growth and responsibility within the economy.
Environmental dimension of the stated model focuses on the planet aspect. This define
the business practices that the companies adopt in order to create an effective and well defined
market position within the economy. According to Follesdal and Koslowski (2013) every
business unit has a responsibility towards the economy and environment which it works in. The
Eco-friendly practices of business helps in creating an effective impact on government and other
business units. Environmental development of the business units helps in creating a well defined
brand image within the market.
Triple bottom line approach is a widely accepted and well defined measure within the
economy. Carroll and Shabana (2010) stated that the dimension of the approach has been
effectively defined and measures by businesses however and it lacks the ability of defining the
priorities of dimensions. A business unit can adopt the practices however which dimension
should be focused upon to attain high success within the market is not defined.
Carrol's pyramid of CSR activities
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This model of CSR focuses on recognizing the significance of social responsibility
beyond profit maximization for the organization. The model analyses four significant dimensions
of business growth and development and has created an effective and well defined impact on the
social growth and development. According to Audi (2012) economic growth is the significant
and most crucial need of the business unit. The economic stability of organizations helps in
ensuring employee stability and well being. For example Primark focuses on enhancing sales and
growth measures within the economy in order to enhance its growth aspects within the market.
This has helped the company in creating a well developed impact on well being of employees
through economic development and success.
Legal responsibilities of the business is another dimension of business growth. It has
helped the business unit in creating an effective ans well defined brand image within the market.
This obligation of the business focuses on creating an effective brand image on the employees
through abiding legal obligations and duties. The legal rights of the employees, compliance of
environmental policies, undertaking competition roles and abiding and consumer laws has helped
the company in creating an effective and well defined brand image within the market (Hill and
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Illustration 3: Carrol's CSR Dimensions

et.al., 2007.). This measures helped the company in creating trust and loyalty by stakeholders
and government officials. For example case of TESCO loss in 2015 revealed that non
compliance to the legals obligations for the company created an adverse impact on the brand
image of the company which resulted in high labour turnover and immediate fall in the sales of
the business. This resulted in loss of GBP 4.7 billion for the company which ineffective and
insignificant (Ellerup Nielsen and Thomsen, 2009).
The ethical obligation of the company is the next priority of the model. It demands that
the business practices for the company must be right, fair and just. These attributes of the
business helps the company in creating an effective and well defined brand image within the
market. The final focus of the business is on Philanthropic responsibilities. These business
responsibilities are defined beyond the expectations of the citizens (Shaw, 2016). Philanthropic
responsibilities differ from ethical types based on the fact that they are merely desired by society
and not expected in any obligatory moral form, making them less important compared to the
other three.
The overall analysis of the business focuses on analysing that the growth and
development of the business has a direct impact on the growth of the business unit. Companies
have created an effective and well developed impact on the organizational development
measures. The ethical and CSR activities has created wide and significant demand within the
economy (Blombäck and Scandelius, 2013). Companies develop a well defined brand loyalty
within the economy as the impact of economic growth is widely visible in the market. The
impact of social growth and responsibility has developed an effective impact on overall demand
within the economy. Choosing right message channel is yet another significant part of the CSR
communication framework. In addition to this demand for effective communication measures is
also a significant demand for the companies. Every business organization in the present era is
focusing on unique CSR measures in oredr to develop an effective brand image within the
market. Businesses adopts CSR communication measures in order to develop high impact on
developing awareness and positive attitude within the community for the organization (Hoffman,
Frederick and Schwartz, 2014). It has helped in creating an integrated growth measures for the
companies as trust and loyalty within the economy has created a valuable impact on sales
enhancement for the business.
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CONCLUSION
The above report developed a clear and in-depth understanding about different aspects of
CSR and ethical business practices adopted in the present era. It helped in evaluating a range of
theories and models to understand the business practices adopted by the companies in order to
create a competitive edge within the market. The present report helped in analysing a wide range
of factors which develops a direct and indefinite impact on corporate social practices of the
business. The analysis of business competitiveness helped in maintaining effective brand image
for business by undertaking the social, economic and environmental well being. Hence, on the
basis of the above study it can be analysed that CSR has developed an effective and well
developed impact on the business growth and development.
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