Social Responsibility of Business

This report discusses the importance of social responsibility in business and its impact on companies and society. It explores the case of Royal Bank of Scotland and the role of management theories in teaching moral responsibility. The report also highlights the significance of whistleblowers in exposing unethical practices and the need for ethical business practices. It emphasizes the role of educational institutions in shaping ethical business practices.

Social Responsibility of
Business
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TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
CONCLUSION................................................................................................................................6
PART 2............................................................................................................................................7
INTRODUCTION...........................................................................................................................7
Evaluation of Whistleblower phenomenon.................................................................................7
The way social responsible organisation considered whistleblowers..........................................8
CONCLUSION................................................................................................................................9
Part 3................................................................................................................................................9
Reflective Piece...............................................................................................................................9
REFERENCES..............................................................................................................................11
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INTRODUCTION
Social responsibility of business can be understood as one of the most important
business ethics on which companies need to focus for being ethically responsible towards its role
and objective towards society. Royal Bank of Scotland is one of the most prominent bank among
UK having large customer based market share but with resent scandal cases and involvement in
unethical business practices have highly affected overall working profitability. This report
explains how management theories and practices taught within business schools play an
important role to teach moral responsibility of business for conducting businesses by companies.
PART 1
The changing business world globally has given rise to scandals in corporate sectors
which have been highly increased due to lack of educational institutions where the sense of
moral responsibility is lacking to be taught. Social responsibility in international business is
highly important with developing business scenario where companies should govern to ethical
responsibility for maintaining goodwill among competitive business environment. Corporate
scandals in digital business world have been rapidly increasing with fail of educational systems
where there has been found that business schools are freed from teaching of moral responsibility.
The conduct of business and law within companies should be rationally analyzed with
governance of ethical responsibilities towards people , society and consumers who are the most
integral business stakeholders. Educational systems have the role to bring ethical responsibility
of business to be taught to students who are studying business courses and MBA which further
aid in their professional careers and business establishments. Bad management theories
negatively impact entrepreneur mindsets on various parameters which influence networking
channels on which companies are operating their business. Royal Bank of Scotland has been
involved in scandal where the claim of tactics to deal with SME clients, where the story analyzes
the bank has been indulging in unethical practices. Insider information being leaked by the
company management and the various practices through which small business clients in
partnership where RBS business interests are hurt highly influence the business operations and
also goodwill. Educational systems have huge role to play in governing ethical business practices
which determines the parameters on which companies and young minds develop their new start
ups (Tran, 2019).
With increasing uses of technology and internet digital platforms for marketing and
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business operations in companies there are also an increase of unethical business practices,
leakage of data and unethical business practices to gain wrong business positioning by
companies. Unethical business practices not only affect business parameters within which
employees are connected and are working towards in company through which overall goodwill is
affected negatively on various paradigms. Companies who are start-ups within industry are
highly affected with less synergy of business ethics as high focus is governed many times
towards profitability attainment and competitive business expansion. The countries globally are
undergoing rapid change with innovative technology, innovation where management ethics
compliance positively builds goodwill but on another hand bad business ethics affects on various
determinants. RBS scandal affects company business revenue on various margins as the goodwill
is highly lowered, potentially there has been negligence to govern practical actions to stop
unethical practices. Companies have social responsibility towards stakeholders, employees and
society overall under which the operations are managed which affects the future profitability of
operations, rational connectivity with business programming and goodwill worldwide. Globally
social responsibility towards society works as an evocative method to rationally bring varied
customer segments close to company networking channels which impacts on promotional
avenues. RBS scandal enables us to analyze that business must be practiced with ethical
responsibility and rational vital information being optimistically shared with stakeholders and
shareholders. The working of business ethics compliance positively evolves productivity on
which further goodwill among shareholders can be enhanced, technically embrace innovation
and creativity to reach large segments of customers. Stakeholders who are educated from
business schools, employees who are working within company have the role to diversely use
ethical management theories through which further productivity can be developed. Business
schools have the role to explain ethical morals of business to young minds who are on their way
to operate new business structures, study should be focused towards integration of good
management practices (Rand, Tarp and Trifkovic, 2020). These factors enable companies to
work on strong business parameters of ethical responsibilities towards society through which
customers are ethically satisfied with company business operations.
Businesses are highly responsible towards society on whole for promotion of goals
on which the functions are based, leveraging the basis on which further productivity is
established. Global scandals among companies can be analyzed with the view that businesses
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with competitive spirit to gain benchmarks among competitors are often involving in unethical
business terms, leveraging the key sources which are also competing with other brands in same
industry (Khan and Lockhart, 2019). The various digital platforms of technology and multimedia
has given shape to various connectivity within set business targets, through which ethical
practices shall be enhanced. Employees play an important role in bringing ethical business
standards in shape among all departments within company, where research functions should be
targeted towards gaining optimum advantage in industry. Business social responsibility is one of
the most important avenue on which company need to access high edge presentation, with focus
towards completion of ethical responsibilities towards business set targets and functionally
represent various determinants. The educational institutions have role to play an evocative role in
shaping young minds into future successful leaders, where teaching of good management
theories reflect on which companies need to generate focus for promotional business aspects.
The teaching within business schools should be focused towards integrating moral responsibility
towards society so which overall functioning of creative minds is evolved for building strong
working model. Goodwill among competitive business scenario can be vitally attained through
training employees in companies for ethical business practices, keenly addressing customer’s
preferences and the various rational ethical goals on which further profitability can be attained.
RBS scandal has emerged various business points and insights through which it can be
understood that legal compliance of laws, importance to connect with stakeholders for highly
embracing ethical business practices. Scandals in business scenario among companies are highly
common with increasing cases of data theft and unethical business practices which affect overall
goodwill among consumers (Harrison, Ferrell and Hair, 2019).
The RBS scandal has showcased various parameters where businesses needs to focus
social responsibility and ethical norms to upgrade their business networking channels for gaining
strength on business objectives. Ethical business governance enhance overall productivity of
policies by which customers services can be developed for future profitability and goodwill
attainment. Business schools should focus towards motivating young minds towards creative
development of their business perspectives, how various parameters can be leveraged through
ethical completion of responsibilities. There shall be more emphasis towards good business
practices teaching, instead of only focusing towards gaining competitive spirits through which
brands can keenly address the various profitability targets and functional performance (Crane,
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Matten and Spence, 2019). Social responsibility towards business leverages various productivity
goals and the approach with global business networks where companies should attain
benchmarks through their performance standards. The research by various authors analyse that
ethical social responsibility in business is developed originally from business schools study,
courses of marketing and positive theories. These theories focus towards integrating various
business potential objectives in their framework through which various business relative goals
can be structured for long term attainment. Worldwide companies are adding investments and
funds towards CSR activities to enhance their connectivity with global customers, societal
business perspectives and rational synergy is targeted to positively develop fundamentally on
various benchmarks. The educational institutions, schools and universities should also focus
towards moral responsibility of businesses by companies and what negative impacts further it
can cause on goodwill, profitability goals. Business should be focused towards ethically
connecting customers and stakeholders with ethical norms, social campaigns with partnerships
along various new companies through which high end targets can be achieved for productive
extension. These factors of ethical social responsibility highly improves various arenas on which
company operations are spread, their future relative expansion gaols which are highly important
in addressing how company plans to expand and ethically enhance its development. RBS bank
scandal has brought various principles of marketing, business ethics which were highly neglected
on various parameters which further lead to optimum resources allocation and keenly addressing
various business objectives under which further goals need to be achieved (Barnett, 2019).
CONCLUSION
The report can be concluded with explanation that social responsibility in business is
highly important and foremost objective to structure gaols on which future performance and
objective are set. Report concludes case of RBS bank where the ethical business practices have
highly impacted its internal structure, stakeholders connectivity and the various leveraged future
potentialities they can gain. Report concludes business schools often neglect teaching the moral
responsibility of business towards society, legal operations on which ethically they need to
connect with customers. Report has further concluded impact of bad business theories on
company networking of business channels, potential distribution of viable objectives and the
greater focus on good theories which will leverage goodwill to company.
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PART 2
INTRODUCTION
Whistle blower is a person that exposes unethical, illegal practices of particular organisation
that may adversely impact on customers and employees that are working within firm. Company
in order to grow and survive in the market needs to follow ethical practice while operating
different functions. Theories and example of organisation is used to explain about whistle
blowing phenomenon and the way social responsible firm ought to regard whistleblowers.
Evaluation of Whistleblower phenomenon
Whistleblower provide information about in just practices and error in operation of
business that possess threats on safety of customers such as RBS new scandal which state that
certain document were leaked by whistle blower that show evidence about bank profitability
from demise of small and medium enterprises. Whistle blowers are person that leak illegal
information and unethical practice to people that are affect by operation of business. For example
in scandal of RBS whistle blower has explained to small scale medium business about such
unethical practice that has cause mental and financial stress to people (Hong, Li, and Minor,
2016). Whistle blower may be employer of firm, competitors or customers that expose company
unethical practice through collecting lot of evidence so that it can be punished for unjust to
society. They also collect data, crucial information of business through unethical manner but
they are for better and benefit of society. There are various rumour about company but the
person who has appropriate evidence of information is titled to provide justice to another people.
For example whistle blower collects RBS, customer response and document so that actual
situation and scandal can be understood for accurate decision making. Different theories of
whistle blower can be used to explain phenomenon of whistle blower helps in creating ethical
dilemmas by informing about unethical practices of organisation (Areal, McIntosh and Sheppy,
2016). As per point of view of other people revealing unethical acts is social and moral
obligation of individual for better safety and security of other people. Therefore various theories
are as follows:
Egoism: This theory states that individual perform such activities that help in gaining personal
objectives or that are related to self interest. Therefore individual that knows about unethical
practice of firm does speak or whistle blow because they think what will they get from whistle
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blow but in reality it is honour of professional rather than self advancement. Thus, the theory
want to explain if even individual is not getting benefit from it than also person need to expose
unethical practices. Such as in case of while blower discloses facts of scandal of RBS bank not
for its ego but for benefit of another people.
Utilitarianism: This theory state that an action of individual will be benefited to large number of
people to greatest extended. Utilitarianism also explains that action that creates more happiness,
goodness is much better and viable to other action. Therefore whistle blowing might be good in
case it provide benefit and advantages to large number of people in maximum amount. For
examples: In case of RBS whistle blower has leak such document that helps wide range of SME
business to realise their tension and mental pressure (Kolk and et.al., 2019). Thus, leaking of
firm information was ethical practice and social responsibility of individual for greater happiness
of large number of small businessman.
Deontology: In this theory individual consider its action and then evaluate whether action can be
universally accepted or not. Thus it helps in finding unethical practice that need to be avoided for
smooth operation of business. Whistle blow helps in identifying various steps that need to be
followed by company or ethical practice to apply them universally. For examples: Buzz Feed
News use document, record memos and meeting to explains about the way RBS bank has forced
SME to join GRG.
Factors psychology: Children upbringing, moral principle teaches by its parents helps an
individual to act in particular manner or frame its behaviour. Social development of individual
helps in it to follow ethical practice and disclose information that are harm for other people in the
society (Sen, Du and Bhattacharya, 2016). Such as whistle blow of RBS has high moral ethics
and principle so it expose all crucial information of bank such as document, mail for security and
safety of SME.
The way social responsible organisation considered whistleblowers
Social responsible organisation can take crucial steps for growth and development of
society and offer such products and services that are ethical in manner and ensure better health of
people. Social responsible organisation makes certain policies and procedure for whistle blower
at the same time follow ethical practices for effective operation of business. Implementation of
polices for whistleblower and use of innovative technology helps in prevention of large amount
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of company data to leak. Company tries to continuous monitor and control its practice to avoid
whistleblower and protect it data so that nobody else can leak to general public. It gives first
priority to satisfy need of customers and employees that are working hard for better growth and
success of organisation so that no wrong information about company operation can be spread.
Social organisation itself provide various accurate and correct information to people so that no
such whistleblower can impact on brand image of firm (Frynas and Yamahaki, 2019). Proactive
approaches are used by social organisation which state that employees of firm need to inform top
management about unethical practice of company before it become get concern and affect large
number of people. Social organisations work on three principle commitment, integrity and
transparency so that chance of whistle blowing can be avoided for continuous expansion and
growth of company. Therefore it can be illustrated that social organisation main objectives is to
provide qualitative services and follow ethical practice to avoid whistle blowing.
CONCLUSION
It can be concluded that whistler blow are crucial every society as they disclose information
about unethical, illegal practices of person organisation that adversely impact on health and
safety of individual. Therefore whistle blowing possess high threats for company brand image
and customers satisfaction so social organisation take various steps so that no rumour can be
spread regarding company operation.
Part 3
Reflective Piece
In my opinion, there are top-level management within any business or company. of has
highly required to always fulfilling its BSR (Business Social Responsibility). This task to too
necessary for the bank, because currently most customer in the market like to purchase products
and services only from those businesses which always fulfils there BSR on time (Lim and
Greenwood, 2017). I have learnt that exiting management at any business need to highly
consider business social resistibility in its business environment. Basically, business social
responsibility gives opportunity to a business or company for increasing its brand value within
various markets segments. This is the main reason that, currently most businesses or companies
focuses on fulfilling their business social responsibility on time in the market. From my
prospective, a business is able to use different theories of BSR to properly fulfilling its business
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social responsibility in the market. On the basis of my knowledge, there are political theory,
corporate citizenship theory, instrumental theories, stakeholder theory etc. some major theories
of business social responsibly. In this situation, existing management of any business or
company should implement these all theories within its daily practices for effectively fulfilling
its BSR in the market. In my opinion a business can use corporate citizenship theory of BSR,
because this theory of BSR will give opportunity to a business for effectively working in public
welfare. Most businesses have already employed BSR’s corporate citizenship theory within their
business environment. When a company will use these theories of BSR in its daily practices,
then it will able to gain large customer base in within its respective industry.
I have learnt that, BSR (business social responsibility) give great opportunityto business
for improving its goodwill within various market segment. That’s why in my opinion, top-level
management within any business need to understand actual concept of BSR. Currently this bank
is able to take huge advantages from BRS, in which existing management of this business should
highly consider business social responsibility. On the other side, existing management of
company can use take proper advice from different business experts or consultants as well
(Uddin, Siddiqui and Islam, 2018). These business consultants can support to the company for
systematically fulfilling BSR in within the market. I have learnt that, for fulfilling business
social responsibility, a business can provide specific food to those organisations which work in
social welfare. For example; environment protection NGOs, child care organisations, social
healthcare organisations etc. On the other side, bank can fulfil business social responsibly on
self-basis also by opening free hospitals, colleges and school for poor people. These are some
productive steps to a business for fulfilling its business social responsibility. There is BSR can
give opportunity to a business for increasing its profit ratios in within its respective sector or
industry of the United Kingdom. In my opinion, currently top-level management in the different
companies are taking huge advantages from business social responsibility (Halkos and
Skouloudis, 2017). They are fulfilling their BSR on time within various market segments for
gaining huge competitive advantage in the UK’s market.
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REFERENCES
Books and Journals
Areal, A., McIntosh, B. and Sheppy, B., 2016. Hope and glory: an expanded social strategy
diagnosis model to incorporate corporate social responsibility within business
strategy. International Journal of Business Performance Management, 17(2), p.117.
Barnett, M.L., 2019. The business case for corporate social responsibility: A critique and an
indirect path forward. Business & Society, 58(1), pp.167-190.
Crane, A., Matten, D. and Spence, L. eds., 2019. Corporate social responsibility: Readings and
cases in a global context. Routledge.
Frynas, J. G. and Yamahaki, C., 2019. Corporate Social Responsibility: An Outline of Key
Concepts, Trends, and Theories. In Practising CSR in the Middle East (pp. 11-37).
Palgrave Macmillan, Cham.
Halkos, G. and Skouloudis, A., 2017. Revisiting the relationship between corporate social
responsibility and national culture. Management decision.
Harrison, D.E., Ferrell, L. and Hair, J.F., 2019. Business ethics, corporate social responsibility,
and brand attitudes: An exploratory study. Journal of Business Research. 95.
pp.491-501.
Hong, B., Li, Z. and Minor, D., 2016. Corporate governance and executive compensation for
corporate social responsibility. Journal of Business Ethics, 136(1). pp.199-213.
Khan, M. and Lockhart, J., 2019. Embedding Corporate Social Responsibility into Business
Practice: Lessons Learned from New Zealand. In Clean, Green and
Responsible? (pp. 87-105). Springer, Cham.
Kolk, A and et.al., 2019. 11 The state of international business, corporate social responsibility,
and development. Business and Development Studies: Issues and Perspectives.
Lim, J.S. and Greenwood, C.A., 2017. Communicating corporate social responsibility (CSR):
Stakeholder responsiveness and engagement strategy to achieve CSR goals. Public
Relations Review. 43(4). pp.768-776.
Rand, J., Tarp, F. and Trifkovic, N., 2020. Corporate social responsibility in a competitive
business environment. The Journal of Development Studies, pp.1-18.
Sen, S., Du, S. and Bhattacharya, C. B., 2016. Corporate social responsibility: A consumer
psychology perspective. Current Opinion in Psychology, 10. pp.70-75.
Tran, B., 2019. Corporate social responsibility. In Advanced Methodologies and Technologies in
Business Operations and Management (pp. 270-281). IGI Global.
Uddin, S., Siddiqui, J. and Islam, M.A., 2018. Corporate social responsibility disclosures,
traditionalism and politics: A story from a traditional setting. Journal of Business
Ethics. 151(2). pp.409-428.
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