Question-   MGT3219: BUSINESS ETHICS

Solution-

Question 1

Define the term “Corporate Social Responsibility.”

In your opinion, which is the strongest argument for corporate social responsibility. Explain your answer.

 

 

1.0 Introduction: Define the terms of Corporate Social Responsibility

Corporate social responsibility is a self-regulating business model that can help companies assume social responsibility for themselves, stakeholders and the public. Corporate social responsibility is an internationally recognized concept of responsible corporate behavior, although there is no clear definition. In short, corporate social responsibility refers to the company's ethical and moral obligations in terms of employees, the environment, competitors, the economy, and many other areas of life affected by its business. CSR is usually understood as a voluntary commitment to certain company rules, that is, beyond state laws and standards. This means that companies that operate responsibly and ethically can often also use their corporate social responsibility for public relations purposes. Knowing that the company voluntarily makes its own contribution to a good cause will improve its public image.

Participating in corporate social responsibility means that in the daily business process, the company's operating methods can improve society and the environment, rather than making negative contributions to society and the environment. Corporate social responsibility is a broad concept that can take many forms according to the company and industry. Through corporate social responsibility programs, philanthropy and volunteer efforts, companies can benefit society while enhancing their brands. As important as corporate social responsibility is to the community, it is equally valuable to the enterprise. Corporate social responsibility activities can help establish stronger connections between employees and companies, improve morale, and help employees and employers establish more connections with the world around them. To make a company socially responsible, it first needs to be responsible to itself and its shareholders. Usually, companies that adopt CSR plans have developed their business to the point where they can give back to society. Therefore, corporate social responsibility is mainly the strategy of large companies. In addition, the more visibility and success a company has, the more responsible it is to set ethical standards of behavior for peers, competition, and the industry.

Since the 1970s, organizations that can have a positive impact on social ethics and actively participate in social activities have been increasingly recognized by companies. There is constant interaction between society and enterprises, and people believe that in this way, social norms in the capitalist economy can be consolidated. Corporate social responsibility has existed as early as the end of this century, although it is more likely to be a promising ideal than a behavioral change. In recent years, as the globalized world pays more and more attention to environmentalism and ethical issues, corporate social responsibility has begun to take on stronger significance. The increasing importance of the Internet means that when business scandals, abuses of power and dissatisfaction are announced on social networks, companies that act irresponsibly will soon be ridiculed and deal a serious blow to public image. As a result, corporate social responsibility has evolved from the ideal of many companies to an important field of work. Corporate social responsibility and "corporate citizenship" are also often used as synonyms. The confusion of terminology shows that, on the one hand, corporate social responsibility is a broad field, covering many sub-fields; on the other hand, the term itself is misleading. This is because "responsibility" implies additional principles and emphasizes the voluntary nature of corporate social responsibility. Nowadays, large companies cannot but take corporate social responsibility seriously. Some people hire CSR experts who not only help to set the company's ethical code, but also monitor its implementation. If positive corporate social responsibility can be used for marketing and public relations, this can usually increase economic benefits. Everyone can benefit from implementing good corporate social responsibility. Sometimes, companies are accused of promoting CSR efforts and want to produce positive advertising effects and increase profits, rather than out of moral motivation. Therefore, critics simply equate corporate social responsibility with marketing. On the other hand, there is also a broad view that the intention behind corporate social responsibility is not important, as long as it ultimately benefits people.

 

2.0 Which is the strongest argument for corporate social responsibility.

In my opinion, I think the strongest argument for corporate social responsibility is long term good for business. Because the company's implementation of CSR will bring many benefits to the company in the long run. I will elaborate on them one by one below.

 

2.1 Improved company’s public image

Any business that involves the realization of social aspirations will build a better image among the public. For those who run a business, the creation of this image is itself a source of satisfaction. This also helps increase business volume in terms of increasing input and output. Only that company can enjoy a better reputation among the public who support social goals. Every company is looking for an enhanced public image in order to get more customers, better employees, more sensitive currency markets, etc. Only when the company wholeheartedly fulfills its responsibilities to society, this will increase the value of the stocks and bonds held by the owners. This is crucial because consumers will evaluate your public image when deciding whether to buy from you. Simple things (such as staff volunteering for an hour a week in a charity) show that you are a brand dedicated to helping others. As a result, you will be more beneficial to consumers.

Companies are aware of the importance of the public, especially their target audience. Of course, their social responsibility is first to provide value for money and provide high-quality products and services, and secondly to provide good after-sales support, customer service, participation in advocacy and civic causes, and generally show how the company cares about customers , The environment and society as a whole. If you notice, companies with good social responsibility policies will receive more and more media coverage, so this is already a way to promote their companies. Getting good media coverage by doing a good job is regarded by companies as one of the best ways to publicize the company. In today's digital age, companies that demonstrate corporate social responsibility have gained exposure and praise for participating. Your brand reputation can only benefit from good behavior in the community. Think about how consumers feel good when they buy products and services from companies that help the community. Take the opportunity to promote your corporate social responsibility initiatives and spread information about community involvement. Publish and share your social programs. Let the public know that your kind deeds will improve the public image of your brand.

 

2.2 Long-term Self-interest of Business

If the company's highest goal is to serve the society, in the long run, it will get the most profit. Because the company has a good reputation in society, the business will naturally increase in the long run, and the company can earn more profits through CSR. Since human beings are members of society, when they notice that a particular company is not serving the best interests of society, they will not further support the organization. Social responsibility is in the long-term interests of the company. The existence of any enterprise is due to the existence of various social institutions such as financial institutions, employees, customers, and the entire society. But in fact, it's not. Therefore, the company should continue to meet the requirements of all these institutions. By fulfilling social responsibility, companies can provide this sense of satisfaction. Social responsibility improves the company's profit margins. By being socially responsible, the company can prove that it has incorporated ethics into its business operations. Customers are becoming more aware of local, national and global issues. It is undeniable that their purchasing decisions are now greatly affected by these issues. Therefore, they tend to buy more products from companies that are concerned about and take action on problems, and these problems also resonate with customers.

 

2.3 Can Improved Customers Royalty

According to the good impact of the company's implementation of CSR on the community and environment, everyone will be attracted by the company's good behavior and will continue to consume the company's products. The company should show your efforts to the local media, hoping they can report on it. Customers will follow this principle and interact with your brand and operations. However, efforts in these and other areas are usually worthwhile. There is evidence that corporate social responsibility is more effective than advertising in attracting consumer interest. The greater value may be its potential to enhance customer loyalty. This kind of influence is the result of universal reciprocity. When a company's CSR activities have a positive impact on their society, customers will reward the organization for the indirect benefits they receive. Few people now doubt the importance of customer loyalty to the organization. Loyal customers promote the company financially by being willing to spend more on each transaction, buying frequently, and resisting competitors' marketing efforts. It is generally accepted that loyalty becomes most powerful when it consists of both behavior and attitude. The fusion of repeated buying behavior and emotional attachment to the company and its brand can help generate "stable and lasting" loyalty. A good CSR record can improve the customer's attitude towards the company. If the customer likes the company, he or she will buy more products or services and is less willing to switch to another brand.

2.4 Increased Brand Awareness and Attractiveness to Investors

Corporate social responsibility can increase brand awareness and visibility. If you abide by the code of ethics, this news will spread. As a result, more people will hear about your brand, thereby increasing brand awareness. Generally, any publicity is good publicity. When your company starts a CSR plan, it will automatically promote your company to a certain degree. There is nothing wrong with calling this kind of promotion an advertisement. You only need to ensure that your products or services are consistent with the CSR activities you participate in. The company's brand is its promise. It represents the services that the company can provide to customers, as well as the customers' expectations of the company's products and services. It reflects the customer's view of the customer. Social responsibility also differentiates the company from its competitors, but only if it is done correctly. Companies regard reputation as a brand, and the best way to cultivate a good reputation is to increase efforts to increase the company’s sense of social responsibility.

Social responsibility has increased the company's attractiveness to investors. Potential investors also study the company’s social responsibilities as one of the criteria for deciding whether to invest in the company. It can also increase the company’s stock price because it can inspire confidence between employees and business partners. The company's reputation in the market determines whether the company will accept new investments. With the help of a CSR plan, you can certainly improve your company's image. When your company starts to attract enough attention, it also attracts many investors. Be prepared to accept investment advice from venture capitalists, other companies and even the gov

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