London School of Commerce Essay: Business Ethics and CSR Analysis

This essay explores the changes in the external environment impacting multinational corporations, focusing on the challenges they face and the importance of maintaining Corporate Social Responsibility (CSR) for competitiveness and sustainability. It highlights the dynamic nature of the modern business world, driven by technological advancements and globalization, which necessitate ethical decision-making. The essay discusses factors affecting the business environment, including political, economic, socio-cultural, technological, legal, and environmental aspects, and emphasizes the need for businesses to sustain ethical practices and adhere to corporate governance. It underscores the importance of CSR in building a strong public image, protecting stakeholder interests, and meeting societal expectations, advocating for moral management to navigate dynamic changes. The conclusion reinforces the necessity of CSR for companies to maintain a competitive edge and adapt to the external environment.

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Introduction
This essay describes the changes of the external environment that affect the working of a
multinational corporation or any other company. The study further entails to describe the
challenges that the companies face and what exactly forces them to sustain the rightful doings
such as maintaining the Corporate Social Responsibility in order to stay competitive. This essay
describes the importance of CSR and its sustainability.
Dynamic Business Environment
Today’s business world is dynamic. The major changes in the business environment are due to
the advancements in the technology. Due to technology, the foundations of the business
organizations have adversely changed. The changing business environment and globalization
brought into the phase of business organizations have brought positive outcomes to the business
world. Not only does it help the people to work faster and in an efficient way, but brings changes
in a way on how the work is done. The recent different types of technologies have paced the
structure to the industrial revolution, which has changed the outlook of a business
environment(Goel & Ramanathan, 2014). Different technologies have their different impact on
each kind of industry and the advancements have not just created an impact on one industry, but
has created a huge impact on each and every industry across the globe. Millions of business
organizations are now facing frequent changes in their work environment as the environment is
no more static. The dynamic environment has brought various changes for the organizations,
which are at times difficult to manage. With positive changes within the business environment,
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there are numerous negative effects of advancements that the business organizations have to face
these days.
Factors affecting the Business Environment
The main question here is, what are the factors that contribute to a particular change in the
business organization. It is the internal and external environment to which the business
organization is liable to and it affects the working of the business organization in a large way.
The internal environment includes the size of the organization and the number of population
within the organization that affects its working. The demographics of the people working within
a firm are largely affected. Likewise, it is the external environment as well, which includes of
Political, Economic, Socio-cultural, Technological, Legal and Environmental aspect that makes
the business environment dynamic. The Political environment is inclusive of the political
stability, rules and regulations, political culture and institutions that determine the business
environment(Keeping, 2012). The economic environment as well affects the working of the
business organizations through the government policies structured, culture between the
governments, economic structure and also the socio-cultural environment that affects the
environment are cultures, rituals, social practices of a country and so on. Other than all of this,
there is the legal environment, which includes of the business related laws, consumer laws and
contractual obligations that persist in the business world affecting the working of the business
organization. Also, the technological environment like new innovations and obsolescence that
create a huge impact on the environment and brings about various changes to the same. With all
such factors, it becomes difficult for the companies to manage their working and sustain in the
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business environment. With such increased affects of the internal and external environment, it
has become difficult for the companies to balance their work culture and environment according
to the dynamic business world(Ramanathan, 2014).
Sustaining Business Ethics
It is very important for the business organizations and professionals to manage and sustain their
working environment with such advancements. It is very important for the companies to follow
and maintain their business ethics. Business ethics are all about making the right form of
decisions that are within the right boundaries of the business organization. The business
organizations these days have to change and adopt various practices because of the
advancements, which might affect the economic, political and social environment connected to
them, thereby, the business ethics must be sustained by the professionals to increase their
credibility in the public(Bassell, et al., 2015). Whatever the company decides and aims at
achieving, it should be within the ethics of the company and the decisions of the company must
be taken in accordance to the environment of the company. Also, in accordance to the business
ethics, it is important for the companies to adhere to the practice of corporate governance, which
leads to corporate social responsibility. With the technological advancements in the business
environment, the business organizations have to change and make various decisions, thereby, it
is always considered that the organizations work within the values and missions of the company
by utilizing their resources in an effective way, which makes it a socially responsible
organization. It is all about the norms of performance and the ethical considerations that a
company follows even after adopting to the technological advancements that exist in the business
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environment. All this is important to prevent the company from facing serious issues relating to
ethics and achieving profits in consideration to the social responsibility(IISD, 2012).
Corporate Social Responsibility: Need of Business Organizations
Corporate Social Responsibility is very important for the business organizations to consider as it
helps a company in creating a strong public image, protects the interests of the stakeholders,
fulfills the needs and expectations of the society and can further improve the environment for
both the society and business at large. Along with bringing numerous changes to the work
environment, it is always important for the companies to be socially responsible to its
stakeholders like customers, employees, society, government, shareholders and creditors. And
for enabling the corporate social responsibility within the business organization along with the
dynamic changes, it is always advisable for the organizations to develop moral management,
which provides guidelines to be followed that help the managers to work within a particular
environment that does not violate the ethical standards and helps in achieving
success(Lombardo, 2018). Thereby, it is important for the companies to work within the ethics of
the business world and be able to achieve success by dwelling to corporate responsibility. Not
only does it will help the business organization in adapting to the frequent changes ethically, but
will also be able to comprehend to ethical and socially responsible work environment. This is
why, Moral Management approach is the best and helps the business organizations in working
and achieving their working ability within the laws, ethics and justice of the business world,
which coordinates so very well with the dynamic changes and frequent technological changes in
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the business world. The need for business ethics and CSR is very important for the companies to
maintain and follow (Singh & Singh, 2013).
Conclusion
It can be concluded from the above essay that with an increase in the form of technology and
innovation across the globe, companies do face a number of challenges that are hard to cope up
with. But the companies do have to maintain their competitive edge in this work environment,
which increases the level of sustainability for them to accomplish. Thus, it is advisable to the
companies to extremely follow the concept of CSR and help it sustain the rightful doings by
providing better opportunities to the society as a whole and protect itself from the threats of the
external environment.
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References
Bassell, M., Fischer, D. & Friedman, H. (2015) The Importance of Business Ethics and
Corporate Social Responsibility: A Course Module. SSRN Electronic Journal, Available at:
https://www.researchgate.net/publication/315482168_The_Importance_of_Business_Ethics_and
_Corporate_Social_Responsibility_A_Course_Module
Goel, M. & Ramanathan, P. (2014) Business Ethics and Corporate Social Responsibility – Is
there a Dividing Line?. Procedia Economics and Finance, Volume 11, p. 49–59, Available at:
https://www.researchgate.net/publication/263930805_Business_Ethics_and_Corporate_Social_
Responsibility_-_Is_there_a_Dividing_Line
IISD. (2012) Business strategies for sustainable development, Available at:
https://www.iisd.org/business/pdf/business_strategy.pdf
Keeping, J. (2012) The Ethics of Corporate Social Responsibility, Available at:
https://www.lawnow.org/the-ethics-of-corporate-social-responsibility/
Lombardo, J. (2018) Business Ethics: Corporate Social Responsibility, Available at:
https://study.com/academy/lesson/business-ethics-corporate-social-responsibility.html
Ramanathan, P. (2014) Business Ethics and Corporate Social Responsibility- Is there a dividing
line?, Available at: https://core.ac.uk/download/pdf/81107143.pdf
Singh, K. & Singh, M. (2013) Ethics in Corporate Social Responsibility. IOSR Journal of
Business and Management, 9(2), pp. 16-21, Available at:
http://www.iosrjournals.org/iosr-jbm/papers/Vol9-issue2/B0921621.pdf?id=5149
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