Impact of Social Responsibility on Business Performance and Ethics

This essay delves into the critical aspects of social responsibility in the business realm, encompassing ethical considerations, corporate scandals, and the significance of whistleblowing. The introduction highlights the impact of corporate frauds and the role of business schools in instilling ethical practices. It references Sumantra Ghoshal's viewpoint on the importance of moral responsibility in business education. The essay further explores the relationship between business schools and corporate social responsibility, emphasizing the importance of ethical education and its impact on individual behavior within organizations. The second part of the essay focuses on whistleblowing, defining the concept and exploring relevant theories like Carroll's CSR model and Ackerman's three-phase model. The Volkswagen scandal is examined as a case study, illustrating the consequences of unethical behavior. The essay concludes by summarizing the key arguments, stressing the need for ethical education and effective management to mitigate corporate scandals and enhance a company's brand image. The importance of ethical practice and the role of whistleblowing in preventing wrongdoings are also emphasized.

SOCIAL
RESPONSIBILITY OF
BUSINESS

Table of Contents
PART 1............................................................................................................................................1
INTRODUCTION...........................................................................................................................1
BUSINESS SCHOOLS AND CORPORATE SOCIAL RESPONSIBILITY................................1
CONCLUSION ...............................................................................................................................3
PART 2: Whistleblowing.................................................................................................................3
INTRODUCTION ..........................................................................................................................3
WHISTLEBLOWING: CONCEPT AND THEORIES...................................................................4
CONCLUSION................................................................................................................................6
PART 3............................................................................................................................................7
REFLECTION.................................................................................................................................7
REFERENCES................................................................................................................................9

PART 1
INTRODUCTION
Social responsibility defines the ethical theory that is presented within the business
enterprises by containing the sensitive terms within huge responsibilities on the people, society,
economy so that environment and business objectives is to be attained affectively and
efficiently(Advantage, 2020). Corporate scandals and frauds are the major parts of the business
organisation that highly impact the performances of the organisation in a negative manner. For
business enterprises appropriate activities can be done and for this they can use the ethical
standards for attaining the aims of the company and minimising the scandals done in corporates.
This essay report includes the Sumantra Ghoshal (2005) statement that specify that the in
business schools MBA students are to be taught the moral sense of responsibilities for
effectively done the task at the working place. This essay includes the recent years corporate
scandals that can be occur due to the failure of the education system. It reflects that the bad
management theories can destroy the good management practice and also reduce the profits. In
this companies can highly focus on the management studies of the students so that within
corporates they cannot face the scandals and enhance their overall performance.
BUSINESS SCHOOLS AND CORPORATE SOCIAL RESPONSIBILITY
It is identifies that the appropriate teaching system is very prominent for shaping the
individual behaviour of the students for indulging within the business practices and functions in
proficient way. It is reflected because education play a major role because in this a person can
involve in several types of courses which helps in enhancing the organisation activities where
they can examine the several skills which is related to honesty and cooperation. Several
universities can offer the ethical education to their students that is very prominent in the
professional life of individual person. Due to this a person can sustain within the different
climate in different countries like UK, US etc. according to their business ethics and CSR
policies. It is very prominent to enhance the knowledge of students related to ethics related to the
business operations so that best outcomes can be enjoyed by the business enterprises(Koltsova
Anna, 2018). For every business effective teaching system is very play a vital role in shaping the
behaviour of the individuals students so that they can conduct the operations and activities within
the business enterprises effectively and efficiently. In this different academic education is
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prominent for the students that is offer by the business school in order to make a student a good
student and it will enhance their overall career. Increasing the high knowledge in the students
related to ethics helps in developing the business operations for enhancing the high image within
marketplace. In business industry there are several scandals are to be faced by the companies
that helps in modifying the overall performance and functions in effective and efficient manner.
Corporate social responsibilities is the major part of the student academics as it helps the
individual person to learn ethics which enhance their career in future perspective. There are
various scandals that are arise within recent years because companies cannot focus on the CSR
and business ethics as they cannot highly focus in their studies related to social responsibilities of
organisation due to this maintaining the loyal entrepreneurs who fulfils all the requirements
without involving in scandals is quite difficult(Carroll and Brown, 2018).
It is to be examined that the appropriate teaching system helps in highly effective in
developing the good behaviour within individual person so that business objectives can be
attained efficiently. It is highly effective for the business enterprises for sustaining within the
marketplace with good education system. The statement related to the Sumantra Ghoshal (2005)
is mainly focus on the statement that reflects bad management theories is destroying the good
management practice that stated that education system of the business management school is to
be failed in reducing the frauds and scandal of the corporates due to lack of ethical practice and
corporate social responsibilities. It is analysis that the present business and management
functions are playing a significant role that sometimes influences the negative practices which
arise the frauds within the business companies. The bad management of the companies is
decreased the employee morals and also dominating the business environment (Wigmore-
Álvarez, Ruiz-Lozano and Fernández-Fernández, 2020). The suggestion is to be propagating on
education system that inspired the school of management to practice the moral responsibilities
effectively . In this clear analysis is to be developed by the Sumantra Ghoshal that includes the
failure of education system that is supported with the facts and figures. In this present education
system are free from the moral responsibility that is quite ineffective for the corporate world
because it will enhance the frauds which will negative impact the brand image. It is very
essential for the education system that they can highly focus on the corporate social
responsibility so that sharp assumptions can be done by reducing the ethical issues. In this
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Morality and ethics are the major terms and both are integrate with one another so that effective
management practices are to be done and also the frauds and scams are under control.
Volkswagen Corporate scandal
Volkswagen is a prominent auto mobile car manufacturing brand that is highly
recognising by their quality and prices with in the globe. Organisation can work with good
market brand image by focusing the quality material so that customer satisfaction is to be
developed and also firm will gain the major profits and revenues. But in 2015, Volkswagen get
into the controversy of the corporate scandal by using the better quality technology in their
manufacturing of offerings. It is because of the diesel Duke that are working within the market
with key and defeat device a diesel engine (Acquay, 2017). It will mainly impacted the US car
market by downfall in the sales of the car because of the Duke defeat diesel scheme. To maintain
the image and market position within the business industry company can focus on investing in
the research by removing the irregularities and wastage. This is highly useful for the vehicles to
maintains their safety features and engine of the car at the time of manufacturing so that it can be
performed their functions in prominent manner. Due to the ineffective qualities company can
face the low customer satisfaction and this will reduce the overall profits of the business
enterprise within the marketplace.
CONCLUSION
From the above essay it is concluded that number of companies are facing the corporates
scandal due to the lack of education system and also the improper management within the
organisation. In this an individual can highly focus on their education and moral and ethical
studies so that scandal and frauds are to be removed and also the efficiency can be maintained
within the firm which can develops the high brand image in marketplace within business
industry.
PART 2: Whistleblowing
INTRODUCTION
Whistle-blowing refers to an effective term that display a person which is useful to
transmit the data and information that is related to the any sort of the wrongdoing that can taken
place in a particular situation (Harrison and et. al., 2019). In this corruption, sexual harassment
and many other aspects are to be included that are to be reflected the bad doing. It is the part of
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the of the major examples of wrong doing. In this a whistle blower is said to the student where
they can pursue the several types of courses within the business school and in this one can
transfer the information to the other person related to the wrongdoing. In this several cases are to
be included that are come in front of the students related to the unethical practices that are
conducted by the management schools. It is explained by the good examples by using the case of
Enron, where vice president is the Whistle Blower where they can provide the information
related to the public and also the unethical practices that are conducted by the business
enterprises where the management audit is not be properly done.
WHISTLEBLOWING: CONCEPT AND THEORIES
In recent organisation environment, It is to be realised that there are several types of
theories are available within the marketplace related to the ethical practices and whistle-blowing
and in this some of them are to be reflected below:
Carroll model of ethical practice
Corporate social responsibility pyramid is to be defined as a prominent theory that helps
in understanding the several solutions for the organisations related to the corporate social
responsibility. In this ethical, legal, economic and philanthropic is to be included within the
pyramid that is helpful to the company to understand the reasons of focusing on responsibilities
related to the social aspect. Companies can highly focus on the using this model and theory so
that they can maintain the productivity and proficiency of the business enterprises(Zhao, Zhang
and Kwon, 2018). It is very significant for the organisation to understand the whole pyramid so
that sustainability can be highly enjoyed by the business enterprises and it is also effective for
improving the factors by using this particular theory that can be presented below:
Economic responsibilities are to be considered as a core factor of the business enterprise
when it is comes in the form of conducting the ethical practice to offer the best quality products
on the specify pricing techniques. In current scenario, company can highly focus on the different
range of the shareholders that includes the higher expectations on earning the high returns on the
investments that can be done by the shareholders(Popescu, 2018).
The another essential factor is the legal responsibilities that is indulge under the pyramid
model with rules along with the regulations. It is very essential to focus on the codes of conduct
at the time of performing the operations with in the organisation. If an enterprise is to be failed
within this they can face the several issues like licence cancellation and so on.
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Ethical responsibility within the organisation is helpful to manager the expectations
related to normative which includes code of conducts. It is very essential for the companies to
manage and direct the work in ethical way. It is the major responsibilities of the business
enterprise where they can embrace the activities and practice so that problems can be solved in
an effective and appropriate manner.
Another ethical practice is based on the philanthropic responsibilities that is the last
aspect in which voluntary and discretionary activities are to be performed effectively. It includes
the effective element that is helpful to understand the society where companies can focus on
consider the thoughts within the individuals and groups to perform any kind of activities within
the operation department so that company will sustain for a longer period of time(Voronkova and
et. al., 2020).
In this at the time of Whistle blowing is to be taken place it is realised that business firm
can highly focus on the major concerns to perform all the task and objectives so that high
profitable results are to be gained in an ethical manner for a short period of time. IN this
consideration of the ethical manner helps in eliminating the chances of the whistleblowing that
can impact the companies activities in negative manner.
Ackerman's Three phase model
It is the another model of the ethical practice which can highly emphasis on the internal
process, activities and several elements that includes the activities of corporate social
responsibilities and also so on. This ethical models including three phases that can be presented
below:
 First Stage- In this first stage it is to be recognised that the social issues is to be occur
within the company. In the business enterprise it is the main duty of the top
administration to offers the safe working environment to their working within the
working place. In this training is to be analysed for maintaining the effective climate so
that employees are not hesitating to share their problems effectively(Dawson, 2018).
 Second stage- This stage is unrealistic for the high level administration because in this
they can investigate all the social issues of the workers. It is very essential for the
enterprises to examine the climate so that effective and friendly workplace is to be
offered by the firm to their members.
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 Third stage- IN this last stage, there is a technical plan which is generated by the experts
for managing the high level management so that workers can be work effectively and due
to this workplace is to be give the positive results to the objectives within the
marketplace(Trujillo-Liñán and Meneses-Calzada, 2020).
De George’s Theory of Whistleblowing
This theory is propounded by the Richard De George in 1986 which is based on the
specification of the whistle blowing by using threes points that is in the business organisation
whistle blowing is completing restricted as it is unethical, It is morally permitted to show the
right and wrong to doings the things and last is ethical morals required. This theory states that an
individual person is refusing the position that is morally restricted and the culture of the society
prohibited. Further the comparison between internal and external whistle blowing is standardised
as per the De George’s Theory of Whistle-blowing that helps in removing the internal gauges
and wrong things that are present internally so that it cannot be reflected externally which helps
in supporting the individual to enhance their personal and professional carrer with proper ethical
considerations.
CONCLUSION
By above analysis it is concluded that the social responsibility of the business enterprise
is very prominent and in this whistle-blowing is playing a vital role by breaking the organisation
into the small pieces. Basically, it will empowers the options in which they will educate the
individual person regarding some untrustworthy working that can occur in the working place. In
case of enhancing the knowledge it reflects that whistle-blowing is based on different range of
the advantage while studying in the university. Within the event there are several instanced
related to the exploitative practices that can needs to be document an approach, insurance laws,
taking care of the internal things etc. In this media has the power to uncover the several types of
knowledge that occur inside the business enterprise. It also helps the corporates to work
effectively within the working environment. In this legitimate framework that is used by the
organisation for managing the misfortune funds.
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PART 3
REFLECTION
At the time of attending the lectures of the business morals and corporate social
responsibilities within the management business school it can found the specific subject as one of
the interesting subject because it is something that is beyond to the requirement that is
understood by the business man while working with the number of staff members in an ethical
manner. In this I can realised that in the specify approach business directly get the negative
impact from the different whistle blowers that are very trending within the business industry or
the organisation marketplace. By including this subject I majorly focused on the importance of
the corporate social responsibilities and also the ethical considerations that is majorly required to
the applied within the cooperation's. By talking about the morals of the business I have focus on
the number of the situation and also the major cases that is also to be founded by myself. In this I
would engage in the range of the learning situation that can demonstrate the ethical
considerations which is majorly low within the business school. In this several business morals
are to be included for exercising the task in effective and efficient way. In this I can also includes
in dealing with the learning aspect in the corporates that are appropriate in a ethical and moral
way. In this I can found the several hypotheses that are indulge within the learning exercise and
also the undertaking of the business organisations.
By attending the meetings I can get the major opportunities to find several methods of the
overseeing which the business esteems and morals within the working place at the enterprises.
IN this I can found the several aspects of whistle blowing for instance Caroll's Askerman and
many more. In this very relevant because it helps in enhancing the knowledge related to the
ethics and many other productive results by removing the negative concepts like insolvency etc.
This term is very significant for me for setting my focus related to the disadvantage of the
Whistle blowing. During my analysis I can examined that Whistle blowing is very prominent to
deal with the structure and gain the trust related to the brand. It is evaluated that whistle blowing
is very effective for comparing and recognising the demonstration related to the unfortunate
behaviour. In this unethical and unfortunate behaviour is to be included that gives the high
clarification related to moral duties and principles within the business enterprises. It involves the
several guidelines that can be followed in the corporates to deal with the several exercise within
the business morally and ethically. By the help of this. I can get the higher success in the
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upcoming future situation where I can focus on opening up the business as a successful business
or doing a high profile job to become a successful employee within the firm that is helpful to
perform the operational activities and framework in terms if ethical way.
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REFERENCES
Books and Journals
Acquay, J., 2017. The Impact of Integrating Corporate Social Responsibility Into Business
Strategies (Doctoral dissertation, Northcentral University).
Advantage, C., 2020. Corporate Social Responsibility. CSR and Socially Responsible Investing
Strategies in Transitioning and Emerging Economies, p.65.
Carroll, A.B. and Brown, J.A., 2018. Corporate social responsibility: A review of current
concepts, research, and issues. In Corporate social responsibility. Emerald Publishing
Limited.
Dawson, D., 2018. Organisational virtue, moral attentiveness, and the perceived role of ethics
and social responsibility in business: The case of UK HR practitioners. Journal of
Business Ethics. 148(4). pp.765-781.
Harrison, D. E. and et. al., 2019. Corporate social responsibility and business ethics:
conceptualization, scale development and validation. Journal of Product & Brand
Management.
Koltsova Anna, A., 2018. Social Responsibility Of Business: Approaches And Preconditions.
Annals of marketing-mba, 1.
Popescu, D. I., 2018. Social responsibility and business ethics: VII. Circular economy and the
role of corporate social marketing. Calitatea, 19(163), pp.118-121.
Trujillo-Liñán, L. and Meneses-Calzada, R., 2020. Leadership and Social Responsibility in
Business. In Strategy, Power and CSR: Practices and Challenges in Organizational
Management. Emerald Publishing Limited.
Voronkova, O.Y.and et. al., 2020. Corporate social responsibility of business as a factor of
regional development. Entrepreneurship and Sustainability Issues. 7(3). pp.2170-2180.
Wigmore-Álvarez, A., Ruiz-Lozano, M. and Fernández-Fernández, J.L., 2020. Management of
University Social Responsibility in business schools. An exploratory study. The
International Journal of Management Education, 18(2), p.100382.
Zhao, H., Zhang, F. and Kwon, J., 2018. Corporate social responsibility research in international
business journals: An author co-citation analysis. International Business Review. 27(2).
pp.389-400.
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