The Role of Business Ethics and CSR in Organizational Success

This essay examines the dynamic changes in the business environment and the evolving importance of ethical conduct, corporate social responsibility (CSR), and their impact on leadership within organizations. It emphasizes the shift from traditional business practices to those that prioritize cultural, social, and environmental issues. The essay highlights the benefits of ethical behavior and CSR activities, such as attracting customers, investors, and employees, while also contributing to societal welfare. It explores how CSR activities influence leadership, emphasizing the need for leaders to guide employees in promoting social responsibility and maintaining ethical standards. The essay concludes by underscoring the importance of integrating ethical considerations and CSR into business strategies for long-term sustainability and organizational success, with a focus on stakeholder engagement and economic stability.

ESSAY

Table of Contents
INTRODUCTION ..........................................................................................................................3
Essay...........................................................................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
As the world is changing dynamically and as a result the working of the business is also
changing. The way in which a business work earlier or it can be said the method of working
which the business apply earlier are quite different from the way it has been done now(Barry,
2016). And due to continuous changes in the environment the working methods are also
changing. The changing nature of the business and the importance of managing responsibly and
behaving ethically in relation to cultural, social and environmental issues have been discussed.
The essay also covers the impact of Corporate Social Responsibility activities on the leadership
of the organisation. The essay also shows that why it is important for the organisation to perform
the CSR activities.
Essay
As the business environment is changing rapidly therefore the working methods of the business
are also changing rapidly. Due to the technology now it has become easier for the company to
expand its business globally. It is the duty of the company as well as top management of the
company to does not cause harm to the environment. The top management should ensure that the
company does not contribute to any type of discrimination within the workplace, or does not be a
part of bribery, and the company should also realize its responsibilities toward the society. It is
important for the organisation behave ethically to the cultural factors, economical factors,
environmental factors and social factors(Trevino, and Nelson, 2016). The reason behind this is
ethical behaviour of the business and CSR activities by the company can help a company to
attract the customers toward the company which is in result will help the company to increase its
profit and sales. It will also gain the investors attention and will help the company to keep share
price high. By investing in such companies the investor feels that their money is safe. As well as
the employees also feel comfortable to be associated with such company as it give them a sense
of satisfaction that they are not a part of any unethical practices(Crane, , Matten, and Spence,
eds., 2019).
The top management should ensure to carry the ethical code in order to keep worker safe
within the workplace and to provide better goods and service to the public and the company
should also perform CSR activities in order to contribute in the welfare of the society. It is
important for the organisation to behave ethically as it helps the business to gain image in the
market, and develop good relation with the customers as it will help the company to supply

goods and services of better quality and low prices. It is the responsibility of the company to
identify the positive and negative impact of the business on society. Actions taken by the
company in order to achieve social sustainability can open a new door for company to enter in
the new market(What is sustainability and why it is important, 2019 ). It will help the company
to retain its business partner and will help the company to innovate new products. The employee
engagement will help the company to increase productivity of the company, and manage risk
associated with the business. Thus sustainability is required for the business in relation to social,
cultural and environmental issue as sustainability does not only affects the environment but it
also creates a impact on the stakeholders, employees, law, science and politics(Soini, and
Dessein, 2016). Therefore the company should run a sustainable program in order to protect the
environment.
Corporate social responsibility can be defined as the activity in order to make the business
sustainable and to do welfare activities in order to improve the image of the company. CSR
activities has a great impact on the leadership of the modern organisation(Zhong, and Wu,
2015). As on the part of the leader it become essential for them to plan the activities for the
organisation. Now a days performing a CSR activity has become a important part of the
organisational function. It is important for the organisation to contribute to the society. It is an
activity which is to be performed by every organisation in order to create a good impact on the
public. It is and important activity for the company. CSR activities create a huge impact on the
leadership on behalf of the leader it became important to guide the employees to promote the
corporate social activities. The leaders should motivate the employees to take part in corporate
social responsibility and give the suggestions in order to provide the welfare to society. On being
a leader it is the responsibility of the leader to maintain the culture of the society. The leader
should be creative in order to plan the CSR activities(Lessons of CSR Leadership, 2019). The
huge responsibility lie on the leader, the activities performed by the leader should be result
oriented. The leader of the organisation should ensure to conduct an activities which are
beneficial for the society. The CSR activities has an impact on the stakeholders as well. The
economic performance of the company has a direct and indirect affect on the shareholders.
Therefore it becomes the duty of the leader to ensure the economic stability of the organisation
and the proper working of the organisation.

CONCLUSION
The study helps in understanding the importance of business ethics for the organisation. It is the
duty of the organisation to make the business policies by keeping in mind the social factors,
cultural factors. The business should not involve itself in any type of unethical activities which
are harmful for the peoples of the society. The organisation should make sure that the strategies
made by them for the operating the business does not cause diverse affect on the society. The
essay helps in understanding that why it is important for the organisation to indulge itself in the
CSR activities. The organisation should conduct the CSR activities in order to create a good
image in the society. By doing CSR activities the company show its contribution toward the
society.

REFERENCES
Books and Journals
Barry, N., 2016. Business ethics. Springer.
Crane, A., Matten, D. and Spence, L. eds., 2019. Corporate social responsibility: Readings and
cases in a global context. Routledge.
Soini, K. and Dessein, J., 2016. Culture-sustainability relation: Towards a conceptual
framework. Sustainability, 8(2). p.167.
Trevino, L.K. and Nelson, K.A., 2016. Managing business ethics: Straight talk about how to do
it right. John Wiley & Sons.
Zhong, Y. and Wu, P., 2015. Economic sustainability, environmental sustainability and
constructability indicators related to concrete-and steel-projects. Journal of Cleaner
Production, 108. pp.748-756.
Online
Lessons of CSR Leadership. 2019. [Online] Available through
<https://www.csrwire.com/blog/posts/1863-7-lessons-of-csr-leadership>
What is sustainability and why it is important. 2019 [Online] Available through
<https://www.environmentalscience.org/sustainability>