Reflective Journal: Can Ethical Business Be a Profitable Business?

This reflective journal analyzes the relationship between ethical business practices and profitability, focusing on corporate social responsibility (CSR). The journal begins with an assessment of the arguments for both broad and narrow views of CSR, exploring how organizations balance profit maxim...Read More

Running head: REFLECTIVE JOURNAL ANALYSIS
REFLECTIVE JOURNAL ANALYSIS
Name of the Student
Name of the University
Author Note

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Table of Contents
Task 1 – Assessment based on arguments for the both views of Corporate
Social Responsibility.....................................................................................................2
Introduction.....................................................................................................2
Reflective analysis.........................................................................................2
Conclusion......................................................................................................3
Task 2 – Relationship of ethical business and profitable business...................4
Introduction.....................................................................................................4
Reflective analysis.........................................................................................4
Conclusion......................................................................................................5
References.........................................................................................................6

2REFLECTIVE JOURNAL ANALYSIS
Task 1 – Assessment based on arguments for the both views of Corporate
Social Responsibility
Introduction
Corporate social responsibility is considered to be a major factor which is
helpful in maintaining the sustainable operations of different organizations. The
sustainability and long term based operations of the organizations are thereby based
on the ways by which corporate social responsibility based activities that are
performed by them. The major views based on corporate social responsibility mainly
include, broad view and narrow view. The reflective journal will be based on the
analysis of the two views which are able to affect the modern organizations Alonso ‐
(Almeida et al., 2015).
Reflective analysis
I have learned about the narrow view based on corporate social responsibility
which has been suggested by Friedman. The purpose that is related to the existence
of business is based on the ways by which services and products can be distributed
to the society for the purpose of developing effective economic value in the industry.
I have further been able to understand that the managers have the ability to
maximise the levels of revenue for shareholders (Charles Jr, Schmidheiny & Watts,
2017). The theory has been able provided me with an understanding that the main
aim of management increase profitability. The activities based on corporate social
responsibility are considered to be secondary for the modern organizations. The
major modern companies which have been following the narrow include, Ford Motor,
Walmart, Microsoft, Nestle. I have analysed that these organizations have been not
been able to maintain the corporate social responsibility based activities in an
efficient manner (Cheng, Ioannou & Serafeim, 2014).
I have also learned about the socio-economic view of corporate social
responsibility which states that the modern organizations can be considered to be a
major part of the large society. The responsibilities based on CSR are not restricted
to the effective maximisation of the profits. The organizations in this case also tend
to be responsible for maintain the responsibilities which they have towards the
community and the society as well. The long term based sustainability of a modern

3REFLECTIVE JOURNAL ANALYSIS
organization is totally based on the ways by which it is able to operate in the industry
and also maintain its position (Grayson & Hodges, 2017).
I have analysed the recent trends that are based on the narrow view and
broad view of organizational operations. The activities of organizations which
implement the narrow view have been affected by changes that have taken place in
the external environment. The social responsibilities are provided with utmost levels
of importance in the modern operating environment in the industry. The application
of narrow view of corporate social responsibility has started reducing in the last few
years. The organizations also need to increase the activities that are based on the
social responsibilities. Broad view or the socio-economic view has also become
highly important in the modern and competitive operating environment (Korschun,
Bhattacharya & Swain, 2014).
The organizations need to improve the corporate social responsibility based
activities in order to maintain the operations in a sustainable manner. The different
levels of analysis which have been made based on the two major views of corporate
social responsibility are related to the importance of responsibilities which they have
in while operating in a country. The modern organizations have the major
responsibility of fulfilling the needs and demands of people who are a part of the
community. The broad view based on corporate social responsibility is considered to
be highly useful for the ways by which modern organizations can operate profitably
(Lawrence & Weber, 2014).
The reputation of an organization in the industry is also based entirely on the
ways by which it is able to fulfil the responsibilities bases on its operations in the
society. The modern organizations which are have been successful in corporate
social responsibility related activities include, Unilever, Google. The organizations
have been able to develop their positions in the industry with the help of its
responsibilities towards the community. The revenues and profitability of the
organizations have also been affected in a positive manner with the help of its
activities related to CSR in the industry (Ni & Van Wart, 2015).
Conclusion
I have been able to conclude from analysis that corporate social responsibility
is considered to be highly important for the effective operations of the modern

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organizations. The broad view of CSR has been able to play a key role in the ways
by which organizations have fulfilled their responsibilities effectively. The operations
of organizations only for the purpose of earning revenues and profits are no longer
considered to be effective. The organizations have started operating in the industry
by keeping in mind the effects which its processes can have on the society.
Task 2 – Relationship of ethical business and profitable business
Introduction
The business based activities of different organizations are considered to be
effective if they are able to operate in a profitable manner by following certain ethics.
The ethics of business are considered to be highly important in the modern
environment and industry. The organizations thereby need to operate in such a
manner which is based on the ethical considerations. Business ethics are considered
to be important for the effective operations of the organizations. The modern
organizations have considered ethics to be much more important as compared to the
previous organizations. The analysis in this reflective journal will be based on the
ways by which business ethics are related with each other. The importance of ethics
in the current business environment is the most important of the analysis (Saeidi et
al., 2015).
Reflective analysis
The concepts based on ethical business and profitable business have been
considered to be opposites. The most important part of the concept is that an
organization which aims at gaining profits may not give importance to the ethical
activities. However, keeping in mind the changes which have taken place in the
modern business environment, the organizations which are making profits may not
be unethical in nature. The business organizations which operate in an ethical way
have been able to fulfil the social responsibilities in an effective manner. The
analysis which has been recently made based on the ethical operations of business
organizations have stated that it is unethical for an organization to not make profits in
its operations. The organizations need to make profits in order to pay back the
creditors and provide the stakeholders with their share in the revenues (Schaltegger
& Burritt, 2018). The organizations have huge levels of responsibilities towards the
shareholders and the consumers. The business ethics based considerations thereby

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compel the organizations to make profits in the industry. The most important ethical
obligation for the organizations is to gain profits and fulfil the expectations of the
customers and shareholders who are considered to be most important in the
operations.
I have been able to understand that ethics are not contradictory to the
profitable operations of the modern business organizations. The activities related to
effective implementation of ethics have been able to play a major role in the ways by
which organizations are able to develop their positions and maintain their reputation
as well. The gaining of profitability is also considered to be important for the effective
operations of different business organizations in the industry. The operations of
modern organizations are highly dependent on the ways by which they are able to
fulfil their responsibilities towards the customers and the stakeholders. The
commitments which are made by the organizations based on welfare of the
employees and the community in which they operate (Tai & Chuang, 2014).
The needs of the businesses need to be ethical for the welfare of the
organization and its operations as a whole. The unethical steps and decisions taken
by organizations cannot help them to sustain the industry for a longer time period.
The businesses have many responsibilities towards the society and community in
which they can operate. The sustainability of business operations is thereby based
on the ways by which it is able to maintain the profitability levels. The business
organizations and their operations are able to provide effective levels of contribution
to the economy of the country. The responsibility of business organizations as the
corporate citizens of the country is considered to be highly important. I have been
able to gain knowledge based on the operations of modern business organizations
with respect to the ethics (Wood et al., 2015). The knowledge has provided me with
the understanding that the organizations need to consider ethics in order to operate
profitably and fulfilling different responsibilities.
Conclusion
The reflective analysis can be concluded by stating that ethics and profitability
in the business operations of modern organizations go hand in hand. The
organizations are able to operate effectively in the industry with the help of proper

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implementation of ethics in different activities. Ethics are considered to be important
for the operations of modern companies in the competitive business environment.

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References
Alonso‐Almeida, M. D. M., Fernández de Navarrete, F. C., & Rodriguez‐Pomeda, J.
(2015). Corporate social responsibility perception in business students as
future managers: a multifactorial analysis. Business Ethics: A European
Review, 24(1), 1-17.
Charles Jr, O. H., Schmidheiny, S., & Watts, P. (2017). Walking the talk: The
business case for sustainable development. Routledge.
Cheng, B., Ioannou, I. & Serafeim, G. (2014). Corporate social responsibility and
access to finance. Strategic management journal, 35(1), pp.1-23.
Grayson, D., & Hodges, A. (2017). Corporate social opportunity!: Seven steps to
make corporate social responsibility work for your business. Routledge.
Korschun, D., Bhattacharya, C. B., & Swain, S. D. (2014). Corporate social
responsibility, customer orientation, and the job performance of frontline
employees. Journal of Marketing, 78(3), 20-37.
Lawrence, A. T., & Weber, J. (2014). Business and society: Stakeholders, ethics,
public policy. Tata McGraw-Hill Education.
Ni, A., & Van Wart, M. (2015). Corporate Social Responsibility: Doing Well and
Doing Good. In Building Business-Government Relations (pp. 175-196).
Routledge.
Saeidi, S. P., Sofian, S., Saeidi, P., Saeidi, S. P., & Saaeidi, S. A. (2015). How does
corporate social responsibility contribute to firm financial performance? The
mediating role of competitive advantage, reputation, and customer
satisfaction. Journal of business research, 68(2), 341-350.
Schaltegger, S., & Burritt, R. (2018). Business cases and corporate engagement with
sustainability: Differentiating ethical motivations. Journal of Business
Ethics, 147(2), 241-259.
Schaltegger, S., & Wagner, M. (2017). Managing the business case for
sustainability: The integration of social, environmental and economic
performance. Routledge.

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Tai, F. M., & Chuang, S. H. (2014). Corporate social responsibility. Ibusiness, 6(03),
117.
Wood, D. J., Logsdon, J. M., Lewellyn, P. G., & Davenport, K. S. (2015). Global
Business Citizenship: A Transformative Framework for Ethics and
Sustainable Capitalism: A Transformative Framework for Ethics and
Sustainable Capitalism. Routledge.