CSR, Sustainability, Stakeholders and Ethics in Management

This essay provides an introduction to management, focusing on corporate social responsibility (CSR) and sustainability. It explains the significance of CSR and sustainability in modern business practices, highlighting how they contribute to environmental and social benefits. The paper discusses the ...Read More

Running head: Introduction to management
Introduction to management

Introduction to management
The paper talks about the corporate social responsibility and sustainability. It explains the
role of stakeholders, shareholders and ethics to maintain sustainability and CSR in the
organization. Further, it tells that how stakeholders and shareholders contribute to environmental
sustainability. Social responsibility is an idea that business must balance profit making activities
with the activities that provides benefits to the society. It includes developing businesses with a
positive relationship to the society in which they manage and operate the business. Further,
social responsibility is an ethical framework and it suggests that an individual or organization is
responsible to act for the benefits of the society. It is the duty of every individual and
organization to perform the task and duties for maintaining a balance between ecosystems and
economy. CSR and sustainability play a vital role in social responsible business. Many
companies are giving contribution in CSR and sustainability (Govindan, Khodaverdi & Jafarian,
2013).
For example, BHP Billiton is one of the biggest mining and oil companies across the
world. The company is improving their capacity and capabilities to manage and control resources
equitability and sustainability. The organization is involved in CSR. Further, Google is another
good example which maintains sustainability in the environment and organization as well. It
utilizes resources efficiently and effectively. Through CSR, the company maintains a good
relationship with communities. Through CSR, the companies are able to maintain business ethics
and code of conducts within the organization. It also helps to improve the society as well as
working environment of the company (Hesselbarth & Schaltegger, 2014). CSR is important and
significant for the companies, employees and non-profit organization. It helps to deliver public
value outcomes and results by focusing on the outcomes and results. CSR encourages and
increases the personal and professional development. BHP Billiton is able to reduce the negative
impact of oil and mining by maintaining CSR and sustainability within the organization. The
companies are managing risks and key challenges of the environment by maintaining
sustainability and CSR in the organization across the world. It also provides various benefits to
the stakeholders and shareholders of the company. Stakeholders are the person who takes interest
in an organization and they can affect and be affected by the firm actions, policies, and
objectives. The key stakeholders include creditors, government, employees, unions, community,
and directors (Loorbach & Wijsman, 2013).
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Introduction to management
Further, shareholders are the people who hold stock in the company. They will have to
work together in order to meet the similar objectives and goals of the company. They play an
integral role in order to maximize the revenue and profit of the company. On the other side,
ethics is a branch of philosophy which involves defending, recommending and systematizing
concept of right or wrong (Mason & Simmons, 2014). In this way, it evaluates the right or wrong
things and it is the branch of knowledge which deals with more rules and principles. It
determines a person action and behavior. Business ethics play a vital role in every organization
in order to accomplish the goals and objectives in a systematic manner. Stakeholders, ethics, and
shareholders play a vital role in every organization in order to gain sustainability in the
organization. The shareholders are the owners of the organization and they play a vital role in the
operations, financing, governance and control aspects of the business. They help to maintain
control on the cost of the company and they increase the revenue and profit of the company. The
entire success and growth of the company depend on the shareholders (Goranova & Ryan, 2014).
Stakeholders are the investor of the company whose actions and behavior determine the
results and outcomes of the business. They help in the decision-making process. They are
responsible to gain short-term profit in the organization and they maintain sustainability within
the organization (Krüger, 2015).
Ethics plays a vital role in every organization to conduct business activities and
operations in an effective way. It helps to satisfy the basic and essential human needs and
requirements of the people. It also improves the decision making the process by maintaining a
code of conducts within the organization. Business ethics are maintained by the company thus, it
helps to gain long-term revenue and profit of the company. It provides safeguarding and security
to the society. A company cannot run the business activities and operations effectively without
following a code of conducts and ethics within the organization. Further, ethics tries to create a
sense of wrong or right in the organization and generally when the law and act fails. The code of
ethics helps to create an ethical and favorable organizational culture. Ethics provides job
satisfaction to the employees because they can perform task and duties effectively by
maintaining a code of conducts in the organization. The managers use ethics to determine the
behavior of the employees to meet the objectives and goals of the company (Tantalo & Priem,
2016). It enhances and increases the reputation of the company for providing good quality of
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Introduction to management
products and services. It also determines the morale of the employees. Now it is assumed that
ethics, shareholders, and stakeholders play a crucial and significant role in every organization
(Banks & Nøhr, 2013).
Triple bottom line is an important model to create shared value and to gain competitive
sustainable advantages in the market across the world. It is an accounting framework which
includes three parts such as environmental, social and financial. The triple bottom line model is
adopted by the many companies to evaluate the performance of the employees and to create a
highest business value and growth. The model was developed by the John Elkington in 1994 to
maintain sustainability in the organization as well as the environment. This model focuses on the
social impact, financial return, and environment in order to contribute to corporate social
responsibility and sustainability (Holland & Albrecht, 2013).
(Source: Healing earth, 2017)
On the above discussion, it has been concluded that CSR and sustainability play an
integral role in every organization. CSR is the business approach which contributes to a
sustainable development by offering economic, environmental and social advantages for all the
stakeholders and shareholders as well. CSR and sustainability help to determine and evaluate the
growth and success of the firm.
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Introduction to management
References
Banks, S., & Nøhr, K. (Eds.). (2013). Practising social work ethics around the world: Cases and
commentaries. Routledge.
Goranova, M., & Ryan, L. V. (2014). Shareholder activism: A multidisciplinary review. Journal
of Management, 40(5), 1230-1268.
Govindan, K., Khodaverdi, R., & Jafarian, A. (2013). A fuzzy multi criteria approach for
measuring sustainability performance of a supplier based on triple bottom line
approach. Journal of Cleaner Production, 47, 345-354.
Hesselbarth, C., & Schaltegger, S. (2014). Educating change agents for sustainability–learnings
from the first sustainability management master of business administration. Journal of
cleaner production, 62, 24-36.
Holland, D., & Albrecht, C. (2013). The worldwide academic field of business ethics: Scholars’
perceptions of the most important issues. Journal of business ethics, 117(4), 777-788.
Krüger, P. (2015). Corporate goodness and shareholder wealth. Journal of financial
economics, 115(2), 304-329.
Loorbach, D., & Wijsman, K. (2013). Business transition management: exploring a new role for
business in sustainability transitions. Journal of cleaner production, 45, 20-28.
Mason, C., & Simmons, J. (2014). Embedding corporate social responsibility in corporate
governance: A stakeholder systems approach. Journal of Business Ethics, 119(1), 77-86.
Tantalo, C., & Priem, R. L. (2016). Value creation through stakeholder synergy. Strategic
Management Journal, 37(2), 314-329.
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