Business Ethics – Corporate Social Responsibility

Business Ethics – Corporate Social Responsibility

The relationship between corporate social responsibility and reputation management.

Corporate Social responsibility is a business idea that organizations use to be socially answerable to themselves, stakeholders, and the public. The idea behind corporate social responsibility is to operate in a way that improves the environment and society by protecting the environment and contributing to social inclusion and economic growth. Organizations use corporate social responsibility as a strategic tool to respond to stakeholders’ expectations. Corporate social responsibility plays a vital role in reputation management. According to Šontaitė-Petkevičienė (2015), corporate social responsibility practices create a perception that the organization is mindful of the stakeholders’ welfare and society’s well-being, which results in a positive assessment of the company’s reputation among customers. Corporate social responsibility also enables organizations to develop trust among stakeholders, thus creating and maintaining a good reputation. Trust lays a foundation for an organization’s credibility because stakeholders are assured that the organization will do the right thing, offer safe products, protect the environment, treat the environment well, and provide value for money for customers.

Corporate social responsibility is linked to sustainability, which is vital to reputation management. Human sustainability enables organizations to create and maintain a good reputation by improving human capital through investment in education and health. Social sustainability also plays a vital role in reputation management by enabling organizations to invest in society by creating services that promote the social inclusion of vulnerable people and the poor and making institutions accountable and accessible to citizens. For example, an organization that advocates for quality healthcare and education for marginalized groups can create and maintain a good reputation, leading to organizational growth. Economic sustainability also enables organizations to develop and maintain a good reputation by contributing to a society’s economic growth through job opportunities.

“You do business ethically because it pays.” How does the statement relate to different models of corporate social responsibility?

According to Somvanshi (2017), the models of corporate social responsibility include ethical, philanthropic, economic, and legal obligations. The statement, “You do business ethically because it pays,” demonstrates how organizations attract more customers and increase revenue generation by meeting their philanthropic, ethical, legal, and economic responsibilities. Philanthropic responsibilities include an organization’s objectives, goals, and aims to improve society. Organizations can do business ethically by providing equal opportunities for everyone in society and using their revenue to support community projects such as constructing healthcare facilities or donating money to help the poor or the sick in the community. Ethical responsibilities play a vital role in organizational success by creating a good corporate image that can be leveraged to attract customers and investors. Doing business ethically also enables organizations to maintain a good relationship with the government and the community, thus operating smoothly with minimum interferences that could disrupt operations. Meeting legal responsibilities allows an organization to create a good reputation, thus attracting customers and increasing revenue. Economic responsibilities are linked to an organization’s commitment to the community’s economic growth. Organizations can attract more customers by ensuring that their operations positively impact society by creating jobs.

Pfizer is among the companies that have maintained high profitability by acting ethically in meeting their legal, philanthropic, and economic responsibilities. The company’s corporate social responsibility approach includes providing grants, product donations, and solutions to access. The country provides grants to countries hit by natural disasters by collaborating with non-governmental organizations to reach many people who need help. The company also provides grants to help improve patients’ treatment, diagnosis, recognition, management and treatment. Pfizer has been ranked among the most ethical companies worldwide, leading to a good company image and reputation that attracts customers.

Describe your Personal Consumer Behavior results. Discuss a company you have chosen to do business with and explain how its model of corporate social responsibility led you to that decision. Does your personal experience line up with your Personal Consumer Behavior score? Why, or why not?

I scored 3.5 on the Personal Consumer Behavior Self-Assessment, indicating that I am a socially capable shopper. Social capability includes a person’s relational and emotional sensibilities, intelligence, dispositions, and learning. My social capability as a shopper has increased based on my shopping experience and customer satisfaction. I have chosen to do business with Walmart because I have experienced its social responsibility through its corporate social responsibility activities. Walmart’s model of corporate social responsibility also influenced my decision to do business with the company. The company’s support for local communities demonstrates its willingness to create a better society by supporting local communities through grants and volunteering programs. This interests me because I have worked with vulnerable and marginalized groups in the community and seen the role of grants and volunteering programs offered by companies in alleviating their lives. Walmart’s sustainable sourcing also made me consider doing business with the company because I strongly advocate for protecting natural resources. Therefore, I am interested in contributing to Walmart’s sustainable sourcing initiatives to preserve resources that future generations can use.

Walmart has taken the initiative to protect the environment by recycling and reducing carbon dioxide emissions (Dudovskiy, 2016). Therefore, I have chosen to do business with the company because I advocate for protecting the environment to prevent global warming. My personal experience aligns with my Personal Consumer Behavior score because I focus on a company’s reputation when making a purchase decision. One of the things I consider when assessing a company’s reputation is the initiatives they have taken to help communities and scandals related to social responsibility. Therefore, my preference for products and services offered by socially responsible companies increases my social capability.

References

Dudovskiy, J. (2016, April 17). Walmart CSR overview. Research-Methodology. https://research-methodology.net/walmart-csr-overview/

Somvanshi, K. (2017). Analysis of corporate social responsibility models in Indian companies. Corporate Social Responsibility in India, 3-19. https://doi.org/10.1007/978-981-10-3902-7_1

Šontaitė-Petkevičienė, M. (2015). CSR reasons, practices, and impact on corporate reputation. Procedia – Social and Behavioral Sciences, 213, 503-508. https://doi.org/10.1016/j.sbspro.2015.11.441

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Business Ethics – Corporate Social Responsibility

In your own words,

Describe the relationship between corporate social responsibility and reputation management.

Explain the statement, “You do business ethically because it pays.” How does the statement relate to different models of corporate social responsibility? Provide an example of a company to illustrate your interpretation.

Responsibility. Describe your Consumer Behavior results. Discuss a company you have chosen to do business with and explain how its model of corporate social responsibility led you to that decision. Does your personal experience line up with your Personal Consumer Behavior score? Why, or why not?