Essay on Corporate Responsibility
Corporate social responsibility is a concept which describes how a company should conduct itself within society, particularly in relation to different views on what a business is about and how it should act (Mullins, 2005). On the other hand, an ethical code of doing business is defined as “a written, distinct and formal document which consists of moral standards used to guide employee or corporate behaviour” (Pater and Van Gils, 2003).
The key note speaker’s views on corporate social responsibility and business ethics complement the perceptions held by Mullin and Pater & Van Gils as explained above.
Businesses have to consider not only of the …show more content…
Similarly, Sternberg (1994) argued that business ethics must involve strategies to maximise long-term wealth of shareholders by satisfying the common tests of decency in business transactions. As a result of this, Mullins (2005) emphasised that companies must refrain from cheating, stealing and coercion in their business pursuits and that they should ensure that distribution of profits must be ethically done.
ACCOUNTABILITY TO STAKEHOLDERS
It is very sensible for business leaders to produce reports on their corporate social responsibilities as stakeholders need to know what is going on in the business.
Society is divided into clusters of different stakeholders and by looking at their interrelation with a company they include shareholders, employees, strategic partners, suppliers, NGOs (Falck and Heblich, 2007). The emphasis on stakeholder theory in today’s business means that a new conceptual approach is needed to address the externalities and their impact on stakeholders who are critical to a company's current and future success (Falck and Heblich, 2007).
Consequently, companies have to report on their social responsibilities to the stakeholders who include suppliers, customers, owners and employees, as