Business Ethics

In the past, a corporation was thought to be purely profit driven.  However, in the last 25 years, there has been a lot of speculation as to whether a corporate has to be more than just profit focused, and meet more than just the obligations of the law.  That's when the concept of corporate social responsibility was created.

Corporate social responsibility deals with how an organization considers society's interest into the equation, when they are running their business.  You can see how this concept goes past simple legislation and laws that govern how a business can be run, and makes the corporation question the extent of their responsibilities to others.

The corporate social responsibility is obviously a heavy topic that needs to be taken into consideration.  For example, look at all of the big business corruption that has went on within the past 15 years.  At the same time, many people view corporations as big evil machines.  And finally, with all the problems going on with global warming, there has to be some analysis as to what a corporation's responsibility is to the environment. 

In fact, the trend has now leans towards more corporate social responsibility, because many large corporations are now issuing social responsibility reports in addition to the annual reports they give to their stockholders.

Many people look at the term corporate social responsibility in different lights.  For some, it means to continually strive to behave ethically and contribute to economical development, while improving the society around them.  Or, if it can simply be how a business uses its resources to help deliver an overall positive impact on society.

So what approach should your company take, as it relates to corporate social responsibility?  First, you have to concern yourself with practical matters.  You should not sacrifice the profitability of the company just to please others.  To do so would be negligent to your business obligations.  However, you do have to consider how your actions will affect more than just your profits, but society at large.

Many different companies feel the need to give back, and so for their social responsibility they align themselves with a worthy cause.

Whatever the case, every corporation nowadays is pressure to assume some sort of social responsibility far beyond their simple profit motives.  In fact, it may actually be damaging to your profit now, because many people are turned off by a company who does not try to make responsible social decisions.

Business Ethics |