Business Ethics. Importance of Corporate Social Responsibility

Academic Paper, 2020

8 Pages, Grade: 88.00


Business Ethics

The current globalization phase in many companies has led to increased challenges in management. Many managers fail to have the right tools that may lead to the full implementation of ethics and social responsibility for many organizations (Agudelo et al., 2019). Its primary purpose is to enable firms to develop a sharp corporate image that achieves a competitive advantage in a particular marketing niche. The most crucial features for most companies today are their identity and image, which can only be achieved if a company has implemented its ethics and CSR in an organized manner. The purpose of company identity is to identify the well-performing companies which provide the best employee motivation in a continuous process. The image represents all the ideas and impressions that the public has developed regarding a particular organization.

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Business ethics is known as the behaviour and norms that companies follow, especially among managers. The rules are often developed in policies that define each department's objectives and functions (Blodgett, Dumas, and Zanzi, 2011). This means that employees are supposed to ensure that they effectively follow the standardized policies and rules to ensure that they retain their jobs and are not dismissed indefinitely. Most corporations have observed business ethics since historic times, and they are followed up to date. They have defined business operations in many ways and are the main contributors to socioeconomic development. Through this development, modern norms have also emerged, which strive to identify a particular behaviour. This behaviour should be followed by workers and supposed to be acceptable at any given time.

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Generally, the government has formulated ethical norms to guide society on behaviours and adherence to the law under unwanted behaviours. They have mainly been used to define social policies in most countries, which tend to foster ethical obligations among businesses and employees, set by managers (Chattopadhyay, 2012). Business research has established that business ethics is an issue that is sensitive and has to be observed with care during business planning. This is because it is governed by various norms and rules that employees sometimes do not follow, significantly when they deviate from company rules. Such employees often want to damage such regulations' reputation to be eliminated from the company's settings.

Company Ethics

Business ethics are related to any organization's cultural traits, especially in their management levels and operational standards (Rendtorff, 2019). Some of the employees' characteristics may not follow the norms and values set by management, affecting a particular organization's general performance. It is crucial for employees always to ensure that they have followed the ethical norms formulated by managers to avoid being on the wrong side. It is also essential for managers to understand the organizational culture to understand employees' needs and wants and address them accordingly. Managers and employees who value business ethics provide evidence that a company is well organized with norms and values. This element is primarily defined in business behaviour and organizational development, which focuses on ethical management. Therefore, management has the responsibility to carry out its duties under the established moral norms. In this way, the managers can easily accept or reject the company performance depending on the type of work delivered.

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Earning Trust Using Ethical Behavior

I support this statement because it is vital for people to be ethical in their everyday life. People are supposed to be more aware of their daily actions, which may affect them positively or negatively, depending on the situation. This theory also applies to businesses because they can determine the business environmental setting due to the laws and regulations. This means that the management has to develop the rules and regulations. Still, they should also try and believe that every managerial decision they make each day can significantly change employee motivation and company performance. An ethical business will increase trust among customers, investors, and vendors in building relationships with a given organization.

According to Karen Collins' article, 'Exploring Business,' firms ought to ensure that they keep the company stakeholders' best interest to ensure that they can build trust in the company for an extended period. It is crucial for companies that operate under specific ethics to serve with total fairness and honesty. The following are some of the characteristics of an ethical company; honesty in communication, respect of customers, investors, and employees, upholding stakeholders' integrity, maintaining high employee standards, and informing stakeholders on internal and external communication. However, some major corporations are still governed by unethical behaviour, such as WorldCom, Tyco, and Lehman Brothers. It is always crucial for companies to ensure that they uphold trust and honesty by implementing ethical practice within their business settings.

Importance of Corporate Social Responsibility

It is often crucial for companies to ensure that they conduct their business operations to improve their corporate social responsibility activities within the community. Corporate social responsibility enables companies to perform their services to increase sustainability and developments affected by society's social and environmental impacts (Collier, 2018). Managers in many organizations often receive many benefits due to incorporating corporate social responsibility in their business operations. The following are some of the benefits of corporate social responsibility activities that managers implement: increased brand awareness, competitive advantage, increased customer participation, employee engagement, reduced operational costs, and improved public image.

According to Carroll A. (2008), corporate social responsibility is a feature that took some time before being implemented by many organizations. Corporate social responsibility has evolved; so many firms are still adopting it due to its contributing factor to business success. CSR's importance is that it increases managers' involvement in ensuring that the community supports a particular organization's operations and upgrades employees and managers personally. This is why many companies today implement corporate social responsibility and ethics in their business operations to enhance modern ethical practices (Carroll, 2008). The company performance often depends on the investments made in CSR and ethical management, which is seen as a step for most corporations to increase their business revenues, which improves their product identity and image.


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Business Ethics. Importance of Corporate Social Responsibility
Business Management
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ISBN (eBook)
business, ethics, importance, corporate, social, responsibility
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Mary Jackline Njoki (Author), 2020, Business Ethics. Importance of Corporate Social Responsibility, Munich, GRIN Verlag,


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