Business Ethics and Corporate Social Responsibility - Coursework Example

Title: Business Ethics and Corporate Social Responsibility Name: Registration number: Institution: Course Code: TABLE OF CONTENTS Introduction 2 1.Business Ethics 3 2.Profit generation while upholding law 3 2.1.Application of Freidman’s recommendations in CSR 4 3.Kew Gardens Principles 5 4.Philanthropic activities of help to the community 6 5.Conclusions of Key findings and Recommendations. 7 References 7 Introduction There have been a number of questions driving the need to understand corporate social responsibility. For instance, there has been the question whether businesses need to focus on specifically generating profits and neglecting the ethics required in their operations. There has also been the need to understand whether companies should put back the wealth generated into their communities and whether markets can be relied upon to determine fair prices (Cody 56). It has also been necessary to determine whether a company should intervene in the events that happen in the surrounding locations such as provision of help in areas where it is necessary to do so. There has also been the need to establish whether governments have the ability to decide public interests. The extent to which a company needs to contribute to the society has also been of great interest in corporate activities. Some companies have not been aware of the philanthropic activities they need to participate in so that they can contribute to the society while generating profits. In this paper, the main areas of focus include the illustration of the manner in which a business can be involved in generation of profits while also contributing to the society. This is achieved by explaining Milton Friedman’s recommendations for CSR. In addition, this paper explains the application of Kew Gardens Principles in the practice of CSR. Finally, this paper explains various philanthropic affirmative duties that companies can engage in so that it contributes to the community. 1. Business Ethics This is the state where a business is involved in an activity that is right, not an activity that is justified. It is also a state where a company is focused on doing good and solving problems experienced in the community. Business ethics is illustrated by Simon, Powers and Gunneman’s (1972) view that companies have the obligation to adhere to moral minimum by ensuring they engage most in a moral activity and not causing harm to the employee, the public or the environment (Baron 35). They must also ensure the activity they engage in is of benefit to the society. This can be achieved by taking measures which ensure companies do not cause harm in any way to the society. Business ethics is also where a business is self-regulated and not dependent only on regulation from the government. For instance, it involves the knowledge of the responsibilities of the business within a particular industry and the rules that need to be complied with so that it can conduct its activities in a more responsible manner (Habisch 72). These responsibilities include compliance with tax requirements, prevention of misuse of resources and avoiding harm to the public or employees. 2. Profit generation while upholding law The process of involvement in profit generation while upholding law involves the act of not violating legal regulations pertaining to business performance. This was mainly explained by Milton Friedman. According to Friedman, CSR is a process which involves the use of business resources for profit generation provided a business stays within the rules of the game, which is to engage in a free and open competition without involvement in deception and fraud (Sun, William, Jim and David 25). He also stated that in a free society, there is only one social responsibility for any business-using its resources and engaging in activities desgned to increase profits while ensuring it stays within the rule of the game, which involves engaging in an open and free competition and not engaging in deception or fraud. The following are some of the ways in which businesses can apply the recommendations of Friedman in conducting their business activities. 2.1. Application of Freidman’s recommendations in CSR A company can ensure it is involved in a free society principle suggested by Friedman by ensuring profits are generated within the legal requirements of profit generation. In addition compliance to government regulation is also a process of ensuring a business stays within the rule of the law (Crowther, David and Güler 62). This is because most government regulations prohibit corrupt activities such as taking bribes, dealing in goods that are not recommended for the company or failing to comply with contractual obligations with its partners. An example of a form of corruption that a business might be involved in is lying. This is a process where a person makes a statement that he or she knows that is not true according to what he or she knows that is true. Another form of corruption that a corporate social responsible business must observe is not involving in bribery (Baron 36). This is the process where a person gives reward to another person so that the other person can provide a particular service or meet a particular objective. The recommendation of Friedman can be applied as a guide to businesses by ensuring the executives of the businesses do not receive a bribe so that they can execute a service to clients. Another practice that can be prevented by applying the principles suggested by Friedman is stealing from the company in which one works (Cody55). This is a practice that has been common among company executives such as company managers. According to Friedman’s view, managers are agents of the owners of the corporation and they have the responsibility to act in accordance with the desires of the owners of the companies they work for. He also emphasizes that corporate stakeholders must work towards ensuring a high return on investment and managers who engage in stealing from stakeholders are not required by law (D'Amato 64). The act of imposing taxes is explained as an instance of imposing costs on stakeholders and is contrary to democracy. Friedman’s principle can also be applied in a situation where there is the need to observe employee rights. The management must provide the employees with the right considerations such as working conditions, adequate compensation and benefits in a similar manner that other stakeholders of the company are rewarded (D'Amato 65). The main freedoms that businesses must accord their employees include: freedom to access information, participate in discussions, participate in meaningful work within the organization and engage in management of their tasks. Employees’ rights can also be observed by not interfering with their moral development. In order to comply with employees’ rights and welfare, it is suggested that company procedures should ensure rules of justice are used to determine the manner in which stakeholders relate to one another (Jonker and Marinus 29). It is also suggested that the interests of all affected stakeholders should be considered during decision making process and the interests of one stakeholder should not automatically take precedence over the interests of other stakeholders without a particular reason. Another area where a business can be involved in an activity in compliance with law is by ensuring the goods and services provided are those that are beneficial to the consumers and not mainly for the benefit of the company. The products and services provided by a business should not result into harm to human beings. A company can comply with this requirement of CSR by ensuring each person is provided with the liberty to make their own decisions and express their opinions. The main argument of Kant is that people must not treat others as means to an end. 3. Kew Gardens Principles According to Kew Gardens Principles, ethics involves determining whether there is the need to help in solving by establishing the need, proximity, capability and the last resort. In terms of the need, a business can determine where there is the need to contribute to help in the corporate environment or in the community. This implies that a business should only participate in CSR in the areas where it has the capacity to do so. This element of Kew Gardens Principle can be applied in a business situation by ensuring a business does not provide services in areas where it does not have the capacity to do so (Habisch 78). The element of proximity states that an ethics requires that a person or an organization should ensure normal conditions exist in the surrounding. This is because, when we are closer to something, the more we are likely to contribute to the assistance to a particular situation. In a business situation, it enhances CSR application. For instance, a business must be vigilant of ongoing activities in the areas in which it operates. If there is an emergency situation, it is recommended that businesses should respond in the manner in which it can help overcome the emergency situation. This can be applied in a case where there is increase production of solid wastes that are dumped without collection, a company that is concerned about CSR can engage in removal of wastes from the location to the required point. The principle of capability can also be used by a business to ensure CSR is implemented in its activities by only focusing on the areas where it is able to contribute positively. The element of last resort states that ethics requires that help should be provided when it is the last resort to an emergency situation. If there is no one willing to perform a particular emergency activity that can result into rescue of the situation, then it is recommended that companies should participate in the activity. In order to apply this component of Kew Gardens Principle in environmental management, companies are required to ensure the management system identifies, controls and monitors environmental risks that arise from its activities to conduct research and come up with programs which ensure conservation of resources, minimize wastes and ensure the environment is protected (Mühle 175). 4. Philanthropic activities of help to the community CSR also requires that a business must be involved in philanthropic activities. These activities involve contribution to the community in which it operates without making the community incur costs before they can benefit from the services. An example of a philanthropic activity can be provision of casual employment to the people in the nearby community. They can be given priority in the areas of their competence (Yüksel, Mermod and Samuel 35). To conduct its activities in a sustainable and ethical manner, it is suggested that companies should integrate social, environmental, ethical, human rights and the needs of consumers into their business activities as well as collaborate with stakeholders so that possible adverse impacts are mitigated and prevented. The principles of philanthropy can be applied by ensuring products and services offered by a business do not result into harm to animals. For instance, a company should not be involved in production of toxic substances that can cause pollution of water bodies which can be harmful to aquatic animals (Smith 205). Rather, it should be involved in activities such as reduction of pollution of the air and rivers. In addition, the products of a company should not result into destruction of natural habitats of terrestrial animals. In addition, a company can be involved in provision of aid for such as food, clothing and monetary support to people who have been affected by conditions such as hunger, civil wars and inter-community conflicts. A company can also contribute in a philanthropic way to the community by construction roads and bridges in communities where they operate. All these are instances of being philanthropic to the community and t is suggested that a company that has concern for corporate social responsibility must be involved in these activities. Philanthropic activities also include contributing part of the profits of the company to the national budget aimed at alleviation a social problem such as hunger epidemics to animals and human beings and disasters such as fire outbreaks. 5. Conclusions of Key findings and Recommendations. This study has illustrated the main areas that companies need to focus on so that CSR is implemented in an organization. The first area that companies need to focus on is the observation laws that govern business activities. This is achieved by explaining Friedman’s principles in business as wee as how a business can implement the principles in the process of profit generation. It is found that the main activities of a company should focus on the needs of stakeholders and managers should not be involved in bribery or corruption as a way of ensuring CSR objectives are achieved. It is also found that a business that acts in a corporate social responsible manner is one that not only focuses on profit generation, but also ensures the environment; the public and employees are not harmed in any way. This paper also explains how Kew Gardens Principles can be useful in ensuring a business observes CSR requirements of a business process. This is illustrated by explaining how a business can help in areas where it is in a position to do so as well as where help is the only option to come to a solution to a problem. The rights of the public that a CSR company must observe include ensuring the activities do not harm the public while bringing benefits to them in terms of solving social issues and involvement in voluntary activities. Finally, this paper explains some ways in which a business can act in philanthropic manner so that it contributes to the society in which it operates as well as generally contributing to the community. References Baron, Marcia. Kantian Ethics Almost Without Apology. Ithaca [u.a.: Cornell Univ. Press, 1995. Print. Cody, Edward. Text Messages Giving Voice to Chinese, Washington Post, 28 June 2007. Crowther, David, and Güler Aras. A Handbook of Corporate Governance and Social Responsibility. Farnham, Surrey, England: Gower, 2010. Internet resource. D'Amato, Alessia, Sybil Henderson, and Sue Florence. Corporate Social Responsibility and Sustainable Business: A Guide to Their Leadership Tasks and Functions. Greensboro: CCL Press [Imprint, 2009. Internet resource. Friedman, Avner. Foundations of Modern Analysis. New York: Dover Publ, 1982. Print. Friedman, Thomas. The Green Road Less Traveled. The New York Times, July 15, 2007. Habisch, André. Corporate Social Responsibility Across Europe. Berlin: Springer, 2005. Internet resource. Hill, Thomas E. The Blackwell Guide to Kant's Ethics. Chichester, U.K: Wiley-Blackwell, 2009. Internet resource. Idowu, Samuel O, Claus S. Frederiksen, Asli Y. Mermod, and Morten E. J. Nielsen. Corporate Social Responsibility and Governance: Theory and Practice. , 2015. Internet resource. Jonker, J, and Marinus C. Witte. Management Models for Corporate Social Responsibility. Berlin: Springer, 2006. Internet resource. McMurtry, John. The Cancer Stage of Capitalism. London [u.a.: Pluto Press, 1999. Print Mühle, Ursula. The Politics of Corporate Social Responsibility: The Rise of a Global Business Norm. Frankfurt am Main: Campus Verlag, 2010. Print. Mullerat, Ramon, and Daniel Brennan. Corporate Social Responsibility: The Corporate Governance of the 21st Century. Alphen aan den Rijn: Kluwer Law International, 2011. Print. Ray, Subhasis, and Raju S. Siva. Implementing Corporate Social Responsibility: Indian Perspectives. , 2014. Internet resource. Sheila, M., Lenny T. Mendonca and Jeremy M. Oppenheim, When Social Issues Become Strategic, The McKinsey Quarterly, 2006 Number 2. Shi, Yong. Optimization Based Data Mining: Theory and Applications. London: Springer, 2011. Internet resource. Smith, Adam. The Theory of Moral Sentiments: Classic. München: GRIN-Verl, 2009. Print. Sun, William, Jim Stewart, and David Pollard. Reframing Corporate Social Responsibility: Lessons from the Global Financial Crisis. Bingley, U.K: Emerald, 2010. Internet resource. Visser, Wayne. The a to Z of Corporate Social Responsibility. Chichester, West Sussex, U.K: Wiley, 2010. Internet resource. Yüksel, Mermod A, and Samuel O. Idowu. Corporate Social Responsibility in the Global Business World. , 2013. Internet resource. Read More

According to Friedman, CSR is a process which involves the use of business resources for profit generation provided a business stays within the rules of the game, which is to engage in a free and open competition without involvement in deception and fraud (Sun, William, Jim and David 25). He also stated that in a free society, there is only one social responsibility for any business-using its resources and engaging in activities desgned to increase profits while ensuring it stays within the rule of the game, which involves engaging in an open and free competition and not engaging in deception or fraud.

The following are some of the ways in which businesses can apply the recommendations of Friedman in conducting their business activities. 2.1. Application of Freidman’s recommendations in CSR A company can ensure it is involved in a free society principle suggested by Friedman by ensuring profits are generated within the legal requirements of profit generation. In addition compliance to government regulation is also a process of ensuring a business stays within the rule of the law (Crowther, David and Güler 62).

This is because most government regulations prohibit corrupt activities such as taking bribes, dealing in goods that are not recommended for the company or failing to comply with contractual obligations with its partners. An example of a form of corruption that a business might be involved in is lying. This is a process where a person makes a statement that he or she knows that is not true according to what he or she knows that is true. Another form of corruption that a corporate social responsible business must observe is not involving in bribery (Baron 36).

This is the process where a person gives reward to another person so that the other person can provide a particular service or meet a particular objective. The recommendation of Friedman can be applied as a guide to businesses by ensuring the executives of the businesses do not receive a bribe so that they can execute a service to clients. Another practice that can be prevented by applying the principles suggested by Friedman is stealing from the company in which one works (Cody55). This is a practice that has been common among company executives such as company managers.

According to Friedman’s view, managers are agents of the owners of the corporation and they have the responsibility to act in accordance with the desires of the owners of the companies they work for. He also emphasizes that corporate stakeholders must work towards ensuring a high return on investment and managers who engage in stealing from stakeholders are not required by law (D'Amato 64). The act of imposing taxes is explained as an instance of imposing costs on stakeholders and is contrary to democracy.

Friedman’s principle can also be applied in a situation where there is the need to observe employee rights. The management must provide the employees with the right considerations such as working conditions, adequate compensation and benefits in a similar manner that other stakeholders of the company are rewarded (D'Amato 65). The main freedoms that businesses must accord their employees include: freedom to access information, participate in discussions, participate in meaningful work within the organization and engage in management of their tasks.

Employees’ rights can also be observed by not interfering with their moral development. In order to comply with employees’ rights and welfare, it is suggested that company procedures should ensure rules of justice are used to determine the manner in which stakeholders relate to one another (Jonker and Marinus 29). It is also suggested that the interests of all affected stakeholders should be considered during decision making process and the interests of one stakeholder should not automatically take precedence over the interests of other stakeholders without a particular reason.

Another area where a business can be involved in an activity in compliance with law is by ensuring the goods and services provided are those that are beneficial to the consumers and not mainly for the benefit of the company.

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