The Concept of Corporate Social Responsibility - Essay Example

The contribution of philosophers like Immanuel Kant, John Stuart Mill, Ayn Rand, and other Utilitarians is very important in understanding ethical tenets in business models of Walmart and McDonald’s Corporation. According to Kan’t, it is the motive and free will behind every action that derives the action moral worth and not the outcome of such an action. This is quite clear from his literature works that include The Critique of Practical Reason (1787), The Foundations of the Metaphysics of Morals (1785), and the Critique of Pure Reason. Furthermore, he stated that freedom and rationality among human beings correlate with moral principles. However, since humans are not purely rational, they are prone irrational behaviors and hence the need for a code of ethics to establish relations in an organizations. Indeed, the possibility of having rational and irrational perspective gives rise to a moral consideration in business deliberations according to Kant. Most notable is the fact that reason supersedes any decision and reason gives a moral direction that abides with the law. In fact, Kant reckons that whether a moral act is right depends on the correctness of the actor’s reasoning. According to the Utilitarians, the morality of any action absolutely relies on its utility in providing happiness or pleasure. As such, the Utilitarians define morality or ethical tenets in relation to the outcome of the action. Furthermore, John Stuart Mill respects the value of the natural world and the environment by arguing that destruction of the environment and a reduced quality of life leads to reduced growth in an organization. In analyzing the business model of the Walmart and McDonald’s Corporation, the two dimensions of moral worthiness of an act in an organization will apply. Walmart Corporation is an international company with its headquarters based in Wal-Mart Home Office complex in America (Walmart). Walmart business model associates with selling a wide variety of general merchandise at significantly low prices. This seemingly relates to Utilitarianism define morality or ethical tenets in relation to the outcome of the action. Indeed, the morality of this act derives its worthiness from the profits collected from such a strategy. More so, in U.S and Canada, the company equally employs greeters and designates them at strategic places in the entrance of the store to assist the customers get what they want and give feedback. As such, the corporation plays a huge responsibility in creating quality products and marketing them in an ethical manner. This relates to Kant’s view that it is the motive and free will behind every action that derives the action moral worth and not the outcome of such an action. Moreover, these moral acts are compliant with the law. Furthermore, the company refers to its employees as associates thus motivating them in their work. Clearly, the corporation does this with reason and at free will as established by Kant’s view. Nevertheless, Walmart business model attracts serious criticism relating to extensive foreign product sourcing, treatment of employees and product suppliers, and environmental practices. Overall, Walmart has successfully offered goods at low prices for working families and subsequently gaining competitive advantage in the market (Walmart). McDonald's is the world's largest fast-food company (McDonald’s Web). However, the model of business in McDonald’s faces a lot of criticism relating to its menu, its expansion, environmental policy, health policy, and labor record. Indeed, there have been consistent allegations of corruption at the McDonald. The corporation faces accusations of increasing its profits through political influence. This subsequently has adverse effects on human health especially children who suffer obesity and social conditions of its workers. This is against the law as seen in the documentary film Super-Size Me by Morgan (Supersize Me). As we can see, the McDonald’s business model relates to Utilitarianism as demonstrated by John Stuart Mill and his colleagues. The Corporation’s moral acts rely on the outcome of such acts and not the reasoning behind it. As such, the corporation is the number one fast-food company in terms of sales at the expense of the environment and the children’s health that the corporation targets. Dean Paul Portney, defines the concept of Corporate social responsibility as a scenario where private firms do more than they are required to do under environmental laws, worker safety and health regulations, and investments in the communities in which they operate. In measuring the degree of Walmart’s corporate social responsibility, we should consider various blames on Walmart by labor unions that condemn Walmart employee’s unwillingness to join the fight against Walmart’s anti-union policy. The corporation equally faces accusations of extensive foreign product sourcing and mistreatment of the employees and product suppliers. Moreover, its environmental policy does not correlate with the morals of the society. Additionally, there are allegations of discrimination against women in matters regarding to pay and promotions. Nevertheless, we are aware that the corporation sells its products at low prices, calls employees associates, and employs greeters to serve the customers better. More so, the low priced products serve needs of the poor effectively. As such, I can state that the corporate social responsibility of Walmart is slightly below average. In analyzing the degree of corporate social responsibility in McDonald, we will need to look at the various legal proceedings muted against the corporation. Of concern is the illegal employment and child labor case where McDonald accrued fine of ?12,400 in 2001. In another case, McDonald had to pay millions of dollars after a scalding cup of McDonald's coffee led to third-degree burns after spilling on a customer that later went to court to seek compensation. Furthermore, the company faces allegations of obesity among children. In matters relating to the environment, the company uses corn-based bio plastic to produce containers, which later fail to break down in landfills. This pollutes the environment. However, the company has made significant efforts to reduce reliance to sources of energy that deplete the environment. Indeed, though the Chicago prototype restaurant model built in 2009 was not entirely successful in reducing energy usage by 25% it was quite significant. As such, I think the degree of corporate social responsibility is far too low and warrants a review. The Executive Branch entails the President and the Vice President of the United States of America (The White House Web). The President has many powers that can significantly affect the operations of the administrative agencies. Indeed, the president bears the mandate of implementing and enforcing the laws written by the Congress with an aim of affecting the running of the administrative agencies. As such, if he fails to implement such laws he will significantly hinder the operations of the administrative agencies. The reverse is relevantly true. Moreover, the executive branch appoints the heads of the administrative agencies and such heads are answerable to the President. Hence, the executive branch, can indirectly affect the operations of the administrative agencies. Additionally, the executive branch appoints the heads of the Federal Reserve Board or the Securities and Exchange Commission, federal judges, and ambassadors (The White House Web). As such, he has direct influence on the federal budget and expenditure thus affecting the allocation of resources to the administrative agencies. He equally has control over the judiciary thus can hinder the operations of the administrative agencies through legislation. Moreover, the other executive agencies like the CIA and Environmental Protection Agency have their heads appointed and report directly to the president. Indeed, they derive their authority from the president. As such in most cases, these heads operate according to the aspirations of the Executive branch that therefore affects the activities of the administrative agencies. Hence, the executive branch can hinder the operations of the administrative agencies by failing to appoint such heads, curtailing their independency, and even denying them resources. The reverse will amount to support in the operations of the administrative agencies. Furthermore, the Executive Branch employs more than 4 million Americans. As such, it has the powers to employ and dismiss the labor force at the administrative agencies. With these powers, the executive branch can dictate the speed of operations, accuracy, and quality of services offered. Actually, the mandate of the president to either sign or veto bills from the congress is a clear leeway to manipulate the operations of the administrative agencies since these bills formulate and dictate the way of running such agencies (The White House Web). More so, the Executive branch has unlimited powers to extend pardons and clemencies for federal crimes. In light of this, the executive branch can pardon administrative heads who violate the code of conduct in such agencies (The White House Web) thus creating a possibility to hinder the operations of the agency. In fact, the executive can relevantly direct the executive officers or clarify the existing laws thus supporting the administrative agencies. However, it is worth noting that in most cases, the Executive branch in the United States of America considers public interest in influencing administrative agencies as seen in the documentary "The Warning.” (TheWarning). In the case of Graff v. Beard, it was an appeal from a judgment of dismissal in a negligence suit that presented an issue of first impression to the judges. The issue before the court was whether, in any situation, a cause of action exists which imposes a duty on a social host to stop serving alcoholic beverages to an intoxicated guest who the host knows is intoxicated and also knows will thereafter operate a motor vehicle while intoxicated. The court concluded that it does not recognize the cause of action asserted by the appellants herein and thereby affirmed the judgment of the trial court. Hence, it affirmed the position that a social host is not liable to his guests or to third party whom his guests may injure (Cornyn Web). In arriving at this decision, the court relied on various legislative histories. The appellees relied on Walker v. Children's Services, Inc. case to base their argument. However, the court refused thus argument since the facts between the two cases were different (Cornyn Web). Significantly, the court relied on the Corp. v. Clark, case to assert that the case involved the drinker himself as plaintiff and not a third person since we do not have an injured third party in this case. In deciding whether the court has the mandate to carry out this task without evidence of legislative policy, the court relied on the El Chico 732 S.W to justify that the judiciary has lately made relevant changes in the common law of tort to determine the scope of duty in negligence without any prior legislative study (Cornyn Web). It also used the Kelly v. Gwinnell case to define the probability of imposing a social host duty to third parties. Moreover, the court relied on Blanton v. Morgan, 681 S.W case to believe in the appellants' pleaded allegations and evidence, indulging in every reasonable inference and sustain special exceptions and dismissal of appellants' suit for failure to state a cause of action in favor of the appellants (Cornyn Web). Finally, the court relied on Amarillo Court of Appeals in Walker v. Children's Service, Inc. case to define the duty of social hosts (Cornyn Web). In the case of Praesel v. Johnson, the court was to give an opinion on whether a physician owes a duty to third parties to warn an epileptic patient not to drive or to report the patient's condition to state authorities that govern the issuance of drivers' licenses. The court gave the opinion that we should not impose a duty owed to third parties and subsequently reversed the judgment of the court of appeals in part and rendered judgment that the plaintiffs take nothing (Enoch Web). In arriving at this decision, the court relied on various legislative histories. Indeed, the Carter v. William Sommerville and Son, Inc. defined the basis of a civil liability on a statute, the standard of conduct, and the resultant injury from breach of such standard (Enoch Web). However, the court was of the view that where the legislature adopts a criminal statute it does not necessarily compel the court to accept it as a standard for civil liability (Enoch Web). More so, in establishing a standard of conduct for civil tort liability the court relied on Rudes v. Gottschalk case. Indeed, this case helped the court to understand that it can borrow all, part, or none of a criminal statute, as it deems appropriate for establishing a duty under the civil law. However, the court realized that in absence of the statute, the alleged conduct would be substandard. Additionally, in relation to Bird v. W.C.W case the court held that a health care professional did not owe a duty to third parties, in part because of the absence of a physician-patient relationship (Enoch Web). Actually, citing this case and the Edinburg Hosp. Auth. v. Trevino case, the court held that a health care professional's duty is to the patient and not to a third party. Nevertheless, the court cites Gooden v. Tips, 651 S.W. to confirm that a doctor may be liable to third parties injured by the conduct of a patient when the doctor failed to warn the patient about the effects of a drug that the doctor prescribed. Finally, the court relied on Graff v. Beard, Greater Houston Transportation Co. v. Phillips, and Otis Engineering Corp. v. Clark cases to decide whether to impose a common-law duty (Enoch Web). Works Cited Cornyn. Royce Graff v. Brett Beard and Dorothy Beard (05/19/93). Web 17, December 2012. < http://tx.findacase.com/research/wfrmDocViewer.aspx/xq/fac.19930519_0040862.tx.htm/qx> Enoch, Craig. Praesel v. Johnson. Web 17, December 2012. < http://tx.findacase.com/research/wfrmDocViewer.aspx/xq/fac.19980414_0549.tx.htm/qx> McDonald’s. Fast food facts from the Super Size Me. Web 18, December 2012. “Walmart: the High Cost of Low Prices.” YouTube, 2002. Web, 18 December 2012 2012. Read More