This also creates an ambience where markets, labour and communities are able to function in harmony. Organizational responsibility also involves social investment which has become a necessary part of any business. Transparency of business in the social and environmental context has helped to gain public trust and recognition. Today, organizational responsibility has a much wider implication than merely providing jobs and contributing to the economy through taxes and employment. The concept of organisation responsibilities has been widening over the years. According to surveys, developing a good corporate socially responsible strategy can deliver real business benefits.
Three steps are involved in the process of making ethical decisions. These are: moral awareness, moral judgment and ethical behavior. Moral awareness involves identifying the dilemma in ethics. Moral judgment is the acumen required to decide between the right and the wrong. Lastly, ethical behavior means choosing the right course of action.
Corporate reputation is the esteem with which an organisation is held by its internal and external stakeholders. The stakeholders base their notion on the company’s past actions, profitability and future behavior. Very often, organizations overlook the importance of having a good corporate reputation and concentrate on other urgencies. But, this does not help in the long run. It is seen that organizations which have focused more on building their own goodwill have succeeded more than others. They have considered their “goodwill” to be the most valuable asset of their organisation. Some of the benefits of a good corporate reputation are as follows.
Economic responsibilities, legal responsibilities, ethical responsibilities and philanthropic responsibilities are the four components of the corporate social responsibility pyramid. Economic responsibilities