Corporate Social Responsibility and Ethical Responsibility Social
Introduction
Corporate Social Responsibility (CSR) is an organization’s ability to respond to social responsibilities that are economical ethically. CSR’s idea is to improve the economic standards of the community in which the organization is situated or do operate. Every organization is urged to respond to the intention of raising people’s living standards. For a company to fulfill its Corporate Social Responsibility, it has to fulfill the following:
- Integrating social Ethical, taking care of human rights and freedom, taking consideration of the environment, taking consideration of the consumers, and giving back to society.
- Observing all the government regulations and procedures.
As part of an organization’s help, state regulations help the organization maintain its focus on fulfilling corporate social responsibilities. According to Milton Friedman, “there is one and only one responsibility of a business: to engage in activities designed to increase its profits so long as it stays within the rule of the game.” This means organizations have an important purpose of ensuring they participate in environmental matters that directly and indirectly affect people’s lives in the community.
There is a close relationship between Corporate Social Responsibility and leadership styles in an organization. There is a need for leaders to develop the idea of giving back to society to fully participate in Corporate Social Responsibility (Czerniachowicz, Lis, & Wieczorek-Szymańska, 2017). However, studies have shown that various organizational leaders have different approaches while responding to the chapter on Corporate Social Responsibility. As much community may demand that leaders of an organization have a bigger role in facilitating CSR, society has to understand the organization’s culture and practice influence much corporate Social Responsibility.
Corporate Social Responsibility and Social Responsibility Management.
(Jones, 2014) argues that Corporate Social Responsibilities are defined by a quadruple bottom line, which includes social, environmental, economic, and cultural practice. As part of participating in achieving corporate Social Responsibility, the late Kofi Annan, former UN chairman, advised organization to fully participate in the world fight in containing HIV/AIDS. Annan advised organizations that are necessary for an organization to participate with the aim of fully filling humanitarian aid. Kofi Annan argued that “not just for humanitarian reasons but because your business will see benefits on its bottom line. You will see direct benefits, such as protecting investment and reducing risk. And you will make less tangible, but no less important, gains in assets such as reputation and customer loyalty. There is a happy convergence between what your shareholders pay you for and what is best for millions of people the world over.”
Corporate Social Responsibility in Management Theory & Business Practice
Contrary to many roles played in organizations, human resource management in organizations has little influence on various organizational cultures. However, it comes to matters relating to corporate social responsibilities, a human effort through human resources is necessary for achieving corporate social responsibility with the combination of human capital available. Many organizations associate the need to have the right leadership as it is fundamental in achieving corporate social responsibility. Many studies that act as evidence show that US and China firms show that the leadership styles greatly influence CSR in the organization. (Waldman et al., 2006) asserts that, focuses on the many differences between Corporate Social Responsibility leadership styles and the differences these styles may bring about.
Studies pay a lot of attention to the issue of Corporate Social Responsibility and its effect on the general performance of an organization; little is done to find out the effect of leadership styles on the performance of an organization.
The Effect of Leadership Styles on Corporate Social Reasonability on the performance of an organization
Leadership styles depend on the type of leaders as well as the decision of those in executive positions. Ethical decision plays a big part in achieving CSR; however, the type of decision made is associated with the leader’s age. Some leaders will act on empathy, which greatly helps build the image of an organization (Brotherton and Wood, 2008). (Brotherton and Wood, 2008) argue that, ‘‘providing accommodation and/or food and/or drink through a voluntary human exchange, which is contemporaneous in nature and undertaken to enhance the mutual well-being of the parties concerned.” When relating these results with this description and account of the hospitality industry, it seems as though the establishment of facilities that are grounded on ‘charitable human exchange’ and commenced to improve the well-being of the organizations concerned are at risk of being evaded by fresher bosses in favor of a decently commercial, or self-interested authoritative.
Leadership Theories and their effect on CSR
There are many theories that give insight into the need to have the right leadership in organizations. However, the report only discusses four of the various theories that many organizations have applied globally. These theories are utilitarianism, rule ethics, social contract ethics, and personality ethics. This type of leadership has some close explanation with various leadership styles that helps in achieving Corporate Social Responsibility.
According to (Mill 1969), utilitarianism can be defined as actions that can be termed right when the general intention is to bring overall happiness. When the actions are wrong, it will bring a negative, sad result opposite of happiness. Happiness, according to (Cicero, 1971) is the absence of pain. Therefore, Mill indicates that pleasure and happiness vary and are determined by quantity and quality. In the end, the effects of actions should be connected with the level of happiness it creates. The definition of happiness can be defined through better housing, health, and freedom to associate. These are some of the things that makes much individual happiness.
Rule ethics, which Immanuel Kant pioneered, suggests that many actions that are performed without love and sympathy cannot be moral if it is not out of duty. This theory is associated with various criticism; there is a need to consider any action done should be in close association with the action being morally accepted in society (Nejati, Salamzadeh, & Loke, C/. 2019). However, the system used must not prevent the efficiency of the system.
Social contract theory, which is mainly fronted by Jean Jacques Rousseau, by individuals, has the responsibility of participating in social life. At the end of the day, they all belong to a large family of human beings and society. According to (Cranston 1983, 1991, 1997), individuals have to do what is required for their organization.
Personality ethics is considered one of the most applicable means of achieving Corporate Social Responsibility through an ethical approach. It states that individuals are complete when they have the right associations with others (McWilliams, Siege, & Wright, 2006). This ethical theory indicates that individuals find the real meaning of their relationship while having associations with others rather than with their own life or organization. (Branson et al., 1975) argues that, Personality ethics, there is a need to consider dialogue and relation in setting the organization’s right relationship.
The Idea of Moral Development and Corporate Social Responsibility
In conclusion, the idea of developing moral development through the right leadership is important in achieving corporate social responsibilities. Effective leadership is important in ensuring that organizations are provided with the right environment for them to perform their responsibilities. Employees have the right environment to handle their duties while consumers appreciate all the respective organization’s products. Corporate social responsibility can be achieved by leaders who want to pursue excellence with the intention of developing the local talents available. This not only saves costs to the organization but also built a good relationship with the organization. While the weak method to CSR sees actions that profit a firm as ‘extras’ that an organization carries out on a deliberate basis, durable CSR theory goes beyond the guidelines of corporate strategy by looking at the firm’s social and ethical position as a measure of its technique of doing business.
References
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