The Relationship between Business Ethics and Culture . now it must consider ethics, and, therefore, social responsibility and sustainability, throughout its. Category: Business Ethics Corporate; Title: The Relationship Between Corporate Social Responsibility And Ethic At The Leadership Level Of Companies. Ethics and Social Responsibility. 2. Chapter Objectives. 1. Define business ethics and their relationship to personal ethics. 2. Explain the relationship between.
In this way, there must be a balance between economic growth and the welfare of society and the environment.
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If this equilibrium is maintained, then social responsibility is accomplished. What it Means to be Socially Responsible and Ethical? The theory of social responsibility is built on a system of ethics, in which decisions and actions must be ethically validated before proceeding.
If the action or decision causes harm to society or the environment then it would be considered to be socially irresponsible. Moral values that are inherent in society create a distinction between right and wrong. Every individual has a responsibility to act in manner that is beneficial to society and not solely to the individual. The theory of social responsibility and ethics applies in both individual and group capacities. In the larger, group capacity, a code of social responsibility and ethics is applied within said group as well as during interactions with another group or an individual.
Businesses have developed a system of social responsibility that is tailored to their company environment. Maintaining social responsibility within a company ensures the integrity of society and the environment are protected. These related to stakeholder responsibility, discretionary initiatives, corporate values, ethical conduct, mutual benefits and effective action.
The second part of the literature review was to examine this element of ethical conduct, in terms of its definition and significance within the firm. Interviews took place with thirty one CSR managers in Ireland, from different sectors producing clear results on their understanding of CSR.
Business Ethics and Social Responsibility
The interview was used to create a cognitive map for each interviewee, identifying the prominence of each theme in their mental model. Key Findings Broadly speaking, the mind maps of the participants could be grouped into a typology of four cognitions. Each type took a particular central theme; namely outcomes and stakeholder focus, outcomes focus, corporate values focus and business objectives focus.
Clear three of the four types retain some element of their business model at the centre of their CSR.Business Ethics and Social Responsibility - Episode 26
The managers with an understanding based around corporate values did offer a little more prominence to ethics, but no participant in our sample was able to offer an ethical derivation of values, in the way that a manager from a business with Quaker values might have been able to. This is very much in line with the literature, where it is contended that business ethics extends to how the firm interacts with internal and external stakeholders Forester,Lubbock, But again, these stakeholders are generally those related to supply chains rather than selected according to any ethical or socially responsibility criterion.
The individual managers interviewed do not reveal any tendency for ethical conduct to be drawn from wider social norms, much in contrast to the literature depicting ethical conduct as coming from society.
The managers do refer to ethics as the behaviour required in dealing with and encouraging stakeholders Lawrence and Weber, Therefore, this idea that the stakeholders of the firm represent the key reference point on which the ethical standing of the firm develops represents a key contribution of this study.
Twenty nine of the managers interviewed have ethics in their construct sets and ethics is very much considered as an important issue in their understanding of CSR. However, managers interviewed place greater emphasis on the link between ethical conduct and the positive outcomes of the firm in broad terms, rather than referring to any link with profit maximisation, as postulated by the literature. Therefore, business ethics among the managers interviewed does not, nor is it likely to conform to many key prescriptions as dictated by the literature.
Business Ethics and Social Responsibility
The mental models of the managers in terms of their understanding of business ethics depicts a very different reference point than that postulated by the literature. Conclusion This paper begins by rejecting the corporate premise of CSR and uses cognitive analysis to begin a study of CSR as practice as understood by its practitioners.
By so doing, significant disconnects between the CSR literature and practice in Ireland are revealed. Mangers are not much interested in debates about financial return and ethics, conceiving the benefits much more broadly particularly in the management of organisational networks.
CSR is generally understood pragmatically in terms of congruence with the business model rather more than social needs, aims or broader ethical insights.
Such a conclusion explains why some practitioners may suffer no ethical cognitive dissonance when funding a social programme through complicated tax arrangements. Academy of Management Review, 33,