Corporate Ethical and Social responsibility
Presented to:Western Governors University
Assessment Code: RWT1 – Competency 318.2.2
Student Name:Richard P. Shields
Date:August 7, 2009
Mentor Name:Rungrudee Suetorsak, Ph.D.
Table of Contents
1.Organization Environmental responsibilities:5
3.Organization Increase profits:6
Corporate social responsibility incorporates environmental, social, and economic dimensions that provide leadership and differentiation opportunities for perceptive organizations. However, enterprises need to adequately plan, govern, and anticipate in order capitalizing on these opportunities without exposing themselves to risk and liability. For the past 30 to 40 years, there have been massive changes in organizations ethical and social responsibilities and it continues to evolve. During this time there has been a debate regarding organizations ethical and social responsibilities. This debate revolves around the journal published in 1970, called, “The Social Responsibility of Business is to Increase its Profits” by Milton Freidman, has a Nobel Prize in Economics. Using a statement made on Ethics in Business website regarding Milton Friedman’s journal, it states: Friedman believes, in a free society, “there is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engage in open and free competition without deception or fraud.” (Ethicsinbusiness.net, 2009) This statement has its positive and negative on how business should look at their ethical and social responsibilities. Organizations of today, as members of society, have a moral obligation to help society deal with its problems and to contribute to its welfare. It is the ethical thing to do by the business organizations. There is need for away to measure whether the organization is performing such activities as producing goods and services that people need, creating jobs for society, paying fair wages, and ensuring worker safety.
People and organizations need each other. Social and ethical responsibilities to employees extend beyond terms and conditions of employment and give recognition to the workers as a human being. People today have wider expectations of the quality of working life. This includes justice in treatment, opportunities for consultation and participation, training in new skill and technologies, effective personal and industrial relations policies, and provision of social and leisure facilities. Organization should be given due consideration to the design of work organization and job satisfaction, make very reasonable effort to give security of employment, and provide employment opportunities for minority groups. John Mackey says it better when he states in his journal Rethinking the Social Responsibility of Business: Putting Customers Ahead of Investors: The enlightened corporation should try to create value for all of its constituencies…we measure our success by how much value we can create for all six of our most important stakeholders: customers, team member (employees), investors, vendors, communities, and the environment”. (Mackey, 2005) Today more than ever, the public is watching how big businesses treat society. As we see today, there is very little focus on businesses ethical and social responsibilities. My review to the CEO of this company is to provide the results of how ethical and social responsibility will benefit this organization.
1.Organization Environmental responsibilities:
Organizations have a responsibility to society, to respect environmental considerations and take care of...