How important is it to implement Ethics and CSR for managers of today’s organization? How does ethics and Corporate Social Responsibility affect the management of today’s organizations?

Topics: Ethics, Business ethics, Morality Pages: 7 (2156 words) Published: November 15, 2013


How important is it to implement Ethics and CSR for managers of today’s organization? How does ethics and Corporate Social Responsibility affect the management of today’s organizations?

Abstract
This article describes the importance of ethics and corporate social responsibility for managers of today’s companies and the effect it can have. In the beginning the discussion starts with the definition of organizational culture and goes then to the part of ethics and corporate social responsibility. In the next steps the effects of ethics and corporate social responsibility on managers and management of organization in the 21st century will be discussed and in the last there follows a conclusion.

Table of Contents

List of Figures
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How important is it to implement Ethics and CSR for managers of today’s organization? How does ethics and Corporate Social Responsibility affect the management of today’s organizations? 1. Introduction

“Ethical values are now considered among the most important and have gained renewed emphasis in today’s era of financial scandals and moral lapses. A study of business news related to the 100 largest U.S. corporations found that a whopping 40 percent of them have recently been involved in activities that can be considered unethical”. One example for this is the financial crisis which started in 2008. And with globalization “the world is getting smaller is dramatically true for today’s organizations”. . The “rapid advances in technology and communications, the time it takes to exert influence around the world from even the most remote locations has been reduced from years to only seconds.” . This means that companies that act in an unethical manner lose in seconds their creditability with their own stakeholders. With that in the mind it gets more and more important for the management of companies to implement ethics and corporate social responsibility in their day-to-day business and in the organizational structure and design. 2. Organizational Culture

Ethics and corporate social responsibility are a part of a company’s culture, which “is the set of values, norms, guiding beliefs, and understandings that is shared by members of an organization and taught to new members as the correct way to think, feel, and behave” . There are several aspects that form an organizational culture as you can see in the below figure.

Figure 2: Aspects of Organizational Culture (own version based on Daft, 2013, p. 395) Rites and Ceremonies are special events of a company that shows dramatic samples of what a company values. An example for a rite of a company Daft names a rite of passage, which assists “the transition of employees into new social roles”. Stories and myths preserve the key values of an organizational culture and help employees to understand these values. All these stories and myths are real life examples on what are the norms and values of the company. The company shares them frequently to employees and especially new employees. New employees find out the “true character” of the organization through these stories and events. Symbols are a key component of an organizational culture. Rites, ceremonies and stories symbolize a culture and their values. And even more powerful symbol would be “a physical artifact of the organization”, e.g. the movie Rudy is a symbol of the company Foot Levelers. The organizational structure shows a lot what cultural values a company highlights. Power relationships define people in a company who have the ability to influence or manipulate. They are two differentiations: a formal power relationship is defined if the person has power based on the position one inherits and an informal power relationships base on the expertise of the character of the person. The last aspect which affects an organizational culture is the control systems. How management controls their employees is a huge aspect in forming the culture of the company, for example,...


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Daft, R. L. (2013). Organization Theory & Design. Mason, Ohio: South-Western.
Delios, A. (2010, August). How can Organizations be competitive but dare to care? Academy of Management Perspectives, 24(3), 25-36.
Kemp, S. (2011). Coporate governance and sorporate social responsibility: lessons from the land of OZ. Journal of Management & Governance, 15(4), 539-556.
Maslow, A. H. (1943). A theory of human motivation. Retrieved from http://psychclassics.yorku.ca/Maslow/motivation.htm
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