The Relationship Between Corporate Social Responsibility And Ethic At The Leadership Level Of Companies

What is corporate social responsibility (CSR)?

According to the ÐŽ®WikipediaЎЇ , ÐŽoCorporate social responsibility (CSR) is a company s obligation to be accountable to all of its stakeholders in all its operations and activities with the aim of achieving sustainable development not only in the economical dimension but also in the social and environmental dimensions.ÐŽ±(en.wikipedia.org/wiki/Corporate_social_responsibility retrieved:10/09/07); another definition is that ÐŽoCSR is about how companies manage the business processes to produce an overall positive impact on society.ÐŽ± (mallenbaker, http://www.mallenbaker.net/csr/CSRfiles/definition.html. retrieved:10/09/07)

In another words, it is most likely to be described as the commitment of corporate contributes to the society in order to maximize the benefit to all the related stakeholders. The stakeholders include the owners, investors, employees, customers, government, suppliers, competitors and the community.

What is ethics?

ÐŽoThe rules or standards governing the conduct of a person or the members of a professionÐŽ± is the definition of the ethic by the free dictionary (thefreedictionary, 2000) (http://www.thefreedictionary.com/ethic.retrieved:10/09/07)

Why to be CSR and behave ethically?

CSR is now more corporate looking for it because that found that they can not survive without the society support. Just like a single human can not survive without food and water. CSR is vital in corporate. For instance, a non-ethical company using poisoned water recourse to make the drinks, and they try to cover it up instead of use other recourse because it will cost them more money. Then, it has end up with some lawsuits and banded for sales. In order to be success in the businesses, it must meet the expectations from the society.

How do management ethics relate to Corporate Social Responsibility (CSR)?

The managementЎЇs core ethical values and standards should underpin everything that it does and the way its employees conduct their everyday business. Management ethics is about "doing things ethically".

How an organisation approaches the social and environmental impacts of its business operations and its voluntary contribution to the wellbeing of the global and local communities in which it operates, is often known as Corporate Social Responsibility (CSR); it is often about "doing ethical things".

Ethical and socially responsible practices are important in relation to various aspects of organizational effectiveness such as quality,communication, profits, competitiveness, survival, efficiency, and stakeholder satisfaction. Based on past literature that emphasizes cultural factors, corporate culture, and individual characteristics, the cross-cultural variation in marketers perceived importance of ethics and social responsibility in achieving organizational effectiveness is explained by country differences (including cultural differences and differences in the economic environment), organizational ethical climate, and selected demographic characteristics of individual marketers.

There are several reasons to support the importance of social responsibilities. It is related to the ethical responsibility, and differentiates into difference level of social responsibilities, which is economic, legal, ethical, and discretionary responsibilities. There are six main areas of social responsibility, the employees, providers of finance, consumers, community and environment, government, and other organizations or groups.(www.e-businessethics.com/.retrieved:10/09/07)

The advantages and important of social responsibilities are being discussed here. This action would be taken by some organization base on their view. To have social responsibilities, the suppliers, business associates, and customers would be more confidence on the organization. So, the products and services of the organizations increase and lead to maximize profit. The model is more sustainable because social responsibility becomes an integral part of the wealth creation process - which if managed properly should enhance the competitiveness of business and maximise the value of wealth creation to society.

There's nothing to say that a company that is highly socially responsible today may not become less so tomorrow. It's a little like physical exercise.

why they share common characteristics in an organisational setting:

According to Ethics in Action, a Vancouver, BC, organization whose awards program recognizes socially responsible corporations, "Socially responsible companies consider the full scope of their impact on communities and the environment when making decisions, balancing the needs of stakeholders with their need to make a profit." Thus, the success and effect of a socially responsible company is measured according to its whole impact on all who are affected by or involved in its operations (a.k.a. stakeholders), not just by virtue of its size, revenues, profits, returns to financial investors, or social-responsibility campaign budgets.(Singhapakdi, A., "1996", pp.1131-40.)

The organization might actively seek to foster relationships and collaborative partnerships with like-minded organizations and individuals within its community so that it is more likely to have the freedom to adopt and demonstrate such tenets of real social responsibility. Its guiding philosophy would be one of self-responsibility and mutual benefit.

Cases

Starbucks Coffee is one of the biggest and most lucrative coffee businesses.For more than 30 years, Starbucks has built enduring relationships with coffee growers to give us direct and exclusive access to the finest beans in the world. As Starbucks expands, so does their need for world-class coffees. To guarantee their long-term supply, and fulfill their responsibility as a leader in the global coffee community, Starbucks seeks to promote and look out for the economic well-being of the farmers who produce their coffee (Commitment of Origins). They also help protect the environment that itЎЇs grown in. Starbucks and the farmers have agreed on a fair price for the coffee and often have signed long-term contracts. In the end though both parties benefit from this process and Starbucks is assured a great quality of product that meets their standard, and the farmers receive a fair guarantee price for their coffee. Starbucks has what they call a ÐŽoCommitment to OriginsÐŽ± which is their pledge