Business Leaders and Corporate Social Responsibility
Students are to use the material discussed in class, including Bird & Waters (Moral Muteness), Plato, Friedman, Freeman, and Sen (NOTE: Rawls and Porter & Kramer are optional) to respond to the question: Do business leaders need to take corporate social responsibilities (ESG Responsibilities) seriously?
Students are required to incorporate each of the authors (noted above) into their paper, though they will not necessarily all be emphasized in equal amounts. Inclusion of assigned applied readings (i.e. news articles) is not required, but may be used to strengthen one's argument as appropriate.
Submitted reflections should be approximately 6-8 pages (double spaced, standard margins/font).
This is not a research paper, in the sense that students are not expected to investigate how other people answer the question the role of ethics/social responsibilities in business. Students are to form their own answer to the posed question, and rely on course material to defend their answer.
Proper citations of materials relied upon are required.
Submissions will not be graded on whether it is argued that business leaders do - or do not- need to take corporate social responsibilities (ESG Responsibilities) seriously. Rather, submissions will be graded on whether the argument presented in defense of the position offered is sound. Note that for an argument to be sound, it must both be strong (the premises must do a good job supporting the conclusion, where "good job" is based on quantity, relevance, reliability, and objectivity), and the premises must actually be true. A rubric for this assignment is provided here Download here.
Ethics and Social Responsibility for Business
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Why Business Leaders Need to take CSR Seriously
A business refers to a set of relationships among groups involved in the activities conducted in the business. It entails how employees, customers, suppliers, communities, and financiers create value. The customers, suppliers, workers, financiers, society, and managers play a crucial role in today’s business operations. A proper understanding of the business involves an explicit knowledge of all stakeholders’ relationships. The role of an entrepreneur is shaping and managing the relationships hence delivering the title “managing for stakeholders.” Generally, creating and running businesses entails managing stakeholders. The 21st-century enterprises focus more on managing for stakeholders, and the role of executives involves the creation of more value for stakeholders without exploitation of exchange (Freeman, 2010). Great companies thrive since they put stakeholders’ interests in the same direction. The paper illustrates why business leaders need to take corporate social responsibility seriously.
Stakeholder theory is a capitalist view that emphasizes the collaborative relationship between an enterprise and its customers, suppliers, workers, society, and other people interested in the business. The theory depicts that an organization should create value for every stakeholder, not just shareholders. Edwin Freeman initially explained the stakeholder theory of enterprise management and ethics, highlighting the morals and values involved in organizational leadership. The theory identifies and shapes the stakeholders of an organization and describes how the administration can address their interests (Freeman, 2010). Also, the theory has played a crucial role in the study of business ethics and provides a platform for further research. Stakeholders’ interests are interconnected, and it is not easy to accommodate every stakeholder’s interest. Business executives try to accommodate each stakeholder’s interest by practicing corporate social responsibility (CSR).
CSR refers to a self-governing business model that helps an enterprise enhance social accountability to its operations, stakeholders, and the public. Organizations are cautious about their effects in every aspect of society, such as economic, social, and environmental. CSR is a broad concept that takes different forms depending on the nature of the company and industry. Business leaders need to take CSR seriously since the activities are equally valuable to the organization. CSR activities facilitate the formation of a stronger relationship between workers and organizations, boost morale, and help both workers and management feel more connected to their surroundings (Plato, 2016). The accountability of businesses starts from within their organizations, where they need to illustrate responsibility to themselves and the shareholders. Many companies consider CSR as a crucial part of their brand. Customers are likely to conduct business with brands they consider more ethical. As expressed, CSR plays a vital role in promoting corporate public relations that build an enterprise’s brand.
CSR helps business leaders to attract and retain customers, which are crucial for the long-term prosperity of the enterprise. Customers are among the business stakeholders. They will gladly pay a premium whenever they are assured some of the profits from the business are directed towards social activities close to them. On the flip side, companies will experience increased foot traffic after improving the local society. CSR is also an effective social tool to enhance employee engagement. Businesses eager to make a substantial difference in the world usually attract more employees. Huge corporations have huge numbers, and employees’ efforts attain significant results, improving their morale and increasing productivity. CSR activities provide a platform for businesses and customers to impact locally and globally positively. Companies with social responsibility operations that correspond to their values retain their customers and promote loyalty. Customers are likely to purchase products from enterprises advocating for issues they like and refuse to buy a product if they support issues that do not abide by their beliefs. In conclusion, social responsibility activities play a crucial role in improving employee engagement and determining the business’s profitability.
Additionally, CSR makes economic sense for organizations. The morale and productivity boosted by CSR create a conducive working environment conducive to quality work. The amalgamation of a perfect internal environment with the mission or image of the business leads to customer attraction hence promoting business growth and development. Committing a business to be social and environmentally friendly activities might seem complicated, mainly when the business returns are unclear (Plato, 2016). However, CSR can offer guiding ethics and practices that make social operations actionable and beneficial to the business. CSR is a win-win situation considering the business profits and the social impacts of the activities.
Further, CSR plays a crucial role in shaping the business ethics of a specified enterprise. Business ethics are the standards for what is right or wrong in a business. Enterprises establish business ethics to enhance integrity among workers and gain trust from stakeholders such as inve...