1.
What is the relationship among Business Ethics, Corporate Culture and Corporate
Social Responsibility?
Business ethics is a collection of rules and standards, which help to judge and control the
behaviors and actions of businesses. Ethics is one of the elements that contribute to the
corporate culture of companies and these values, beliefs and attitudes determine the
effectiveness and credibility of each organization.
While business ethics and corporate culture are internal factors guiding a company,
corporate social responsibility is external standards that such a business has to follow to
attain social trust. Ethics and corporate culture define how companies should act and
what are the limits and unethical strategies that they should not.
For example, when choosing materials for making products, they have to consider both
the potential profits of the project and the quality of the materials. If the quality does not
meet basic standards, the decision to keep conducting using those materials for higher
profits is immoral.
Corporate social responsibility is self-regulation that a company obeys to create a positive
influence on society. It can be promoting equality or conducting activities that contribute
to the sustainable development of the community. It is both about sustaining the culture
of the business and making good impacts on society.
Generally, the three factors are about developing the businesses along with following
ethical standards and social growth. When a company is conscious of the moral rules and
decisions that it has to obey within its own business strategies, it can see more clearly the
importance of keeping sustainable values in society. Besides building excellent and
creative plans for making as much profit for the companies, these elements are standards
that help the businesses attain social trust, employees’ and customers’ loyalty as well as
making more sustainable profits.
2. Draw the pyramid of CSR? What are the 4 duties of CSR? Explain and give
example for each duty?
Discretionary
responsibility
Contribute to the
community, be a good
corporate citizen
Ethical
Be [Link]
Do what is
Legal
responsibilit
Obey the
law
Economic responsibility
Be
profitable
- Economic responsibility: is to produce the well-qualified products that the
customers expect to receive and maximize the potential profits for the owners and
shareholders.
Ex: In order to get the highest potential profits for the business, the decision maker
decides to use unqualified materials for the conduction is a behavior that breaks the
economic responsibility
- Legal responsibility: the companies have to fulfill their business goals without
disobeying the regulations and the laws of their local councils and countries.
Ex: Selling prohibited products intentionally
- Ethical responsibility: it may not follow the law or serve the economic benefits
of the companies. It is about decisions that should be made with equity, fairness and
respect for the rights of individuals.
Ex: racial discrimination and sexual inequity are behaviors that violate moral
responsibility
- Discretionary responsibility: make social contributions not mandated by laws,
economics or ethics. These activities include philanthropic contributions without a
payback to the companies and are not expected.
Ex: spend a part of a company’s profit on charitable activities