Ethics and Social Responsibility

Having been an employee of Starbuck Coffee I have been able to understand how and why the organization engages in social responsibility. Social responsibility suggests that an entity involves its self in an ethical framework in order to act for the benefit of the society at large (Ferrell, 2014). In order to achieve social responsibility, it is upon every individual to perform as required in order to maintain a healthy balance between the economy and the ecosystems.  The organization made a business decision to get its self-involved in corporate social responsibility in order to help the society. The company mainly focuses on the production of sustainable green coffee. It has been able to achieve this through the thought of setting strategy that will achieve product quality, accountability, social   the surrounding environmental leadership (Ferrell, 2014). By the use of these guidelines, the company has been able to support Ethos water to billions of people who have no access. Through the project, the company has been able to committee billions of grants to facilitate it social responsibility. The project is maintained for the welfare of the environment and the society.

For a company to engage in social responsibility there has to be a developed system that tailors the company social responsibility according to its environment. This is done in order to ensure that the company maintains a good balance between its objective and the social responsibility. Integrity has to be maintained within the organization and the society to ensure that the business and the environment are protected (In Idowu, 2009). As the success of the social responsibility depends on individual there are bound to be complications. When the company concentrates so much on social responsibility it might affect the main objectivity of the organization. This means that the profits will reduce and it will not be in a position to achieve a balance in its business. The ethical implications of the action are at times overlooked for benefits gained that are usually material and for personal gains. By so doing the company may attempt to cheat environmental regulations. With a faulty system of social responsibility belief, there is a risk of disregarding the environment and the inhabitants resulting into severe consequences (In Idowu, 2009).

As a result of ethical implication the decision-making process for the business will be adversely affected. This puts the company in a dilemma as its ethics is affected. Leaders in the organization face the trouble of restoring trust and how to put ethics first becomes difficult to achieve (Simpson, & Taylor, 2013). The process of decision making becomes slower and more complicated due to conflict of interest. The cost of the values increases significantly which affects the business as the society tends to withdraw themselves with the company (Ferrell, Fraedrich & Ferrell, 2010). As a way of restoring trust to the community, more funds have to be committed in order to get rid of the damaging reputation may affect the decision-making process as there are so many consultations made making the whole process rigid. Respecting the stakeholders in the business as their interest is placed first will further affect the decision-making process. What they consider being important for the business will affect the business decision made (Simpson, & Taylor, 2013). As a result of the society being affected by the implications of social responsibility their views, needs, wants and preference will be considered further slowing the decision-making process.

The organization applies corporate social responsibility as a way business ethics. The organization applies social responsibility through a set of standard or values in order to govern the actions and the behavior of individuals in the organization and the organization as a business. The organization first understands what is require in order to engage in corporate responsibility and the various methods it can use in order to ensure that the organization objective is not compromised (Ferrell, Fraedrich & Ferrell, 2010). The organization applies corporate responsibility by first taking into account the expectation of the stakeholders, and how it can contribute to a sustainable development without straining the organization. The organization also applies corporate responsibility by complying with the applicable laws and also by ensuring that they are in consistency with the international norms. The organization also embraces customer satisfaction at all times and by ensuring that it contributes optimistically to the community and the environment (Simpson, & Taylor, 2013).

By engaging in corporate social responsibility the operation of the organization if greatly influenced. As a result of engaging in social responsibility, the organization is forced to be more transparent as the stakeholders including the customers, employees, communities and suppliers demand for disclosure. This means that the business is scrutinized and all the accounts are audited and accountability is demanded. There is also the increase of customer’s interest as it is evident that the organization has more ethical conduct which exerts a growing influence on the customer’s decision on purchasing (Ferrell, Fraedrich & Ferrell, 2010). This makes the company more cautious about the quality of the product and how to run the business. Due to corporate responsibility, there is the growth of investor pressure that influences how the business is conducted. This is because of the assets they invest that are worth trillions of money. There are also competitive labor markets as a result of corporate responsibility as employees are progressively looking for more than benefits and good paychecks. As a result, employees are looking for employers who have philosophies that match their own principles. Corporate responsibility has also influenced business affairs as suppliers relations have become increasingly important  as they take steps to ensure that they partners engage in a socially responsible manner (Simpson, & Taylor, 2013).

Corporate responsibility has been on the rise due to the numerous benefits that an organization gets for engaging in social responsibility. The companies benefit due to the improved financial performance, workforce diversity, increase in sales and reputation, the ability to retain more employees and generally greater quality and productivity. The society and the general public greatly benefit due to the charitable contributions made, community education and employment and product quality and safety are enhanced through social responsibility (Simpson, & Taylor, 2013). Social responsibilities greatly benefit the environment as there are material recyclability and enhanced product functionality and durability. Corporate responsibility also advocates for renewable resources and integration of the environment into the business plan. I order to make it successful management training should be enhanced as it plays an important role in corporate responsibility in order to implement the strategies in a more efficient way (Simpson, & Taylor, 2013).

 

 

 

 

 

 

 

 

Reference

Ferrell, O. C. (2014). Business ethics: Ethical decision making and cases. Stamford, CT: Cengage Learning.

Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2010). Business ethics: Ethical decision making and cases : 2009 update. Mason, OH: South-Western Cengage Learning.

In Idowu, S. O. (2009). Professionals Perspectives of Corporate Social Responsibility. Heidelberg : Springer,

Simpson, J., & Taylor, J. R. (2013). Corporate governance, ethics, and CSR. London: Kogan Page.