Corporate Social Responsibility According (Carroll and Buchholtz 2003 (CSR) can be defined as the “economic, legal, ethical, and discretionary expectations that society has of organizations at a given point in time” The concept of corporate social responsibility means that organizations have moral, ethical, and philanthropic responsibilities in addition to their responsibilities to earn a fair return for investors and comply with the law. A traditional view of the corporation suggests that its primary, if not sole, responsibility is to its owners, or stockholders.
However, CSR requires organizations to adopt a broader view of its responsibilities that includes not only stockholders, but many other constituencies as well, including employees, suppliers, customers, the local community, local, state, and federal governments, environmental groups, and other special interest groups. Collectively, the various groups affected by the actions of an organization are called “stakeholders.Main Body According Sinonen, T., (2007 ) Business ethics is profitable for organizations. Moreover, the social responsibility is to increase its profits. I would like to say Corporate Social Responsibility encompasses business ethics as a key factor. Good ethics does mean good corporate responsibility and profitability.
High ethics, high corporate responsibility and good business can Co-exist. In other words, the article named Business and Organization Ethics shows that the more ethical an organization is, the higher chance for it to be also responsible, sustainable, and profitably. I totally agree that companies applied more ethical which means they would take responsible for the society more possibilities. If they don’t care about ethical, they might not consider corporate social responsibility. From my perspective, business ethics is more basic and firms should apply business ethics.
According to Huevel, K. et al., (2009) Business ethics covers all ethics-related issues including supply-chain process, marketing and financing in all areas of functionally business.
However, Corporate Social Responsibility is unique for corporates responsibility, which is responsibility to society.In fact, corporations have responsibilities to a variety of stakeholders includingemployees, customers, local communities, and the environment. Conversely, Corporate Social Responsibility is more focus on society actually. For further explanations, business ethics focuses on responsibilities for managers, employees within business agents. In addition, business ethics have to follow related regulations and laws.
However, Corporate Social Responsibility focuses on corporates and the society. Moreover, Corporate Social Responsibity is kind of moral obligations and behavior not related regulation or illegal. For example, 2008 financial crisis caused critics to challenge the ethics of the executives in charge of U.S. and European financial institutions and financial regulatory bodies, which is business ethics caused regulation issues. Conversely, Corporate Social Responsibility will not cause illegal issues.