Assignment scenario Corporate Social Responsibility & Business Ethics

Corporate Social Responsibility and Business Ethics in Controversial Sectors

Until recently, in business practice, there was a belief that companies were operating solely for the profit of their owners. A similar standpoint could be found in the literature. Many authors have quoted the views of Milton Friedman (1970), whose well-known response on a companys social responsibility was: a companys responsibility is to make as much money for the stockholders as possible (Corporate, 2017). Over time, however, the views on the role of companies in socio-economic reality, derived from classical economics, have become increasingly less relevant to the current socio-economic reality. Additionally, there have been numerous changes in the sphere of modern business operations. Globalisation, accompanied by rapid technological changes, has given rise to a completely new business environment. Under these new circumstances, the development of a modern company is determined not only by the effective use of resources and applying appropriate strategies but also by taking into account the concept of Corporate Social Responsibility (CSR) and Business Ethics in management processes. For example, Bhattacharya, Sen and Korschub (2011, pp. 29-30) indicate a fast-changing approach of companies to CSR: (1) The concept of CSR is increasingly viewed as a business opportunity, not as an obligation, (2) Companies are beginning to see the role of other stakeholders such as investors, regulators, employees, nonprofits, and (3) The concept of CSR is being treated as a strategic, long-term approach, not as a single shot, as a one-off action in the short term.

Therefore, one may state that if a company wishes to be perceived as a reliable partner in business, it should implement elements of this concept, and indeed this concept itself (Sroka & Lrinczy, 2015). In other words, companies are forced to maintain profitability and at the same time behave responsibly (Mohr, Webb, & Harris, 2001). This relates not only to global corporations but also to small and medium-size companies, operating in developed, as well as developing, countries and a variety of sectors functioning within.

Few companies have recognized the need to combine their activities with ethics, and in particular with their obligations toward society or the environment. However, the perception of ethical issues has changed radically in business over the last 20 years. If a company wants to be perceived as a reliable business partner and a respected member of the business sector, it should demonstrate a high level of institutionalization of business ethics principles and practices, and it must practice outstanding ethical behaviour. This is exceptionally true in some controversial industries.

This assignment mainly focuses on the degree of institutionalization of business ethics (such as the importance of business ethics, principles of business ethics, presence of a code of conduct within organisations, role of NGOs and MNCs such as Oxfam, CARE & World Wildlife Fund and so on), the perceived ethical behavior of certain firms such as Nike, Levis and Chiquita and their relationship with their key stakeholders etc.

Source: Sroka, W. and Sznt, R., 2018. Corporate social responsibility and business ethics in controversial sectors: Analysis of research results. Journal of Entrepreneurship, Management and Innovation, 14(3), pp.111-126. Available at https://jemi.edu.pl/vol-14-issue-3-2018/corporate-social-responsibility-and-business-ethics-in-controversial-sectors-analysis-of-research-results

Read the above scenario carefully, and answer the following questionswith reference to the article:

1. Discuss Milton Friedman (1970) Doctrine, what do critics say about it? state your own views in terms of business ethicsprinciples?

2. What are the interventions of NGOs and MNCs in major criticisms such as exploitation of low-wage workers, environmental abuses and intolerable workplace standards, use Oxfam, CARE, and World Wildlife Fund as examples to support you answer?

3. The concept of CSR is increasingly viewed as a business opportunity, not as an obligation, discuss the case of Nike, Levis and Chiquita (Chose only one company) as why these corporations are receiving heavy criticisms? Support your answer with your own views?

The answers must be presented in a form of an academic report of 2000 words (10% or ). The written report should include the following:

Title Page

Table of Contents

Introduction

Aim

Different parts of the Body

Conclusion