Business Ethics

Nowadays two contradicting notions – business and ethics – are closely interwoven. People use morality and ethical issues as the main power for achieving business success. Hence, many companies manipulate moral principles and human feelings to raise their incomes and to set a stable position in the market. Sometimes this slight infringement is not available for the law so that managers often break the balance between human relationships and the human environment. The following case considers the ethical dilemma within business domain that requires a legal interference. The case with ‘injury odds’ in “The Odds of a Disability Are Themselves Odd” (Lieber 2010) shows the way the insurance company overuses human trust and feeling for gaining more profits.

The main ethical bias of the case lies in the fact that many American people do not have enough guarantees for their losses to be reimbursed. However, those workers who are not insured are threatened by the security companies by ‘veritable’ numbers of injuries that occurred during the working day. No doubt, the insurance industry takes advantage of the ambiguity of numbers bringing the enormous revenues every day. People who feel anxious about those injury odds follow blindly the statistics made by disability insurance companies.

The main problem consists in misperception of the information delivered by the National Safety Council and its general definition of the term “disability”, which does not necessarily mean a serious injury. Despite serious moral biases, the statistic still has a positive side for people and for social security, as those ‘injury odds’ statistic considerably decreases the injury rates.

Misconceptions arising in the insurance realm are explained by the absence of veritable information about numbers. The problem of inaccurate data lies in the neglected attitude to disability problems and the working ethics. According to the statistic, white-collar professionals complain of injuries more often than ‘assembly line workers’ do. The results of false complain turn into a false statistics, which is rather preferable for disability insurance companies.

Considering the problem from the legal point of view, the policy of insurance companies is pure and lawful, as they use official statistics for their insurance strategies. Besides, the suffered part played last but not the least role in this situation thus spreading false information about the seriousness of injuries. However, there exist several stumbling blocks that make the situation morally and ethically unacceptable. On the one hand, the explicit intention of the company is to enhance the security of working conditions and to improve their productivity. However, this nice picture is distorted by the implicit purposes of the company striving to gain profit based on a human fear.

Another misconception of the case lies in disinformation of the customers frightened by the incredible statistic. Here the insurance company should have carried out a more profound research and define veritable injury accidents at plants and factories. Being aware of the inaccuracy of the data, the Council neglects the truth and resorts to a false data proliferation on the purpose. Therefore, the case with ‘injury odds’ is odd in terms of moral infringement and negligence of human needs for the sake of high income. The case cannot be subjected to the lawsuit as it has ethical biases only, which can be perceived in a different way. Still, the moral dilemma can be solved if people pay more attention to the validity of the information.

Reference

Lieber, R. (2010). Your Money: The Odds of a Disability Are Themselves Odd. New York Times. Web. 

Introduction

Ethics can be regarded as “the moral standards by which people judge behavior” (Bradburn 2001). In usual circumstances, ethics stipulates that a person should do onto others what he/she would have others do onto him/her. Many people have argued that this cannot apply to a business setting, where there are different players such as; the clients, shareholders, customers and even competitors. Thus, the concept of business ethics is complex and multi-faceted (Goree 2007). This paper seeks to describe business ethics and cite a case study of an organization that has experienced ethical issues.

Description of business ethics

Business ethics can be defined as ethics “that pertain to the moral rules and regulations governing the business world” (Bradburn 2001). This can also be said to be moral values that direct the way business organizations make decisions (Carr 1968). The laid down ethical code varies from business to business, but generally they often aim at the following main areas; “Honesty, Objectivity, Integrity, Carefulness, Openness, Respect for intellectual property, Confidentiality, Responsible publication, Responsible mentoring, Respect for colleagues, Social responsibility, Non-discrimination, Competence, Legality, Human subjects protection” (Bradburn 2001). Some ethical rules are always captured by the state laws. However, it is impossible for legislation to offer a complete guideline for business ethics as situations that lead to ethical dilemmas are varied. Basic ethical principles and beliefs are drawn from different sources (Goree 2007).

Most individuals tend to identify ethical principles with the following: The first is authority, under which something is considered right or wrong because someone important has said so, for instance stealing is considered ethically wrong because the government has made it illegal; the second source of ethical belief is culture. The idea of morality of an action depends on a person’s culture; a third source of ethical belief is intuition, in which the principles and knowledge of right and wrong are built within a person’s conscience. The dependence on intuition is quite common; the last source of ethical belief is reason. Logical thinking is often a primary tool in ethical judgement (Bradburn 2001). Currently, globalisation has created a new dimension to business ethics. For instance, Companies conducting business in different countries always come to face with different cultures that have varied views on what should or should not be considered as ethical. It is a normal occurrence for firms to outsource for cheaper labour on developing countries. This implies that the workers in those countries are paid less than their counter parts in the developed world. In such instances it becomes difficult to define the boundaries in business ethics, as many would view this as unethical. Many people have argued that, due to the competitive nature of business it is impossible to apply ethical ideals of the society. “Violations of ethical ideals of society are common in business, but are not necessarily violations of business practices” (Carr 1968).

Case study evaluation

A senior employee was fired in one of the world’s largest retailer, the Wal-Mart. Her crime was that the employee had violated the “company’s ethics policy by accepting discounts on personal gifts from vendors and other individuals who were eager to work with the company or sign contracts” (Gress 2009). In one instance the employee was found to have received gifts from an advertising which was later selected to carry out the advertisements for the company. Mrs Roehm was further accused of wrongly using the company’s “travel trips with a subordinate with whom it was claimed that, she was romantically involved” (Gress 2009).

In counter attack, the employee claimed that the Company’s CEO who violated the ethical code. She told a court that the company’s CEO received preferential treatment from another company that had “exclusive rights to purchase unsold Wal-mart merchandise” (Thompson 2008). The troubled employee revealed that Wal-mart’s CEO had a more than just business relationship with the Mr Jacobs, the CEO of the other company. She filed a suite claiming that, the CEO had in some occasions “used private aeroplanes provided by Mr Jacobs to travel to private vacation residences” (Gress 2009). The Wal-mart’s spokesperson came out strongly defending the CEO from the accusation; he claimed that the allegations against the CEO and Mr Jacobs were untrue. In her own defence, Roehm refuted the accusations that she favoured some advertising agencies in order to be employed in one of the agencies. “She also denied accepting gifts from one of the advertising agencies” (Gress 2009).

Considering the above case, it can be said that Mrs Roehm breached the company’s code of conduct that led to her sacking. The company’s code for management of business dealings follows the principle of fairness, correctness, transparency and openness to the market (Thompson 2008). The code stipulates that, the promotional dealings, even they are designed to pursue the corporate purpose, must never turn into acts going against the law (Gress 2009). In regard to presents, gifts, and other benefits, the code stipulates that in relation with customers, suppliers, and third party in general, no personal offers or concessions –either direct or indirect – of money, gifts or any other benefits aiming to obtain undue advantages – either real or apparent of any kind (e.g. promises of economic benefits, favours, recommendations and promise of job offers and so on) or in any case designed to acquire or assure preferential treatment in conducting any activity relating to the company (Gress 2009). However, the company’s ethical code accepts acts of commercial courtesy as long as they are of modest value and performed in observance of any regulations applicable (Thompson 2008).

As seen in the above part of the code, Mrs Roehm actions were wrong and therefore it was justified for the company to terminate her employment. The counter allegations levelled against the CEO may be true but Mrs Roehm needs to provide proof for the appropriate course of action to be taken.

Conclusion

As seen from above brief description, business ethics is a very difficult concept to apply. For instance due to current realities, an organisation may do whatever it takes to remain relevant in the market place and more finds itself breaching business ethics without intent.

Reference list

Bradburn, R. (2001) Understanding Business Ethics. New York: Continuum.

Carr, A. (1968) Is Business Bluffing Ethical. New York: Harvard College.

Goree, K. (2007) Ethics in the Workplace. USA: Thomson South-Western.

Gress, J. (2009) Breach of Business ethics. London: Reuters.

Thompson, R. (2008) Short-Term Profit vs. Long-term Gain: Is Honesty Still the Best Policy. Missouri: The Physician Executive.

In the current essay there is the brief analysis of the most important ethical issue that the world will face in the next 20 years. From point of view of theoretical approach it is rather important to define the area of business ethics and to describe the current situation of the ethical aspects in business, its meaning in the society and the ways of improving. The issue of business ethics is of contradictory nature; thereby it can be argued and discussed from different points of view.

Thus the first issue represented for the analysis of the issue of business ethics is the business ethics itself. Some people doubt about the existence of the business ethics at all (Malachowski, 2001, p.36), because it is strange that there is ethics in business sphere of our life. Those people who are involved in all the filthy things would probably understand what is meant.

For those who do not understand the vague hints here comes an explanation: “Various scandals concerning undesirable business activities, such as the despoiling of rivers with industrial pollutants, the exploitation of sweatshop workers, the payment of bribes to government officials, and the deception of unwary customers have highlighted the unethical way in which some firms have gone about their business” (Crane, 2007, p.4).

Different authors that have written some guidelines on the issue of business ethics suggest their own opinion on it; whereas the subject of business ethics concerns the moral principles of firms of different forms of ownership and the ways these moral principles are included into the companies’ policies. As stated by Jennings (2008, p.73) the moral aspects of behavior have individual approach and are substituted by people, “moral standards are canons of personal behavior that are neither legislated nor changed by legislation” (Jennings, 2008, p.73).

Another aspect of business ethics concerns the social mission, which is “a commitment by the organization to give back to their community and external stakeholders who make the organization’s existence possible” (Weiss, 2008, p.281). Thus the business ethics is not only the issue of the relations and influence of company on the external links and individuals, such as environment and government officials; but it also is the subject of the company maintenance, the interrelations between the employees.

One of the most important ethical issues that the world will face in the next 20 years is mainly the issues of moral behavior, because the competition between the companies is the result of the actions of the company’s employees. The common workers are responsible for some range of operations and actions but their activity is stipulated by the company’s policy. Thus when the companies’ authorities and managerial employees change their position towards the external links and the methods of achieving goals, the business ethics will not be considered an oxymoron anymore.

The issue of business ethics is an extremely contradictory notion; it can be influenced and changed according to the decisions of the heads of companies. The business ethics concerns more the moral principles of people which are implemented through the actions of the company: the company’s policy on the issue of environment, the wages paid to the employees and the principles of payments; the methods of competition with other companies working in the same sphere, and other issues which can influence the moral aspect. The most important issue of business ethics depends on the attitude of people to different social, political and national policies of the country.

Bibliography

Crane, Andrew & Matten D., 2007. Business ethics: managing corporate citizenship and sustainability in the age of globalization. 2^nd ed. New York: Oxford University Press.

Jennings, Marianne M., 2008. Business Ethics: Case Studies and Selected Readings. 6^th ed. Mason: Cengage Learning.

Malachowski, Alan R., 2001. Business ethics: critical perspectives on business and management. 1^st ed. New York: Taylor & Francis.

Weiss, Joseph W., 2008. Business Ethics: A Stakeholder and Issues Management Approach. 5^th ed. Mason: Cengage Learning.

The main crux of the article “The Case against Corporate Social Responsibility” is Karnani’s view that when it comes to a choice between profit or acting for the benefit of the general public, competent CEOs would always choose profit. Karnani presents the notion that since corporations are primarily profit-driven entities, the manifestation of corporate social responsibility within their operational framework is merely the by-product of enhancing present-day operations. Any action that is in relation to what the public perceives as CSR is merely coincidental, with the company still pursuing profit above all else(Karnani, 2010).

For instance, Karnani presents the example that corporations have been focusing on more environmentally sustainable methods of operation through more efficient manufacturing processes that waste less energy and resources. While from the standpoint of the general public, such an action by a corporate is due to its commitment to corporate social responsibility. In reality, the change in operations is merely due to the corporation’s goal of maximising profit through a reduction in expenses by limiting the wasteful processes that were previously utilised.

Karnani emphasises that the idea of corporate social responsibility is basically irrelevant since competent CEOs that are in charge of the company’s operations will not alter operations without a sufficient enough reason that is normally rooted in the act of increasing profits for the company. In fact, Karnani even goes so far as to state that the only point in time when corporate social responsibility can be implemented is when it is in synch with the desire of the company to appeal to its consumers (Karnani, 2010).

Manifestations of this can be seen in the sale of health food products, fuel-efficient cars, energy-saving devices and other products that are manifestations of environmentally sustainable practices and the “green movement”. Karnani explains that the subsequent creation and sale of such products is not due to the desire of companies to be more responsible regarding their methods of production or the environmental impact of their products, rather, these items were simply made to fill the demand generated by consumers. If the demand did not exist in the first place, then it is unlikely that companies would actually develop and sell such products. From such a perspective, CSR (Corporate Social Responsibility) as demanded by the general public is seemingly nothing more than a manifestation of practices that are superficially in line with beneficial effects for the general public, in reality, it is nothing more than a response to changes in the types of products demanded by customers (Karnani, 2010).

Thus, thinking of CSR as an internal means of corporate self-regulation is highly flawed since, at the end of the day, corporations will always pursue profit rather than practices that would benefit the general public at the expense of the company’s shareholders. As such, Karnani argues that only external means of control can sufficiently sway the method by which a company operates. This can manifest itself through government regulation or through consumer demand for products from corporations that only utilise ethical and sustainable practices when it comes to their means of operations. One of the manifestations of such a practice can be seen in the various labels, stickers, and emblems that are often placed on the products of corporations that indicate their use of ethical practices. Do note though, that even in such cases, the logic of Karnani prevails since most of the organisations that approve a corporation’s use of such labels of sustainability are themselves funded by these same corporations which call into question the legitimacy of the claims placed on their products.

Critically Evaluating the Arguments

Admittedly, Karnani does make several valid points in this article involving CSR and the way in which corporations operate. At the end of the day, corporations are profit-driven entities and will seek to maximise the amount of profit they make through any means possible. The current manifestation of CSR as it is known can be considered as a development that was done in order to create a better public image for corporations. The fact is that customers are more likely to patronise the products of the company that they associate as operating within their best interests as compared to a company that customers think is adversely affecting their community.

This is one of the reasons why corporations spend millions of dollars in developing an appropriate public image through a variety of “greenwashing” campaigns that showcase the company’s supposed adherence to environmentally sustainable practices and ethical methods of operation. The best way of maximising the evaluation of Karnani’s arguments is to ask the question: “if the general public did not mind whether corporations acted in their best interests, so long as the products produced by them were cheap and affordable, would CSR even exist today?” When presented with such a question, it is likely that the answer would be “no” since, as a profit-driven entity, corporations focus only on increasing profit.

CSR thus acts as a means of increasing profit by creating product patronage and is not necessarily an inherent aspect of corporate operations. On the other hand, it should be noted that Karnani fails to take into consideration how companies often implement CSR, not due to the need to develop a positive consumer image or even to adhere to government regulations; rather, it is at times implemented in order to preserve the continued existence of the business. One clear example of this can be seen in the various processes associated with the fishery industry and their self-imposed limitations. It can be seen that various fishing companies often regulate the season in which they catch fish and the type of nets they use in order to catch them (ex: nets with large holes for smaller fish to escape).

While they would normally be able to maximise their profit by fishing throughout the year and using fine mesh nets to get as many fish as possible, such activities would diminish the supply of fish to such an extent that it would no longer become a sustainable form of business. Implementing methods of self-regulation thus become a necessity in order for a business to continue to operate properly. From this example, it can be seen that some corporations are not practising operations similar to CSR out of the desire to benefit the general public; rather, they do this to survive and have future profit. It is based on this that when examining the arguments of Karnani, it can be stated that he makes a great deal of sense when it comes to his statement that regardless of public opinion, corporations will always act in their best interests. As such, CSR can be considered as a manifestation of corporate interests that merely coincides with the desires of the general public.

Reference List

Karnani, A. (2010). The case against Corporate Social Responsibility. Wall Street Journal – Eastern Edition. pp. R1-R4. Web.

Introduction

The focus of the study is to analyze the significance of ethics in organizational behavior. Organizations often develop unique cultures that define how employees undertake their duties, relate with one another, and how customers are handled. Ravasi and Schultz (2006) say that organizations that fail to develop a culture that promotes cooperation and commitment among employees often face serious challenges. The same fate faces organizations that have poor customer relations approaches. When employees show disrespect to the customers, chances are high that such customers may opt to purchase products from rival companies. Successful companies have come to appreciate the power of developing an appropriate culture that guides actions and decisions made by all stakeholders, from the shareholders and top managers to the junior-most employees. It makes it easy to predict the pattern of behavior of these stakeholders even in times of crisis.

Literature review

Organizational culture as a concept has gained massive popularity in the recent past. Business executives and scholars have come to determine that the success of every organization largely depends on the actions of its employees. How employees undertake assignments given to them, how they communicate amongst themselves and with the top managers, and how they handle clients all affect the sustainability of the business. It explains why many scholars have tried to explain why ethics should be incorporated into organizational culture (Rakichevikj, Strezoska, & Najdeska, 2010). It has become evident that without ethics being part of organizational culture, it is almost impossible to achieve the set goals and objectives of an organization.

According to Gorondutse and Hilman (2016), organizational culture must be inculcated in one way or the other. That includes failing to nurture a given culture because the vacuum created will drive employees to embrace a practice they believe is most convenient for them. The development of organizational culture is a direct responsibility of the top manager. They are expected to understand the vision, and strategic objectives of their organizations then develop a culture that would be appropriate for meeting them. Sometimes it may be necessary to use reinforcements to ensure that stakeholders embrace the desirable culture. That may include using rewards and punishments whenever necessary to ensure that everyone learns the behavior considered desirable within the organization. However, Dempsey (2015) warns that such measures should be taken to avoid creating fear in the organization.

Sustaining a desirable organizational culture is as challenging as creating it, as Sinclair (1993) observes. Once a culture has been created, it is the responsibility of all the employees in managerial positions (from the top managers to junior supervisors) to ensure that the new employees learn the culture of the organization. They have to ensure that everyone acts as per the expected standards at all times. Whenever the behavior of any employee deviates from the standard practice, he or she must be held responsible. Campbell and Göritz (2014) believe that not all deviant behaviors should be met with punitive measures. It is necessary to ask the employees to explain why they acted in a given manner that was not expected. It is possible to find cases where the change is motivated to serve customers better or to make an extra effort on a given assignment.

Findings

Secondary data sources emphasize the significance of developing a unique organizational culture in the current competitive business environment. In such a business environment, customers often look for uniqueness in the products or services that are offered to them by different companies. They often opt for products or services that they believe offer the best value. In industries where products or services cannot be easily differentiated, the additional value that customers get is often defined by the services that employees offer. The time that employees take to attend to the customers, their politeness, and the ability to listen to customers’ concerns, and how well they address these concerns define the level of satisfaction of their clients. However, these practices are learned behaviors (Slavica, Leposava, Stevan, Boban, & Zuzana, 2014). The employees need to learn how to handle their clients every time they make purchases or seek clarifications. The employees must be made to understand that they can bring about the level of uniqueness needed in product offerings that can give their firm an edge over the rival companies.

Ethics is critical, as demonstrated by the findings from the review of the literature. According to McGregor’s Theory X, people are more likely to relax and find an easy way out whenever they are assigned a given task (Ardichvili, Mitchell, & Jondle, 2009). In most of the cases, the easy way out is not always the best approach that needs to be taken. It means that the top management should ensure that such unethical practices are avoided at all costs to ensure that the desired organizational goals are achieved. Nakano (2007) says that although some ethical practices are conventional irrespective of the industry, some variations often exist. A good example is in the hospital setting. It is ethically important for a service provider to act as per the desires of a client. However, sometimes the request made by a client made not be in his or her best interest. A doctor may be forced to act contrary to the request of a client to ensure that they get the right medication. Of interest should be to ensure that the service provided will yield the ultimate goals, sometimes even if it means going against the interest of the customer.

The findings also reveal the consequences of corruption when trying to promote ethical practices in an organizational setting. According to Terec-Vlad and & Cucu (2016), corruption is one of the worst forces that can easily destroy an ethical culture within an organization. The desire to make quick financial gain is often common among humankind. However, it is a dangerous desire that must be controlled. It is a desire that can easily make one ignore all the standard practices and set rules because of the promise of quick financial benefits. The rot of corruption often starts at the top management unit. When the top managers are tempted to bend rules for personal gains, they will force their subordinates to act contrary to the set regulations. Sometimes they share the benefits with these subordinates. The chain of unethical practices may go down to the junior employees if they are responsible for undertaking a given action desired by the top managers. The ripple effect caused by the action of the top manager makes junior officers believe that corruption can be tolerated in the firm. Such actions also compromise the authority of the top managers. Given that they asked favors from their juniors, they are also expected to ignore the mistakes committed by these subordinates.

Recommendations

The study strongly recommends the need to promote an ethical culture. It is clear that in their recommendations, the scholars insist that the top management unit has the responsibility of promoting ethics. They must understand the vision and mission of their entity and define a culture that will enable it to be superior to other rival firms. It is strongly recommended that managers should promote close communication between management and employees to enhance the sharing of information. Employees should understand why specific cultural practices are embraced and not others. The study warns against corrupt practices within an organizational setting. In most of the cases, the problem of corruption starts with the top managers in an organization. When junior employees realize that their managers are corrupt, they get to embrace the culture, knowing that their superiors lack the moral authority to stop the practice. Such vices create an environment where managers cannot direct employees to realize the vision of a firm.

Conclusion

Ethics and organizational culture are concepts that must always be tied together to ensure that an entity achieves its goals and strategic objectives. The study shows that every entity often faces challenges, some of which can be very disruptive if not handled properly. As such, success is often determined by the level of commitment of the employees, the ability to meet the needs of clients in the best way possible, and the effectiveness of the strategies used in combating challenges that may arise from time to time. In such an environment, the top managers are expected to be in full control of their employees. Engaging in acts of corruption compromises the authority of these managers. It makes it difficult to achieve the desired goals.

References

Ardichvili, A., Mitchell, J., & Jondle, D. (2009). Characteristics of ethical business cultures. Journal of Business Ethics, 85(4), 445–451. Web.

Campbell, J., & Göritz, A. (2014). Culture corrupts! A qualitative study of organizational culture in corrupt organizations. Journal of Business Ethics, 120(3), 291-311. Web.

Dempsey, J. (2015). Moral responsibility, shared values, and corporate culture. Business Ethics Quarterly, 25(3), 319–340. Web.

Gorondutse, A., & Hilman, H. (2016). Mediation effect of the organizational culture on the relationship between perceived ethics on performance of SMEs. Journal of Industrial Engineering and Management, 9(2), 505-529. dWeb.

Nakano, C. (2007). The significance and limitations of corporate governance from the perspective of business ethics: Towards the creation of an ethical organizational culture. Asian Business & Management, 6(2), 163-178. Web.

Rakichevikj, G., Strezoska, K., & Najdeska, K. (2010). Professional ethics: Basic component of organizational culture. Tourism & Hospitality Management 2010, Conference Proceedings, 1168-1177. Web.

Ravasi, D., & Schultz, M. (2006). Responding to organizational identity threats: Exploring the role of organizational culture. Academy of Management Journal, 49(3), 433–458. Web.

Sinclair, A. (1993). Approaches to organisational culture and ethics. Journal of Business Ethics, 12(1), 63. Web.

Slavica, M., Leposava, G., Stevan, M., Boban, M., & Zuzana, B. (2014). Manager’s assessment of organizational culture. E+M Ekonomie a Management, 17(3), 35-49. Web.

Terec-Vlad, L., & Cucu, M. (2016). Ethics and organizational culture-key elements regarding the development of economic activities. Ecoforum, 5(1), 192- 196. Web.

Introduction

The article “The Truth About CSR” by Kasturi Rangan, Sohel Karim, and Lisa Chase explains why companies should design appropriate CSR that support their business models. This review focuses on the best approaches to dress Corporate Social Responsibility (CSR) as vital business tool. The targeted article supports the importance of coordination and collaboration with different stakeholders (Rangan, Chase, and Karim 42). The article goes further to explain why CSR should be connected with every organizational initiative. This review supports the fact that the article is masterpiece that can be used to redefine CSR.

Background Information

Corporate environmental and social responsibility is a practice that is embraced by many companies in the world. The ultimate goal of the practice is to improve the wellbeing of different communities that support a firm’s business model. However, many firms have CSR portfolios that fail to support their business purposes and values. The article indicates that many CSR strategies are hampered by “poor coordination and inability to connect with various programs” (Rangan et al. 42). This discussion will examine the role of CSR towards supporting the goals of many corporations.

Summary

The authors begin by arguing that the CSR initiatives embraced by many corporations lack adequate coordination. Some CEOs also fail to be part of the CSR agenda. Consequently, such companies find it hard to maximize their business outcomes. Companies embracing such disparate approaches to CSR fail to achieve the desirable social responsibility objectives (Rangan et al. 42). The authors go further to present specific solutions that can address the problem. The three steps proposed in the article include a positive philosophy, effectiveness of different operations, and transformation of a company’s model (Rangan et al. 43). Such efforts will ensure the “new CSR has the potential to create shared value” (Rangan et al. 43).

Corporations should design new CSR strategies that are aligned with their values and business purposes. The programs should also “be coordinated and supported by an interdisciplinary management team” (Rangan et al. 43). The effort will play a positive role towards driving the firm’s CSR strategy. That being the case, the article encourages business leaders to emulate the CSR strategies of successful firms (Rangan et al. 49). Such leaders will ensure their corporations have coordinated and interdependent business programs. The ultimate goal is to ensure CSR portfolios are aligned to the values and purpose of the targeted firm. The strategy will ensure the CSR agenda addresses the needs of the targeted societies.

Evaluation

The authors have achieved their goals by presenting meaningful approaches that can be used to align a company’s CSR with its core values. The article presents three key approaches towards redefining the role of CSR. Evidences from successful companies are presented to support the argument. The article indicates clearly that companies that align their CSR initiatives and business values will realize their goals much faster (Beal 28). The central lesson gained from the article is that firms should design appropriate CSR portfolios guided by their values and goals. Such firms should develop better ways to measure the success of every CSR initiative (Filho et al. 12). Powerful teams characterized by competent people should be designed in order to drive every company’s CSR strategy (Rajak 22).

Several strengths explain why more people should read it. To begin with, the article identifies a unique gap that has been ignored by many companies. The article goes further to present an effective action plan towards supporting the CSR initiatives of many companies. The strategic plan can make it easier for more firms to achieve their potentials while at the same supporting the needs of different communities (Rosen-Zvi 536). The arguments are supported using concrete evidences from various successful companies. I strongly believe that the article does not have any weakness. The arguments presented by the author can be applied in different business settings (Rangan et al. 46). As an employee, I have observed that our organization treats CSR as an integral attribute of its business model. This approach explains why more customers and stakeholders support the company’s business objectives.

Conclusion

In conclusion, the ideas presented in this article have the potential to transform the performance of many companies. This is true because the CSR concept has the potential to improve a firm’s shared values and goals. The authors encourage managers in an organization to develop multidisciplinary teams in an attempt to drive the targeted CSR strategy. Stakeholders should also be informed about the initiatives undertaken to create the most desirable business model. The arguments presented in the article are meaningful and applicable in different settings. Future scholars should analyze the benefits of aligning a company’s CSR strategy with its business goals (Rangan et al. 48). Such studies will present new arguments to support the ideas described in this article. This study is relevant towards transforming the performance of many transnational and local corporations (Broomhill 22). I am also planning to read more articles and books in order to identify new strategies that can make our company successful.

Works Cited

Beal, Brent. Corporate Social Responsibility: Definition, Core Issues, and Recent Developments, New York: Sage, 2013. Print.

Broomhill, Ray. “Corporate Social Responsibility: Key Issues and Debates.” Dunstan Papers 1.1 (2007): 1-31. Print.

Filho, Jose, Lilian Wanderley, Carla Gomez and Francisca Farache. “Strategic Corporate Social Responsibility Management for Competitive Advantage.” Brazilian Administration Review 1.1 (2010): 1-16. Print.

Rajak, Dinah. Corporate Social Responsibility: Definition, Core Issues, and Recent Developments, Stanford: Stanford University Press, 2011. Print.

Rangan, Kasturi, Lisa Chase and Sohel Karim. “The Truth About CSR.” Harvard Business Review 1.1 (2015): 41-50. Print.

Rosen-Zvi, Issachar. “You Are Too Soft: What Can Corporate Social Responsibility Do For Climate Change?” Minnesota Journal of Law, Science & Technology 12.2 (2012): 527-572. Print.

Understanding the basics of corporate social responsibility (CSR) and the involvement of companies in it are useful aspects of the activities of corporations and the state. The United Arab Emirates understands, appreciates, and supports the principles of CSR. Even a small contribution of each company to the development of society and the implementation of sustainable development goals is necessary for the prosperity of the country and the world.

For this reason, the government has created the federal Corporate Social Responsibility (CSR) UAE platform, which provides support for business community projects and rewards the most successful in this area (“Corporate social responsibility,” 2019). These awards increase the reputation of companies and encourage their employees to be more socially active. Consequently, support of the state and recognition inspires leaders to act with their employees in a socially responsible manner, which in turn encourages worker’s engagement in activities of their companies and CSR.

The UAE government appreciates companies that care about the development of the country and society by implementing the principles of CSR. In 2017, The Dubai Chamber of Commerce and Industry awarded 37 companies that showed significant success in corporate social responsibility and an attempt to benefit the public by Label (“37 Leading Companies,” 2018). This award is honorable for any business as it demonstrates that the goals that the company set for itself were not only achieved, but also improved the society for the better.

As Chairman of Dubai Chamber said, the award was created “to encourage and honor outstanding companies for their CSR and sustainability efforts” (“37 Leading Companies,” 2018). It is also worth noting that such an award is an indicator of success and also raises the corporate reputation of the company and can attract new customers.

For this reason, both the federal CSR platform and business are interested in working together, since they increase the social, economic and environmental conditions in the country joint efforts while raising the status of the company. Besides, the receipt of CSR label means that the winner directed its efforts both to external stakeholders and its own employees, since without their contribution to CSR and the company’s performance, it did not realize its goals. Consequently, the award-winning companies set an example to the rest of the business world and push them towards corporate social responsibility and interaction with the government. Such changes have a positive effect on the reputation of the business environment in the country and motivate employees to engage in activities of their employers.

Roads and Transport Authority (RTA) was one of the winners to receive The Dubai Chamber CSR Label. In 2017, the company had seven goals in the “Year of Giving” program (“Year of giving,” 2016). For example, the RTA donated funds for the purchase of school buses and bicycles for students from poor countries, as well as for the buying of wheelchairs (“Year of giving,” 2016). This goal shows the company’s concern for the society in which it operates and the users of its services. In addition, the RTA initiated the Charity Stairs project, in which they wanted to pay every resident who uses the stairs instead of escalators in the metro (“Year of giving,” 2016). These steps demonstrate environmental concerns and contributions to solving ecological problems.

However, the most important goals were aimed at the engagement of companies its employees in CSR. This motivation was expressed in two ways, such as the direct participation of employees in volunteer projects, as well as their financial and moral support by the company. The second way is the internal effort of the company, which is aimed at obtaining the loyalty of employees and their desire to be useful for their employer.

RTA pays debts of employees who find themselves in a difficult situation, thereby giving them a chance to return to regular life (“Year of giving,” 2016). A person who thinks about paying a debt is usually depressed and concerns mostly about his or her problems, which reduces his or her success at work. However, employees who are relieved of their burden may be proactive at work, and the feeling gratefulness to the company pushes them to be hard-working. In this way, the RTA itself sets an example of social responsibility to its subordinates and inspires it to do the same.

Moreover, one of the company’s initiatives is the promotion of volunteer work among employees. RTA provides all interested workers to join volunteer projects during working hours, thereby strengthening their involvement in CSR and helping the community (“Year of giving,” 2016). Thus, the case of RTA demonstrates how the company’s internal CSR enhances employee engagement. Besides, on the example of these goals, one may note that the corporate social responsibility of the company can be useful for business, society, and the state.

In conclusion, the implementation of the principles of corporate social responsibility is an ideal example of cooperation between the state and business, which engage the employees. The Roads and Transport Authority demonstrates how the implementation of internal CSR encourages employees to be more active at work and in everyday life, which benefits the company’s reputation and its profits. In addition, the involvement of workers helps not only corporations but also the city, country, and society in which they operate.

References

37 leading companies awarded the Prestigious Dubai Chamber CSR Label for H1 2017 (2018). Dubai Chamber. Web.

Corporate social responsibility. (2019). CSR UAE. Web.

Year of giving 2017 (2016). Roads and Transport Authority. Web.