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Corporate Social Responsibility Ethics, CSR and Corporate Behavior Employee morale and commitment are higher at corporations with a good corporate reputation. At a time of a crisis a good corporate reputation can shield the company from criticism and even blame, and can help it communicate its own point of view more easily to audiences that are willing to listen to its point of view. A good example is the Pepsi Cola tampering case according to which products on sale were found to contain hypodermic syringes. Pepsi dealt effectively with the crisis by defusing public alarm with a public relations campaign that highlighted the integrity of its manufacturing process and its corporate credibility. 5.7 Conclusion Ethical behavior and ethical business has effects not only for stakeholders, and shareholders but also on the entire economy. We believe that when acting ethically in the business decisionmaking process then this will ensure more effective and productive utilisation of economic resources. Corporate behavior affects responsible and proper economic and institutional improvement. It will be also an influence on all society and a common benefit. Additionally we can make the following points: Organizations affect the external environment - businesses and the wider global environment The Wake the only emission we want to leave behind Please click the advert 62 Download free ebooks at bookboon.com
Corporate Social Responsibility Ethics, CSR and Corporate Behavior The Gaia hypothesis shows that the whole ecosphere forms a complete system, unlike classical liberal theory which postulates the independence of each entity From 1970 there have developed theories and regulations to include all stakeholders inside and outside the organisation Corporate reputation is an increasingly important factors for organisations Ethics has been reinstated as a standard for organisational activity Corporate Social Responsibility (CSR) as a subject indicates concern with social and environmental effects of organisational behaviour. 5.8 References Aras, G (2006), “The Ethical Issues in the Finance and Financial Markets”, in Globalization and Social Responsibility, Eds. David Crowther & Kıymet Caliyurt, Cambridge Scholars Press. Aras G & Crowther D (2008); The social obligation of corporations; Journal of Knowledge Globalisation 1 (1), 43-59 Carroll, A. B. (1979). A three-dimensional conceptual model of corporate social performance; Academy of Management Review, 4, 497-505. Fisher, J. (2004) Social Responsibility and Ethics: Clarifying the Concepts, Journal of Business Ethics 52: 391–400. Friedman, M. (1962), Capitalism and Freedom, Chicago: University of Chicago Press Joyner, B.E., D. Payne (2002), Evolution and Implementation: A Study of Values, Business Ethics and Corporate Social Responsibility, Journal of Business Ethics 41: 297–311, 2002. Lovelock J (1979); Gaia; Oxford; Oxford University Press. Whetten, D. A., Rands, G.,&Godfrey, P. (2002). What are the responsibilities of business to society? In A. Pettigrew, H. Thomas,&R. Whittington (Eds.), Handbook of strategy and management (pp. 373-408). London: Sage. 5.9 Further Reading Bhattacharya C B & Sen S (2004); Doing Better at Doing Good: when, why and how consumers respond to corporate social initiatives. California Management Review, 47(1): 9-24 63 Download free ebooks at bookboon.com
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