The concept where businesses need to be concerned with more than just profit is known as corporate social responsibility (CSR). Therefore, protecting the business environment is the major aspect of social responsibility. Moreover, CSR makes an effort of addressing social problems such as poverty. Consequently, the CSR practices within a company can be conveyed through its moral standards (Rendorff 38). That is the way it reacts with various stakeholders such as employees and customers. CSR goes beyond increasing the goodwill of the organization. Thereby, making it famous around the globe. Since CSR can be described as the internal organizational policy, international laws have been enacted, and several companies have used their power to push CSR beyond individuals. CSR has been considered as a form of corporate self-regulation. Therefore, it has moved considerably from voluntary decisions to mandatory schemes at regional, national, and global levels.
Impacts of CSR policy in the workplace and real world
Corporate social responsibility is crucial for companies and employees alike. Even though CSR is not a mandated practice in some regions such as the U.S, it should be something extra that corporations need to practice to boost their local and global societies. Therefore, organizations that show their commitment to different causes are alleged as more charitable than companies without CSR practices.
Based on the CSR policy, consumers may choose not to do business with corporations that have the culture of being socially irresponsible. On the other hand, companies that are committed to the society and environment can attract customers who share the value of CSR. That is, the good the company does is part of the perceived value of its goods and services. Hence, this can lead to higher satisfaction among customers. As a result, the satisfied clients are likely to continue to transact business with the same firm.
The public image of an organization relies on the mercy of its social responsibility programs as well as how consumers are aware of such plans. Remember, consumers, feel good while shopping at institutions that help the community. So, a firm should maintain its public image and broadcast it around the globe. Organizations can improve their images by participating in charitable activities in terms of monetary donations, volunteerism, in-kind donations of products and services, and strong partnerships.
By spreading their efforts and letting the society know about their generosity, companies are likely to increase their chances of becoming favorable in the eyes of consumers.
How CSR can be coordinated within an organization to maximize profits
CSR can increases profits, and therefore, corporations should actively take part in it since business executives are aware of the research on its importance. Connecting profit growth to the variables that are always difficult to define is challenging. Hence, most managers believe that CSR can improve profits. Moreover, they understand that CSR is capable of promoting respect for the company in the marketplace. Thus, this can lead to high sales volume, which can enhance employee loyalty as well as attracting personnel in the company (Robins n.p). Additionally, the activities of CSR that focuses on issues may lower costs as well as improving business efficiencies. It implies that CSR activities can help corporations gain the possible listing in stock exchanges. This can promote the stock price of the company. Thus, making stock options more profitable.
Identify a potential ethical issue in a real-world organization
Most organizations have clear business ethics that spell out what an individual should and should not do in specific scenarios (Casselbury n.p). However, some companies lack guidelines to help their workers navigate tricky situations. Therefore, it is upon every organization to decide on handling ethical issues. In a perfect world, corporations and their workers would wish to undertake the right thing. But in the real world, ethical dilemmas are common in the workplace. The major moral issue in Starbucks is the lawsuit filed against them for applying the anti-competitive strategies towards their competitors (Broderson n.p). The tactic was about going outside local coffee shops and hand out samples of Starbucks coffee. As a result, it led to temporary high sales. Ultimately, the company was sued because the strategy was illegal as Starbucks also tried to buy out local coffee shops from the neighborhood.
The primary stakeholders in this ethical issue are the regulators, the community, and employees. The regulators must be aware that most people love the concept of small local coffee shops in their towns with responsibly priced coffee. The community is entitled to fair business while employees should maintain high ethical standards while implementing strategies of the company. Since the community may love Starbucks, but they wouldn't like to see a local coffee shop that has been in operation for years to go out of business because small coffee shops bring happiness to people than Starbucks.
Potential impacts of the Starbucks choosing to or not to address the anti-competitive strategies through corporate policy
Starbucks was considered as unethical company after opening numerous stores to eliminate small coffee shops. In case they failed to address this issue, the plan failed, and Starbucks ended up closing their stores since they were prematurely opened. Regarding the financial and legal impacts, the company was unable to act responsibly because it was paying more than the market price on some leases to kick out its rivals. That is the main aim of Starbucks was to make a profit. So, it was selfishly putting small shops out of business to gain more income disregarding its shareholders such as customers and owners of small coffee shops. Legally, the action was extremely unethical and unjust. As a result, Starbucks was gaining and not losing any money in participating in such illegal business activities.
Regarding the level to which the board members and regulators influence ethical conducts in a company, business culture often begin at the top with the Bod, CEO and top managers. As a result, every employee within the company should get the sense of the corporation’s values through their actions and what the organization has to say through advertisements, media, messages, and employee communications. Therefore, values within the corporate culture significantly affect the relationship between the organization and its suppliers, customers, and workers.
Conclusion
The regulators such as SEC encourages the board of directors (BoD) to maintain strict adherence to corporate governance which is a system of direction, control of using regulations, feedback, business standards, and ethical concepts that holds both board members and senior managers accountable for unethical conducts. Besides, they reconcile long-term customer satisfaction with shareholder value. Thereby, benefiting all stakeholders and the community.
Works Cited
Broderson, Erica. "Starbucks Ethical Issues and the Global Environment." Hsbbloge.blogspot.com. N.P., 2016. Web. 27 June 2018. .
Casselbury, Kelsey. "Common Types of Ethical Issues within Organizations." Smallbusiness.chron.com. N.P., 2018. Web. 27 June 2018. .
Rendorff, Jacob Dahl. Responsibility, Ethics and Legitimacy of Corporations. 2nd ed. Copenhagen: Emerald Group Publishing Limited, 2009. Print.
Robins, Ron. "Does Corporate Social Responsibility Increase Profits? | Business Ethics." Business-ethics.com. N.P., 2015. Web. 27 June 2018. .
