Corporate Responsibility and It’s Introduction To Ethics

Corporate social responsibility is a company’s duty to have a positive effect on society, the environment and its own employees. It has risen in importance as world issues have come to the fore – for example, child labour making clothes for western shops is quite rightly not allowed – companies have a duty to make sure that all their employees, no matter where they are in the world, are not exploited. If a company uses someone else’s land for its operations (again this is usually in a poorer country) they should provide schemes for native inhabitants such as schools, healthcare and employment opportunities. Companies are now judged by the general public based on their policies so it’s never been more important to be socially responsible.

Social responsibility is a difficult thing to pin down however, and it’s often unclear what the effects will be. Providing a school for the children of workers abroad for example might be great for the workers, but customers who buy the company’s products may never even know that school exists. This responsible scheme then has no knock-on effect on the company’s image. Similarly, making sure that the company abides by international laws is socially responsible, but no-one ever hears about anything like this unless the company breaks a law (in which case it’s all over the news).

Social responsibility is only good for the company if people know about it, so many companies try to publicise their good work or get something back out of it. For example, sponsoring scholarships for poorer students is a generous act, but those students might have access to fast-track schemes within the company when they finish their education. Sponsoring a charity event for a local hospital can be publicised in the news and helps to show customers that the company does a lot in the community.

When a company’s social actions pay off, they manage to present themselves as a caring brand and this can spell good times for the business. More people want to work for them and consumers recognise their brand as someone it’s ok to buy from.

It’s important for corporations to look after existing employees too, as this is also part of their social responsibility. Childcare schemes, extended leave options and even gym memberships all come under this umbrella. When a company offers benefits to its employees therefore it’s being socially responsible. It’s a business tenet that the more benefits a company offers the more likely staff are to stay with the company, and the more people will apply for available jobs.

Because of all these positive effects, companies have to look at social responsibility as an essential part of their PR and not just an expenditure. Some companies don’t participate in schemes unless they’re going to get some sort of positive PR out of it and whilst this does make economic sense it also comes across as a little cynical. Other companies do good just for the sake of it, but also make sure that they get something back most of the time. Whatever path a company takes, social responsibility is inescapable no matter the economic climate. In fact, it becomes more important as people start to struggle financially and the company that looks after its employees and dependents in bad times will have a head start in the good.

Bert Steiner has manufactured everything from worktops to plastic products He has owned a few small companies and likes to write about the issues faced by company managers.

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Tags: ethics, marketing, strategic, management, corporate