Banerjee’s article “Corporate Social Responsibility; The good the bad and the ugly” critically analyzes the high corruption rates that have engulfed the contemporary business corporations, despite the corporate social responsibility they owe to the society. The author emphasizes that the present day corporations have advanced to serve the interests of the managers at the expense of undermining the interests of parties not directly involved. This is in fact evidenced by the latest numerous corporate indignities that have dominated the United States of America. Using this article, this paper seeks to explore on a number of questions in the same context.
Corporate corruption is widespread, how can CSR and stakeholder theory address such problems?
In spite of the immense corruption in the corporate sector, this can be addressed in dissimilar ways. These include the emphasis on Corporate Social Responsibility (CSR) and the use of the stakeholder theory. Initially, Corporate Social Responsibility refers to the dedication of business corporations to contribute to sustainable economic development, while relating to the local society and the employees in order to better their quality of life (Banerjee, 2008, p.13). CSR can be used to address these corruption problems. CSR can be used to enhance a culture of compliance among corporations where they strive to abide by all necessary standards. These social responsibilities define the boundaries of the relationship between society and the business corporations.
Additionally, CSR can ensure that each business corporation takes responsibility for their action regarding business activities. Furthermore, CSR can be used to deal with the corruption issues by encouraging managerial discretion at an individual level of the corporation. This will enhance morality and ethics among the managers. Lastly, CSR will ensure that the interests of all entities are taken into consideration, accountability and transparency are upheld and corporations enhance social welfare. The stakeholder theory is equally important in addressing the widespread corruption in the corporate sector. There is need for dialogue and engagement with all the involved stakeholders in the corporate sector. This will ensure that the agreed standards and the corporate social responsibilities are operationalized effectively (Friedman&Miles, 2006, p.34).
How relevant is global ethics to business?
Business ethics is charged with the examination of ethical principles in a business surrounding (Shaw, 2011, p.16). Global ethics are very imperative to any business. This is because businesses are usually influenced by a number of global concerns and relations. It is therefore necessary to have a defined way of doing business that is acceptable across the globe. This will ensure that the interests of all entities are considered in any business dealings.
Comment on how the readings help you in your understanding of business ethics.
Banerjee’s article on “Corporate Social Responsibility” has greatly assisted me in the comprehension of business ethics. I have come to learn on the importance of business ethics and the real composition of business ethics. Additionally, I have also established the corporate role that the business entities have in upholding the business ethics.
Banerjee, S. B. (2008). Corporate social responsibility the good, the bad and the ugly. Cheltenham, UK, Edward Elgar.
Friedman, A. L., & Miles, S. (2006). Stakeholders theory and practice. Oxford, Oxford
Shaw, W. H. (2011). Business ethics. Boston, MA, Wadsworth/Cengage Learning.