Ethical and social responsibilities of organizations revolve around discretionary, ethical as well as legal and economic expectations that society places on businesses. Notably, ethics, in this regard generally pertains to perceived duty that a business should adhere to faithfully. As an ethical requirement, businesses should strictly adopt and follow all the stated business and otherwise compelling laws and avoid activities that undermine the welfare of its stakeholders including investors, consumers, and employees while pursuing profit. Competent leaders should understand intertwining of the success of their organizations with broader ethical as well as social issues. This enables them to lead the organizations in a manner that propagates good business practices by conforming to rules, regulations laws, and legal requirements governing the conduct of entities within the society. In practicing ethical and social responsibilities, the organizations pay back to the community for its contribution to the success of the business. This help in increasing efficiency within and without the company boundaries. Ethical and social responsibility within an organization determines the level of satisfaction of employees. This in turn influences the competency and motivation of employees at work. As such, if the leaders in organization ensure implementation of ethical and social responsibility principles within the organizations, then efficiency prevails at the work place. Leaders should consider implementing ethical and social practices in and outside the organizations in order to ensure creation of a balance between internal and external operations of the company. Organizations should focus on implementing ethical and social practices that help organizations to achieve success.
Ethical and social issues are prime aspects that determine the success of an organization with regard to its goals and objectives. Sustainable economic growth within organizations will not be possible if leaders do not consider the needs as well as demands of the broader society. Efficiency at the workplace determines success in other areas of the business. As such, leaders should ensure creations of a workplace environment that is generally acceptable and desirable by the workers. Satisfied workers carry out their duties appropriately. This translates to creation of proper domains in marketing, accounting, distribution communication and other key areas of the organization. In order to develop operational competency within the organizations, leaders should institute policies and operational strategies based on ethical considerations necessary to enable competent execution of duties in the organization. In order to implement substantial business practices, leaders should explore the complex ethical as well as social challenges of business especially in the manner they affect the employees. Ethical and social dimensions of the business influence the internal activities of an organization and as such, it is important to have a wide knowledge regarding handling of matters that emanate from these dimensions. There are different positive potential impacts of being ethically and socially responsible. A company will achieve efficiency within and outside its boundaries if it institutes the necessary business practices. Still it is possible to improve the reputations of the company, which has many associated advantages for the company. Therefore, this study addresses the various aspects related to ethical and social issues and their influence on productivity and other success-oriented factors in the organization.
1. Ethical and social responsibility encourages and motivates the employees to carry out their duties competently promoting operations at the workplace and in the marketplace.
Practicing ethical and social responsibility provides the employees with a platform on which to assess the motive of the organization in handling them. Treating employees fairly and appropriately is significant in motivating them to carry out their routine duties as desirable. As such, they commit to offer service to the organization as expected by the management. As a result, internal operations go on smoothly. This clearly indicates that ethical and social responsibility influences the manner in which employees carry out their routine assignments within the organization.
For an organization to impress the employees, it should consider building employee trust by ensuring that it follows the appropriate ethical considerations that indicate transparency in operations. Employees find it increasingly motivating to work in an environment that promotes good ethical practices and considers social responsibility. This is because in as much as they are employees, they in certain ways become consumers of the products of the companies they work for. Therefore, if the company deals inappropriately with the consumers, the employees will similarly suffer the consequences. If employees find that the organization strictly follows and adheres to ethical and social issues requirements, they get encouraged and motivated, as they know that they will experience fair dealing. As such, they commit to serve the organization by applying their skills and talents well and competently in order to achieve organizational and personal goals in the process. Proficiency at the workplace translates to good marketing distribution and other external activities as the employees carry out these activities. This clearly indicates that ethical and social responsibility substantially contributes to overall efficiency both internally and externally so that the operations of the organization run smoothly.
2. Ethical and social responsibility improves the reputation of the company hence attracting more customers leading to high sales volume
A company thrives in the competitive marketplace based on its reputation. In order to have a positive reputation, a company should establish clear ethical and social responsibility practices that appeal to the society. The members of the society will shift to consume the products of an organization that practices competent ethical and social principles while dealing with the members of the society. With an improved reputation, the business is likely to have increased customers base. This indicates that it will make more and high sales increasing the sales volume. Increased sales volume increases the profit margin of the company.
Company reputation is deterministic of the success of failure of the organization. A positive reputation created by positive ethical and social principles benefits the organization substantially as there are many associated advantages. For instance, customers and consumers like to associate with companies that have a good reputation in the marketplace. This leads to increased customers and consequently, increased sales volume and profits. On the contrary, a poor reputation will doubtlessly have detrimental effects on the business of the organization. Customers and consumers are likely to withdraw. This indicates that the sales volume of the company will decline and as a result, the company will experience reduced profits or even losses as appropriate. Building positive reputation requires implementation of ethical and social practices that indicate to the society that the company focuses on serving the society through community social responsibility as well as production and delivery of high quality products while offering increasingly favorable terms. Evidently, a high and positive reputation will enhance company operations and activities.
3. Ethical and social responsibility improves the relationship of the company with its stakeholders including employees, investors and customers as well as legal authorities.
Company stakeholders are iconic to its success. The leaders in the organization should ensure that they implement the practices that appeal greatly to company stakeholders in order to retain them. Ethical and social responsibilities are significant aspects that determine if an organization will retain its stakeholders. Employees, investors and customers determine the existence of an organization. As such, it is important to develop strategies that enable the company to keep the stakeholder so that they contribute as appropriate towards achievement of its goals and objectives. Implementing appropriate ethical and social responsibility principles and practices appeal to stakeholders and as a result, it is possible to retain them since efficiency achieved through this benefit the stakeholders in various significant ways.
Analysis of finding
In order for an organization to thrive in a competitive business environment, it has to make sure that it handles its stakeholders in the best ways possible. This enables improvement of the relationship between the business and the stakeholder. For instance, investors will be willing to invest more if the company operations are transparent and indicate prospects of business success in future. Employees will work competently if they get the best out of the organization in terms of reward and compensation based on merit and recognition of individual efforts. Therefore, fairness in operations indicates ethical considerations and hence motivates the stakeholders. Implementation of ethical and social responsibility practices in the organization ensures the customers receive the right quality products and services at favorable terms since the practices aim at serving the society in the best ways possible. As a result, this improves the relationships, which in turn ensure smooth operations in the company. This will result from the relationship with its internal and external parties . As such, ethical and social responsibility practices appeal to the different parties and hence motivate them to associate with the company.
Recommendation 1: Management should develop policies that address ethical and social responsibility matters in organizations to encourage and motivate employees.
Management in organizations is responsible for creation of policies. Based on the benefits identified herein, it is important to develop competent and effective ethical and social responsibility principles and practices in order to motivate employees to work objectively towards achievement of organizational and personal goals. Employees are significant stakeholders who require special treatment in order to get the best out of their talents and skills.
Recommendation 2: management should implement strategies that factor ethical considerations in the organizations and implement community social responsibility programs.
Such strategies are iconic to the success of the organization as they ensure improvement of the image and reputation of the company. Improved image and reputation draws more customers to the business. This leads to increased sales volume and as a result higher profit margins. Ethical considerations increases employee and investor trust for the organization and hence the organizations enjoys the benefits of establishing these practices.
Recommendation 3: management should implement ethical and social responsibility programs that strengthen the bond with its stakeholders.
A good relationship with the stakeholders of an organization is important in contributing to success of the organization. Research findings indicate that employees, investors, and customers are iconic to success of an organization. As such, the organization management should strive to implement ethical and social responsibility programs aimed at improving relationship with stakeholders.
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