Ethics and Corporate Strategy

526 Words3 Pages
Ethics and Corporate Social Responsibilities Introduction to Ethics and CSR - Corporate Social Responsibilities (CSR) is the concern for society’s long term needs and wants. There are two contrasting opinions on CSR. One view is ethical whilst the other takes an economical approach. The Ethical Approach - (Lantos, 2000) stated that CSR is the ethical approach to the running of a business. Many businesses try to take a more ethical, caring approach in their business by providing considerate and flexible working hours, recycling their waste and carrying out their business in a correct and fair manner. (Freeman, 1984) also questioned the approach to ethics. He believed that it entails looking after each stakeholder – any person who is affected by or has an effect on the business. The Economical Approach - (Friedman, 1972) had a different approach and believes that ‘the social responsibility of an organisation is to maximise profits’. He believed that the shareholders should benefit from the organisation and the prime objective should be making a profit. KPMG have in the past been criticised for the lack of corporate social responsibilities and carried out a strategy headed by Colin Sharman in the 1990’s to become more ethical in their approach to their business. History of Ethics and CSR - The CSR approach derived from the beliefs that wealthy people should help others and dates back in history to when philanthropists would provide to charities. In the late 1800’s, the Rowntree Foundation looked after its workers by building their houses, providing health care and education. Strategic View of Businesses - Carroll (1979; 2000) stated that according to the CSR view, there are four responsibilities of a business which take into account the external and internal stakeholders of a business: 1. Economic – The business needs to be profitable whilst delivering value
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