Csr_&_Global_Ethics

To be successful in this cut throat competitive environment, firms should incorporate the concept of social responsibility into their business models. Corporate social responsibility is just like an automated mechanism where the firms can ensure and embrace the ethical standards. If the firms and their social interests are not coordinated properly, then it is very difficult for the firms to sustain in the market (Fontaine, 2013). Friedman's views are more practical towards the profit maximization of the shareholders but where as Carroll's views are leaned more towards the ethical responsibilities, therefore I would like to prefer to subscribe to Carroll's view, as they have a broader sense that not only creates a positive impact on the financial performance of the firm, by enhancing the goodwill of the stakeholders but also has a positive impact on the society (Dilling, 2011) The firms strategy of social responsibility or other activities will affect the stakeholders, shareholders and as well as the communities where the firm operates. Therefore the firms should expertise their corporate strategies in analyzing and considering the views of the stakeholders in order to maintain an ethical relationship with the stakeholders as they hold a key to the environment where the firm operates (wheelen & Hunger, 2012). Maintaining an acceptable relationship with the stakeholders is very crucial for a firm, because motivating their views and decisions in a positive way towards an organizational goal will result in a mutual benefit. In this process it is very important for a firm to identify and prioritize its stakeholders. A firm may have many stakeholders but it has to prioritize them based on importance and power of the stakeholders that the influence both external and internal environments of the firm for achieving the organizational goals and objectives (Crane, & Ruebottom, 2011). Corporate business ethics includes the values, policies, and rules that an organization follows to exhibit its ethical conduct. A well defined and implemented ethical strategies helps the organizations to be more sustainable and profitable by increasing the employee commitment and loyalty and attracting and retaining the customers (Wheelen & Hunger, 2012). As an effect of globalization, the multinational companies are operating in different host countries. In these situations the organizations should focus more on developing a standard universal code of ethics incorporating the local policies where the firm operates without compromising or forgoing their home country ethical standards (Michaelson, 2010). References Crane, A., & Ruebottom, T. (2011). Stakeholder Theory and Social Identity: Rethinking Stakeholder Identification. Journal Of Business Ethics, 10277-87. doi:10.1007/s10551-011-1191-4 Dilling, P. A. (2011). STAKEHOLDER PERCEPTION OF CORPORATE SOCIAL RESPONSIBILITY. International Journal Of Management & Marketing Research (IJMMR), 4(2), 23-34. Fontaine, M. (2013). Corporate Social Responsibility and Sustainability: The New Bottom Line'. International Journal Of Business & Social Science, 4(4), 110-119. Michaelson, C. (2010). Revisiting the Global Business Ethics Question. Business Ethics Quarterly, 20(2), 237-251 Wheelen, T. L. & Hunger, D. J. (2012). Strategic management in business policy, toward global sustainability. (13th edition), Printice Hall, Upper Saddle River, NJ.