Principles of Management 360

Question 2

A lot of reasons exist for and against corporate social responsiveness of the business to the surrounding community. On one hand, the proponents argue that socially responsible practices may not acquire direct profits to the company but will yield the positive business impacts on the bottom line in the form of non-financial rewards required by the organization. A business that minds the social welfare of the people around its vicinity earns a good reputation and eventually earns a lot of customers sufficient for its competitiveness, sustainability, and continuity.

 

On the other hand, opponents of CRS argue that the sole purpose of the business is to earn profit enough to provide sufficient dividends for its shareholders. In that case, to them, the legitimate operation of the business is to spend its resources and capital to earn the most profits for its shareholders. An otherwise operating implies spending shareholders money wrongly. To the critics of CRS, it is the theft of the rightful property of the business owners. Efforts to regain this legitimacy can only involve limiting the use of business’s resources for business purposes and not charity.

Question 4

I cannot just accept your ethics because morals, values, and taboos though defined universally as guiding principles, vary between places, time and people based on their cultural backgrounds. In my culture, some practices could be discouraged since they may be taboos or defilement. At the same time, those practices could be defined positively to your community as morally acceptable. As such, what could be taken as ethical to my culture could be unethical to yours. People are naturally diverse depending on the upbringing and teachings passed on from generation to another. Some ethical principles are acceptable between some cultures but do not apply to others. Man is social in nature and will always want to mingle freely with others who define things at different perspectives. As a good ethical person, one has to assess the principles of others, identify what can be directly consumed according to his/her definition of ethics and leave what he/she cannot consume.

Apparently, I earned my ethics from my parents and older siblings. My teachers at my young age, members of the community and extended family also had hand in defining what is right and wrong for me.

When a person’s ethics contradicts to those established in the company where he/she works, he/she may face challenges with the company heads and may risk the chances of being fired. He faces such difficulties like acceptable dressing code, employee/employer relationship as the employer requires him/her to act against what he/she believes in and other general routine practices.

Question 5

Though the community highly reputes a socially responsible company, there are a lot of costs that goes hand in hand with corporate social responsibility efforts. The most notable of these is that a lot of resources such as finances and manpower are redirected from profit seeking to free non-yielding efforts. A lot of money which could be returned to the business and beef up the financial capital of the business and help in expansion fails to do so. In the wrong run, the cost of CRS if not closely planned and monitored may be business close-down. Apparently, the cost of CRS is felt by the company’s shareholders who are the main pillars of the company. Fernando (2010) in his work Business ethics and corporate governance says that the business is obligated to enhance and safeguard the society. However, it is essential to note that profit is what keeps the company stand and thrive. Too much spending into non-profit yielding practices is dangerous to a profit oriented business since it may leave it prone hard to hardships in paying debts and compensating workers due to inadequate cash in its account.

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