BUSINESS ETHICS AND CSR IN THE CONTEXT OF
In the 21st century of business, there are number of factors apart from the financial figures that play a vital role for the success story of the business corporations. These factors include the culture adopted by the business, philosophy of the management of the company, code of ethics and standards followed by business. The presence of all of these factors in the business’s ethical guidelines has a significant impact on the ability of the business organisations to perform well on the long term basis. In this report the Samsung Electronics’ ethical issues are studied along with the importance of the ...view middle of the document...
It is primarily a code of conduct which is based on the ethical and civic values so as to safeguard the interests of the different social groups like customers, workforces, creditors and management etc. Moreover it also provide the charter of the business activities which are required to perform voluntarily on the part of the business responsibility (Akrani, 2011).
On the basis of attached case study which is about the Samsung Company, where it admits that the phones of Samsung may contain tin from area mined by children, It is observed that earlier Samsung company was not addressing towards the code of conducts of the business but at a later stage when it come to know about the actual shocking impact of mining tin for electronics on people as well as on environment then Samsung company takes a responsibility to tackle this issue (Hodal, 2013). According to this case study the meaning of business ethics can be viewed as moral code of business obligation where it is the prime responsibility of the business man that he will not make harm to the society as well as to environment perceptively.
2.1 The Importance of Business Ethics
Business ethics play a very important role to achieve the goals and objectives of an organisation. The reason why business ethics is important in this era of global market is that it has a direct impact on communities and ultimately the sound ethical standards will lead the businesses towards the sustainability. The importance of business ethics can be explained on the basis of four main elements of the quadruple bottom line concept (QBL) as shown in figure 1, that lead to sustainable development.
Figure 1. Components of QBL concept
It is essential on the part of corporate organisations to frame the ethical standards so as to achieve the profitability of the business because the capacity of business corporations to earn profits to a large extent depends upon the ethical behaviour of the business organisation towards society and stakeholders. Maximizing profits of business should not be viewed as financial goal because it will not count business on the path of following moral standards rather the main objective of the business organisations should be more towards the increasing stakeholder’s value which automatically bring profits for corporations as well. Nowadays the definition of profitability in all reputed organisations is changed and it is viewed in context to the fair treatment of stakeholders in the organisations which is viewed to be in the best interests for the success story of the company. Furthermore, the corporations can portray their ethical behaviour by attracting consumers towards firm's products, thus improving sales and profits of the business (Akrani, 2011).
The importance of the business...