EHM1 DEVELOPING ORGANIZATIONAL ETHICS AND SOCIALLY RESPONSIBLE BEHAVIOR Western Governors University (7pages)

CORPORATE SOCIAL RESPONSIBILITY Corporate Social Responsibility is the company’s self-regulation to help them be socially accountable not only for their company but also for the stakeholders and the community. These self-regulating business standards were developed by corporations to create a positive impact on society. There are three reasons why corporations care about social responsibility; a pragmatic reason, which is based on business using its power responsibly, ethical reason, that is based on business having the responsibility to behave ethically, and a strategic reason, which is the corporations deciding on which social responsibility or stakeholders they need to focus and use their resources (Managing Business Ethics by Trevino, L.K, & Nelson, K.A. (2017) pages 326 to 330). There are four types of Corporate Social Responsibilities. The Economic Responsibilities, Legal Responsibilities, Ethical Responsibilities, and Philanthropic Responsibilities. Economic Responsibilities are the business's ability to produce goods and services that consumers need to be able to make a profit. While company aims to maximize their profit, they also need to be legally and ethically responsible in running their company. This means that business needs to conform with society and should be legal and not harmful no matter what the potential profit it can bring to the company. Philanthropic responsibility focusses on business participation in activities that support and promotes human welfare through donations of either time, services, products, or money. (Managing for Ethical Conduct Pages 34,35,36, 37)