The Ethical Scope Of Corporate Social Responsibility

759 Words 4 Pages
The scope of corporate social responsibility (CSR) has four major areas are representative of four major groups associated with an organization:
1. Stakeholders and investors
2. Employees
3. Consumers
4. Community To fully comprehend the ethics behind CSR this paper will seek to examine the ethical links between a business and the previously listed groups. The business has an ethical obligation to the stakeholders and investors to protect their investment, assess risk, and to make a financial return on their investment. An organization have an ethical responsibility to their employees by paying them fair wages, provide a humane and satisfactory working conditions, treat them with dignity and respect and allow them their religious and cultural
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Therefore, it is important to not only act in the best interest of the business but also in the best interest of the shareholders. The business has an ethical responsibility to protect the investment as the business and shareholders have entered into an agreement where the shareholder will provide the capital upfront with an expectation of financial return. For instance, it would be unethical for the business to enter into another significant business contract that potentially could put any investment at risk without discussing it with the shareholders as they have both an ethical and moral …show more content…
For instance, if financial matters are going well/poorly then this must be disclosed to shareholders. Any attempt to cover up any information on the workings of the business is unethical. It both an ethical and moral responsibility to treat all shareholders fairly and equally without any bias. For instance, should one shareholder hold more value than another, they must all be treated fairly and equally. This will ensure that there will be no (or few) conflicts between any of the shareholders or between shareholders and the business (e.g., board of directors, managers, employees etc.). The business has an ethical obligation to use the capital of the investors or shareholders to further build on the business. This will no doubt have risk but is one of the few ways to growth the business of which the business has an ethical obligation to do. The business has an ethical obligation to shareholders to carry out research and development to improve product and services. This will ensure that the product is continually improving and that the business is expanding and experiencing growth. Shareholders will expect financial return and by carrying out the appropriate research and development work there is a high possibility of future financial

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