BUSINESS ETHICS AND CSR

The Importance of Business Ethics and Corporate Social Responsibility (CSR) in Multinational Corporations Today

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The Importance of Business Ethics and Corporate Social Responsibility (CSR) in Multinational Corporations Today

Introduction

Business ethics and corporate social responsibility are the requirements of the businesses today. Furthermore, these are also required for other businesses such as the multinational corporations that work in multiple countries around the world. Business ethics merely imply doing business ethically. It means not engaging in unethical business or unethical business practices, like smuggling or selling counterfeit or dubious products. Likewise, the notion of corporate social responsibility is also very important. It implies the necessity for the businesses to engage in practices that help the society around them. Accordingly, they are expected to engage in best activities that are in addition to their profit-making activities. These activities are negative payments that are made for the betterment of the society in which the business operates. Accordingly, these range from straight donations to not-for-profit organisations and causes to specialised programmes where the business itself provides certain socially-beneficial activities and other social work. An example of the latter would be developing schools in rural areas or establishing various medical camps where required.

Accordingly, this essay explores the notion of business ethics and corporate social responsibility. It looks at how top multinational corporations in the world include business ethics in their own mission statements. Then, these organisations also include the corporate social responsibility activities and programmes in their annual report. They work on various socially-beneficial programmes and then also report them in their annual reports so that their stakeholders could be identified which are in addition to the traditional stakeholders, including shareholders, employees, and the customers.

Business ethics in corporations today

There are many multinational organisations today that adhere to strong ethical principles and also include the same in their mission statements. Examples of these multinational corporations range from Johnson & Johnson to Philip Morris Company.

As an example, Johnson & Johnson had established its credo which shows the various values that it adheres to. The credo statement of Johnson & Johnson states that they value their all stakeholders who include the fathers and sons and the doctors and patients that use their products. Accordingly, they want to provide the best quality at the smallest cost possible. They also value fast customer services and believe that their partners have the right to make profits.

They also value their employees. Accordingly, they value their dignity and self-esteem. Then, they provide good compensation to their employees in addition to providing job security. The employees are also provided with ergonomic conditions of work. Finally, they believe in providing job security to their employees.

Then, they are also responsible to the communities and the broader world. Accordingly, they believe in becoming good citizens and paying their taxes. Then, they provide health and education and also protect the environment.

Lastly, they are responsible to their stakeholders and want to provide them with profits. Accordingly, they do more research and development and ...