Corporate Social Responsibility In Business Ethics: The Importance Of Environmental Performance

Corporate Social Responsibility and Environmental Performance

Explores the issue of corporate social responsibility in business ethics.

Business ethics explores the fundamental ethical issues faced by businesses that involve trust and integrity. For instance, if the customers perceive that an organization is portraying progressive commitment to ensure ethical business practices, then high trust levels are developed between the customers and the business. Ethical issues are challenges that need an organization or an individual to make choices between alternatives which must be examined as ethical or unethical (Johnson, Sutton & Theis, 2018). Therefore, business ethics is a field that studies appropriate business practices as well as policies which base on controversial issues which include corporate governance, discrimination, fiduciary responsibilities, insider trading bribery, leadership, corporate social responsibility, and others. For this paper, an article is selected which explores the issue of corporate social responsibility in business ethics. This article was written by Halme, Rintamäki, Knudsen, Lankoski & Kuisma, (2018) was published on 26th March 2018 hence it explains clearly about the issue of corporate social responsibility. The article outlines that there exist two pathways of corporate social responsibility which improves environmental performance. Generally, the article’s research has a direct impact on the firms, sustainability rating agencies, government regulators, as well as NGO’s. All these organizations seek to evade decoupling while they seek to ensure that sustainability improvements are achieved through CSR (Aguinis & Glavas, 2012). To conclude, this article creates a room for other philosophers to expand more on a research that focuses on sustainability performance. New practices and policies should be employed to measure the performance of CSR in the organizational environment.

There are significant arguments in the article as discussed in this paper regarding corporate social responsibility. In evaluating the background and history of the article, it explores a business case which concerns corporate social responsibility, (CSR) which attracts a lot of attention for some time. In simple words, this article evaluates if the CSR has a real impact on the achievements in the social and environmental performance of institutions. Halme et al, 2018 advances the corporate sustainability theory by evaluating a theoretical paradigm based on the linkage between operative CSR management and strategic institutional pressures which prevail. Therefore, this article connects to the existing literature in various ways. To start with, the work advances the CSR or organizational sustainability literature as CSR is required to achieve a performance sustainability in every organization (Mansouri, Singh & Khan, 2018). The findings in the article suggest that no assumptions should be made that the social and environmental achievements do not just result from the CSR activities. Moreover, the article shows that the results of CSR performance were not equal across all organizations in regard to the social and environmental domains. Second, Halme et al, 2018 contributes to the literature by elaborating a theory which identifies techniques of decoupling which may result in various CSR management stages, generally, decoupling is only understood through policy practice where symbolic actions are done by organizations to please the stakeholders and ensure implementation of various changes in business activities. Finally, Halme et al, 2018 contributes to the literature by recognizing the exogenous and endogenous pathways of CSR towards social and environmental performance.

Contributions to the Literature

The findings in the article argue that the practices and structures are vital, in simple words they are symbiotic complements. This argument implies that the structures and practices support each other in acquiring achievements in the case of environmental performance of an organization. Also, the two pathways demonstrate a causal asymmetry through existence and absence of responsible ownership that leads to improved environmental results (Agrogiannis & Kinias, 2018). This argument shows that the world of performance achievements indicates that it is easy to fail but difficult to attain success. In highlighting the implications, Halme et al, 2018 reviews that managers should consider treading carefully in the management of CSR in the organizations. There exist multiple techniques of failing nut vast ways of succeeding in every institution. Moreover, this article has its implications for the future research as it surrounds sustainability issues. Therefore, other researchers are advised to be careful in employing the lessons outlined in other business cases and also be specific on sustainability issues that prevail. Also, other philosophers should pay concern on the valid estimation of the sustainability achievement. This is because the measurement of performance is difficult in CSR through an emphasis is created that practices and policies should be handled differently putting the initial performance into consideration (Tai & Chuang, 2014). The future researchers should consider using a larger sample to ensure several causal conditions are introduced while analyzing the problem.

The most significant issue raised in the article is about corporate social responsibility which ensures that organizations conduct business activities in ethical ways. It implies that companies take into account the economic, environmental, social, and consider the rights of people. It incorporates several activities such as environmental sustainability and protection. Corporate social responsibility is important since it helps create a better recognition of a brand. Also, through CSR a positive reputation of a business is established as well as an increase in customer loyalty is achieved. In regard to the article, it is evident that CSR generates the ability to attract talents as well as facilitates the institutional growth. Halmes et al, 2018 examines the responsiveness and performance of corporate social responsibility from a general dimension. The article points that the article fails to meet the expected results by leading to a better society as well as minimizing the harm that may result from business activities. A qualitative research is employed in this article to investigate the exogenous and endogenous pathways in regard to corporate social responsibility. Other concerns raised in this article base on improved as well as non-improved sustainability achievement. However, Holmes et al, 2018 indicates that CSR facilitates performance improvements enhancing causal associations. In simple words, this article views CSR as a policy and research concept tool. CSR is linked to an institutional theory which discusses how the institutions fit the pressures which prevail in the surrounding and maintain the institutional legitimacy. It is evident that the sustainability-related pressures contain the significant strategic CSR management that focuses on setting goals for sustainability (O’Boyle & Sandonà, 2014). On the other hand, operative CSR management outlines the activities to achieve the same goals. The article indicates that CSR management is important as it ensures effective environmental and social performance.

Implications for Future Research

In regard to the article, the most appropriate ethical decisions which concern CSR have been made. The ethical decisions are evident as the article outlines the variables that exist in the social and environmental pathways supporting adoption of CSR. Also, an inductive logic is employed to help individuals understand CSR and also, demonstrates the importance of the approach in theory development (Dzuranin, Shortridge & Smith, 2013). There are various ethical cases that show how important ethical decisions are made. For instance, the case of discrimination at workplace requires businesses to make decisions on adopting the anti-discrimination regulations and laws in the business. On the other hand, CSR helps in addressing issues that concern unsafe working conditions as Halmes et al, 2018 indicates. Clearly, all employees have a right to work in a safe environment hence this is an example of an ethical case decision that companies need to enhance. Moreover, accounting practices are examples of business cases as they require all organizations to enhance safety in book storage (Schwartz, 2017). It would be reasonable if a legal or sanction was imposed in ethical decision-making. The sanctions are described as penalties which are used to enforce laws or which are used as incentives based on the law obedience (Khan & Ahmed, 2018). In the case of business ethics, sanctions include severe fines, incarceration, or capital punishment. For this paper, the legal and moral basis of imposing sanctions is to ensure expensive targets are set for a state to refrain as the sanctioning state expects. Therefore, imposing sanctions through CSR is effective as it guides the organizations to conduct businesses in right methods as outlined in the state’s law and regulations.

An ethical decision-making process follows the rules as outlined. There are seven steps which guide people into the effective decision-making process. To start with, stating the problem in case there is a specific thing that impacts the decision. This step connects to teleology which is a relevant moral philosophy which stipulates the acts which are acceptable morally in case realization is achieved. Also, it is important to check the facts as significant issues may disappear in case of a close evaluation (Wassmer, Paquin & Sharma, 2014). At some point, other issues may as well change hence facts would guide an individual towards effective decision-making process. This step mostly applies to individuals who engage in professional codes and laws. This step relates to egoism, a moral philosophy, which outlines the right actions that boost the self-interests of a person (McShane & Von Glinow, 2013). Also, identifying the relevant factors would guide an individual towards effective decision-making process. This step matches with deontology as it assists in the protection of individual rights based on the motives which relate to a certain behavior instead of consequences.

Ethical Decision-Making in Business

Moreover, developing a list of options is beneficial as it helps in evading dilemmas (Crane, Matten & Spence, 2013). Also, this step would connect to the virtue of ethics which is a moral philosophy that creates assumptions regarding a specific situation that a mature person may refer it as appropriate. Testing options cannot be ignored as it also contributes to the effective decision-making process (Ogletree, 2013). Finally, making a choice helps people determine the choices to be made. Clearly, the outlined ethical process of decision-making connects to the moral philosophies which relate to the concept of goodness in one way or another. Therefore, in the ethical decision-making process, the concept of goodness which connects to seven morals of philosophy should not be ignored.

Conclusion

To summarize, this paper explores business ethics which is a field that focuses on ethical issues faced by businesses that involve trust and integrity. Ethical issues are seen as the challenges that require an organization or an individual to make choices between alternatives which must be examined as ethical or unethical. For this paper, an article written by Halmes et al, 2018 is selected as it explains clearly about the issue of corporate social responsibility. The significant argument on this paper concern the corporate social responsibility which must be considered in the environmental and social setting of every organization.  Also, key ethical concerns are in the article in regard to the corporate social responsibility that guides institutions towards conducting businesses ethically. Moreover, this paper explores ethical decisions as well as the ethical-decision-making process which relates to the seven moral philosophies as discussed.

References

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