Table of Contents
2.1 Why business ethics are matter in a business.
2.2 Relationship between business ethics and corporate social responsibilities.
2.3 How corporate social responsibility support business ethics.
2.4 Co-relation between Competitive Advantages and CSR.
2.5 Boundaries of Corporate Social Responsibility.
3.1 Overview of McDonald.
3.2 McDonald’s Governance and Ethics.
3.3 McDonald’s Corporate Social Responsibility.
3.3.1Nutrition and Well-being.
3.3.2 Responsibility to the sustainable supply chain.
3.3.3 Environmental responsibility.
3.3.4 Employee Experience.
3.3.5 Responsibility toward the community.
4.1 Roles of managers.
4.2 Code of conducts for Greggs Plc, UK.
4.2.1 What is a code of conduct?.
4.2.3 Greggs overview.
4.2.3 Greggs’ code of conduct.
Business ethics, corporate social responsibilities, defined roles of managers, and business code of conduct is significant for a business organization to meets its stakeholders’ needs and expectations. This report has firstly focused on the theories of business ethics and social corporate responsibilities in the first section. Then, it has emphasized McDonald’s corporate social responsibilities in the second section. And, in the third section, the report has concentrated on managers’ roles and a code of conduct of a business organization named Greggs plc.
2.1 Why business ethics are matter in a business
Business ethics refers to right and wrong issues in business decisions, activities and situations. These are also referred to as business moral principles and values which lead the business decisions and actions involving values of right and wrong conducts.
In fact, business ethics define right and wrong in business. In other words, business ethics guide a company’s behavior. It is the root of effective leadership and great business performance. According to Shaw (2007), ethics support the business when something goes wrong. There are many kinds of scandals, unethical practices and misconducts that happen in business operations. For example, exploitation of workers, polluting channels or rivers water by industrial chemicals, bribes to personals, etc can be conducted in business operations. In these cases, ethics support the business to be saved from unethical activities and meeting stakeholders’ expectations. Ethics support business stakeholders by benefiting them, saving them from harmed things and violations (Bartol, Metthews and Martin, 2010). However, different types of stakeholders may have in business organizations, where their ethical issues and claims may be varied and different. In this case, Shaw(2007) suggests following a code of business conduct to provide a legitimate framework for every stakeholder and direct the company about right and wrong things.
2.2 Relationship between business ethics and corporate social responsibilities
Business ethics are interconnected with the corporate world through code of conducts and ethics which are integrated into business plans (Lawrences and Weber (2007). business organizations that follows good ethical behaviors is likely more successful than others that do not have good ethics. The reasons are: a) it promotes customers to interact more with business; b) it benefits to the stockholders; c) it encourages trusts between business and its stakeholders; d) ethics refer to law or legal requirements as neutral tools for organizations to ensure that their stakeholder reacts ethically; f) it support businesses to minimize damages caused by unethical stakeholders; g) it promotes personal morality of employees leading to improved confidences and satisfactions relating to their accountability and actions(Lawrence and Weber, 2007).
Corporate social responsibility (CSR) is the business’s obligation and activities to improve and protect the environment and societies with aids and welfares (Bartol et al, 2003). According to Carroll (2001), corporate social responsibility is the legal, economic, discretionary and ethical expectations by societies from organizations. Aaronson (2003) defines corporate social responsibility as business decision making is associated with legal requirements, ethical values, and respect for people, the environment and communities where the business operates.
The relationship between CSR and business ethics is very closed according to their definitions because they are the interdependent basis. CSR must follow business ethics. For instance, organizations must comply with particular rules and regulations to serve the communities and inform stakeholders through trustful and honest information. The advocates of CSR claim that business depends on the communities where it operates, consequently, it must be concerned for social issues. The definition of CSR also refers to business obligations in terms of broader responsibilities toward its stakeholders, local community, environmental groups, societies. The concept of CSR also raises the question to businesses on how corporate decision-making has an impact on society and the community. There are many issues which are related to corporate social responsibility. For example, relationship with society and local community, fair trade with developing nations, environmental responsibilities, and respect for employees, stockholders, consumers and other stakeholders.
2.3 How corporate social responsibility support business ethics
Diagram: Pyramid of corporate social responsibility Source: Aaronson (2003)
Economic responsibilities of CSR
According to Aaronson (2003), economic components of CSR are it is important: a) to keep business manner consistent with improved earnings per share; b) to be committed to being as profitable as possible; c) to gain competitive advantages and maintain this position; d) to support a maximized business operating efficiency and performances; e) to keep the business consistently profitable.
Legal responsibilities of CSR
The key legal responsibilities of CSR are it is important: a) to perform in a consistent manner with needs and expectations of laws and government; b) to follow different kind of state, federal and regulations; c) to be a law-abiding corporate citizen; d) to define a business successful fulfilling legal obligations; and d) to provide products and services maintaining minimal legal requirements (Aaronson, 2003).
Ethical responsibilities of CSR
The key ethical responsibilities of CSR are it is important: a) to perform in a manner consistent with needs and expectations of environmental and societal moral and ethical norms; b) to respect and recognize new and evolving ethical and moral norms adopted by communities and societies; c) to prevent moral and ethical norms from to be compromised to gain corporate goals; d) define corporate citizenship as good as expected ethically and morally; e) recognize the corporate integrity and ethical behavior following rules and regulations (Aaronson, 2003)………….