...|BUSINESS ETHICAL BEHAVIOR & CORPORATE SOCIAL RESPONSIBILITY | | | |Student’s Name:Renee Giordani | | | |Course Title:Sales Management | | | |Professor:Gene Dichiara | | | |SUNY EMPIRE STATE COLLEGE | | | |Date: December 09, 2014 | Business Ethical Behavior & Corporate Social Responsibility: Why Organizations Must Have IT Corporate Social Responsibility has gradually developed into one of the greatest ethical aspects that have to be adhered...
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...unlikely since business activities ought to be designed by many stakeholder groups, other than the executives. (p. 211). This is because public relations is an effective tool for shaping the opinion of consumers regarding a corporation and structuring the image of the business. However, in expressing his argument, Friedman relies on several logical fallacies that constitute abstract relations meant to stir the emotions of the reader. By creating a false society where income and collective good are mutually exclusive, social accountability compares to communism, and workers are separated from the society. Friedman’s narrow argument is devoid of scale and methodical firmness and fails to persuade the reader of its logical qualities. This commentary aims at clarifying the significance of corporate social responsibility and establishes how organizations can achieve their profit motives in a socially responsible manner. First, Friedman pushes the reader to take his side by creating an abstract division amid profits and social accountability. In his view of a capitalist economy, the one and only responsibility of a corporation is to use its possessions and participate in actions aimed at increasing its profits. Business people can pursue a socially responsible course without the objectionable results claimed. Contrary to Friedman’s view, broad social responsibility that is common today requires businesses to interpret ethical norms more extensively than it features in Friedman’s...
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...1. Discuss the challenges regarding corporate social responsibility that companies in the apparel industry face in their supply chains around the world: The apparel industry faces many challenges in regards to corporate social responsibility in their supply chains around the world. Today factories in Asia and Africa are suffering from abusive treatment and unsafe working conditions. Statistics suggest that between 25% and 50% of factories treat their workers as nothing more than means of generating a profit and deny their workers’ rights that we take for granted here in the states. Reports have confirmed that there are factories that restrict access to drinking water and restrooms during working hours. Additionally, there have been reports that employees work more than 60 hours a week and that workers who refused the overtime hours were punished as a result. Further, there have been reports of workers not being paid at all and reports of workers who are forced to work for wages below the minimum but who have to continue working because those are the only jobs available to them and without them they would not survive. 2. Discuss the meaning and implications of the statement by a Nike representative that “consumers are not rewarding us for investments in improved social performance in supply chains: Nike’s vice president of corporate responsibility, Hannah Jones, explains that “premium brands are in a lonely leadership position” and that premium brands are not being rewarded...
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...monitors itself to make sure it adheres to legal, ethical, environmental, and international standards across its operations. The more visible aspect of CSR is a corporation's willingness to promote and support community, national, and global causes. Corporations do this through corporate philanthropy, cause-related marketing, and sponsorships. CSR aspires to honor people, planet, profits...in that order. Corporate initiative to assess and take responsibility for the company's effects on the environment and impact on social welfare. The term generally applies to company efforts that go beyond what may be required by regulators or environmental protection groups. Corporate social responsibility may also be referred to as "corporate citizenship" and can involve incurring short-term costs that do not provide an immediate financial benefit to the company, but instead promote positive social and environmental change. Companies have a lot of power in the community and in the national economy. They control a lot of assets, and may have billions in cash at their disposal for socially conscious investments and programs. Some companies may engage in "greenwashing", or feigning interest in corporate responsibility, but many large corporations are devoting real time and money to environmental sustainability programs, alternative energy/clean tech, and various social welfare initiatives to benefit employees, customers, and the community at large. The idea behind corporate social responsibility...
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...Typical socially responsible investors tilt their portfolios toward stocks of companies with high scores on social responsibility characteristics and shun stocks of companies associated with tobacco, alcohol, gambling, firearms, and military or nuclear operations. Analyzing 1992-2007 returns of stocks rated on social responsibility, study found that this tilt gave such investors an advantage over conventional investors. The study also found that shunning resulted in a disadvantage for such investors relative to conventional investors. The advantage from tilting toward stocks of companies with high social responsibility scores is largely offset by the disadvantage from the exclusion of stocks of shunned companies. Socially responsible investors can thus do both well and good by adopting the best-in-class method in constructing their portfolios: tilting toward stocks of companies with high scores on social responsibility characteristics but refraining from shunning stocks of any company. Social responsibility is an ethical ideology or theory that an entity, be it an organization or individual, has an obligation to a act to benefit society at large. This responsibility can be passive, by avoiding engaging in socially harmful acts, or active, by performing activities that directly advance social goals. Businesses can use ethical decision making to secure their businesses by making decisions that allow for government agencies to minimize their involvement with the corporation. For instance...
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...performance. Historically, corporations were expected to serve some public purpose as justification for the benefits and privileges they receive. However, since the 1970s, the view has become widespread that corporations exist solely to maximize profits and to increase shareholder’s wealth and for no other purpose Bartlett (2015). In a capitalist society it is rare to hear that one has gone into business for reasons other than to make as much money as possible. Based on this capitalistic...
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...Overview What responsibilities do businesses have? Who takes priority when decisions are made? Are shareholders the most important to consider, or is it the customer? Should a company simply meet the required regulations, or attempt to go above-and-beyond the requirements? All of the questions involve corporate social responsibility. Corporate Social Responsibility can be defined as “the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large” (World Business Council for Sustainable Development). Cash is King Many organizations and individuals feel that businesses simply have the responsibility to make profits (Friedman, 1970). These companies or individuals place emphasis on satisfying the desires of its shareholders, primarily through high profits. Generally, these companies will spend only enough money on social responsibilities to comply with regulations. The money spent going above the required amount is considered to be spending someone else’s money. “Insofar as his actions in accord with his "social responsibility" reduce returns to stockholders, he is spending their money. Insofar as his actions raise the price to customers, he is spending the customers' money” (Friedman, 1970). They feel that employees can individually donate their time or money to contribute to society. CSR is Overrated Ultimately...
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...social progress, assessment of social and economic impact and summary of outcomes and performances are of utmost importance. In other words CSR implies that the profits of corporate houses should be diverted to socially responsible activities for the benefit of the society. Companies can exert an emphatic influence over the quality and credibility of its products in the market through its CSR activities, which has a great impact on society and also provides better synergy returns to their business. In fact CSR is the impact of organizational activity on society. CSR is becoming an increasingly important activity to businesses nationally and internationally. As globalization accelerates and large corporations serve as global providers, these corporations have progressively recognized the benefits of providing CSR programs in their various locations. CSR activities are now being undertaken throughout the globe. The rationale for CSR has been articulated in a number of ways. In essence it is about building sustainable businesses, which need healthy economies, markets and communities, which again necessitate all business houses whether private or public to carry out CSR activities. The government has declared it compulsory for industries to be socially responsible. They cannot ignore the society while carrying out production and amassing profit. A vibrant association or a high degree of correlation can be revealed between CSR and good public governance. Earlier this was neither specified...
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...backgrounds together and the power to make aware of the problems we face today and giving us the strength to know that we do not have to face them alone. This sole attribute alone is essential for professional sports leagues and their teams to have a prominent grip on corporate social responsibility within their organization. Let’s take a step back and not just look at corporate social responsibility from a professional sports point of view but from a business point of view as well. The professional sports industry, like the big business industry, has its pros and cons. Some people tend to think that when a business gets involved in the community it is for one reason and one reason only, and that is to give off the fake impression that the corporation cares about the community. When in reality all they care about is trying to turn a profit and present the idea that they care. An example of this would be greenwashing. Where a company spends money on advertising the...
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...STOCKHOLM SCHOOL OF ECONOMICS Master thesis within Finance Evaluating the Performance of Socially Responsible Investment Funds: A Holding Data Analysis H. Camilla Stenström* Jessica J. Thorell** Abstract: This paper investigates the performance of regular mutual funds compared to Socially Responsible Investment (SRI) mutual funds, over the time period of January 2001 to September 2007. The paper extends the research on the performance of SRI funds by using holding data of regular funds to create replicating portfolios. In the replicating portfolios, unethical investments are excluded according to a norm-based screening list, hence creating artificial SRI funds. The replicating portfolio returns are then used as a benchmark to compare against the SRI funds’ and regular funds’ returns. Results from the study indicate that an exclusion of companies according to norm-based screening can improve a fund’s performance. However, when looking specifically at the fund management of SRI funds, the results point towards inferior performance compared to regular funds. Key Words: Socially Responsible Investment (SRI) funds, ethical investments, holding data analysis, norm-based screening PhD Stefan Engström 13:15-15:00, December 14, 2007 Room 349, Stockholm School of Economics Tutor: Presentation: Venue: * 19873@student.hhs.se ** 19924@student.hhs.se H.C. Stenström and J.J. Thorell ACKNOWLEDGEMENTS Special thanks to tutor PhD Stefan Engström for all support and guidance...
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...ORGANIZATIONAL FORMS Yvette Crespo 310.1.2 The following is an explanation of six types of business models. I will explain the advantages and disadvantages, liability, incomes taxes, longevity, control, profit retention. Location and or convenience and burdens. In conclusion, the reader should have a clear understanding and overview of the six types of business forms. SOLE PROPRIETORSHIP The overall benefits of a sole proprietorship are the flexibility and inexpensive way you can organize and control the company. The owner can create their own policy and procedures as long as they are with the parameters of the law. They receive all income generated by their business and can reinvest as they see fit. Disadvantages There are a few disadvantages sole owners can experience such as raising funds, use their own personal savings and acquiring debt through business loans. Obtaining and retaining high performing talent can be challenging due to sustainability of employment and medical benefits. Income Taxes When filing income taxes as a sole proprietor you must use a Schedule C form along with Schedule SE and Form 1040. Taxes are paid on all profits of the business. Any money left in the account at the end of the year has to be reported and taxes must be paid the balance. Recording keeping is crucial as a sole proprietor. You can deduct expenses such as operating costs, travel, equipment and start-up costs. (Nolo, 2011). Self-employment taxes must be paid into...
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...General partners are those who are responsible for the day-to-day management of activities, whose individual acts are binding on all the partners, and who are personally responsible for the partnership's total liabilities. Limited partners are those who contribute only money and are not involved in management decisions and whose liability is limited to the amount of their investment. Joint Venture Joint Venture acts like a general partnership, but is clearly for a limited period or a single project. If the partners in a joint venture repeat the activity, they will be recognized as an ongoing partnership and will have to file as such, and distribute accumulated partnership assets upon dissolution of the entity. Advantages of a Partnership Partnerships are easy and inexpensive to establish. With more than one owner, there would be no difficulties in raising fund. Shared responsibility. The tax consequences are less as your profits are recorded directly onto your personal income tax return (no double taxation). Potential employees may be attracted to the business if given the incentive to become a partner. The business usually will benefit from partners who have complementary skills. Disadvantages of a Partnership General partners have unlimited liability. Partners are jointly and individually liable for the actions of the other partners. Profits must be shared with others. Since decisions are shared, disagreements can occur. Some employee benefits are not deductible...
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...global society which means that no one individual ever stands alone, but, rather, we stand on the supports of countless others. Apart from governments, corporations are the largest entities that have direct influence upon the general public’s safety, well-being and overall health. This may sound strange but think for one moment about the many products, services and items that we purchase and use on a daily basis. We use and consume this items because the publicity representatives and marketers convince us it’s for our own good According to Kokemuller (2012), "Corporate social responsibility is generally perceived as a positive business ideology in the 21st century, despite some challenges. A significant expansion of basic business ethics, CSR establishes guidelines for ethical and socially responsible behavior. It addresses how companies that want to satisfy government and societal requirements should treat key stakeholder groups, including customers, suppliers, employees and the community." In other words, corporations that want to maintain high levels of revenue can no longer “look” good they must prove to the customers and other people involved that they “are” good. There is another way to look at the concept of social responsibility by linking it to individual social responsibility. "Being Socially Responsible means that people and organizations must behave ethically and with sensitivity toward social, cultural, economic and environmental issues. Striving for social...
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...TASK 1 PART A SOLE PROPRIETORSHIP Sole Proprietorship is a business organization where the owner and the business are one and the same. No legal difference. A few advantages of sole proprietorship is that the individual proprietor owns and manages the business and is responsible for all business transactions. The owner is also responsible for all debts and liabilities incurred by the business. I believe the most significant disadvantage as a sole proprietorship is that fact that if sued, the owner could lose all personal assets. * Liability - Liability is unlimited, the owner is responsible for all debt and obligations. * Income Taxes – The IRS views as personal income to the owner and typically is taxed at a higher rate. * Longevity/Continuity – There is no set time frame by date as to how long the owner would like to continue business. It can be terminated for a season and reactivated at any given time. * Control – Owned and operated by one person. * Profit Retention – At the owner’s discretion if funds are spent or re-invested back into the company as long as debt and obligations are paid. * Location – Sole proprietors need to comply with licensing requirements in the state in which they‘re doing business as well as local regulations and zoning ordinances. * Convenience/Burden – A convenience of sole proprietorship is that the owner pays taxes on income from the business as part of his or her personal income tax payments. A sole proprietor...
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...Proprietorship, Partnership, and Corporation. In my opinion based on the scenario for this paper a sole proprietorship is the best option for starting a business. The inventor does not have to funding to back up the invention but thinks that the invention will be successful. The best way to start this business is to start small and if the product does well then the owner should expand the company. Legal, Social, and Economic Environment of Business There are three major types of business and the all have their advantages and disadvantages. A sole proprietorship is a business that is owned and operated by one owner. A partnership is a business that is owned by two or more owner and the financial burden is split between the owners of the company. The final type of business is a corporation this type of business has property rights and separate status from the owners, and they are financially responsible. A sole proprietorship is a small business that is owned and operated by one individual. The advantages of a sole proprietorship are low startup costs, freedom to be you own boss, and easy forms to fill out. There are some disadvantages as well which are being personally responsible for the debts of the company, and it is harder to barrow the money for the startup cost. The businesses that are around today also started small and became bigger through sale and revenues. After the sales and revenue are bigger you could advance to a partnership or become corporation. A partnership have...
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