Quiz 4: Business Ethics and Corporate Social Responsibility

Business

Ethical decisions of a company are influenced by three factors that include cultural differences, knowledge and organizational behavior. These factors have shaped the CSR actions of Company N in the following ways- • Company N built monitoring systems in its factories to monitor the work conditions of labors. Hence, it successfully identified and removed bad practices like long working hours, inhuman work conditions, child labor etc. • The company is working closely with its vendors to improve their knowledge and efficiency. • Company N has appointed N inspectors who conduct in-depth auditing process to ensure environment safety and health compliance of workers. • The company has taken significant steps to reduce the elimination of wastages and harmful toxics. It also promotes recycling of waste materials like worn-out sneakers. • Company N maintains transparency with its stakeholders and shareholders by giving them detailed information regarding its policies, goals, ethics and corporate social responsibilities.

Person MP's phrase sustainable business relates to the concept of sustainable manufacturing. His company has adopted several ways to incorporate sustainable manufacturing processes throughout the organization. Company N built monitoring systems in its factories to monitor the work conditions of labors. Hence, it successfully identified and removed bad practices like long working hours, inhuman work conditions, child labor etc. Furthermore, Company N has appointed N inspectors who conduct in-depth auditing process to ensure environment safety and health compliance of workers. The company has taken significant steps to reduce the elimination of wastages and harmful toxics. Company N has set specific code leadership standards for its factories across the globe. The company prefers the use of environment friendly materials that would produce more sustainable products. It also promotes recycling of waste materials like worn-out sneakers, plastic bottles etc. In this way, the company maintains sustainable business in the form of sustainable manufacturing.

Sometimes, NGOs put extreme pressure on some specific company while trying address some issues with all the companies working in that industry. Their act would cost this company much higher than its competitors in terms of money and goodwill. Ethically, this behavior of NGOs is not justifiable. Since, all the companies are equally involved in the act. Therefore, targeting only one company shows discrepancy towards that company. In spite of targeting a particular company, the NGOS should target the entire industry. It would result in better and quick resolution of the issues.