CSR Ethical Practice Free Essay Example, 1000 words

On the contrary, business ethics has a negative effect on the companys operations since it compels them to focus on their social responsibilities but not core missions and visions (Choi, & Pae, 2011). Therefore, business ethics reduces the freedom of maximising profits. A perfect example is a company moving to a foreign country in a bid to reduce production costs. Multinationals may sometimes move to the developing countries since they offer cheap labour, and their economies are still growing. However, the companys operations may be limited to acceptable business practices in such regions. For instance, issues like child labour, poverty-level wages, and poor health are not tolerable with ethical companies. On the other hand, business ethics like increment on minimum wages have negative effects on the organisation. The ethical concerns, therefore, reduces a companys profits at the expense of benefiting the society (Henriques, & Richardson, 2013). Corporate social responsibility The strength of CSR is that it is a means of implementing risk and cost reduction through employment opportunities to the community (Lindgreen, & Swaen, 2010). Conversely, the concept is a perfect way of managing community relationships and a prerequisite for gaining competitive advantage. We will write a custom essay sample on CSR & Ethical Practice or any topic specifically for you Only $17.96 $11.86/pageorder now The concept is also a way of improving corporate image of the company and offers equal opportunities to all stakeholders (Tai, & Chuang, 2014). The corporate social responsibility concept is still new in the modern organisation environment, and this explains the raging debate on its effectiveness. There is always a common assumption that businesses are always responsible to their shareholders and owners. However, the impact that companies leave on the environment is enough to make them accountable to the community. Their actions and operations have a profound effect on the environment thus the need to embrace social responsibility (Tai, & Chuang, 2014). Another criticism of CSR is that the concept is always reversible or disposable. The implication is that a business will only engage in sustainable initiatives under excellent economic conditions but abandon them when the conditions get worse. One limitation with corporate social responsibility is the conflict that exists between business purpose and the CSR concept (Lindgreen, & Swaen, 2010). To economists and business people, the sole purpose of an enterprise is always to make profits. In this case, the business must satisfy the profit needs of the shareholders.