Tuesday, 10 July 2012

Case Study 3 - Question 4

4) As based on the example in the case study, in your opinion should the government have the right to force a legal business to take an action that might damage its relationship with its customers? What does this say about the action of the government? Do you support this and do you think that citizens will support this action?

Each of these businesses has a corporate responsibility to the public, its shareholders and the world it trades in.

In its most basic terms, corporate responsibility can come down to the ethics of a business. Each company has its own set of core values, but the company’s values also touch everyone that the business deals with. Years ago, a company’s corporate responsibility was dictated by its government. There were set laws that had to be adhered to regarding financial and social responsibility. Today, however, corporate responsibility has to take into account the world that we live in on a much wider scale.

The public has become much more globally aware, and there are a number of groups that monitor corporations closely. These groups have the conditions of the world in mind.

Corporations are now held accountable not just by the government, but also by the public. Corporate responsibility must now take into account how dealings with customers, shareholders and employees are seen by the world. Large global corporations know that people are watching them and that any wrongdoing will not go unnoticed.

Many corporations have been forced into taking corporate responsibility. They know that it does not make good business sense to be seen as a company that is damaging the world that we live in. Huge penalties and fines also await corporations that break ethical and environmental laws.

Corporate responsibility has a huge impact not only on the local community, but also on the world. Its affects are social, economic and environmental. Bad and good corporate responsibility has effects that reach from the worker in the third world country to the air that we breathe.

Reference:
Conjecture Corporation (2012)
Available at: http://www.wisegeek.com/what-is-corporate-responsibility.htm

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