#6 Ethic & CSR

Corporate social responsibility has many advantages, such as company can have better recognition, positive business reputation, or let company can have better financial performance, i.e: operational costs savings, increased sales. Moreover, it can also increased customer loyalty, attract talent and retain staff.

If we look at Business reputation, CSR can help company to built an image as responsible, and this can lead to competitive advantages. In terms of Costs saving, when company reducing resources use, it helps the environment and save the money, in other words, it lower company's utility bills and achieve saving for it. Lastly, Retain staff, when company being responsible, employees might be motivated to stay longer, or it might be easier to find a new staff, which means it reducing the costs and distribution of recruitment and retraining.

Samsung has been focused a number of aspects of CSR, namely Social responsibility, green management and health and safety.

Here's Social responsibility of CSR example of Samsung: - an average number of Samsung employees volunteering hours amounted to 11.3 hours during 2014. - Junior Engineering Academy 2018. - Hope Library for children in Vietnam 2019.

In terms of Eco Management, Samsung has been focused on reducing and recycling the waste and reducing greenhouse gas as well. In addition, employees health and safety is a matter for Samsung. The company has complies with OHSAS 18001 stander across whole workplaces.

CSR can take management focus away from core business activity​

May appear cosmetic – ie. without genuine social benefit​

Not a replacement for regulation​

May be viewed cynically or seen as a publicity stunt i.e. backfires​

Firstly, Firm to the employee,​ Secondly, Employee to the firm​, Lastly, Firm to other economic agents.

Step 1: Recognise the ethical dilemma​ Step 2: Get the facts​

Step 3: Identify your position​

Step 4: Test each option: Is it legal? Is it right? Is it beneficial?​

Step 5: Decide which option to follow​

Step 6: Double-check with spotlight questions​

How will I feel if my family finds out about my decision?​

How will I feel about this if my decision is reported in the media?​

Step 7: Take action​

On the Stockholder Position​, businesses exist mainly to make profit for the stockholder. On the other hand, for the Stakeholder Position, businesses have a moral obligation to those whom they directly benefit from​.

Suppliers

Owners

Investors

Creditors

Communities

Trade unions

Employees

Government agencies

Customers

Media

Sustainability​

Corporate Accountability​

Corporate Citizenship​

Advocacy​

Responsible Business​

Social Responsibility​

Creating Shared Value (CSV)​

Business creates problems and should therefore help solve them, also, it has the resources necessary to solve problems.

-Corporations are citizens in our society. - Business is a partner in our society, along with the government and the general population.

1. The purpose of business in U.S. society is to generate profit for owners. 2. Involvement in social programs gives business too much power. 3. There is potential for conflicts of interest. 4. Business lacks the expertise to manage social programs.

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1. Make your CSR believable. 2. Stop preaching the CSR message; start attracting CSR followers. 3. Make your CSR effective.

- Corporate social responsibility as know as CSR, is the concept that a business has a responsibility to do good.

- Corporate responsibility includes being consistent with ethical principles and conduct such as honesty and respect for others.

Arguments for and against CSR.

Arguments:

- Business creates problems and should therefore help solve them, also, it has the resources necessary to solve problems.

- Corporations are citizens in our society.

- Business is a partner in our society, along with the government and the general population.

Against CSR:

- The purpose of business in society is to generate profit for owners.

- Involvement in social programs gives businesses too much power.

- There is potential for conflicts of interest.

- Business lacks the expertise to manage social programs.

Outlining the Arguments CSR.

- Business creates problems and should therefore help solve them, also, it has the resources necessary to solve problems.

- Corporations are citizens in our society.

- Business is a partner in our society, along with the government and the general population.

Outlining the Arguments Against CSR.

- The purpose of business in society is to generate profit for owners.

- Involvement in social programs gives business too much power.

- There is potential for conflicts of interest.

- Business lacks the expertise to manage social programs.