There is an increasing expectation that organisation’s act in an ethical and socially responsible way towards all their stakeholders. Management Ethics refers to the applications of moral standards to management behaviour. Social Responsibility on the other hand, is the obligations a business has over and above its legal responsibilities to the wellbeing of employees and customers, shareholders and the community as well as the environment.
An organisation’s ethical and social responsibility can be outlined in the Corporate Code of Conduct. This is a set of ethical standards for managers and employees to uphold. The performance of an organisation in achieving their ethical and social responsibility can be evaluated through the use of the Key Performance Indicators or the Triple Bottom Line. The Triple Bottom Line is the economic, social and environmental performance of an organisation.
The benefits of an organisation being ethical and social responsibility include that:
However implementing an ethical and social responsibility program can also have some disadvantages. These include:
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