Methodology
The purpose of the outcomes often was to find out relation between CSR and Business Ethics pertaining to Ethical trading. An in-depth examination of principles and a narrative review was conducted to summarise different primary studies from which conclusions were drawn into a holistic interpretation contributed by existing theories and models on CSR and ethics in business practice. The focuses was thus on a central element which was taken under consideration from different point of views and sought to discover needed approaches, to CSR application in business, providing a range of different inputs. This is a type of explorative study approach to corporate social responsibility and ethics in Business trading.
Business Ethics — Its Significance in Management
The success of any company was also measured by its involvement in societal issues and tangible and measurable outcomes should be in place relating to the economic worth of a company. CSR reflects the social necessities and social consequences of business achievement. Carroll and Buchholtz20state that CSR incorporates the economic, legal, ethical and philanthropic expectations placed on organizations by society. CSR is thus, increasingly viewed as a vital strategic tool for corporations and smaller enterprises. Within this context, stakeholders of businesses progressively want to know more about what such entities are doing in the area of CSR and how they are morally driven to operate and they thus seek
Business ethics comprises moral principles and standards that guide behavior of people associated with the business. Whether a specific behavior is right or wrong, ethical or unethical is often determined by the public as embodied in the mass media, interest groups and business organizations as well as through individuals, personal morals and values. Thus, ethics in business is directly related to social values, norms and global business trends and is negatively related to corruption in society. In this research, evidence of social discontent with business conduct is sought through a review of significant business issues reported publicly as unethical practice. A society, which deprives its most productive citizens of resources despite their proven integrity in the use of such resources, is likely to perpetuate poverty as well as underdevelopment and will in the process erode the foundations of a democratic society. Business environment reveals that unethical business conduct has risen to the point where trust in our businesses and institutions, as well as the very systems that make our society work, are in a position of significant risk. One could make the case that at no time during the last 20 or 30 years have business ethics been of such paramount importance to the well-being of our business and government entities and our way of life in this country.
Ethical trade is about the purchasing practices of your business — and the steps you take to ensure that you and your supplier companies respect workers’ rights.
The term ethical trading often implies socially responsible sourcing, which focuses on:
- worker welfare
- agricultural practice
- natural resource conservation
- sustainability
Ethical Trade and Suppliers
Choosing your suppliers carefully can be an important part of your approach to CSR. For example, you might try to use local suppliers as much as possible. This helps you to support your local community and reduces the environmental impact of your sourcing, logistics and distribution practices.
When choosing suppliers, you should also examine their:
- employment practices
- health and safety procedures
- environmental policies
Customers are increasingly concerned about the wider impact of supply chains, for example on the local workforce and environment. Being associated with businesses that abuse the rights of their workers or their local environment can significantly harm your reputation. Larger organisations often audit their suppliers to ensure that they follow responsible working practices. You could do something similar — simply asking them about their attitudes to CSR might be revealing.
You should also treat your supplier’s fairly, particularly smaller businesses that rely on you. For example, on-time payments can make a big difference to them.
Ethical Trade and Customers
Your customers will want to know that you don’t exploit the people who make and sell your products. To reassure them, you could:
- Create brochures in plain English and frankly disclose any ’small print’ limitations.
- Be open and honest about your products and services. Tell customers what they want to know, including what steps you take to be socially responsible.
- If something goes wrong, acknowledge the problem and deal with it.
In return, you can expect customers to reward you with their loyalty. Listening to your consumers can also help you improve the products and services you offer them.
Common Types of Business Ethics and Values
Below listed are some of the common important types of ethics in business. It is clear that ethical business behavior is not the panacea for all problems, and leads one hundred percent to the growth and prosperity, but when following unethical behavior it can cause problems to a company, both internally and externally. Impact of ethics on business directly reflects into earnings and profits of the company or an organization.
- Equality.
- Respect.
- Freedom.
- Dialogue.
- Solidarity.
That an organization must take responsibility for their actions is not new. In developed countries, there is legislation detailed in civil, criminal, labour, administrative, commercial, which specifies responsibilities of individuals and corporations. In developed countries, there are also sufficiently reliable court systems seeking to impose legal responsibilities when necessary. What is new is the social conscience of corporate responsibilities that should be effective even when the law fails to impose it. For example, when concerning acts performed outside the borders of the country of nationality of the corporation, when no law protects the affected property or when the procedure of judicial service is so slow it is useless. In these cases, and many bulls, external and internal agents pressure directly to the organization, to extend their responsive actions, to the margin of whether they have or not a legal obligation to do so. These pressures, which in anyway imply recognition of the powerless state against the organizations, can lead, when they accumulate, which we can call moral bankruptcy of these same organizations. At one point, an organization that has neglected their responsibilities can be found before a bankruptcy of this kind, which leads to an accounting bankruptcy and ending by eroding the confidence of consumers, governments, and financial markets. Organizations with a strong ethical culture are characterized by anticipating these demands assuming their responsibilities until they are raised as complaints, or before the damage is done. This is what we can call a proactive attitude, to distinguish it.
