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Ethical Issue - Dissertation Example

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This dissertation "Ethical Issue" perfectly describes that this dissertation presents the results of an effort to examine if corporate social responsibility policies can offset the impact of activities that present harm to the environment and society…
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Ethical Issue
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Now more than ever, contemporary society expects sustainability, responsibility, and sensitivity to societal needs from companies and this challenges business to go beyond the predominantly economic view to take into account the wider context (Morschett, 2010, Pp. 221 – 222). The new normative perspective for companies now includes due regard for the environment, care in the use of resources including water, primary materials, energy etc. and issues related to human rights, transparency, child labour and sustainability.

However, some corporations may behave as corporate locusts that cause destruction of natural, human, social and economic capital due to their activities or corporations that normally present a prudent approach may inadvertent lapse to cause damage to the environment, society or to others (Henriques, 2004, Pp. 10 – 14) and (Mattera, 2010, Pp. 35).   The company at the centre of the recent Gulf of Mexico oil disaster, BP, had long promoted itself as socially responsible company despite the fact that this company had been cutting corners on safety in its operations (Mattera, 2010, Pp. 35). Toyota, listed as one of the most ethical companies on Ethisphere's list of "the world's most ethical companies", failed to notify regulators or the public at large about defective gas paddles supplied with the Prius model of cars.

Clearly, destruction of natural, human, social and economic capital or lapses that present damaging affects present negative influences on corporate reputation. It is difficult to place a precise quantitative value on reputation, but a good corporate reputation remains a highly prized intangible asset that influences future prospects, financial performance and stakeholder interest (Rayner, 2003, Pp. 1 – 5). It takes years to build a reputation and five minutes to destroy it. Thus, it makes sense to question if charitable giving, philanthropy, Corporate Social Responsibility (CSR) policies or other forms of payments to society can atone for damage to environment, society and corporate reputation.

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