Business Ethics and Corporate Social Responsibility (CSR)
Every organization has a code of conduct that governs the behaviour of its employees on how they relate with each other and their customers. Business ethics can therefore be described as the application ethical values on business behaviour and operations.
Winstanly and Woodall (2000) say that business ethics involve every aspect of the business including accounting practices, treatment of employees and clients, as well as its operations (p. 78). It is important to note that business ethics apply on both individual employees as well as companies as a whole.
Corporate social responsibility on the other hand is the approach that companies take to address the impact of its core operations on the social and corporate environment.
Winstanly and Woodall (2000) further say that CSR also entails the contribution that a company makes towards the well-being of the communities it serves both locally and internationally (p. 81). Some scholars would describe CSR as giving back to the community part of the profits businesses have made from the same community.
Reilly and Williams (2006) assert that for an organization to demonstrate responsibility towards the communities that it serves, it needs to observe ethics such as honesty, openness, integrity, trust and care for the environment (p.91). The above marks the connection between CSR and corporate ethics.
The main aim of a corporation is to make profits. However, there are other aims and objectives that if not achieved will frustrate any company’s core business operations (Reilly and Williams 2006, p. 95). Harmony with its customers and surrounding community and good relationships with customers are some of them.
Business ethics and CSR help a corporate to achieve the above-mentioned policies effectively contributing to the main aim of making profits. Business ethics in other words help a corporation to achieve or work toward fulfilling their missions, achieving their visions, and adhering to their core values.
Ethical Approach to HR Management
According to Winstanly and Woodall (2000), ethical management of employees in business has not been given much emphasis throughout much of corporate history (p.1). The subject of ethics has been emphasized in the business relations with clients and the environment ignoring the critical element of ethical management of employees.
Winstanly and Woodall (2000) further add that there has been little debate about serious incorporation and enforcement of managerial ethical approaches in HR policy and practice (p. 1).
The HRM field has also deliberately overlooked the issue of incorporation of ethics into HR practice. There is increased curiosity among professionals of other disciplines about the apparent lack of analysis on ethical running of HR. The most drastic ones even seem to think that HR itself in totality is not ‘ethical’.
Since the late 1990s, scholars have increasingly become vocal in their calls for the ethical rearmament of HR to ensure they display some ethical sensitivity and awareness. HRM is primarily charged with the responsibility of organizational well-being.
However, with the new model where HR is increasingly adopting to the issues concerning ethics, it is playing a new role in promoting individual as well as societal well-being.
On the same note, HRM does not have much of a choice other than to play a bigger role in the observation of ethics to ensure the strategic fit and best practices of businesses are achieved. If the organizations are going to ensure ethical practices in its relation with clients and the environment, then the HR has to reform first and take the lead role.
References
Reilly, A. & Williams, T. (2006) Strategic Human Resource: building the capability to deliver. Burlington: Gower Publishing Ltd.
Winstanly, D. & Woodall, J. (2000) Ethical issues in contemporary human resource management. London: Macmillan Press.