Leadership and Corporate social responsibility

Leadershipand Corporate social responsibility

Themajor cause of ethical problems in a business is the inappropriateway of dealing with an ethical dilemma. For instance, if the leadersof an organization approach an ethical issue wisely then they will betermed to be unethical. Therefore, the major cause of the ethicalproblems in an organization is the lack of the appropriate knowledgeregarding the ethical issues.

Roleof organizational culture in business ethics

Theorganizational culture is crucial in the business ethics today. Forinstance, it is through organizational culture that the managementcan distinguish between what is ethically right or wrong within theorganization. Typically, it is a standard to measure between rightand wrong.

Thedifference between integrity-based and compliance-basedorganizational cultures

Inthe integrity based there are principles and standards that governthe working of both the leaders and the employees. On the other handcompliance based is characterized by boundaries and limits that boththe leaders and employees must comply to. Additionally, theintegrity-based approach is known by the principles integrated intothe system while the compliance based is known by the rules andpenalties for the codes of misconduct.


Thesignificant factor that makes an ethical leader is integrity. Leadersare said to be ethical when they are honest, and they have strongmoral principles. This implies that ethical leaders are morallyupright.


Oneof the major factors that make a good leader is effectivecommunication to other members of the organization.

Therole of the code of ethics

Thecode of ethics serves as the standard for gauging the behavior of allthe employees in the organization. It plays a crucial role indistinguishing between what is ethically right or wrong within theorganization.


Whoare corporate stakeholders?

Corporatestakeholders are people or groups that can affect or be affected bythe actions of a business. Internal corporate stakeholders are thosewithin the business, for instance, the employees and the investors.External stakeholders are those not working directly within thebusiness but are affected in various ways. They include customers,creditors, suppliers and the government.

Prioritizationof stakeholders

Typically,stakeholders are prioritized depending on their impact and influencein their organization. They are prioritized based on their influenceon the success of the business initiative. Also, based on how theywill be impacted by the changes resulting from the businessinitiative

Isthe natural environment a stakeholder of business organizations?

Thenatural environment is a primary stakeholder of the businessorganizations due to numerous factors that influence the functioningof the business. Approaching the concept of stakeholdersidentification from a strategic perspective shows that the naturalenvironment is a crucial external stakeholder in businessorganizations.

Ethicaltheories that influence my answer

Oneof the primary theories that influence my answer is the stakeholdertheory. This theory is crucial to distinguish the stakeholders of theorganization both the internal and the external stakeholders


Therole of the corporation

Theprimary role of the corporations is to make maximum profit for theirshareholders. They also work to achieve the goals that will be bestfor the society in future. Additionally, they have the role ofmeeting the needs of the society and their workers.

Doorganizations have conscience/moral personality?

Yes,most organizations have a moral personality since they are moralagents, and they are morally responsible to the society. Consideringthat organizations are held morally accountable like people, thenthey have a conscience.

Responsibilitiesof organizations to the society

Corporationshave one common goal of promoting the common good of the community.This is in line with the Aristotelian idea that social institutionsexist to meet the social needs. Their primary objective is theintegration of the human well-being within the context of thewell-being of the natural world. Therefore, corporations have a majorresponsibility for promoting what is morally right within the societythat they work in.

Whatdoes it mean when we say a corporation did well?

Itmeans that the organization achieved most of its objectives. Theprimary purpose of the objective is to achieve most of the goals thatwere set by the stakeholders and thus they will only be doing wellonce they achieve them.

Shouldmanagers be agents for shareholders or the company?

Managersshould agents of the company due to some factors. Since theshareholders are part of the company, the managers should considerrepresenting the company rather than shareholders only. Also, theycontrol all the processes of the company and thus they shouldadvocate them and represent the company as a whole.

Whatare the arguments for and against CSR?

Argumentsfor CSR

Mostorganizations lead to the non-financial benefits of their efforts.Typically, socially responsible practices can bring a positive impacton the company by improving employee retention and recruitment. Also,it can manage environmental risks by reducing the harmful accidents.

Argumentsagainst CSR

Ithas been noted that the corporations’ purpose is to maximize profitto its shareholder and have no responsibility to the society as awhole. Also, it is evident that corporations benefit the society bestthrough distributing its profit to the owners who in turn makecharity donations and make other socially responsible moves accordingto their thoughts.

Relationshipbetween corporate law and CSR

Theyare both a set of principles and regulations that the stakeholders ofan organization work as per these principles. Typically, they bothintend to show the interaction of all the stakeholders of anorganization and also all of their roles for the success of thebusiness.