Corporate Social Responsibility and Ethical Issues

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Corporate social responsibilities and ethics are some of the most important parts of every business regulation. Basic rules established by workers and managers create a healthy and stable organization. These two definitions play an equally important role in forming an organization, and usually, they cannot exist separately. To achieve a high level of social responsibility and become ethnically diverse, many companies hire professional human resource managers. Their role is to decrease the number of issues accruing while making people work together. However, all employees have different characters and opinions, which might be the main cause of ethical and social responsibilities issues.

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This essay will cover information about how managers achieve a high level of corporate social responsibilities and what strategies they use to increase the organization’s performance. Moreover, it will show how ethics influence the construction of a business and what relation it has to CSR. Also, why risking plays a significant role for many successful managers, and why it is important to risk to cope with ethical issues and poor CSR level.

Nowadays, many managers in the world pay attention to creating a successful CSR strategy. According to Liang and Renneboog (2016), corporate social responsibilities are stronger in high-income countries with a stronger and more stable position in the world. For instance, Scandinavian countries show a more advanced level of social responsibilities as most efforts aim to improve the lives of citizens. Originally corporate social responsibility is a plan that allows companies to be socially approved by their target audience, stakeholders, and suppliers. When firms can easily analyze what impact they have on society, their performances become better.

Managers can use existing plans of corporate social responsibilities, but they should adjust to the specific workforce to have the most efficient performance. One of the main missions of CSR is the creation of a strong connection between workers and managers. To set this strong bond between two parts of any organization, managers should follow basic moral rules and be ethnically diverse.

To set an effective plan of corporate social responsibilities, managers usually conduct SWOT analyses. While working in an organization where managers pay attention to CSR and ethics, I understood the organization’s strengths, weaknesses, opportunities, and threats. An increase in financial performance, better organizational reputation, less operational cost, and stable development are the main aspects of the strength of the organization.

However, CSR still requires huge capital, and an increase in financial performance cannot always cover all spending. Also, less communication between organizations causes weaknesses to the business. Better brand image and visibility of the business in all areas are the main opportunities. Nevertheless, many Government regulations decrease CSR credentials, and its development might be inhibited.

Corporate social responsibilities have many areas which are equally important in any organization. Some of the main types of CSR are environmental responsibility, philanthropic responsibility, ethical responsibility, and economic responsibility. Environmental responsibility aims to achieve a waste-free production, reduce emissions, and arrange green days to help surrounding nature. Philanthropic responsibility is sought to make the world a better place by donating a part of the profit into charitable actions. Ethical responsibility achieves the most efficient communication between suppliers, managers, and workers. Economic responsibility is the ability to spend profit on other parts of the CSR wisely.

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Ethics is closely connected to corporate social responsibilities, and it is difficult for managers to introduce plans of CSR without following basic ethics rules. The definition of ethics is based on moral principles of what is right or wrong. Many people understand the idea of ethics differently, and from the concept’s view, it is correct. Ethics usually relates to a person’s feelings, and this is not connected to law or religion. Managers in many companies use ethics to develop a successful firm, and ethics definition, in this case, expands the scope of what is accepted by people.

Managers must be ethical in their work to decrease the gap between them and workers. Understanding the basics of ethics in an organization helps create better connections with people of different backgrounds with different beliefs and ideas. Since ancient times, ethics required more than following standard rules of society. Currently, ethical responsibility is a process of recognizing future trends in the development of the moral side of any business.

For instance, when managers break the rules of ethical norms, workers leave this place of work, and the company receives a poor review. To avoid such problems, managers should listen to employees’ requirements and constantly improve the working mood of the staff. Moreover, managers should be interested in workers’ retention to improve the quality of interpersonal communication inside the company.

Without constant risk in the ethical side of business development, no company would be successful. However, managers should find a fine line between empowering and retaining employees. To be ethical, managers have to follow the basic rule of human rights and not discriminate against workers by race or gender. A good attitude towards employees and compromises in difficult situations create a successful company with an advanced system of ethics. However, not all managers are ready to cope with their personal borders to accept the diversity of the society, and some ethical issues, in this case, might occur.

In the modern world, corporate social responsibilities and ethics play a significant role in the military industry of the USA. Regarding the military system, many countries are interconnected and have approximately the same ruling systems. However, not all countries can follow all modern trends, and this problem upraises CSR and ethical issues. For example, according to Avella et al (2020), Columbia is experiencing a low level of CSR and ethics as conservative managers are not ready to modernize the social system of the military industry. Such countries as Spain, Chile, and United States present the same commitments in the social responsibility reports.

Nevertheless, such common factors as gender equality, environmental concern, free communication with family outside military buildings, and accessibility of participation of disabled people are not valid for many managers. The ethical barriers of many leaders in developing countries create numerous issues in increasing equality in a workforce. Consequently, many workers in the military sphere of such countries as Columbia are infringed on their employer’s human rights and ethical attitude.

In the military industry, every worker has managers, and top managers usually follow the rules of government representatives. Daily work with a large flow of people brings the failure of many tasks of employers, and employees do not receive enough support (Parker et al., 2020). Such issues cause individual breakdowns of both managers and workers, as the absence of motivation, health support, or increasing discrimination occupy higher positions in the industry. Omission of corporate social responsibility development increases employees’ unwillingness to develop their skills, and, therefore, leave this working environment. In this case, workers’ individual issues are lack of confidence in oneself and the chosen profession. Managers also experience personal problems as their efforts toward improving social responsibilities and creating an ethical environment fail when workers are not satisfied.

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Managers and workers have different roles in any organization, but they are achieving approximately the same goals related to the satisfaction of their personal wishes and customers’ needs. To avoid unpleasant moments, managers can constantly provide workers with motivational training before or after work. Also, they can pay more attention to communication and become more sociable to receive a positive attitude.

Managers are the representatives of any organization, and they should have their own opinion to solve conflicts between employees and customers. Employees can also feel pressure from managers, and it is important to talk about all negativities they face in the workplace. To overcome ethical issues and inequality, employees should know their rights, and before applying for the position, they must read all the company’s regulations.

To conclude everything that has been stated so far, corporate social responsibilities and ethics play a significant part in developing a successful organization. If managers do not take measures to improve the communication between workers and their employers, the whole system might stop existing in the near future. Even though the output level is high, without a good employee relationship, this success might disappear. Such an outcome brings unpleasant individual issues for both workers and managers, and recovery can take a long time.


Avella, A. M. M., Cubillos, A. A. E. & Calderon, J. A. A. (2020). Review of Applied Methodologies and Proposals Regarding Social Responsibility in the Military Forces. Proceedings of the International Congress of Industrial Engineering, 102-111. Web.

Liang, H. & Renneboog, L. (2016). On the foundations of Corporate Social Responsibility. The Journal of Finance, 72(2), 853-910. Web.

Parker, S. K., Knight, C. & Keller A. (2020). Remote Managers are having Trust Issues. Harvard Business Review, 1-15.

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BusinessEssay. (2022) 'Corporate Social Responsibility and Ethical Issues'. 12 September.


BusinessEssay. 2022. "Corporate Social Responsibility and Ethical Issues." September 12, 2022.

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BusinessEssay. "Corporate Social Responsibility and Ethical Issues." September 12, 2022.