RWT1 Essay
Business Research Report
Benefits of Ethical and Social Responsibility in Business
Table of Contents
Executive Summary
When a company becomes more ethically and socially responsible it creates a more efficient company. This is evenident when you look at the cost to a company when unethical behavior is present. A lack of ethics leads to employees cutting corners, which can lead to great trouble for the company. When employees do not feel as though they need to follow ethical guidelines they can create situations that can cause the company financial loses. These loses can be government fines or pure oversight in decision making. When ethical procedures are in place this risk can be avoided. When a company has poor ethical standards is workers efficiency is poor, but employee productivity increases when a company seeks ethical responsibility. When ethical and social responsibility are expressed in a company absenteeism and job turnover rates decrease. Employees become more loyal to the company when they feel as though they are valued by management. A loyal employee is an efficient employee. Social responsibility in a company also draws in the most talented employees, which makes for a very proficient company. Unethical company practices are also seen by customers and investors and how they view the company. When a customer is treated unethically they will not repeat their business and share their unhappiness with the company with those around them. This deteriorates the relationship with the customer bases and damages the company reputation. Customers and investors value ethical and socially responsible businesses. Investors are seeking out socially responsible companies. When a company is socially and ethically responsible it will be more financially stable.
In order for the company to become more socially and ethically responsible there are several steps it needs to take. One step would be to hire an Ethics Officer or a consulting
Benefits of Ethical and Social Responsibility in Business
Table of Contents
Executive Summary
When a company becomes more ethically and socially responsible it creates a more efficient company. This is evenident when you look at the cost to a company when unethical behavior is present. A lack of ethics leads to employees cutting corners, which can lead to great trouble for the company. When employees do not feel as though they need to follow ethical guidelines they can create situations that can cause the company financial loses. These loses can be government fines or pure oversight in decision making. When ethical procedures are in place this risk can be avoided. When a company has poor ethical standards is workers efficiency is poor, but employee productivity increases when a company seeks ethical responsibility. When ethical and social responsibility are expressed in a company absenteeism and job turnover rates decrease. Employees become more loyal to the company when they feel as though they are valued by management. A loyal employee is an efficient employee. Social responsibility in a company also draws in the most talented employees, which makes for a very proficient company. Unethical company practices are also seen by customers and investors and how they view the company. When a customer is treated unethically they will not repeat their business and share their unhappiness with the company with those around them. This deteriorates the relationship with the customer bases and damages the company reputation. Customers and investors value ethical and socially responsible businesses. Investors are seeking out socially responsible companies. When a company is socially and ethically responsible it will be more financially stable.
In order for the company to become more socially and ethically responsible there are several steps it needs to take. One step would be to hire an Ethics Officer or a consulting
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