Download Corporate Social Responsibility and Ethical Leadership and more Thesis Financial Accounting in PDF only on Docsity! APPLICATION OF ETHICAL LEADERSHIP 1 C206 Application of Ethical Leadership C206 Task 2 Western Governors University Corporate Social Responsibility (CSR) Overview Corporate Social Responsibility (CSR) is a framework outlining the responsibilities a corporation has that involved philanthropic, ethical, legal, and economic impacts for their internal and external stakeholders. There are several reasons as to why corporations should prioritize these responsibilities, three of which I am going to discuss today are: pragmatic, ethical, and strategic. Below find an expanded definition: Pragmatic Reason: Comprehends and has the intention of using the company’s power in a responsible yet ethical manner in society, or risks losing the company completely. Ethical Reason: Comprehends and demonstrates ethical behavior as it relates to society as a whole and their stakeholders. Strategic Reason: Comprehends the relationship between corporations as an entity and their consumers as the society. Ultimately, they depend on each other for not only services and goods, but also benefits for society – such as job creation and economic sustainability. To determine an effective CSR, Paradigm Toys needs to identify their primary and secondary stakeholders. The major difference between primary and secondary stakeholders can be determined by who is directly or indirectly affected or affected by Paradigm Toys. For this example, two primary stakeholders include employees of Paradigm Toys and their customers APPLICATIONS OF ETHICAL LEADERSHIP 2 who consume Paradigm Toys products. Whereas, two secondary stakeholders could be governmental agencies (enforce laws and regulations on Paradigm Toys) or competitors of Paradigm toys. One way to meet and maintain these CSR’s for their primary stakeholders, their employees for this example, is to ensure a livable wage with benefits (medical, dental, vision insurance, etc.). This will do two things: Firstly, it positively impacts their workforce by instilling respect and appreciate for the work their employees provide (creating toys). Secondly, it empowers the consumer market, by providing financial resources to Paradigm Toy’s surrounding community allowing them to participate freely within the market. One way to meet and maintain these CSR’s for their secondary stakeholders, their competitors, is to ensure a healthy level of competition within their community. This could be achieved by co-sponsoring community-based events with other competitors; whether that be holiday fundraisers, toy donation drives, etc. that positively impact their consumers and/or their surrounding communities. B. Ethical Culture and Audit Reflection When cultivating an ethical culture, it is vital to define the expectations and behaviors of executive leadership and employees within the corporation. These expectations will influence every aspect of the organizational structure, which may include orientation and training programs, policies and codes of conduct, and formal decision-making processes. Creating an ethical culture is vital for impacting (hopefully increasing) employee morality, enhance company commitment to fair and just treatment, and may also have impacts on retention. However, ethical decisions made by the executive leadership team can also impact the reputation- both inside and outside of the company- based on the values and standards they publicly endorse. The executive
