social responsibility and ethics

When making decisions, corporate companies have a responsibility to consider principles. An organization’s activities do not have a negative impact on human lives or the environment. However, in some situations, companies face a conflict between their profit-making and social-responsibility goals. According to Cai and Pan (2012), organizational management must still be mindful that participation in group events does not excuse immoral business practices. I studied the operations of a nearby nightclub and discovered that the management was constantly at odds with society due to ethical concerns. The business has to balance between being socially responsible and making maximum profits that often leads to social disintegration owing to its area of operation.

The local night club earns revenues from the business of selling alcohol, providing entertainment, and offering gambling services in its casino. The owner of the firm often takes part in community service that includes giving money to local charities and sponsoring different activities. The owner believes that since the business is legally registered, they need not worry about the issue of morality because all the clients are adults who can make their decision. A section of the community perceives the business as unethical because it encourages moral decay. Therefore, they feel the night club should not take part in community activities since they do not approve its operations. Many young people indulge in alcohol and betting because the club encourages them to do so.

Given the situation, the management of the business has to make a decision on whether to continue with its social responsibility activities or stop. The law recognizes the company as legal, but the society considers the business immoral. Some people appreciate the work the business is doing of entertaining people and having the courtesy to participate in social activities. Grougiou, Dedoulis, and Leventis (2016) argue that controversial businesses have to make a critical decision on the manner to approach their CSR. Some people may not welcome the idea of a company dealing with alcohol or cigarettes sponsoring social events because they will imply the community endorses their products. Therefore, the safest way for such business to be responsible is to ensure the clients not to indulge. They should be fair enough to inform the clients of the dangers of both alcohol and gambling.

The decision to stop engaging in social responsibility may have a direct impact on the growth of the business. Taking part in CSR activities validates the operations of the business and gives the public confidence that the management cares about social issues. Carroll (2000) insists that firms that engage in social responsibility gain a competitive advantage over those that do not engage. The chance to take part in community projects is vital for the marketing strategy of the night club. Even though its operations affect the morality of the people, its activities imply the owner has good intentions.

On the other hand, if the proprietor decides to continue taking part in CSR, then the business continues to enjoy its benefits but also antagonizes a section of the community. A part of the community feels a night club is not supposed to take part in social activities like other businesses. Doing so gives the impression that the community does not mind the operations of the nightclub that often wretches’ homes because of alcoholism and betting addition. Grougiou, Dedoulis, and Leventis (2016) argue that businesses engaged in alcohol should not take part in all social activities. They should strategically choose the target audience for their CSR so that they are not in conflict with the ideals of the community. In as such, businesses should apply critical thinking before engaging in CSR. Carroll (2000) notes a cost-benefit analysis needs to be conducted in all areas of social responsibility. A business should examine the returns expected, both monetary and non-monetary when taking part in community activities. If an event is not favorable, then a business such as a night club should avoid taking part.

In conclusion, the local business organization has to make a necessary decision on the manner to carry out its social responsibilities. The discussion reveals that CSR is critical to the development of a business organization. Even though there may be some ethical challenges in the execution of CSR activities, the ultimate results are gainful. Therefore, the night club business needs to engage critical thinking processes so that the decisions it makes regarding the type of community services it would engage in is mutual. The night club cannot stop operating because it is a legal business despite it being morally questionable. It is also not advisable for the night club to forget about being socially responsible because of the concerns from a section of the public. The important thing is to develop a CSR strategy that would continue to help improve the image of the business and reduce conflicts with the conservative part of the society.

References

Cai, Y., Jo, H., & Pan, C. (2012). Doing well while doing bad? CSR in controversial industry sectors. Journal of Business Ethics, 108(4), 467-480.

Carroll, A. B. (2000). Ethical challenges for business in the new millennium: Corporate social responsibility and models of management morality. Business Ethics Quarterly, 10(01), 33-42.

Grougiou, V., Dedoulis, E., & Leventis, S. (2016). Corporate Social Responsibility Reporting and Organizational Stigma: The Case of “Sin” Industries. Journal of Business Research, 69(2), 905-914.