Why are ethical behavior, social responsibility, and sustainability an important focus of corporate governance? Why do you believe some managers embrace this while others resist? What is the virtuous circle of corporate social responsibility? Identify an organization that has successfully embodied this platform.
The ethical behavior, social responsibility and sustainability should be important focus of corporate governance policy of a company. The ethical behavior of corporate brings them respect and environmentally friendly policies of CSR on sustainable development are extremely important and valuable for the planet earth and its people. Some managers embrace this because they take long term view and understand that from their ethical behavior they can develop trust among their customers and by following the corporate social responsibility for sustainable development, they can add value to the communities within which they operate their business. The value addition can be done through the increased customer loyalty and reduction in costs of compliance with regulations. The companies can also benefit from greater cooperation from these communities and gain support from community when their decisions may affect the future business. The other manager may resists on corporate social responsibility for sustainable development because they give more weightage to short term increase in cost.
The virtuous circle of corporate social responsibility is unlimited and can include any work of corporate which can create a better society, improve environment, health, education, awareness etc.
Now days there are many organizations that have successfully embodied this platform and increased their involvement in social responsibility initiatives. The Kroger Company, a US based retailing company is one of these with their active involvement through different campaigns where they educate local communities to increase of the consumptions of wholegrain foods and take initiatives to produce quality products. They are also part of the education programs to local communities, campaign of reducing the harmful substances in their body-care products, helping the social organizations and schools to raise money for social cause. They also focus on the environmental preservation programs by reducing waste and plastic garbage in all their activities.