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Extra resources for Corporate Social Responsibility
We believe that when we act ethically in business decision-making process this will ensure more effective and productive utilization of economic resources. 3 Ethical philosophies One component of the change to a concern with social responsibility and accountability has been the recognition (or reinstatement) of the importance of ethics in organisational activity and behaviour. In part this can be considered to be a recognition of the changing societal environment of the present time and in part a recognition of the problems brought about through corporate activity taken without any account of ethical implications.
For other industries however the effects of regulation vary in extent but in general terms can be stated to be increasing over time and this increase can be expected to continue into the future. 7 Risk Reducing One thing which is of particular importance for all corporations, and is becoming more important is the matter of risk and the managing of that risk. A stakeholder approach to decision making and managing the organisation is likely to identify more risks and to manage them better6. Risk is also very related to sustainability (see the next chapter) and we will show that the lack of a full understanding of what is meant by sustainability, and particularly by sustainable development, means that the issue is confused in corporate planning and reporting (Aras & Crowther 2008).
The concept of recycling applies equally to corporate sustainability in terms of the recycling relationship with each stakeholder. By this we mean that a sustainable corporation needs to invest in all of its stakeholders in order to maintain and improve relationships between the company and its stakeholders but that the investment in stakeholder relations is returned to the company through being recycled. So a stakeholder who is well treated both receives benefit from the company and returns benefit to that company.
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