Corporate Social Responsibility

Class post. Enjoy!

Happy Saturday R:

You know I agree with your post regarding self-regulation and ethics. I wrote about written policies for ethics in organizations. I believe if everyone acted in self-regulation, these types of policies and written procedures would not be necessary. But as it is today, unfortunately, they are still needed. I would like to add that corporate social responsibility also plays a role in self-regulation (from an organizational perspective), servant leadership, and organizational culture of companies and organizations alike.

Corporate social responsibility is exhibited through the policies and activities organizations engage in that are aimed at meeting or advancing the social needs of those within and outside of the organization (Baron, 2010). Corporate social responsibility can be great for a company’s bottom line because it can foster employee commitment and customer satisfaction (Chitakornkijsil, 2012). However, when organizations are irresponsible, it can be detrimental (Lang & Washburn, 2012). 

Phillip Morris fell under public scrutiny after the states sued the tobacco industry for medical expenses related to tobacco related illnesses. The company was scrutinized for misleading consumers about the dangers of its products. In addition to paying billions of dollars in settlements and removing billboard advertisements, Phillip Morris began running ads explicitly warning about the dangers of smoking and sponsored tobacco cessation programs to help rebuild the company’s reputation (Weidenbaum, 2004; “Caron Tobacco Cessation Program Funded by Phillip Morris”, 2009).

References

Baron , D. P. (2010). Business and its environment (6th ed.). Upper Saddle River, New Jersey: Prentice Hall.

Caron tobacco cessation program funded by Phillip Morris. (2009). Alcoholism & Drug Abuse Weekly, 21(15), 3-4.

Chitakornkijsil, P. (2012). Business performing social responsibility activities and corporate social responsibility issues. International Journal of Organizational Innovation, 5(1), 309-323.

Lange, D., & Washburn, N.T. (2012). Understanding attributions of corporate social irresponsibility. Academy of Management Review, 37(2), 300-326. doi:10.5465/amr.2010.0522

Weidenbaum, M (2004). Business and government in the global marketplace (7th ed.). Upper Saddle River, New Jersey: Pearson.