In essence, corporate responsibility entails the operation of a business in such a way that it (business owners) bears responsibility – or accounts – for the environmental or social impacts that arise as a result of its creation. Socially responsible businesses not only develop policies that incorporate responsible “Do's and Don’ts” into their everyday business operations, they also report on the progress made toward the implementation of these practices.
During the inception of corporate social responsibility, charity was at the center stage of all activities. However, with time this perception integrated other aspects of business operations into its definition. Today, corporate social initiatives …show more content…
Corporate Spend networks Multinationals and SMEs to providers of corporate services and goods that have agreed to direct 5% to 40% of their procurements toward the Corporate Spend Fund.
In turn, Corporate Spend hands out 80% of all its proceeds to the charitable organizations that dedicate their efforts towards eliminating modern-day slavery and human trafficking. This move diverts the attention of NFPs from concentrating on donor groups to concentrating on the more important factors – the reasons for their existence.
The efforts of such social enterprises enable businesses, big and small, to make positive social impacts to the surrounding communities through their routine purchases, which are inevitable despite the charitable intent. When businesses provide funds to NFPs through their expenditure – of goods and services – charitable organizations focus more on the work that they need to do and less on fundraising …show more content…
However, only a handful of them have made it a core of their day-to-day operations. For example, a corporation such as Starbucks has C.A.F.E Practice guidelines that have been designed in such a way that the company sources coffee that has been sustainably processed and grown through the evaluation of environmental, economic, and social aspects of production. Another prominent company is Tom’s Shoes. It donates one pair of shoes to a needy child for every pair that is bought by a customer.
Importance of Ethics and Corporate Philanthropy in Business
In essence, ethics distinguish what is right from what is wrong. In the business world, companies come up with their own ethics – codes of conduct. These act as guiding principles in decision-making. It is easy for rational beings to act ethically towards each other; however, it is just as easy to overlook the impact that a large and mysterious corporation can have on communities. Ethics in business is about being mindful of the impacts that corporate decisions have on society.
A business that does not have a code of ethics leads to wider consequences, for