Organizational Behavior and Management Corporate Social Responsibilit

Question: Discuss about the case study Organizational Behavior and Management for Corporate Social Responsibility. Answer: Introduction Corporate social responsibility and business ethics has evolved in the last decade to gain immense importance in the corporate sector, among customers and governments(De George 2011). The article of B.E. and D. Payne on, Evolution and implementation: A study of values, business ethics and corporate social responsibility discusses regarding the various ethics, values, integrity, responsibility that are increasingly becoming part of the business community and its positive effect on economics of the firm. The article defines ethics, moral considerations, corporate social responsibilities and values and then takes example of two organizations in order to demonstrate how ethical responsibilities can be discharged by undertaking greater responsibility from the community. Data has been collected for the research by means of interview and thereafter data was analyzed for comparing the results(Ferrell 2015). The findings from the study were important as it reflected the several implications o f business ethics, CSR as well as values within the organizational framework. There was a correlation found between the financial performances of the company which was direct or indirect from the ethical consideration or CSR role assumed by the company. As business performance is measured against its financial performances by the stakeholders, it is extremely important that CSR activities is reflected by means of financial outcomes. Hence the study concluded that a moral organizational behavior can help business activities depicts its CSR norms that in turns gets paid off by means of financial rewards(Trevino 2010). Research Methods The article that has been discussed here had to undertake research process in order to collect data and obtain relevant information thereafter analyzing it. The research collected qualitative data pertaining to two organizations, in areas of values, corporate social responsibilities and business ethics. The research has not used quantitative data for analyzing performances. The qualitative data for this article has been primarily been obtained from various books and journals, the relevant literature sources for the data are; Schendel and Hofer (1979), Summer (1990). Chester Barnards (1938) book, The Functions of the Executive . Herbett Simons (1945) book Administrative Behavior, Peter Drukers (1945) book(Frederick 2008), The Practice of Management, Phillip Selznick (1957) book, Leadership in Administration: A Sociological Perspective. Kenneth R. Andrews (1987) book, The Concepts of Corporate Strategy, R. Edward Freeman book, Strategic Management: A Stakeholder Approach. Arguments Ethics is not just a fad, as rightly pointed out by Brenda E. Joyner and Dinah Payne in their famous article Evolution and Implementation: A Study of Values, Business Ethics and Corporate Social Responsibility(Joyner 2002). The study of business ethics, values and corporate social responsibility norms has been of great interest of study and researchers as well as corporates want to establish a more direct relationship with finances of the organization, in order to highlight their importance. The indirect relationship between financial implications and business ethics has already made its mark, as a customer is more likely to purchase products of an ethical company that adheres to corporate social responsibility norms as compared to other organization that do not, as highlighted by Stodder (1998)(Lindgreen 2010). Customers do not want to associate themselves with firms who are not socially responsible, but when considered from stakeholders point of view there is a discrepancy that ari ses. Shareholders who have vested interest in the business and have invested money in order to get appropriate return from the functions of the business. Milton Friedman (1962) is strongly opposed to a business fiduciary responsibility other than maximizing shareholders wealth(Keith 2008). According to him, a business in order to deliver to the community or society might end up wasting business valuable resources and finances which will conflict shareholders self-interest and in-turn organizational managements interest. Business ethics have been associated with high employee satisfaction and employee commitment as well, according to Walker Information survey (1997)(McWilliams 2006). The study indicated that 42% of employees survey valued the organizations integrity for influencing their choice of employer and only 14% employees did not have any concerns regarding the business ethical set-up. Studies in business ethics highlighted societys impact on businesses and the needs of the businesses that can be fulfilled by the society. Hence businesses needs to engage in ethics for being ethical in the first place and in order to fulfill the machiavellian self motive(Crane 2007). Thus, merely adhering to legal compliances is not enough and businesses needs to reflect morality in their actions in order to operate in a society. Values has been identified with a persons cultural background, beliefs and behaviors, according to Alder(1999). Whereas ethics can be defined as a dynamic system encompassing value principles of right and fair conduct of behaviors, as proposed by Carroll (1991), Freeman and Gilbert (1988)(Navi 2012). Business ethics are the value systems and ethical principles that are relevant to businesses, according to De George (1999). Corporate Social Responsibility are the ethical, economical, legal as well as discretionary undertakings from the various expectations o f the society as defined by Andrews (1987), Caroll (1979) and Sethi (1975). Archie Caroll (1979) established a three dimensional framework of Dimension I being Social Responsibility, Dimension II being Philosophy of Social Responsiveness and Dimension II is social issues. The dimensions interact with each other and help the firm establish its social responsibility. Vaughn (1997) applied the Carroll model to establish a background such that entrepreneurs application of the framework in their businesses can be determined(Giacalone 2006). Chester Barnard was the first who proposed that quality leadership can deliver adequate moral and ethical values to an organization. Herbert Simon further incorporated the role of every individuals as an integral part in delivering value and morality within the organizational framework. Works of Peter Drucker, emphasized further the role of business in adhering to social responsibilities. Other authors works also included and emphasized the need of CS R norms for businesses. The research undertaken by the author of the article, took two organizations in order to determine the effects of CSR and ethics in business. The findings from the study indicates that business that adheres by CSR norms and ethics is ore likely to have positive financial impact on their businesses, the impact can be either direct or indirect in nature. The quantitative outcomes provided a strong basis for corporations indulging in CSR norms and business ethical practices. Application in Organizational Behavior Business ethics and corporate social responsibilities have been studied since a long time and their impact to businesses. Organizational behavior is a dynamic field of study that incorporates several functions of the organization like leadership, motivation, managerial role and so on. Business ethics if adopted by an organization can have immense impact on the value system of employees and it results in employee empowerment(Christensen 2007). Once employees recognizes that value system of organization matches that of his individual it can have enormous effect on employee motivation as well as on employee loyalty leading to employee retention. A satisfied and empower employee is likely to me more productive and be able to deliver greater customer satisfaction compared to an employee who is not. Satisfied customers have an impact of the business and on its profitability. Thus, it can be concluded that business ethics and corporate social responsibility has a positive impact of organiza tional behavior. 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