Definition Of Corporate Social Responsibility - What Is It
The definition of corporate social responsibility is one that must be answered in order for employees to have a good working knowledge of what the company expects and behaviors that are acceptable as well as unacceptable.
Corporate social responsibility encompasses a great deal of interests and topics. Defining corporate responsibility is not always an easy task because there are many levels that a corporation must adhere to in order to ensure ethical practices of doing business. We have all heard of companies making false accounting reports, alleging millions of dollars in income or on the flip side reporting a huge loss. Shareholders have the right to know the exact accounting and the corporation must keep them informed of the financial worth of the business.
There have been many corporations go down in flames because of improper handling or a lack of definition of corporate social responsibility. If there is not a clear cut answer or guidelines established by corporate leaders, than what are employees left to follow? Their own gut feelings or ethical beliefs? That opens the door to trouble because not everyone views ethical decisions the same. What one person would see as unethical the other may think is acceptable. And, then of course there are always those cases where the decision is borderline.
If corporations and smaller businesses want to protect themselves from fraud, unethical behaviors and the loss of business they will seek out and provide a definition of corporate social responsibility. By establishing clear cut guidelines, employees will have a good understanding of what is expected, what is off limits and how to report any behavior that they think may be unethical. Granted, writing the policy is the easy part and companies typically have trouble enforcing and over seeing the ins and outs of the business regarding ethics. One of the problems with enforcing a set definition of corporate social responsibility is the fact that few employees, managers or other leaders wants the job. This individual would be subjected to almost constant complaints, fielding a ton of questions and investigating their co-workers, friends and peers. Now for some this is not an issue and they can sleep better at night knowing that they are doing their part to uphold the financial stability and reputation of the business, but for others this job is difficult. Many times reports of ethics violations are simply the aftermath of an employee fight or a nosy employee that suspects everyone, so the compliance officer is swamped with constant complaints. Then there are times that they hate to investigate a complaint because it is someone they know well or just really do not believe that the person is in any way capable of fraud. Unfortunately this is a fact of life today with all the fraud and unethical behavior. Someone has to uphold the business by making sure that the finances are safe and treatment of all is held in high regard.
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