Question

In today’s social and business environments, some organizations only “talk the talk” regarding ethics and ethical conduct rather than “walk” the ethical organizational path. In what ways can ethical and unethical behaviors and actions impact a company or business? Be specific. Multinational companies often encounter customs and standards of behavior that may be contrary to those in their home country and/or culture. What should be a firm’s policy regarding alignment of itself and its operations to the norms of other nations? Explain your answer. What does the term CSR refer to? Why are such practices important for any business?

Answer 1

It is very evident in today's world that many organization only "talk the talk", which means they dont dont act the way they preach. They try to give an impression that they are the most ethical organization by just talking about it but they wont act in the same way. This may look quite mimute but this can actually have a very big impact on people inside the organization as well as outside the organization.

ethics has a strong role to play. When people trust you on your word and you dont follow the same way then the trust breaks and the credibilty towards the company loosens. It is not only the people outside the company who looses it but also people who are working for you. They will take things for granted and the corruption under the table would increase. Ratan TATA, the former CEO of TATA group has always walked the talk. he is called the man of ethics and the culture they have is discussed worldwide. The group got its firmness for the ethics they follow rigidly.

MNC's have a set of particular policy that they follow in domestic country but as we change the border the culture and the country both changes, the policy has to align the same way. In this world when everything is connected the companies need to be versatile and change the policy according to the culture and country they are in. Since they have to maintain a credibility level they need to establish this and follow it rigidly.

CSR- Company Social Responsibility is an activity which almost all the big companies are following, where they take soem same initiatives like literacy, shelter to poor or any other social cause and ask the employees to work for it and also donate a certain percentage of there revenue.

This is important because such things shows that the company is connected to the society and they do give something baqck to the society from what they ae earning. It creates a positive word of mouth and helps company enjoy its awarness.