CSR & Ethical Practice Essay Example | Topics and Well Written Essays - 1000 words

CSR & Ethical Practice - Essay Example One advantage of business ethics is that it helps an organisation to achieve competitive advantage (Shaw, Barry, & Panagiotou, 2010). A company that engages in ethically sound business practices improves customer loyalty and trust. In this case, the consumers become loyal to the brand even if the company is facing difficult financial times. Therefore, companies will always set their ethical standards depending on organizational values. In the long run, consumer confidence increases with ethical responsibility. According to Carroll (2013), the underlying assumption is that business ethics benefits the society since it is the main basis for social responsibility among organisations. On the other hand, business ethics leads to more accountability and integrity in the organisation. The implication is that sound business ethics obligate company employees to become more responsible in certain operations like financial reporting (Choi, & Pae, 2011). Another remarkable strength of business ethics is that it makes organisations realise that their success is more than profitability (Carroll, 2013). Some of the models of business reporting like the triple bottom line approach came up as a result of business ethics and corporate social responsibility. In this case, companies focus their reporting on people, planet, and profit (Slaper, & Hall, 2011). Therefore, ethically companies have the obligation to report their financial performance, environmental as well as social performance. The triple bottom line approach recommends that company survival depends on their ability to make profits, encourage sustainable and ethical business conducts (Henriques, & Richardson, 2013). The underlying assumption is that business ethics is a prerequisite for sustaining an investment. Consumers have confidence on the company that protect environment and contribute to the well-being of the society (Choi, & Pae, 2011). On the contrary, business ethics has a negative effect