Understanding regulations, laws, and business ethics in organizations
A business or an organization is a kind of economic activity which can be used to earn profits. While this is a basic definition of a business, it must also be asserted that an organization or an enterprise is much more than that. For instance, any business would be directly responsible for the neighboring communities it is operating in (Tai & Chuang, 2014). It must be kept in mind that organizations do not operate in isolation. They take their resources from the society around them and are thus responsible for the consequences that their operations might have on the business (Saeidi et al., 2015). As a matter of fact, it can also be said that businesses can contribute towards resolution of various global problems like environmental impacts, unemployment and so on (Ambec et al., 2013). This report critically analyzes how businesses can make a difference to the global problem of environmental impacts. Therefore, it can also be said that taking necessary steps towards elimination of environmental impacts is the legal duty of every business.
Responsibility towards the environment is the moral and legal obligation of every business (Flammer, 2013). According to Bocken et al., (2014), businesses can make a difference in the world by developing sustainable business models. Most organizations have a number of environmental policies and regulations which they need to follow to reduce the impact of business operations on the environment. Picciotto (2017) has argued that a plethora of international businesses have failed to live up to their moral obligations to reduce environmental impacts. For instance, it has been found that the air conditioning and heating systems used by businesses are some of the major sources of greenhouse gas emissions. Most businesses are not equipped with energy efficient systems with state of the art technology which would reduce the harmful emissions that contribute to global warming and air pollution. Similarly, Gillingham and Palmer (2014) argue that most business offices consume huge amounts of energy and electricity which should be rectified.
According to Crane, Matten and Spence (2013), it is the responsible of every business to strive to make a difference towards the greater good. It has often been argued that one business cannot make a difference to a global problem like that of environmental impact. However, it must be asserted that the combined effort of all businesses would certainly help in eradicating global problems, one by one. The efforts put in by one organization would set an example for other businesses to follow. This would result in a kind of ripple effect, where all businesses would be driven by an urge to address potent global issues plaguing mankind today. A business corporation can be defined as a group of people working towards a shared, common goal. Since it caters to a certain society, it is imperative for business organizations to take necessary steps to give something back to the communities as well. This is where the concept of corporate social responsibility arises. This concept refers to the responsibility of every individual enterprise to take a long, hard look and scrutinize the consequences (both negative and positive) of its operations on the society and the environment (Khan, Muttakin & Siddiqui, 2013).
Organizational values that support ethical decision making
Ni and Van Mart (2015) argue that there are numerous challenges that threaten the stability and the habitability of the planet. That makes it increasingly challenging for businesses to ignore the context of environmental consequences. The reason is simple – a business would not be able to succeed in unstable and volatile conditions where social and environmental issues have devastating effects on economic growth and prosperity. A single business can be called a legitimate player in the field of environmental conservation and social development. Clearly devised strategies towards these areas can tackle some of the most daunting global problems like poverty, hunger, environmental impacts, climate change, water scarcity, renewable energy sources, unemployment and so on. Most of these global challenges, pertaining to environmental impacts, have become all the more complex with the rise of industrialization and commercialism (Sadorsky, 2013). It is argued by Li and Lin (2015) that urbanization and the alarming growth of industries around the world is majorly responsible for environmental degradation around the world. Suffice to say, businesses today have to pay for their erroneous ways and have to compensate for the damage caused over the years. Simply devising strategies to tackle environmental degradation would not be sufficient. Instead, businesses would need to act out of a sense of obligation to the environment, the society and also its customers. The contribution of one single business would be a step forward in this direction.
It must be realized that the complexities involved in global issues can no longer be restricted to just government measures. All the four existing pillars in society, namely business government, society and civil society, would have to join hands to eliminate or at least reduce the threat emanating from these environmental and global problems. Business owners are now beginning to realize that corporations and firms form a major facet of human life. As such, these corporations have a say in how social and economic evolutions take place, how technological innovations would be implemented and the repercussions that industrial activities would have o the planet. Dangelico and Pontrandolfo (2015) argue that businesses are gradually adopting environmental measures for the sake of their own interests. This is true to a certain extent because businesses have recognized that such global issues could affect their overall revenue outcome as well, inhibiting the growth of business in the process. Climate changes, scarcity of necessary resources and environmental changes would affect the longevity of business. It can be assumed that the success of a business would depend on how business executives respond to these challenges.
There are various steps that a business can adopt to effectively deal with environmental impacts. Mudakkar et al., (2013) claims that creating businesses that are environmentally sustainable would increase the profitability of the business as well for it would result in reduction of operational costs. For instance, the concerned organization may install energy efficient systems like solar panels. There is no way for organizations to actually reduce the consumption of energy. Yet, renewable resources like solar energy may be used to provide electricity at offices. Such renewable sources of energy would significantly reduce emissions of greenhouse gases. Similarly, in an age of technological innovation, companies should devise ways of digitization. Using digital resources instead of paper would indirectly reduce deforestation. A business can make its operations eco friendly by implementing small but significant changes in its strategies. While some of these changes may seem minor, they would certainly contribute to the cause of environmental conservation in the long run.
Implications of social and public pressure for ethical behavior in organizations
However, Yunus (2017) argues that a single business cannot make a difference by working in isolation. Although business leaders might seize opportunities and attempt to address the global challenges, there are some threats and repercussions which are inevitable and unavoidable. For one single organization, it would be illogical to assume that they hold the solution to all of the world’s problems. The author accordingly suggests that a coalition between various organizations would be beneficial in tackling global issues. Mergers between companies with the same goals and objectives would result in a diversity of ideas and knowledge that can effectively lead the path towards a sustainable business. Moreover, such actions would encourage the same in hundreds of other firms around the world. The key lies in effective orchestration of such collective efforts. It would begin with a single business or organization serving as the catalyst, taking a step forward towards sustainable management. For the business acting as a catalyst, it would be first imperative to cultivate a vision for the required change. The nature of environmental impacts, the risks posed by the issue, the stakeholders who stand to be affected by the problem and potential opportunities would have to be highlighted. Accordingly, measures would have to be taken by the business. It is also the responsibility of the business to empower other likeminded businesses in the path towards sustainable action and innovation. Most importantly, it must be realized that each business is accountable for its own actions. Recognition of accountability would be instrumental in driving the concerned business towards environmental sustainability.
In conclusion, it can be said that the onus is on every individual business to take a step towards corporate social responsibility and environmental management. Entities like business corporations have certain responsibilities or duties and obligations towards the community or society it caters to. It is based on a give and take policy. Since the businesses would obtain resources from the society, it is their responsibility to give something back to the community as well. The world is plagued by several global issues today, ranging from environmental degradation to poverty. While some global issues may be outside the jurisdiction of business owners, some like environmental impacts can be controlled. One of the major reasons for environmental degradation is industrialization. In order to counter this issue, businesses can take necessary measures like the ones mentioned in the section above. Although it is assumed that a single business would not make a difference to global problems, efforts taken by one business can encourage a collective effort from organizations around the world.
Acquiring new knowledge would require self reflection, which would enable one to evaluate his or her own learning. In the previous assessments, I have analyzed and critically reviewed existing literature and theories pertaining to the role of business in addressing global issues. As such, I have studied the concepts of corporate social responsibilities as well. This concept essentially refers to the responsibility of every business entity towards the community or society it caters to or operates in. This reflective report will account for what I have learnt as part of the process, which would be beneficial for me in the long run.
Identifying and responding to ethical dilemmas that threaten organizations and industries
The most important lesson I have learnt as part of the assignment would be the extent to which a business can affect the environment. Research into this matter has helped me gain insight into the way businesses have adverse impacts on the environment around them. I have learnt that an enterprise would affect the surrounding environment through utilization and extraction of various environmental resources and by means of pollutants that are released as by products of the business operations. It is mainly the supply chain that affects the environment in a negative manner. The supply chain may be defined as a chain of processes that are involved in procurement of raw materials and development of the final product to the customers. As Seuring (2013) claimed, inefficient management of the supply chain within the organization would result in excessive waste and environmental degradation.
I believe that no organization or entity can work on its own. Even within the organization, there is network of dedicated individuals who are committed to their work. A cooperative effort on part of these individuals helps in smooth functioning of the operations. As McWilliams (2015) claimed, it is equally important for a business to pay due attention to its external environment. A business organization is a part of the community, for it makes use of resources available and uses them for its own benefit. These resources would include the company’s workforce and natural resources used as raw materials for manufacturing of products and services. Thus, it seems natural to me that since businesses would be acquiring these resources from the neighboring communities, they should take it upon themselves to pay back the community as well. This is what is referred to as corporate social responsibility (Carroll, 2015). At present, the world is plagued by numerous issues like climate change, environmental degradation, violence, poverty, unemployment and economic crises. Social and environmental issues have not only adversely affected the growth of economy around the globe but have also affected the quality of life of human beings. It is quite disheartening for me to see a majority of the world’s population living in miserable conditions below the poverty line. Similarly, I, like millions of others, am greatly affected by the poor conditions of the environment around us. Ever since the dawn of the industrial revolution and the alarming growth of urbanization and commercialism, people and businesses have largely ignored the context of consequences of such actions on the environment. As a result, the habitability of the world is currently in question with global warming on the rise. It is estimated that if such situations persist, without adequate measures to counter them, the world would be rendered inhabitable in the upcoming years.
I believe that the government is not solely responsible for imposing regulations on environmental impacts. While it must be stated that government regulations and policies do play a crucial role in reducing negative impacts on the environment, I believe that a more holistic approach would involve the active participation of all the four major aspects of society – business, government, society and civil society. Accordingly, it is the responsibility of every business to take it upon them to reduce environmental repercussions caused by organization operations (Lozano, 2015). I also believe that all businesses should be held accountable for their environmental impacts. There are numerous measures that can be taken by a firm to reduce the electricity and energy consumed or to reduce waste generated. However, most businesses tend to ignore such responsibilities. Consequently, the air, water and soil pollution caused by business operations pose health hazards and affect the physical and psychological well being of human beings. I agree with the concept that the world works in the form of a vicious cycle. The environmental waste created by people working in offices and factories ends up affecting other human beings. This cycle will continue, until measures are taken. For example, solar panels and other renewable sources of energy may be used by businesses to reduce pressure on non renewable resources of energy. Similarly, efforts can be made to minimize the waste generated by offices and factories. Reducing paperwork is one such option. Small but wholesome efforts on part of an organization would eventually make a difference in the long run.
Promoting corporate responsibility through values internally and externally
Most theorists, as the research above shows, are of the opinion that a single business would not be able to make much of a difference as far as global issues are concerned. These global issues have become increasingly complex and intense in the twenty first century, and are considered to be too large in terms of magnitude and consequences to be dealt with by organization. To a certain extent, this may be true. There are innumerable small, medium and large scale businesses around the world today, with each business contributing in some way or the other to the problem of environmental degradation. Therefore, the meager efforts of one organization would not make a difference. However, I, as a responsible citizen, cannot support the passive approach that most businesses have towards the issue. There has to be at least one responsible individual who, on recognition of the brevity of the situation, will rise up to the occasion. Unless the organizations begin to evaluate their own role in the issue of environmental degradation, no step would be made towards progress in a favorable direction. I believe that it would work in the manner of a chain reaction. If one organization starts a movement towards reduction of waste and energy efficiency, other organizations are bound to follow. This is because such measures are in the interest of the company itself. According to Ambec et al., (2013), adequate measures towards sustainable environment practices would win the goodwill of the customers and establish a positive reputation for the company (Boons & Lüdeke-Freund, 2013). In a highly competitive business environment, such measures would provide the organization with a competitive advantage. From a business point of view, I believe that such measures would have a twofold effect. On one hand, it would serve the purpose of the business by increasing its profitability. On the other, it would reduce toll on the environment as a result of business practices (Bocken, Rana & Short, 2015). The progress made by one company would encourage others in the same field to undertake similar measures and impose similar policies. This would eventually result in a kind of collective effort on the part of all businesses within an industry. Collaborative effect of all these businesses together would make a significant difference in the field of global issues and environmental impacts.
As part of my research, I have also learnt that adopting environment friendly strategies would have a number of benefits for businesses and organizations. For example, according to Bocken et al., (2014), it would improve productivity and save operational costs. Using such measures would help the company save in terms of energy usage, raw materials and production of wastes. Since customers would have a more favorable perception of the business, such measures are also likely to improve sales and profitability of the company. This would also yield more opportunities for investment. In the twenty first centuries, investors tend to evaluate a company based on their environmental performance. Moreover, according to Dangelico and Potrandolfo (2015), evaluation of environmental impacts or environmental impact assessment would reveal areas of improvement and provide the company with opportunities for growth. This would further improve the overall performance levels of the organization, thus consequently enhancing revenue generation.
Responsibility towards the environment: moral and legal obligations
To conclude, I would like to add that this learning process has been extremely enriching for me because it opened my eyes to the terrifying impacts of such global issues on our lives. I must admit that global problems like environmental impacts are collateral damage of the age of industrialization. As such, I believe that industries and businesses must take their share of the responsibility and be held accountable for the repercussions that we, as members of the community, have to face for their actions. It would be quite easy to claim that individual businesses cannot make much of a difference and that unless all organizations join hands, it would be impossible to embark on a path towards progress. However, I think a more active approach to the situation would be appreciated. Every individual business would have to incorporate necessary environmental strategies into their operations and work towards a more sustainable business practice. Efforts put in by different organizations would eventually have a snowball effect, and contribute towards the greater good.
References:
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