Firm Management of Ethics and Social Responsibility
Business ethics refers to a corporation doing the right thing by its customers, employees and other businesses. Similarly, social responsibility refers to a corporations's ownership of its policies and actions that affect society as a whole. Corporations spend much time and money determining policies and activities for its ethics and level of responsibility to society and then in the management of those policies and activities. Nowadays, it is beneficial for a company to establish and stick to policies that determine how it does business with its customers or clients, other businesses and agencies.
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Company Policies
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Corporations primary manage ethics and social responsibility tenets through the use of company policies and activities. Policies are written in staff handbooks, office memorandums and wall posters in common areas, such as bathrooms, hallways, workplaces and employee break rooms. Policies are also communicated verbally through staff training sessions, orientations and meetings. Oftentimes, policies are communicated non-verbally through the corporate culture just by commonplace. In these cases, new employees are either mentored and "shown the ropes" by longer term employees or observe the policies and activities by watching common, accepted behaviors amongst other employees.
Management Hierarchy
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Ethics and social responsibility policies are managed through clear channels of authority and chain of command through the company. First, policies are established and put into place company wide through written, verbal and non-verbal communication. Employees are trained often through written handbooks, video, role-play sessions and scenario-based training. Next, companies institute a system of checks and balances for the enforcement of the policies. Selected procedures and personnel are designated to handle correcting employees who break rules. A company can use a system of warnings, formal reprimands, suspension or termination to enforce ethics and social responsibility.
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System Review
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A system of reviewing the ethics and responsibility policies is established and executed periodically. Most companies establish committees to survey how policies are implemented, revise policies when necessary and disseminate new information about policy revision throughout the company. System reviews should be done periodically to address changing environments and issues that were not previously present when original policies were created.
Marketing and Public Relations
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Making external entities, such as customers and clients, other business and society as a whole aware of the company's ethics and level of social responsibility to its local and world community, makes good business sense. Companies that have ethics and social responsibility as a major concern while still doing successful business have a competitive advantage over companies that don't seem to care. For instance, customers are savvy and very concerned about corporate abuse and misuse of community resources and need to be reassured that company's are mindful of their role and responsibility in the society. Customers like to do business with companies that are responsible and exhibit integrity and accountability when dealing with customers and other businesses.
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References
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